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A Comparative Analysis of NPAs in SBI and HDFC Public vs. Private Banks in India

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Business Management

Pages- 56

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Contents

ACKNOWLEDGEMENTS. 2

List of Table: 5

  1. Introduction. 6

1.1 Background. 7

1.2 Problem Statement: 7

1.3 Research Objective: 7

1.4 Scope and Limitations: 8

1.5 Structure of the Study: 8

  1. Literature Review.. 8

2.1 Definition of Non-Performing Assets (NPAs). 8

2.2 Types of NPAs. 10

2.3 Causes of NPAs. 10

2.4 Impact of NPAs on Banks and Economy. 12

2.5 Previous Studies on NPAs in Indian Banking Sector. 13

2.6 SBI and HDFC Bank: An Overview.. 14

2.7 Theoretical Framework. 14

  1. Research Methodology. 15

3.1 Research Design. 15

3.2 Data Collection. 16

3.3 Data Analysis. 17

3.4 Ratios for Measuring NPAs. 17

3.5 Timeframe for Analysis. 18

  1. Data Analysis and Findings. 19

4.1 SBI NPA Ratios (Last 5 Years). 19

4.2 HDFC Bank NPA Ratios (Last 5 Years). 20

4.3 Comparative Analysis of NPAs between SBI and HDFC Bank. 21

4.4 Discussion on Findings: 22

4.5 Limitations of the Study: 22

  1. Reasons for NPAs in SBI and HDFC. 23

5.1 Factors Contributing to NPAs in SBI 23

5.2 Factors Contributing to NPAs in HDFC. 24

5.3 Comparative Evaluation of Causes of NPAs in SBI and HDFC. 25

  1. Management and Recovery of NPAs. 27

6.1 NPA Management in SBI 27

6.2 NPA Management in HDFC. 28

6.3 Comparative Analysis of NPA Recovery Strategies in SBI and HDFC. 29

  1. Implication of NPAs on the Indian Economy. 31

7.1 Economic Impact of NPAs of SBI and HDFC: 31

7.2 Role of the Regulatory Authorities in NPA Management: 31

7.3 Effect of NPAs on Economic Growth and Development: 32

8.1 Mitigation Strategies Implemented by SBI 33

8.2 Mitigation Strategies Implemented by HDFC. 34

8.3 Recommendations for Further Improvements. 35

8.4. Implications for Policymakers and Regulators. 37

8.5 Future Research Direction. 38

  1. Regulatory Framework and Policies. 39

9.1 RBI guidelines and regulations on NPAs. 39

9.2 Restructuring and Resolution Mechanisms: 39

9.3 Prompt Corrective Action (PCA) Framework: 40

9.4 Impact of regulatory policies on NPAs in SBI and HDFC Bank. 42

  1. Risk Management Practices. 44

10.1 Risk management frameworks in SBI and HDFC Bank. 44

10.2 Comparison of risk identification and mitigation strategies. 47

10.3 Role of risk management in NPA management. 49

10.4 Mitigation and Resolution Strategies: 50

10.5 Regulatory Compliance and Governance: 50

  1. Conclusion and Recommendations. 51

11.1  Conclusion. 51

11.2  Recommendations. 51

11.3  Recommendations for SBI and HDFC Bank. 52

  1. References. 53

Appendices. 55

7.1 Appendix A: Financial Statements of SBI and HDFC Bank (Last 5 Years). 55

7.2 Appendix B: Additional Data and Charts. 56

 

List of Table:

Table 1 SBI NPA Ratios (Last 5 Years). 18

Table 2 HDFC Bank NPA Ratios (Last 5 Years). 19

Table 3 Comparative Analysis of NPA Ratios between SBI and HDFC Bank. 20

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