Analyzing The Impact of Non-Performing Assets on The Financial Stability of Indian Banks (2014–2024)

Abstract

The Indian banking industry faces a serious problem with "non-performing assets (NPAs)", which has a credit flow profitability and an impact on financial stability. Using the data of "Reserve Bank of India (RBI), this study looks at the Non-Permital Employment (NPA)" growth trends and how they affect Indian banks between 2014 and 2024. To identify important drivers such as poor credit evaluation and economic recession, it examines the gross "non-demonstration property (NPA)" and their ratio beyond the "public and private banks". According to research, private banks such as HDFC Banks had NPA ratio (1.24% in 2024) compared to public banks like Punjab National Banks, with a high ratio (at a peak of 18.38% in 2018). After the NPA ratio 2018, regulatory tasks such as insolvency and bankruptcy codes decreased as a result, although problems still exist. To improve banking stability, study highlights strong credit management and legislative changes.