A Study On Non Performing Assets And Its Impact On Profitability

• Author(s):

  S. Keerthana | Mrs. R. Keerthana

• Keywords:

  Non-Performing Assets (NPAs), Return On Assets (ROA), Return On Equity (ROE), Net Profit Margin (NPM), Asset Quality, Financial Performance, Recovery Mechanisms, Regression Analysis, Trend Analysis.

• Abstract:

  This Study Examines The Impact Of Non-Performing Assets (NPAs) On The Profitability Of Indian Overseas Bank (IOB) During The Period 2021–2025. NPAs Have Become A Major Concern In The Indian Banking Sector As They Affect Liquidity, Profitability, And Overall Financial Stability. The Research Aims To Analyze The Trend Of Gross And Net NPAs, Evaluate Their Effect On Key Profitability Indicators Such As Return On Assets (ROA), Return On Equity (ROE), And Net Profit Margin, And Assess The Effectiveness Of Recovery Mechanisms Adopted By The Bank. The Study Follows An Analytical Research Design Based On Secondary Data Obtained From IOB Annual Reports And RBI Publications. Tools Such As Trend Analysis, Percentage Analysis, And Multiple Regression Were Applied To Interpret The Data. The Findings Show A Continuous Decline In Gross And Net NPAs, Indicating Better Asset Quality And Improved Recovery Performance, While Profitability Ratios Have Shown Consistent Growth. Regression Analysis Confirms That Higher NPAs Negatively Influence Profitability. The Study Concludes That Efficient NPA Management, Strict Credit Appraisal, And Continuous Monitoring Are Essential For Improving Financial Performance And Ensuring Sustainable Growth Of The Bank.

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Other Details

• Paper id:

  IJSARTV11I12104422

• Published in:

  Volume: 11 Issue: 12 December 2025

• Publication Date:

  2025-12-06

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