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A comparative statistical approach on non-performing assets (NPAs) among PNB and ICICI bank operating 2011-2018

Author Affiliations

  • 1Department of Management, Sarvepalli Radhakrishnan (SRK) University, NH-12, Hoshangabad Road, Bhopal, India

Res. J. Management Sci., Volume 8, Issue (2), Pages 16-27, May,6 (2019)

Abstract

The banking sector phasing Non- Performing Assets (NPA) as a major problem in India. The rising of NPAs has become foremost concerns for the banking sector in India. The current paper is an effort to undertake an inter-bank comparison of non-performing assets (NPA) of Punjab national bank (PNB) and ICICI bank, during the operating period 2011-2018.The data has been collected for seven years ranging from 2011-12 to 2017-18, from annual reports of the respective bank's website. The outcomes of the study disclose that PNB banks have significantly higher The Gross NPAS / The Gross advances ratio, The Gross NPAs/ The Total assets ratio, The Net NPAs / The Net advances ratio, The Net NPAs/The Total assets ratio and The Total provision ratio as compared to ICICI banks. Though the shareholder's risk ratio is significant lowers in ICICI bank when compared to PNB bank. Correlation analysis indicated that there is a significant negative correlation between The Gross NPA and The Net Profit, significant positive correlation between The Net NPA and The Net Profit in PNB bank. However, in ICICI bank, there is a negative correlation between the Gross NPA and The Net Profit and The Net NPA and The Net Profit but then it is not significant. In sector-wise NPAs, The agriculture sector, as well as the personal loans sector, was significant lowers in ICICI bank when compared to PNB bank. Though the industry sector and the services sector is comparable among PNB bank and ICICI bank. The outstanding amount is lower in ICICI bank as compared to PNB bank; this is a very positive sign for ICICI bank. The amount of NPAs in ICICI bank is lessen then PNB bank, because of their effective NPA management. The amount of NPA is reasonably lower in ICICI bank when compare with PNB bank. To bring improvement in the efficacy and productivity of PNB banks, the NPA is essential to be controlled and supervised.

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