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Effect of Vital Financial Heads on NPAs of Public and Private Sector Banks


Affiliations
1 Department of Commerce, HNB Garhwal University (A Central University), Srinagar Garhwal, Uttarakhand, India
2 Department of Commerce, H.N.B Garhwal University (A Central University), Srinagar Garhwal, Uttarakhand, India
     

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The development of the banking industry is the barometer of economic growth of any economy. The basic function of banks is to lend money in the form of loans to different sectors like agriculture, housing, personal and others to meet the productive use of these funds. This paper aims to assess the effect of each vital financial heads on NPA of public and private sector banks. The present study is empirical in nature based on the annual reports and websites of selected banks for the period 2012-2016. Two public and two private sector banks have been selected for the purpose on the basis of their largest market capitalization. Multiple regression analysis has been used for the purpose of analysis. The findings reveal that the study found insignificant impact of vital financial heads on NPA of public and private sector banks from 2012-2016.

Keywords

Non-Performing Assets, Total Assets, Total Deposits, Total Advances, Net Interest Income.
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  • Effect of Vital Financial Heads on NPAs of Public and Private Sector Banks

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Authors

Rashmi Kumari
Department of Commerce, HNB Garhwal University (A Central University), Srinagar Garhwal, Uttarakhand, India
V. C. Sharma
Department of Commerce, H.N.B Garhwal University (A Central University), Srinagar Garhwal, Uttarakhand, India

Abstract


The development of the banking industry is the barometer of economic growth of any economy. The basic function of banks is to lend money in the form of loans to different sectors like agriculture, housing, personal and others to meet the productive use of these funds. This paper aims to assess the effect of each vital financial heads on NPA of public and private sector banks. The present study is empirical in nature based on the annual reports and websites of selected banks for the period 2012-2016. Two public and two private sector banks have been selected for the purpose on the basis of their largest market capitalization. Multiple regression analysis has been used for the purpose of analysis. The findings reveal that the study found insignificant impact of vital financial heads on NPA of public and private sector banks from 2012-2016.

Keywords


Non-Performing Assets, Total Assets, Total Deposits, Total Advances, Net Interest Income.

References