Rising Non-Performing Assets Threaten Profitability of Public Sector Banks.
The study looks at how non-performing assets affect the profitability of public sector banks in India. Non-performing assets are loans that borrowers have not paid back, causing financial strain on the banks. The more non-performing assets a bank has, the lower its profitability, as it limits the bank's ability to lend money and earn interest. To improve profitability, banks need to reduce their non-performing assets through proactive management.