ABSTRACT:

India is a dominating economy in Banking sector, the asset quality of the banking system has important implications for the stability of the overall financial system. Private sector banks are split into two groups by financial regulators in India they are Old Private Sector Banks (OPBs) and New Private Sector Banks (NPBs). The private banks existed prior to the nationalization in 1969 kept their independence these Banks are closely held by certain communities. With the introduction of economic and financial sector reforms new private sector banks have come up. Private Banks holds around 19% of market share in banking sector in India. The main objective of banks is to lend loans and advances and this is the source of cash inflows in the form of interest on advances to the banks such loans are lent by using deposits from public and government share. If the advances turn to NPAs it is pathetic situation for the banks to control. The paper is an attempt to study and the comparative analysis of OPBs and NPBs in managing NPAs and its various causes and strategies used to minimize the NPAs.