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Inventi Rapid - Microfinance & Banking

Articles

  • Inventi:mmb/90/13
    A STUDY ON IMPACT OF NPA ON PROFITABILITY AND LIQUIDITY IN PUBLIC SECTOR BANKS
    Pankaj N Kamaliya*, Ketan P Dhameliya, Ranjani Srinivasan

    The level of NPA act as an indicator viewing the bankers credit risks and competence of allocation of resource. Non-performing Asset is an important factor in the analysis of financial performance of a bank as it results in decreasing boundary and higher provisioning requirement for doubtful debts. This paper deals with the concept of NPA assets, its magnitude and impact on profitability and liquidity. From the analysis 10 year data from 2002-03 to 2011-12 its clearly indicate that factor NPA is most risky in public sector bank and more impact on profitability and liquidity .The profitability of all public sector banks affected at very large extent when NPAs work with other banking strategic variables and also affect productivity and efficiency. Applied the different test end of the paper conclude that its highly impact in public sector banks.

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