Analysis of Non-Performing Assets (NPAs) among SBI bank and

ICICI bank for operating 2011-2018

Priyanka Jha*

Department of Management, Sarvepalli Radhakrishnan (SRK) University, NH-12, Hoshangabad

Road, Bhopal, India.

*Corresponding author
Priyanka Jha
Research scholar
Dept. of Management
Sarvepalli Radhakrishnan (SRK) University,
NH-12, Hoshangabad Road, Misrod Bhopal, India
Ph: +919599908736/+9123140485
Email: pari4337@gmail.com

Abstract

Background: At present the NPAs are considered a big problem in banks. The problematic
NPAs in the Indian banks are the foremost and the formidable problematic that has stunned
the whole banking industry. Objective: The study is conducted to analyze the non-
performing assets (NPAs) among state bank of India (SBI) and ICICI for which the
secondary data is used. Method: The study is being done by using seven years (2011-2018)
data gathered from annual reports. Results: The study highlighted that there was not any
significant change in Gross NPAs / Gross advances ratio, Gross NPAs/ Total assets ratio;
Net NPAs/Net advances ratio and Net NPAs/ Total assets ratio with SBI bank when
compared to ICICI bank. In SBI, there is significant negative correlation between Gross NPA
and Net Profit and between Net NPA and Net Profit. In ICICI bank, we also have observed
negative correlation between Gross NPA and Net Profit and Net NPA and Net Profit but then
it was not significant as in SBI. Total provision ratio was significantly higher in ICICI bank
when compared to SBI bank. However, Shareholder’s risk ratio was comparable among both
ICICI bank and PNB bank. In addition to there was significant decrease of amount
outstanding in ICICI bank as compare to PNB bank. However provision thereon (of total
assets) was comparable among SBI bank and ICICI bank. Conclusion: The study clarify
that the magnitude of NPAs is increasing in SBI bank as compared to the ICICI banks. As
the magnitude of NPAs is increasing in SBI bank compared to the ICICI banks. SBI bank has
to give attention on their effective working to compete with ICICI banks. Therefore, SBI
banks need to efficiently to regulate their NPAs with the purpose of increase their
profitability.

Keywords: Non-Performing Asset, Gross NPA, Net NPA, Priority Sector and Non-Priority
Sector

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1.Introduction:

A Non–performing asset (NPAs) is an obligation in which the debtor has not paid earlier
settled interest and principal amount for a specific period of time. This assets stop to create
incomes for banks, limits the recycling of funds, sets asset liability mismatches, deteriorating
non-recovery of interest and instalment on loan portfolio, reflected in decline in productivity,
liquidity, solvency, efficiency and erosion of profitability of the bank. The efficiency of a bank
is reflected by both the extent of its balance sheet and the amount of return on its assets.
Generally the NPAs don’t create financial gain for banks however at the same time banks
are needed to create available provisions for NPAs from their existing profits[1]. At present
the NPAs are thought -about an enormous problem in Indian banking industry[2]. NPAs have
been decreasing regularly year by year except in some years in public sector banks, on the
contrary, the non-performing assets of private sector banks have been decreasing regularly
year by year[3]. Generally decrease in NPAs displays that banks have reinforced their credit
appraisal processes over the years and enlarged NPAs shows the requirement of provisions
that brings down the profitableness of banks. Among SBI and its Associates and alternative
public sector banks, throughout NPAs analysis, it’s been determined that there was not any
significant difference in Gross NPAs to Gross advances ratio and Net NPAs to Net advances
ratio of SBI and its Associates with alternative public sector banks for 2007-2013 [4]. The
NPAs was the most problematic and obstacle tackled by SBI and ICICI for in operating
period 2011-2013[5]. NPAs of public sector banks (SBI and PNB) are higher than private
sector banks (ICICI and HDFC). The returns on the assets are much lower in public sector
banks as compared to private banks over the study period 2011-12 to 2015-16[6].
The merger of all of its seven associate banks with the SBI as on 1st April 2017 have further
strengthened its dominant position in the banking sector as largest universal bank in India .
However the financial gain could also be thought–about to be satisfactory with little
variations in quantum and percentage as not terribly alarming[7]. Numerous issues are
faced by SBI notably with priority sector lending that produced huge NPA by means of
amount as well as default accounts. Recently, SBI informed a net loss of Rs 4,876 crore with
in the first quarter completed on June 30, 2018, as provisions and detailed its highest NPAs
of Rs 1.1 lakh crore in 2017-18, with a net increase of Rs 14,170 crore from 2015-
16[8]. However, the ICICI has disclosures its bad loans and NPAs involving Rs
6,082crore[9].

