Bad Loans: An Empirical Analysis of Nationalized Banks in India

“If you don’t have some bad loans you are not in business”. It is a famous quote by Mr. Paul Volcker. Well, it is true but everything in excess always causes trouble same is in the case of banks too. Our banking system is in a serious state finding every possible way to reduce the roadblocks hindering the growth of our economy i.e., non-performing loans. The present study analyzed the performance of public sector banks from the year 2014-15 to 2018-19 on the basis of Return on Assets, Credit-Deposit ratio, Loan maturity and Priority Sector Advances. The simple linear regression analysis has been applied in order to check the statistical impact of predictor variables on the response variable i.e. Net Non-Performing Assets ratio. The study is an approach to understand the relation between the selected independent variables and the dependent variables and suggest ideas to check the rise in bad loans swallowing the progress of our banking system