Abstract:

For any country, the banking industry is critical to its development. As a result, whatever occurs in the banking sector has an impact on the economy. The Indian banking system has been grappling with a major problem: rising levels of non-performing assets (NPAs), which might have a negative impact on the economy. Utilizing Annova statistics, the current article attempted to analyze the net non-performing asset data of 20 public sector banks over six years (2015-2020) using secondary data from the RBI website. According to the study, PSBs have adopted liberal and loose lending practices, concentrating loans on a few major corporate borrowers and a few sectors, i.e., massive credit exposures to a few large corporate borrowers and a few sectors. PSB managements are unconcerned about their success and performance because there are no incentives or punishments for their success or failure.

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