Empirical Study on Relationship Between Macro Economic Variables and Non-Performing Assets in Private Banks

Abstract

The research aims at analyzing the correlation between the accumulation of Non-Performing Assets (NPAs) in the private sector banks (ICICI, HDFC, Kotak Mahindra, Federal, Axis Bank) and the economic development of the Indian economy. An analysis of the correlation between NPAs of various private sector banks with annual Gross Domestic Product (GDP), Interest rates, Inflation rates, Unemployment rates. The purpose of this study is to investigate the relationship between various economic variables and the increase in NPA, particularly during a period when the economy is recovering from the COVID-19-induced stagnation in economic activities leading to an increase in inflation rates.