IMPACT OF NPA ON PROFITABILITY OF INDIAN COMMERCIAL BANKS

 Manpriya Singh

Assistant Professor, Punjab College of Technical Education, Badhowal, Ludhiana, Punjab, India, Email- manprriya@gmail.com

ABSTRACT

Indian Banking sector, at present, is testing its strength and resilience. The influence of NPAs on the efficiency and profitability of banks is manifold. The present study aims to examine the impact of NPA on profitability of banks. A panel data set comprising 36 commercial banks over a period of 10 year (2011-2020) has been used. Conclusions have been drawn using fixed effect of panel regression model. Taking ROA and ROE as 2 major measures of profitability, NPA has shown negative correlation respectively.