Abstract:
Purpose: This study aims to analyze the situations of NPA levels and their impact
on the profitability of HDFC Bank and ICICI Bank.
Approach/Methodology/Design: The profitability data of the two banks, HDFC
Bank and ICICI Bank, has been taken for the years 2018 to 2022. The research is
secondary in nature and the data collection is done by way of annual reports. For
data analysis, the independent samples t-test is applied in the study.
Findings: The Gross NPA levels and Net NPA levels have shown significant
differences between the two banks under study. This suggests the NPA levels of
both banks are unequal. The return on assets was also found significantly
different in both banks.
Originality/value: This study focuses on the aspect of efficiency of private sector
banks in accordance with NPA levels. The NPA levels and management of NPA
are 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.