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2. Objective:

The current paper is an attempt to find out inter-bank comparison of non-performing assets
(NPAs) of public (SB) and private sector (ICICI) bank during the operating period 2011-2018.

3. Methods

To achieve the stated objectives, this study is a fact-finding and analytical in nature and
compares the financial performance of SBI and ICICI bank.

3.1. Source of data collection: The study is based on secondary data and data has been
collected from annual reports of the respective bank’s website for the above analysis. The
present study covers seven years period ranging from 2011-12 to 2017-18.

3.2. Statistical Analysis

The present research work deals about comparative performance of SBI and ICICI BANK
with reference to Ratio analysis and Percentage analysis. Data are expressed as mean ±
standard deviation (SD). Whole data has been analyzed with the help of SPSS for windows
statistical package (version 20.0, SPSS Institute Inc., Cary, North Carolina. We have used
Independent student “t” test to determine the relative importance (significant) of each
variable in affecting the performance of bank among them and the significance level were
fixed at p< 0.05.

4. Finding and interpretation

4.1. The comparative data with percentage change in the Gross NPAs / Gross Advances
Ratio and Gross NPAs/ Total Assets Ratio

The data are summarized in (Table 1) with Mean ± SD. We observed that Gross NPAs /
Gross advances ratio and Gross NPAs/ Total assets ratio was comparable with SBI bank
when compared to ICICI bank. This indicates that same attention has been given by the
management of both the bank to manage the amount of Gross NPA and total assets. Hence
there is a progressive relation between NPA and problematic assets.

4.2. The comparative data with percentage change in Net NPAs / Net Advances Ratio and
Net NPAs/ Total Assets Ratio

The data are summarized in (Table 2) with Mean ± SD. We didn’t observe any significant
change in Net NPAs/Net advances ratio and Net NPAs/ Total assets ratio with SBI bank

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when compared to ICICI bank. This indicates that the both the bank had make satisfactory
provisions against NPAs.

4.3. The comparative data with percentage change in Total Provision Ratio and
Shareholder’s Risk Ratio

The data are summarized in (Table 3) with Mean ± SD. We observed that total provision
ratio was significantly higher in ICICI bank when compared to SBI bank. This indicates that
as compare to SBI bank, ICICI bank have made better provisions for their gross NPA.
However, Shareholder’s risk ratio was comparable among both ICICI bank and PNB bank.
This indicates the SBI bank has failed in making provisions against NPAs, because of
increased risk ratio. This is not the good sign and somehow the bank has to take some
prompt actions to lower down the risk ratio. This can affect the goodwill, cost of the shares
and the competitive market.

4.4. The correlation relationship between Gross NPA, Net NPA, and Net profit among SBI
and ICICI for operating period for 2011-2018

The Net profit data are published in our previous paper [10] and remaining data (Gross NPA,
and Net NPA) are summarized in (Figure 1A, 1B, 2A and 2B). In SBI, there is significant
negative correlation between Gross NPA and Net Profit [r (5) = -0.95; P= 0.01] (Figure 1A)
and significant negative correlation between Net NPA and Net Profit [r (5) = -0.93; P= 0.01]
(Figure 1B). In ICICI bank, we also have observed negative correlation between Gross NPA
and Net Profit [r (5) = -0.17; P = 0.70] (Figure 2A) but then it was not significant as in SBI. In
addition to, there was negative correlation between Net NPA and Net Profit [r(5) =- 0.10; P=
0.82] (Figure 2B)but then again then it was not significant as in SBI.

4.5. The comparative data with percentage change in ratio of Sector-Wise Advances and
Sector-Wise NPAs for Both Priority and Non- Priority Sector

The data are summarized in (Table 4A&B, Figure 3A&B) with Mean ± SD. We didn’t
observed any significant change in altogether sector wise advances (such as Priority sector,
Public sector Bank, Others and Total advances) among SBI bank and ICICI bank. However,
in sector-wise NPAs, services sector along with personal loans sector was significantly
higher in ICICI bank when compared to SBI bank. Though agriculture sector and industry
sector was comparable among SBI and ICICI bank.

