📄 Abstract
This study examines the impact of Non-Performing Assets (NPA) on the profitability of two leading public sector banks in India: State Bank of India (SBI) and Punjab National Bank (PNB). Through multiple regression analysis, the study explores the relationship between Gross NPA (GNPA), Net NPA (NNPA), Provision Coverage Ratio (PCR), and Return on Equity (ROE). The results indicate statistically significant models for both banks. For SBI, GNPA shows a negative impact on ROE, while NNPA and PCR exhibit positive influence. In PNB, NNPA and PCR also demonstrate significant effects, with NNPA negatively impacting ROE and PCR contributing positively. GNPA?s impact in PNB, though positive, is not strong. These findings highlight the critical role of NPA management and provisioning in driving profitability. The study underscores the importance of strong asset quality and provisioning practices for enhancing bank performance.
🏷️ Keywords
📚 How to Cite:
Ms. M. Indumathi, Dr. R. Kavitha ,Ms.S.Sathiya , ASSESSING THE RELATIONSHIP BETWEEN NON-PERFORMING ASSETS (NPAs) AND PROFITABILITY OF PUBLIC SECTOR BANKS , Volume 12 , Issue 5, may 2025, EPRA International Journal of Economics, Business and Management Studies (EBMS) ,