Name: Poonam Mahajan, Sukhjinder Kaur, Gurpreet Kaur
Country: India

Year: 2023
Volume: Volume-10, Issue-2 (July-December)
Page Number: 24-38

Purpose: The aim is to measure the trend of NPAs of Scheduled Commercial Banks comprising of public, private and foreign sector banks in India for a period of 22 years from financial year 2001 to 2022. The objective of the study is to assess the significant differences in NPAs of SCBs (public, private and foreign sector) in India.
Methodology: Secondary sources such as website of RBI and the annual reports of SCBs are used to extract data. The Ratios have been calculated to measure the trend of banks over a period of 22 years. The line diagrams have been used to show the trends diagrammatically. ANOVA one way analysis and two paired sample T-test have been employed to measure the significant differences in the NPAs of these banks.
Findings: The trend line shows that non-performing assets of public sector banks has upward trend as compared to private and foreign sector banks. The increase in magnitude of NPA ratios of public, private and foreign sector banks is high in 2018. The reasons could be the global financial crisis and economic conditions in country in the financial year 2018 and failing of Indian banks to take preventive action in checking bad loans during that year. But public sector banks were major victim of the state. The credit growth of private and foreign sector banks was improved in September 2018. ANOVA one way test shows that there are significant differences in the NPAs between and within public, private and foreign sector banks during period of the study. Two paired sample T test shows that significant differences could be observed between public-private, private-foreign and public-foreign sector banks in India.
Practical Implications: This type of study helps to identify the causes and reasons of NPAs of SCBs (public, private and foreign sector) so that policymakers can take strict actions for recovery of the non-performing assets timely. The study could be a base for academicians and researchers for further analysis of determinants of NPAs. The common public, including customers and investors, can frame their short-term and long-term investment decisions based on the performance of NPAS of these banks.
KEYWORDS: SCBs, Public, Private and Foreign Sector Banks, NPAs, Ratios, ANOVA one way test.