4.6. The comparative data with change in Restructured of Assets Classification for total
assets (including Standard assets, Sub-standard assets, Doubtful assets, Loss assets)

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The data are summarized in (Table 5) with Mean ± SD. The average no. of borrowers (of
total assets) was significantly lower in ICICI bank as compare to SBI bank. In addition to
there was significant decrease of amount outstanding in ICICI bank as compare to PNB
bank. However provision thereon (of total assets) was comparable among SBI bank and
ICICI bank. This indicates that as compare to ICICI, PNB banks need to follow up the loan
accounts smartly for recovering the instalments as well as interest. The quality of the loans
along with its recovery made by the SBI is not good as compare to ICICI. The Management
of the SBI Bank has not taken sufficient care in yielding advances and they are failing to
recover from defaulters.

5. Discussion

Usually willful avoidances, inappropriate process of loan proposals, poor observance and so
on are the causes for accounts to create NPAs. NPA’s have continuously been an issue for
the Indian banks because it has an immediate impact on the profitability, liquidity and
economical working of banks and growing of financial organizations and eventually the mind-
set of the bankers with respect of their outlook in the direction of credit delivery and credit
growth of the banks. The foremost reasons for increasing NPA’s in Indian commercial banks
is that the target-oriented approach, that ends up in ineffective supervising of loan accounts,
lack of decision-making and practical expertise on a part of the borrowers that ultimately
worsens the qualitative facet of lending by banks[11].
The study has revealed that the extent of NPAs is relatively more in public sector banks as
compared to private sector banks[12]. In previous study, among SBI and ICICI bank for
operating period 2011-2013, the total advances and net profit has shown growing trend in
both the banks but as compare to SBI, NPA in ICICI bank has shown downward trend. In
Net Profit and Net NPA, SBI has shown positive relationship while there was negative
relationship has been found in ICICI bank[5]. In contradictory to that, we have observed
there were not any significant change in Gross NPAs / Gross advances ratio and Gross
NPAs/ Total assets ratio as well as Net NPAs/Net advances ratio and Net NPAs/ Total
assets ratio among both SBI and ICICI bank for operating period 2011-2018. In addition to
that, in correlation analysis, In SBI, there is significant negative correlation between Gross
NPA and Net Profit and between Net NPA and Net Profit. In ICICI bank, we also have
observed negative correlation between Gross NPA and Net Profit and Net NPA and Net
Profit but then it was not significant as in SBI. However, among SBI & Associates and other
public sector banks, during NPAs analysis, it has been observed that there was not any
significant difference in Gross NPAs to Gross advances ratio and Net NPAs to Net advances
ratio of SBI & Associates with other public sector banks for 2007 to 2011 [4]. NPAs of public
sector banks (SBI and PNB) are higher than private sector banks (ICICI and HDFC). The

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returns on the assets are much lower in public sector banks as compared to private banks
over the study period 2011-12 to 2015-16[6]. In this study, there was significant decrease of
amount outstanding in ICICI bank as compare to PNB bank. Henceforth, the performances
of SBI banks are not suitable as compared to ICICI banks and SBI banks need to efficiently
give more attention on their functioning as compete to ICICI to managing NPAs[13].

6. Limitation:

This study is limited to the period of seven year only, which may not give the accurate
results. The study is based on secondary data and so its inherent limitations.

7. Conclusion

The problem of NPAs could be a major hurdle and live danger faced by banking industry, as
a result of it destroys the healthy financial condition of the banks. Its right time to require
appropriate and stringent measures to get rid of NPA problem. Banks ought to be versed in
correct choice of borrower/project and in analyzing the finances. The performances of SBI
banks don’t seems to be appropriate as compared to ICICI banks, as the magnitude of NPAs
is increasing in SBI bank by means of ICICI banks. SBI bank has to give special care on
their effective working to compete with ICICI banks. Therefore, SBI banks need to efficiently
to regulate their NPAs with the purpose of increase their profitability.

Acknowledgments:

I appreciatively thankful to the Dept. of Management, Sarvepalli Radhakrishnan (SRK)

University, NH-12, and Hoshangabad Road, Bhopal, India for providing financial support to
conduct this research.

Conflict of Interest:
The author declared no conflict of interest.

