DIP: 18.02.033/20240901 
DOI: 10.25215/2455/0901033 
Abstract
This study examines the issue of Non-Performing Assets (NPAs) in India’s banking sector, focusing on a comparative analysis between public and private sector banks. Using secondary data from 2013–14 to 2022–23 and statistical techniques such as the Mann–Whitney U test and regression analysis, the study identifies significant differences in NPA levels, their contributing factors, and their impact on financial performance. Results show that public sector banks have consistently higher NPAs than private banks, and they are more affected by systemic issues such as political interference, poor credit appraisal, and ineffective recovery. The regression analysis reveals a strong negative relationship between NPAs and banks’ financial performance (measured by ROA), indicating that rising NPAs adversely affect profitability. The study emphasizes the need for stronger credit monitoring, recovery mechanisms, and autonomy in lending decisions, especially in the public banking sector.
The author(s) appreciates all those who participated in the study and helped to facilitate the research process. 
The author(s) declared no conflict of interest. 
ISSN 2455-670X