The banking industry which is essential to the development of an economy often play with non-performing assets. An asset for which the borrower has not paid the interest or principal for the given period of time, it is referred to as a non-performing asset in India. This is as per the as per compliance in accordance with the guidelines issued by RBI. As non-performing assets increase, banks become more cautious in the disbursement of the loans. As a result, there is less flow of credit to industries which in turns creates a problem of payments. The objectives of the current research article are to compare the factors for non-performing assets and returns on assets for PSUs and private sector banks over a period of twelve-year i.e., 2010–11 to 2021–22. The study takes into account a variety of performance indicators, including gross NPA%, net NPA%, return on assets, growth in net non-performing assets (NNPA) and growth in return on assets (ROA). For PSUs, statistical date about performance of State Bank of India, Punjab National Bank, and for private sector, HDFC Bank and ICICI Bank have been considered. While there has been a decline in NPA’s over the research period, PSUs still have far more non-performing assets than private sector banks. Although there are also declining patterns in the returns on assets, PSUs are far less affected as compared to private sector banks.
