6.
1 GROSS NPA (%)
Gross NPA Ratio = (Gross NPA / Gross Advance) *100
6.1.1 Gross NPA Ratio of 2018 -2019
2018-2019
HDFC ICICI KOTAK AXIS
BANK BANK MAHINDRA BANK
Gross NPA 11,224.16 45,676.04 4,467.94 29,789.44
Gross Advance 8,19,401.22 5,86,646.58 205,694.81 494,797.97
Gross NPA 1.36 7.79 2.17 5.26
Ratio
(%)
Gross NPA Ratio of 2018 -2019
7.79
8
6 5.26
5
3 2.17
2
1.36
1
0
HDFC ICICI KOTAK MAHINDRA AXIS
2018 -2019
INTERPRETATION
The gross NPA of HDFC Bank and Kotak Mahindra Bank in the year 2018
was 1.36% and 2.17% respectively. The gross NPA Ratio of ICICI Bank and
AXIS Bank are 7.79%and 5.26% in the year 2018 which is relatively higher
as compared in private sector banks. ICICI bank’s gross NPA was seen
highest among all the four banks whereas gross NPA of HDFC bank was
lowest among all. Moreover, as compared to ICICI bank, HDFC banks has
lower gross non-performing assets.
6.1.1 Gross NPA Ratio of 2019-2020
2019-2020
HDFC BANK ICICI BANK KOTAK AXIS BANK
Gross NPA Ratio of 2019-2020
MAHINDRA
Gross NPA 12,649.97 40,829.09 5,026.89 30,233.82
7 6.39
6
Gross 9,93,702.88 645,289.97 219,748.195.29571,424.16
Advance
5 Gross NPA 1.27 6.39 2.28 5.29
4 Ratio (%)
3 2.28
2 1.27
1
2020
INTERPRETATION
The gross NPA ratio of HDFC Bank and ICICI Bank in the year 2019 was 1.27% and
6.39% respectively. The gross NPA Ratio of Kotak Mahindra Bank and AXIS Bank are
2.28% and 5.29% in the year 2020. The gross NPA of all the banks have decreased as
compared to the previous year. The proportion of gross NPA of HDFC Bank is relatively
lower than the ICICI Banks.
6.1.3 Gross NPA Ratio of 2020-2021
2020-2021
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Gross NPA 15,086.00 40,841.42 7,425.51 25,314.84
Gross 1,132,836.63 733,729.09 223,688.62 623,720.19
Advance
Gross NPA 1.33 5.57 3.32 4.0
Ratio (%)
Gross NPA Ratio of 2020-2021
6 5.57
5
4
4
3.32
3
2
1.33
HDFC ICICI KOTAK MAHINDRA
INTERPRETATION
The gross NPA ratio of HDFC Bank and AXIS Bank in the year 2020 was 1.33% and
3.32% respectively. The gross NPA Ratio ICICI Bank and AXIS Bank are 5.57% and 4%
in the year 2021 which is relatively higher as compared to banks. In the year 2020, the
gross NPA of all the banks have decreased as compared to the previous years but still it is
too high and banks needs to lower this ratio. ICICI maximum gross NPAs as compared to
other banks.
6.1.4 Gross NPA Ratio of 2021- 2022
2021-2022
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Gross NPA 16,140.96 33,294.92 6,469.74 21,822.32
Gross 1,368,820.93 859,020.44 271,253.60 707,695.95
Advance
Gross NPA 1.18 3.86 2.38 3.0
Ratio (%)
GROSS NPA Ratio of 2021-2022
3.86
4
3.5
3
3
2.38
2.5
1.5 1.18
0.5
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
The gross NPA ratio of HDFC Bank and Kotak Mahindra Bank in the year 2021 was
1.18% and 2.38% respectively. The gross NPA Ratio of ICICI Bank and AXIS Bank are
3.86% and 3% in the year 2022 which is relatively higher as compared to other two
banks. The gross NPA ratio of HDFC bank was seen lowest and ICICI was highest among
all the banks in the year 2022. ICICI banks should focus on reducing the gross NPAs.
