ZENITH International Journal of Multidisciplinary Research
Year : 2019, Volume : 9, Issue : 5
First page : ( 198) Last page : ( 211)
Online ISSN : 2231-5780.

Effect of non-performing assets on the profitability of Nabard

Fatima Noor

Research Scholar, Aligarh Muslim University Aligarh, Uttar Pradesh, India. noor4shazi@gmail.com

Online published on 4 June, 2019.

Abstract

A robust banking sector is of paramount importance for a flourishing economy. The major concerns for financial institutions in India are Non-performing assets. This study is grounded on secondary data, highlights the trends, status and impact of NPA on NABARD's profitability during the period of 17 years i.e. from 2000–2001 to 2016–2017. The researcher has stated various research journals, articles and research papers. During the study, RBI Reports on Trend and Progress of Banking in India for various years and websites have been referred to. The data were analyzed using descriptive statistics; correlation and simple linear regression model by using Eviews software version 10 and the Return on Assets (ROA) and Return on equity (ROE) were used as a proxy of financial performance variables and GNPAR (Gross Non-Performing Assets Ratio) and NNPAR (Net Non-Performing Assets Ratio) as independent variables. The findings and analysis reveal that there is a no significant impact of NPA parameters on the profitability of NABARD in India for the period under study.

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Keywords

NABARD, Development Financial Institution, ROA, ROE, Net Non-Performing Assets, Gross Non Performing Assets.

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