Measuring NPA Levels and Its Impact on Profitability: A Study of HDFC and ICICI Banks

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Shrey Bhupatkar Shrey Bhupatkar
Shailesh N. Ransariya

Abstract

Purpose: this study attempts to analyse the situations of NPA levels and its impact on Profitability of HDFC Bank and ICICI Bank.


Approach/Methodology/Design: As the suggested title, data of two banks HDFC Bank and ICICI Bank with aspect of NPA has been taken for the years of 2018 to 2022. The research is secondary in nature and the data collection is done by way of annual reports and the independent samples t-test is applied for the study.


Findings: The Gross NPA levels and Net NPA levels have shown significant difference. This suggests the NPA levels of both banks are unequal. The return on assets were also found significantly different in both the banks.


Practical Implications: This study focuses on aspect of efficiency of private sector banks in accordance with NPA levels. The NPA levels and management of NPA is found to be more effective in tackling NPA situations but the comparative study of NPA will reflect the situations of NPA in private sector banks as well.

Article Details

How to Cite
Shrey Bhupatkar, S. B., & Ransariya, S. N. . (2023). Measuring NPA Levels and Its Impact on Profitability: A Study of HDFC and ICICI Banks. Journal of Advanced Research in Economics and Administrative Sciences, 4(2), 13-17. https://doi.org/10.47631/jareas.v4i2.606
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