6.1.5 Gross NPA Ratio of 2022- 2023
2022-2023
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Gross 18,019.03 29,860.70 5,768.32 18,604.23
NPA
Gross 1,600,585.90 1,019,638.31 319,861.21 845,302.84
Advance
Gross 1.12 2.81 1.80 2.20
NPA Ratio
(%)
GROSS NPA Ratio of 2022-2023
3 2.81
2.5 2.2
2 1.8
1.5
1.12
1
0.5
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
The gross NPA ratio of HDFC Bank and Kotak Mahindra Bank in the year 2023 was
1.12% and 1.8% respectively. The gross NPA Ratio of ICICI Bank and AXIS Bank are
2.81% and 2.2% in the year 2023 which is relatively higher as compared to other two
private banks. These ratios have been reducing consistently over the past few years. In the
year 2023, the gross NPA of ICICI was highest at 2.81% whereas HDFC bank was the
lowest at 1% which means ICICI Bank have to reduce this ratio as early as possible.
GROSS NPA OF 2018-2023
Chart Title
8
0
2018-19 2019-20 2020-21 2021-22 2022-23
HDFC ICICI KOTAK MAHINDRA AXIS
6.2 Net NPA Ratio (%):
Net NPA Ratio (%) = Net NPAs / Net Advances * 100
6.2.1 Net NPA Ratio for 2018-2019
2018 -2019
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Net NPA 3,214.52 13449.72 1,544.37 11275.6
Net Advance 8,19,401.22 5,86,646.58 205,694.81 494,797.97
Net NPA Ratio 0.39 2.29 0.75 2.27
(%)
NET NPA Ratio of 2018 -2019
6
5.26
5
3
2.29
2
0.75
1
0.39
0
HDFC ICICI KOTAK MAHINDRA AXIS
2018 -2019
INTERPRETATION
The Net NPA ratio of private sector banks HDFC Bank and ICICI Bank in the year 2019
was 0.39% and 2.29% respectively. The net NPA Ratio of Kotak Mahindra Bank and
AXIS Bank in the year 2019 was 0.75% and 5.26% respectively. It shows that in the year
2019, the net NPA ratio of HDFC bank was lowest and of AXIS was highest among all
the 4 banks. Overall, HDFC Banks has the lower net NPA ratio as compared to the ICICI
Banks.
6.2.2 Net NPA Ratio for 2019-2020
2019 -2020
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Net NPA 3,542.36 10,113.86 1,557.89 9360.41
Net 993,702.88 645,289.97 219,748.19 571,424.16
Advance
Net NPA 0.36 1.54 0.71 1.63
Ratio (%)
Net NPA Ratio of 2019-2020
6 5.29
1.54
2
0.71
1 0.36
2020
INTERPRETATION
The Net NPA ratio of private sector banks HDFC and ICICI Bank in the year 2020 was
0.36% and 1.54% respectively. The net NPA ratio of HDFC banks was much lower as
compared to the AXIS banks. The net NPA Ratio of Kotak Mahindra Banks & AXIS
Bank in the year 2019 was 0.71% and 5.29% respectively. The net NPA ratio was
minimum in HDFC bank whereas, maximum in the AXIS bank.
6.2.3 Net NPA Ratio for 2020-2021
2020-2021
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Net NPA 4,554.82 9,117.66 2,705.17 6993.52
Net 1,132,836.63 733,729.09 223,688.62 623,720.19
Advance
Net NPA 0.40 2.10 1.21 1.12
Ratio (%)
Net NPA Ratio of 2020-2021
2.5
2.1
1.5
1.21 1.12
1
0.4
0.5
HDFC ICICI KOTAK MAHINDRA
INTERPRETATION
The net NPA is constantly decreasing over the last few years. The Net NPA ratio of HDFC
and ICICI Bank in the year 2021 was 0.4% and 2.1% respectively, whereas, The net NPA
Ratio of Kotak Mahindra Bank and AXIS Bank in the year 2021 was 1.21% and 1.12%
respectively. As compared HDFC Bank, the ICICI bank net NPA is higher in the year
2021.
6.2.4 Net NPA Ratio for 2021-2022
2021 -2022
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Net NPA 4,407.68 6,960.89 1,736.71 5512.16
Net 1,368,820.93 859,020.44 271,253.60 707,695.95
Advance
Net NPA 0.32 0.81 0.64 0.77
Ratio (%)
Net NPA Ratio of 2021-2022
0.9
0.81
0.8 0.77
0.7 0.64
0.6
0.5
0.4 0.32
0.3
0.2
0.1
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
The Net NPA ratio of private sector banks HDFC and ICICI Bank in the year 2022
was 0.32% and 0.81% respectively whereas, the net NPA Ratio of Kotak Mahindra
Bank and AXIS Bank in the year 2022was 0.64% and 0.77% respectively. Private
sector banks specially ICICI needs to reduce the net NPA of the company.
