Non-Performing Assets (NPAs): A Comparative Study of PNB and HDFC Bank

Abstract

The issue of NPAs in the Indian banking sector has become the subject of much discussion and scrutiny. Escalating NPAs require a bank to make higher provisions for losses in their books. The banks set aside more funds to pay for anticipated future losses; and this, along with several structural issues, leads to low profitability. Present paper analyse the NPAs of PNB and HDFC banks over a period of ten years. The results revealed that the that net NPA for Punjab National Bank are more as compared to HDFC Bank.