Abstract
Quality of asset and efficiency of bank is highly correlated. The efficiency of banking in post-liberalization period is judged not only based of its profitability but also on quality of assets it holds. Non Performing Asset (NPA) is the foremost threat for banking stability and growth. Against this backdrop, this paper investigates the growth of selected NPA variables and compares it with banking performance indicators. We utilized the growth rate measured using exponential growth equation to estimate the relative efficiency of different bank groups in India. The estimation using EG value is more accurate since variables used in this study showed non-linear movements. Variables that impact NPA of banks is assessed and based on its growth rate, inference is generated. The analysis focused on identifying relative efficiency of different bank groups in managing their NPA. The findings revealed relative efficiency of public sector banks, which of course may be judged as the major reason for the resilience of Indian banking towards financial crisis.