A Study on the Impact of Non-performing Assets on Profitability of Public and Private Sector Banks in India

This study investigates the impact of Non-Performing Assets (NPAs) on the profitability of selected public and private sector banks in India from 2021 to 2025. Focusing on SBI, BOI, HDFC, and ICICI, the research examines Gross and Net NPA trends and their effect on Net Profit and Return on Assets (ROA). The research uses secondary data from bank reports and RBI publications, applying descriptive statistics and correlation analysis. Key findings include strong negative correlations between NPAs and profitability metrics, with public banks showing notable recoveries. The study concludes that efficient NPA management enhances profitability and recommends robust credit appraisal systems, improved recovery processes, and continued regulatory oversight.