Non-performing assets (NPA) big barrier in banks: A comparative study of SBI & ICICI bank from 2011-2018
Dr. Ashish Khandelwal and Rumjhum Choudhary
The banking system of an economy is of foremost importance for its financial and economic development. It forms the core of the financial sector and plays a critical role in transmitting monetary policy impulses to the entire economic system. Hence the stability of banking sector is of paramount importance for the development of an economy. The banks are lending funds as loans and advances to various sectors such as agriculture, industry, personal and housing and other to meet the productive use of these funds. To ensure the firmness of the banking industry, it is essential that the performance of individual banks are checked. An important indicator today that determines the solidity of the banks are the Non-performing Assets; but in recent times the banks have become prudent in extending advances, the reason is increasing non-performing assets. This paper is an attempt to compare the non- performing assets of SBI and ICICI Bank using the secondary data analysis and to comment on their individual performances too. This study also identifies the cause of the increasing non-performing assets in the banks and a few suggestions have also been extended.