authors
Pankaj Kumar Thakur

abstract
Non-Performing Assets (NPAs) are loans or advances on which borrowers have stopped making interest or principal repayments for a specified period, usually 90 days or more. NPAs are a key indicator of a bank’s financial health and efficiency. This study makes a comparative analysis of NPAs in public sector banks and private sector banks in India. Public sector banks often face higher NPA levels due to large exposure to priority sector lending, infrastructure projects, and government-directed loans. In contrast, private sector banks usually have stricter credit appraisal systems, diversified loan portfolios, and faster recovery mechanisms, which help in keeping NPAs relatively lower. The study examines trends over recent years, reasons for differences, and the impact of NPAs on profitability, liquidity, and overall performance of banks. It also highlights the role of the Insolvency and Bankruptcy Code (IBC), SARFAESI Act, and other recovery measures taken by the Reserve Bank of India (RBI) and the Government of India. The findings suggest that while both sectors face NPA challenges, better risk management and technology-driven monitoring in private banks have resulted in comparatively healthier asset quality.