TRENDS AND PATTERNS OF NPAS IN PUBLIC AND PRIVATE SECTOR COMMERCIAL BANKS IN INDIA: A DECADAL ANALYSIS (2013 2023)

This study presents a comparative analysis of Non-Performing Assets (NPAs) in Indian public and private sector banks from 2013 to 2023, examining trends, policy impacts, and sectoral resilience. Using RBI data, the study evaluates how asset quality evolved through economic shocks, regulatory reforms, and the COVID-19 pandemic. Findings reveal that private banks consistently maintained lower NPA ratios (peaking at 5.5% gross NPA vs. public banks 14.6%), attributed to superior risk management, diversified portfolios, and agile governance. Public sector banks, despite significant post-2018 recovery due to the Insolvency and Bankruptcy Code (IBC) and recapitalisation, still lag in asset quality (5.0% gross NPA in 2022 23 vs. private banks 2.3%). The study highlights structural inefficiencies in public banks and underscores the role of governance, technology, and policy interventions in shaping NPA outcomes. Key lessons include the need for institutional reforms in public banks and adaptive risk frameworks to sustain financial stability.