6.2.5 Net NPA Ratio for 2022-2023
2022 -2023
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Net NPA 4,368.43 5155.70 1,193.30 3558.92
Net 1,600,585.90 1,019,638.31 319,861.21 845,302.84
Advance
Net NPA 0.27 0.51 0.37 0.39
Ratio (%)
Net NPA Ratio of 2022-2023
0.6
0.51
0.5
0.37 0.39
0.4
0.27
0.3
0.2
0.1
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
The Net NPA ratio was constantly increasing over the past few years among these banks.
The Net NPA ratio of private sector banks HDFC and ICICI Bank in the year 2023 was
0.27% and 0.51% respectively Whereas, The net NPA Ratio of Kotak Mahindra Bank and
AXIS Bank in the year 2023 was 0.37% and 0.39% respectively. Among all the banks
ICICI net NPA is seen highest.
6.3 Provision Coverage Ratio (%)
Provision coverage Ratio = (Provisions / Gross NPAs) * 100
6.3.1 Provision Coverage Ratio for 2018 - 2019
2018 -2019
HDFC ICICI KOTAK AXIS
BANK BANK MAHINDRA BANK
Provisions 78009.64 31973.22 2376.94 20554.41
Gross NPAs 11,224.16 45676.04 4,467.9 29,789.00
Provision 71.36 70.6 53.2 69
Ratio (%)
Provision Coverage Ratio of 2018 -2019
80
71.36 70.60
69.00
70
53.20
60
50
40
30
20
10
0
HDFC ICICI KOTAK MAHINDRA AXIS
2018 -2019
INTERPRETATION
Provision Coverage Ratio of private sector banks in the year 2019 was 71.36% and
70.6% of HDFC and ICICI Bank respectively while, Provision Coverage Ratio of
Kotak Mahindra Bank and AXIS Bank in the year 2018 was 53.20% and 69
respectively. Among the private sector banks the provision coverage ratio of
HDFC bank. Higher the provision coverage ratio, better is the bank’s financial
position as compared to others.
6.3.2 Provision Coverage Ratio for 2019 -2020
2019-2020
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Provisions 9107.61 3,09,07.62 2825.11
21768.35
Gross NPAs 12,649.97 40,829.09 5,026.89 30233.82
Provision 72.0 75.7 56.2 72.0
Ratio (%)
Provision Coverage Ratio of 2019-2020
75.7
80 72 72
70
56.2
60
50
40
30
20
10
2020
INTERPRETATION
Provision Coverage Ratio of private sector banks in the year 2020 was 72% and
75.7% of HDFC and ICICI Bank respectively while. The Provision Coverage
Ratio of Kotak Mahindra Bank and AXIS Bank in the year 2020 was 56.2% and
72% respectively. As the banks have increased the provision coverage ratio as
compared to the previous years, Kotak Mahindra Bank performance is still very
low as compared private banks.
6.3.3 Provision Coverage Ratio for 2020-2021
2020-2021
HDFC ICICI KOTAK AXIS
BANK BANK MAHINDRA BANK
Provisions 10531.18 31723.8 5435.47 18986.13
Gross NPAs 15,086.00 40841.42 7,425.51 25,314.84
Provision 69.8 77.7 73.2 75.0
Ratio (%)
Provision Coverage Ratio of 2020-2021
77.7
78
76 75
74 73.2
72
69.8
70
68
66
64
HDFC ICICI KOTAK MAHINDRA
INTERPRETATION
Provision Coverage Ratio of private sector banks in the year 2021 was 69.8% and
77.7% of HDFC and ICICI Bank respectively. The ICICI bank’s provision
coverage ratio has increased a lot in a year as compared to the other banks. Also,
Provision Coverage Ratio of Kotak Mahindra Bank and AXIS Bank in the year
2021 was 73.20% and 75% respectively.