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full-disclosures-about-npas-provisions/article24635321.ece. Published on August 08, 2018.
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Private Sector Banks (ICICI) in India. ICTACT Journal on Management Studies, 2018. 4(3): p.
793-799.
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Table 1: Gross NPAs / Gross Advances Ratio and Gross NPAs/ Total Assets Ratio

SBI ICICI

Year GNPA GADV T. Assets GNPA / GNPA / T. GNPA GADV T. Assets GNPA/ GNPA/ T.
(Crores) (Crores) (Crores) GADV Assets × (Crores) (Crores) (Crores) GADV Assets ×
× 100 100 × 100 100
2011-2012 39676.46 891436.50 1335519.23 4.45 2.97 9475.33 261342.05 473647.09 3.62 2.00
2012-2013 51189.39 1074849.46 1566261.04 4.76 3.27 9607.75 297626.00 536794.68 3.23 1.79
2013-2014 61605.35 1240337.99 1792234.59 4.97 3.44 10505.84 345910.52 594641.58 3.03 1.77
2014-2015 56725.34 1329161.15 2048079.79 4.27 2.77 15094.69 396361.23 646129.29 3.81 2.34
2015-2016 98172.80 1506066.19 2259063.03 6.52 4.35 26221.25 448522.11 720695.10 5.85 3.64
2016-2017 112342.99 1625143.99 2705966.30 6.91 4.15 42159.39 481174.66 771791.45 8.76 5.46
2017-2018 223427.46 2047452.94 3454751.99 10.91 6.47 53240.18 537811.91 879189.16 9.90 6.06
Mean ± SD 6.11±2.34 3.91±1.26 5.45±2.82 3.29±1.80

* Significant change when compare with SBI

Table 2: NET NPAs / NET Advances Ratio and NET NPAs/ Total Assets Ratio

SBI ICICI

Year NNPA NADV T. Assets NNPA / NNPA / T. NNPA NADV T. Assets NNPA/ NNPA/ T.
(Crores) (Crores) (Crores) NADV Assets × (Crores) (Crores) (Crores) GADV Assets ×
× 100 100 × 100 100
2011-2012 15818.85 867578.89 1335519.23 1.82 1.18 1860.84 253727.65 473647.09 0.73 0.39

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 2012-2013 21956.48 1045616.55 1566261.04 2.10 1.40 2230.50 290249.43 536794.68 0.77 0.42
2013-2014 31096.07 1209828.71 1792234.59 2.57 1.74 3297.96 338702.64 594641.58 0.97 0.55
2014-2015 27590.58 1300026.39 2048079.79 2.12 1.35 6255.53 387522.07 646129.29 1.61 0.97
2015-2016 55807.02 1463700.41 2259063.03 3.81 2.47 12963.08 435263.94 720695.10 2.98 1.80
2016-2017 58277.38 1571078.38 2705966.30 3.71 2.15 25216.81 464232.08 771791.45 5.43 3.27
2017-2018 110854.70 1934880.18 3454751.99 5.73 3.21 27823.56 512395.29 879189.16 5.43 3.16
Mean ± SD 3.12± 1.39 1.92 ±0.72 2.56±2.10 1.50 ±1.26

* Significant change when compare with SBI

Table 3: Total Provision Ratio and Shareholder’s Risk Ratio

SBI ICICI

Year Total provision ratio and Shareholder’s risk ratio Total provision ratio and Shareholder’s risk ratio

GNPA (A) NNPA T. T. T. Shareholder GNPA NNPA T. T. T. Shareholder’

(Crores) (B) Provision Capital Provisi ’s risk ratio (A) (B) Provision Capital Provision s risk ratio
(Crores) (C) reserve on ratio (B/D×100) (Crores) (Crores) (C) reserve ratio (B/D×100)
(Crores) (D) (C/A× (Crores) (D) (C/A×
(Crores) 100) (Crores) 100)

2011-2012 39676.46 15818.85 23857.61 83951.21 60.13 18.84 9475.33 1860.84 7614.49 60405.24 80.36 3.08
2012-2013 51189.39 21956.48 29232.91 98883.69 57.11 22.20 9607.75 2230.50 7377.19 66705.96 76.78 3.34
2013-2014 61605.35 31096.07 30509.28 118282.25 49.52 26.29 10505.84 3297.96 7207.88 73213.33 68.61 4.50
2014-2015 56725.34 27590.58 29134.76 128438.23 51.36 21.48 15094.69 6255.53 8839.16 80429.36 58.56 7.78
2015-2016 98172.80 55807.02 42365.78 144274.44 43.15 38.68 26221.25 12963.08 13258.17 89735.58 50.56 14.45
2016-2017 112342.99 58277.38 54065.61 188286.06 48.13 30.95 42159.39 25216.81 16942.58 99951.07 40.19 25.23
2017-2018 223427.46 110854.70 112572.76 219128.56 50.38 50.59 53240.18 27823.56 25416.62 105158.94 47.74 26.46
Mean ± SD 51.39±5.65 29.86±11.34 60.40±15.29* 12.12 ±10.15

