ABSTRACT

NPAs are those loans and advances, made by the banks or financial institutions, which are turned out non-productive and non-rewarding. This paper has made an attempt to study the status of Non -Performing Assets (NPA) of scheduled commercial banks in India. To analyze the data, the study has used simple statistical techniques like line graph, pie chart, correlation and linear regression. The study found that the significant macro variables that affect the NPA of the scheduled commercial banks of the country are Nominal Effective Exchange Rate, Rate of Inflation and Index of Agricultural Production. The NPAs of scheduled commercial banks in India have significant negative impact on profitability of the banks.

Key words: variables, Non -Performing Assets, Profitability.