IMPACT OF SOCIOECONOMIC COMPULSION ON NPA LEVEL OF SELECT BANKS IN INDIA: A COMPARATIVE STUDY

Abstract

The reforms in the financial sector have resulted in numerous changes in the banking sector. In order to improve the financial health of the banks, various norms have been introduced at regular intervals. As the banking sector constitutes a major component of the financial service sector, the soundness of the banking sector is necessary for a dynamic and healthy economy. The establishment of a
productive, efficient and stable economy is possible only when a country is having a sound and healthy banking sector. This study has been an attempt to analyse the comparative performance of selected public and private sector banks in India during the period 2003 to 2013 on the basis of their direct and indirect contributions to the society for socio-economic growth and its impact on quality of assets or NPA level of the banks. For this purpose five leading Indian banks from each of the public and private sector banks have been taken into consideration. Findings of the study indicate that the performance of the private sector banks is better from the bankers’ viewpoints but from the social viewpoints, public sector banks are better performers