NPAs and profitability in Indian banks: an empirical analysis

Abstract As financial intermediaries, the commercial banks to a large extent depend on performance of their lending as critical source earning. Due increasing loan failures, share non-performing advances has increased substantially in recent years, thereby adversely impacting profitability. The paper examined NPAs and profitability relationship by estimating determinants 39 public sector private for time period from 2005 2019. Using set bank specific macroeconomic predictors profitability, we found that NPA negative impact rate profit Indian banks. study suggests must reduce operating cost improve