6.3.4 Provision Coverage Ratio for 2021 – 2022
2021-2022
HDFC ICICI KOTAK AXIS
BANK BANK MAHINDRA BANK
Provisions 11733.28 26569.34 5020.51 17676.07
Gross NPAs 16,140.96 33,294.92 6,469.74 21,822.32
Provision 72.69 79.18 77.6 81.0
Ratio (%)
Provision Coverage Ratio of 2021-2022
82 81
80 79.18
77.6
78
76
74 72.69
72
70
68
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
Provision Coverage Ratio of almost every banks has reduced in the year 2022 due
to the impact of Covid pandemic as the Provision Coverage Ratio of private sector
banks in the year 2022 was 72.69% and 79.18% of HDFC and ICICI Bank
respectively whereas, the Provision Coverage Ratio of Kotak Mahindra Bank and
AXIS Bank in the year 2022 was 77.6% and 81% respectively. The maximum
provision coverage ratio in the year 2022 was of AXIS bank while the minimum
was of HDFC.
6.3.5 Provision Coverage Ratio for 2022 -2023
2022-2023
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
Provisions 13406.15 24545.49 4832.12 15069.42
Gross NPAs 18,019.03 29,860.70 5,768.32 18604.23
Provision 74.4 82.2 83.77 81.0
Ratio (%)
Provision Coverage Ratio of 2022-2023
83.77
84
82.2
82 81
80
78
76 74.4
74
72
70
68
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
The Provision Coverage Ratio of private sector banks in the year 2023 was 74.4%
and 82.2% of HDFC and ICICI Bank respectively whereas, the Provision
Coverage Ratio of Kotak Mahindra Bank and AXIS Bank in the year 2023 was
83.77% and 81% respectively. The maximum PCR of private sector banks was of
the Kotak Mahindra Bank whereas, minimum PCR was of the HDFC respectively.
6.4 CASA RATIO (%)
CASA Ratio = CASA Deposits / Total Deposits * 100
Where,
CASA Deposits = Saving Account Deposit + Current Account Deposit
6.4.1 CASA Ratio for 2018-2019
2018-2019
HDFC ICICI KOTAK AXIS
BANK BANK MAHINDRA BANK
CASA 3,99,198 3,289.79 1,18,586 2,43,394
Account
Deposit
Total 5,48,471.34 6,529.20 1,18,586 5,48,471
Deposits
CASA 42.37 44.6 52.49 44.37
Ratio (%)
CASA Ratio of 2018 -2019
60 52.49
50 44.60 44.37
42.37
40
30
20
10
0
HDFC ICICI KOTAK MAHINDRA AXIS
2018 -2019
INTERPRETATION
The CASA Ratio of private sector banks in the year 2019 was 52.49% and 44.60%
of Kotak Mahindra bank and ICICI Bank respectively whereas, HDFC and AXIS
bank in the year 2019 was 42.37% and 44.37% respectively which is relatively
lower, banks need to increase this ratio. On case of private sector banks, HDFC
bank has the lower CASA ratio.
6.4.2 CASA Ratio for 2019-2020
CASA Ratio of 2019-2020
56.17
60
50
45.11
42.23 41.19
40
30
20
10
2020
INTERPRETATION
The CASA ratio of all the banks decreased in the year 2020 including
private and public sector banks. CASA Ratio of private sector banks in the
year 2020 was 42.23% and 45.11% of HDFC and ICICI Bank respectively
whereas, CASA Ratio of Koatk Mahindra Bank and AXIS Bank in the year
2020 was 56.17% and 41.19% respectively.
6.4.3 CASA Ratio for 2020-2021
2020-2021
HDFC ICICI KOTAK AXIS
BANK BANK MAHINDRA BANK
CASA 6,15,682 4,316.23 1,69,313 3,17,749
Account
Deposit
Total 13,35,060 9,325.22 2,80,100.05 707,306
Deposits
CASA 46.11 46.29 60.44 44.92
Ratio (%)
INTERPRETATION
In the year 2021, Kotak Mahindra bank showed the increase in CASA ratio while
all the other bank’s ratio was decreasing as compared to the previous years. The
CASA Ratio of private sector banks in the year 2021 was 46.11% and 46.29% of
HDFC and ICICI Bank respectively whereas, CASA Ratio of Kotak Mahindra
Bank and AXIS Bank in the year 2020 was 60.44% and 44.92% respectively.
HDFC had the lowest CASA ratio among all the banks.
