• G Obilesu
• Dr G Ranganatham

Since 1990 as part of economic and banking sector reforms credit terms are liberalized, after 2008 subprime crisis credit sanction terms are further liberalized where huge funds from banking sector flow to corporate sector. As a result this corporate sector has grown significantly. However, the serial financial crisis turned huge bank assets into bad loans which adversely affects their profitability. Consequently, Indian banking sector has reported huge non-performing assets which deteriorated its profitability significantly, this also led instability in banking sector. To avoid further loss due to banking sector instability on economy RBI triggered prompt correct action framework on banking sector particularly public sector banks which accounts to 90 percent of total industry non-performing assets. Therefore, the study on impact of prompt corrective action framework on profitability of banking sector gained significance. For the purpose of the study, the eleven public sectors banks have considered those adopted PCA frame work in India are since 2014-15. The financial ratios were used for the analysis of the data. Present study is comparative study. The study found that, net interest margin and operating profit of all selected banks reported down trend during the study period, consequently net profit ratio, return on equity and return on advances are turned into negative values which indicates bad impqct of banks profitability.

Non-Performing Assets (NPAs), Prompt Corrective Action, Profitability, Financial Stability and Public Sector Banks (PSBs).

"IMPACT OF PROMPT CORRECTVE ACTION FRAMEWORK ON PROFITABILITY OF SELECT PUBLIC SECTOR BANKS IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 9, page no.a96-a110, September-2021, Available :http://www.jetir.org/papers/JETIR2109018.pdf

"IMPACT OF PROMPT CORRECTVE ACTION FRAMEWORK ON PROFITABILITY OF SELECT PUBLIC SECTOR BANKS IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 9, page no. ppa96-a110, September-2021, Available at : http://www.jetir.org/papers/JETIR2109018.pdf