An Empirical Study on NPA and its Impact on Profitability with Special Reference to Punjab National Bank

Today Non-performing assets are one of the major concerns for all the banks in India. NPAs reflect the overall performance of Indian banks as NPA of the bank increases on the other hand profit of the bank deceases. The issue of Non-Performing Assets is become a hot topic in the financial world in India today. The increase of NPAs is not only affecting the profitability of the banks but also the country's economy. To improve the profitability, the NPAs have to be scheduled. The problem of losses and lower profitability is because of Non- Performing Assets (NPAs) and liability mismatch in banks and financial sector is totally depending on credit risk management in their business. This study provides an analysis of profitability, advances of bank indicators with a focus on the non-performing loans (NPAs) of Punjab National Bank. The empirical analysis demonstrates the relation between Net NPA, Advances and Net Profit.