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* Significant change when compare with SBI

Table 4A: Ratio of Sector-Wise Advances

SBI

Year Priority Public sector Bank Others Total A/T X 100 B/T X 100 C/T X 100 D/T X 100
sector (A) (B) (C) (D) advances
(Crores) (Crores) (Crores) (Crores) (T)
(Crores)

2011-2012 250177 54707.32 180.37 428436.6 867578.9 28.83622 6.305746 0.02079 49.38302
2012-2013 264313.9 54670.17 68.77 559156.1 1045617 25.27828 5.22851 0.006577 53.47621
2013-2014 280819.5 74172.45 99.99 642792.4 1209829 23.21151 6.130822 0.008265 53.13086
2014-2015 288952.4 99444.51 261.95 678592.6 1300026 22.22665 7.649422 0.02015 52.19837
2015-2016 328551.5 144401.9 1473.75 725604.4 1463700 22.44664 9.865537 0.100687 49.57329
2016-2017 341257.5 121630.6 1404.45 823349.2 1571078 21.72123 7.741856 0.089394 52.40663
2017-2018 448359 161939.2 2845.2 1023464 1934880 23.17244 8.369471 0.147048 52.89549
Mean ± SD 23.84±2.48 7.32± 1.56 0.056± 0.05 51.86±1.68

ICICI

2011-2012 59285.64 1196.83 1546 123826.8 253727.7 23.36586 0.471699 0.609315 48.80304
2012-2013 59794.05 1343.85 18.79 155735.7 290249.4 20.60092 0.462998 0.006474 53.65582
2013-2014 64551.75 2775.48 28.77 181650.7 338702.6 19.05853 0.819444 0.008494 53.63131
2014-2015 76209.29 3537.41 14.66 213640.7 387522.1 19.66579 0.912828 0.003783 55.12993
2015-2016 92434.87 4432.91 28.34 244555.9 435263.9 21.23651 1.018442 0.006511 56.18565

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2016-2017 106552.7 12999.14 344.88 269342 464232.1 22.95247 2.800138 0.07429 58.01882
2017-2018 92970.17 19770.45 77.73 335146.9 512395.3 18.14423 3.858437 0.01517 65.40787
Mean ± SD 20.71±1.94 1.47±1.31 0.1034±0.22 55.83±5.10
* Significant change when compare with SBI

Table 4B: Sector-Wise NPAs for both Priority and Non- Priority Sector

SBI ICICI

Year Agriculture Industry Services Personal loans Agriculture Industry Services Personal loans
(%) (%) (%) (%) (%) (%) (%) (%)
2011-2012 8.92 4.12 2.94 2.92 4.78 2.02 0.92 9.18
2012-2013 9.50 4.37 4.43 1.98 3.60 2.28 2.47 5.80
2013-2014 8.11 3.87 5.18 1.31 3.62 3.04 3.45 2.49
2014-2015 8.84 4.66 2.83 0.83 2.97 4.66 5.38 1.32
2015-2016 7.82 9.75 2.74 0.72 3.15 9.68 6.45 1.05
2016-2017 5.61 10.79 4.06 0.54 3.11 18.13 6.46 0.97
2017-2018 11.06 17.77 5.62 1.22 3.14 22.54 6.48 1.23
Mean ± SD 8.55±1.67 7.90± 5.20 3.97± 1.17 1.36±0.83 3.48± 0.62 8.90±8.31 4.51±2.25* 3.14±3.16 *

* Significant change when compare with SBI

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 Table 5: Restructured of Assets Classification (in Millions, except number of account)

