An Empirical Study of Non-Performing Assets in Public and Private Sector Banks with Special Reference to Karnataka: Trends, Growth, and Determinants
Keywords:
Non-Performing Assets, public sector banks, private sector banks, Karnataka, credit risk, determinants.Abstract
This study investigates the trends, growth, and determinants of Non-Performing Assets (NPAs) in public and private sector banks in Karnataka from 2018 to 2023. Using panel data from five public sector banks (State Bank of India, Canara Bank, Bank of Baroda, Punjab National Bank, Union Bank of India) and five private sector banks (HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IDFC First Bank), the analysis employs regression models to identify key drivers of NPAs. Results indicate that public sector banks exhibit higher NPA ratios due to factors like macroeconomic volatility, credit concentration, and operational inefficiencies, while private banks demonstrate better risk management and asset quality. The study contributes to the literature by offering a region-specific comparative analysis and proposes policy recommendations for NPA mitigation.
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