CASA Ratio of 2019-2020
70 60.44
60
46.29 44.92
50 46.11
40
30
20
10
2020
6.4.4 CASA Ratio for 2021-2022
2021-2022
HDFC ICICI KOTAK AXIS
BANK BANK MAHINDRA BANK
CASA 7,51,050 3,599.57 1,89,134 3,70,006
Account
Deposit
Total 15,59,217 10,645.72 3,11,684.11 8,21,701
Deposits
CASA 48.16 48.69 60.68 45.00
Ratio (%)
CASA Ratio of 2021-2022
70
60.68
60
48.16 48.69
50 45
40
30
20
10
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
The CASA ratio in the year 2022 has increased as compared to the previous year
2021. CASA Ratio of private sector banks in the year 2022 was 48.16% and
48.69% of HDFC and ICICI Bank respectively. In this year, AXIS Bank has the
minimum CASA ratio while, Kotak Mahindra Bank has the maximum. CASA
Ratio of Kotak Mahindra Bank and AXIS Bank in the year 2022 was 60.68% and
45% respectively.
6.4.5 CASA Ratio for2022-2023
2022-2023
HDFC BANK ICICI BANK KOTAK AXIS BANK
MAHINDRA
CASA 8,35,500 2,899.25 1,91,815 4,46,536
Account
Deposit
Total 18,83,395 5,609.75 3,63,096.05 9,46,945
Deposits
CASA 44.36 51.7 52.81 47.15
Ratio (%)
CASA Ratio of 2022-2023
54 52.81
51.7
52
50
48 47.15
46
44.36
44
42
40
HDFC ICICI KOTAK MAHINDRA AXIS
INTERPRETATION
In the year 2023, the CASA ratio of all the banks were highest from all the
consequent previous years which means that banks are saving the deposits in
current and saving accounts to provide the protection against the non-performing
assets. The CASA Ratio of private sector banks in the year 2023 was 44.36% and
51.7% of HDFC and ICICI Bank respectively whereas, CASA Ratio of Kotak
Mahindra Bank and Axis Bank in the year 2023 was 52.81% and 47.15%
respectively which is greater than the previous years.
D. R. Patel & R. B. Patel Commerce College &
Bhaniben Chhimkabhai Patel BBA College
Literature Review for Winter Project 2023-24
Name: VIBHA JAIN
Roll No: 3444
Area of Specialisation: FINANCE
Title of Topic: A Study on Non-Performing Assets
on selected private sector banks
Guide Name: Dr. Nairuti Chokkas
Rana C., (2018) in his study titled “Management of NPA in context of Indian banking system
concluded that NPA impacts profitability, liquidity and results in credit loss. There are two
types of NPAs – gross NPA and net NPA. NPAs also impact low yield on advances, adverse
Impact on capital adequacy. As a preventive measure, he suggested stopping multiple
financing and early recognition of the problem.
Dahiya, M., Bhatia, S. J. (2016) Researchers concluded in their study that banks should make
sure the proper utilization of bank loans, and reports about credit worthiness of borrowers,
should be obtained from informal and formal sources. Timely corrective steps should be
taken otherwise NPA will increase. The reduction in NPA should be a national priority while
making the banking system more vibrant and geared up to meet the challenges of
globalization.
Prasad and Veena, D. (2011) in their article tested various aspects associated with trends
of NPAs of banking sector. They acknowledged that major section of Public Sector Banks
face the problem of unproductive manpower and an excessive amount of in operative
assets, than other sectors of banks.
Krishna Murari (2014) analyzed how effectively public and private sector banks managed
their NPAs. Consistent with him public sector banks have witnessed a continuous
increasing trend in gross and net NPAs in comparison to private sector banks and there is
statistically significant difference in the mean of gross and net NPA of public and private
category of Indian banks. However, there's no significant difference in gross and net NPA
ratio of both public and private sector banks which indicates that public and private
sector banks are try hard to scale back their NPA ratios consistently due to the
Regulatory and supervisory pressure. He suggested that besides preventive and
corrective measures, the role of technology in managing and warning the officials
beforehand is crucial in NPA management.
Sushendra Kumar Mishra and Rohit Rana [2], "Non-Performing Asset of Public and
Private Sector Banks in India" A Descriptive study clarified the level of NPAs in public
and private sectors bank in India. Here compare the GNPA Ratio and NNPA proportion of
both public and private segment banks. Analyst clarified NPA impacts not only the
money-related position of banks but also the reputation and goodwill. The study appears
that the NPA administration of private sector banks is much superior to public sector
banks. It has begun influencing the roots of the banking business particularly for public
sector banks.