SBI ICICI

Year Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total
assets standard assets assets assets standard assets assets
assets assets
2011-2012
No. of Borrowers 2322.00 129.00 69.00 0.00 2520.00 28.00 2.00 2.00 0.00 32.00
Amount outstanding 83946.8 5924.2 2845.6 0.00 92716.6 37355.8 492.9 172.5 0.00 38021.2
Provision thereon 4751.8 333.1 164.7 0.00 5249.6 3744.6 15.5 9.2 0.00 3769.3
2012-2013
No. of Borrowers 5644.00 737.00 568.00 52.00 7001.00 174.00 8.00 295.00 7.00 484.00
Amount outstanding 322276.7 29521.3 78785.4 525.1 431108.5 58252.2 1855.9 9004.8 316.2 69429.1
Provision thereon 19789.4 1871.8 8788.1 35.4 30484.7 5103.8 159.6 5955.6 316.2 11535.2
2013-2014
No. of Borrowers 4364.00 1136.00 868.00 89.00 6457.00 865.00 8.00 202.00 14.00 1080.00
Amount outstanding 430504.9 29167.9 122186.6 7517.2 589376.6 116524.7 287.6 16992.8 624.7 134429.8

Provision thereon 24415.3 2571.0 9484.0 38.1 36508.4 10945.2 78.3 10872.1 372.4 22268.0
2014-2015
No. of Borrowers 1112.00 1370.00 1505.00 476.00 4463.00 1256.00 20.00 55.00 141.00 1472.00
Amount outstanding 558428.3 21396.1 123782.0 8680.3 712286.7 119460.4 3652.5 51328.5 2768.50 177209.9

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Provision thereon 30645.9 1264.3 3941.4 533.9 36385.6 9287.1 925.5 24564.2 2768.5 37545.3
2015-2016
No. of Borrowers 549.00 569.00 2533.00 104.00 3755.00 424.00 739.00 75.00 127.00 1365.00
Amount outstanding 390553.7 12431.6 254047.1 4139.5 661171.9 93130.4 611.4 952489.1 8679.8 197670.5
Provision thereon 12316.8 390.2 5466.3 9.8 18183.1 7402.7 102.3 50466.9 8679.8 66651.7
2016-2017
No. of Borrowers 209.00 231.00 2186.00 72.00 2698.00 304.00 221.00 785.00 104.00 1414.00
Amount outstanding 366335.6 29182.0 262698.5 1200.3 659416.4 45482.5 2447.8 94895.6 1548.7 144374.6
Provision thereon 5915.4 387.9 6495.5 9.4 12808.2 2832.8 368.3 43049.8 1548.7 47799.6
2017-2018
No. of Borrowers 416.00 507.00 1330.00 71.00 2324.00 242.00 231.00 1003.00 96.00 1572.00
Amount outstanding 48360.8 46923.1 480317.7 12220.7 588092.3 15949.8 58.8 134874.3 952.6 151835.5

Provision thereon 1103.9 1351.5 3922.4 10.3 6388.1 421.8 31.5 88254.7 952.6 89660.6
Mean ± SD SBI ICICI
(2011-2018)
No. of Borrowers 4174.00±1906.12 1059.85± 582.97*
Amount outstanding 533452.71±214085.75 130424.37 ± 57211.28*
Provision thereon 20858.24±13562.62 39889.9± 30769.56
* Significant change when compare with SBI

Electronic copy available at: https://ssrn.com/abstract=3298746

Figure 1A: The negative correlation between Gross NPA and Net Profit in SBI

Figure 1A: The negative correlation between Net NPA and Net Profit in PNB

Electronic copy available at: https://ssrn.com/abstract=3298746

Figure 2A: The negative correlation between Gross NPA and Net Profit in ICICI

Figure 2B: The negative correlation between Net NPA and Net Profit in ICICI

Electronic copy available at: https://ssrn.com/abstract=3298746

Figure 3A: Sector-Wise NPAs in SBI

Sector-Wise NPAs
(SBI)
6%
18% 39%

37%

Agriculture Industry Services Personal loans

Figure 3B: Sector-Wise NPAs in ICICI

Sector-Wise NPAs
(ICICI)

16% 17%

23%
44%

Agriculture Industry Services Personal loans

Electronic copy available at: https://ssrn.com/abstract=3298746

Figure Legends

Figure 1 A: The negative correlation between Gross NPA and Net Profit in SBI

Figure 1B : The negative correlation between Net NPA and Net Profit in SBI

Figure 2A: The negative correlation between Gross NPA and Net Profit in ICICI

Figure 2B : The negative correlation between Net NPA and Net Profit in ICICI

Figure 3A: Sector-Wise NPAs in SBI

Figure 3B: Sector-Wise NPAs in ICICI

Electronic copy available at: https://ssrn.com/abstract=3298746