The Impact of Financial Accounting on Non-performing Assets Management at Private Sector Banks with Reference to Hdfc and Icici Bank

Private Banks grieve a great deal of adversity because non-performing assets (NPAs) have an instantaneous effect on their overall liquidity, efficiency of operation, and profitability. In order to succeed assets that are not performing (NPAs), financial accountability is vital to ensure transparency, comprehensive risk assessment, and effective reporting systems. The present research investigates how financial accountability structures influence private bank NPA management, emphasizing on auditing processes, regulatory compliance, governing frameworks, and transparency in finances. The study employs a mixed-methods approach to examine the relationship between financial accountability and NPA levels, integrating quantitative analysis of industry data with qualitative case studies of well-known private banks. The results highlight how crucial strict internal controls, proactive loan loss the provisioning process, and regulatory compliance are to decreasing the risk of non-performing assets (NPAs). As compared to institutions with weaker management frameworks, banks with strong financial accountability practices—like ICICI Bank and HDFC Bank—show better NPA management and improved financial health. The study provides suggestions to enhance financial accountability in private banks based on the findings, such as the adoption of proactive provisioning methods, risk-based credit assessments, and stronger internal inspection systems. These steps are essential for decreasing non-performing asset (NPA) risks and ensuring private banks' financial sustainability over the long term.