STUDY ON NON-PERFORMING ASSETS OF PUBLIC SECTOR AND PRIVATE SECTOR BANKS

Description

TABLE OF CONTENT

 

CERTIFICATE                                                                                                                      I

 

DECLARATION                                                                                                                   II

ACKNOWLEDGEMENT                                                                                                   III

EXECUTIVE SUMMERY                                                                                                    5

CHAPTER-1

INTRODUCTION………………………………………………………………………… 11

• INDIAN BANKING SECTOR………………………………………………………………………… 13
  • History of Banking In India………………………………………………………………………… 14
  • Banking Activities……………………………………………………………………………………… 15
  • Public Sector Banks……………………………………………………………………………………. 16
  • Private Sector Banks………………………………………………………………………………….. 18
• NON-PERFORMING ASSETS (NPA)……………………………………………………………… 20
  • Definitions…………………………………………………………………………………………………. 20
  • NPA as Defined by RBI…………………………………………………………………………….. 21
  • Classification of Assets………………………………………………………………………………. 22
  • Types of NPA……………………………………………………………………………………………. 24
  • Why Assets Become NPA………………………………………………………………………….. 24
  • Reason for NPA………………………………………………………………………………………… 25
  • Impact of NPA………………………………………………………………………………………….. 27
  • NPA Rules for Bank………………………………………………………………………………….. 28
  • Norms for Treating Loans / Advances as NPA………………………………………………. 28
  • Early Symptoms……………………………………………………………………………………….. 30
  • Preventive Measurement for NPA……………………………………………………………… 31
  • NPA Management Practices In India………………………………………………………….. 33
  • Measures Initiated By RBI and Government of India For Reduction of NPA’s .. 34

CHAPTER-2

LITERATURE REVIEW………………………………………………………………. 40

CHAPTER-3

RESEARCH METHODOLOGY……………………………………………………. 43

• INTRODUCTION…………………………………………………………………………………………… 44
• OBJECTIVE OF THE STUDY………………………………………………………………………… 44
• SCOPE OF THE STUDY………………………………………………………………………………… 44
• RESEARCH DESIGN…………………………………………………………………………………….. 45
• SOURCE OF DATA……………………………………………………………………………………….. 45
• PERIOD OF STUDY………………………………………………………………………………………. 45
• DATA ANALYSIS…………………………………………………………………………………………. 45
• LIMITATION OF STUDY………………………………………………………………………………. 46

CHAPTER-4

DATA ANALYSIS & INTERPRETATION……………………………………. 47

• COMPARATIVE RATIOS………………………………………………………………………………. 48
  • Gross NPA’s Ratio (%)………………………………………………………………………………. 48
  • Net NPA Ratio (%)……………………………………………………………………………………. 50
  • Provisions Ratio (%)…………………………………………………………………………………… 51
  • Comparison of Gross NPA Ratio and Net NPA of Public Sector Bank…………….. 52
  • Comparison of Gross NPA Ratio and Net NPA of Private Sector Bank…………… 53
• COMPOSITION OF LOAN ASSET OF BANKS……………………………………………… 54
  • Standard Assets Ratio (%)………………………………………………………………………….. 54
  • Sub-standard Assets Ratio (%)……………………………………………………………………. 55
  • Doubtful Assets Ratio (%)………………………………………………………………………….. 56
  • Loss Assets Ratio (%)………………………………………………………………………………… 57
• IMPACT OF NON-PERFORMING ASSETS ON PROFITABILITY…………………. 58
  • Correlation between Net Profit & Net NPA of Public Sector Bank………………….. 58

4.3.1 Correlation between Net Profit & Net NPA of Private Sector Bank…………………. 58

• NPA RECOVERY ANALYSIS……………………………………………………………………….. 60
  • Percentage of Net Amount Recovered…………………………………………………….. 60

CHAPTER-5

FINDINGS, SUGGESTIONS & CONCLUSION…………………………….. 61

• FINDINGS…………………………………………………………………………………………………….. 62
• SUGGESTION……………………………………………………………………………………………….. 63
• CONCLUSION………………………………………………………………………………………………. 64

 

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