A Study On Non - Performing Assets: Subramani (1MV16MBA81)

A STUDY ON NON –PERFORMING ASSETS
SUBRAMANI
(1MV16MBA81)
INDUSTRY PROFILE :
 BANKING FINANCIAL INSTITUTION

• Service industry
• Banking is originated with last decades of 18th century.
• State bank of India is one of the oldest bank.
• GDP rate 7.7%
 Features of banking system

• Dealing money
• Individual
• Acceptance of money
• Payments and withdrawals
• Giving advances
BANKING STRUCTURE IN INDIA:
Nationalized
Banks
Public sector
SBI and
bank
Scheduled Associates
commercial
banks IDBI
Private sector
Bank Old private
Reserve Bank
of India Banks
Foreign Banks
New private
Regional Rural Banks
Banks
Urban
cooperative Banks
Scheduled
cooperative
Banks
State cooperative
banks
RECENT TRENDS IN BANKING SYSTEM:-
 Electronic payment services E cheques

 Real time Gross settlement (RTGS)
 Electronic fund transfer (EFT)
 Electronic clearing service (ECS)
 Automatic teller machine (ATM)
 Electronic data Interchange (EDI)
 Shared payment Network system SPNS
 Tele Banking
 Phone Banking
 Credit cards
 Point of sale-POS
 D-Mat Acoonts
CORPORATION BANK:
 Type : Public
 Trade as : BSE 532179
NSE CORPBANK
 Industry : Banking, financial services
 Founded : 12 March 1906; 111 years ago
 Fonder : khan bahadur haji
Abdullah Haji Kasim
Saheb bahadur
 Headquarters : Mangalore, Karnataka, India
 Key people : Jai Kumar Garg (CEO, MD)
 Products : consumer banking, corporate banking,
Finance insurance, Investment banking,
Mortgage loans, private banking,
Securities, asset management,
Wealth managements, credit cards.
 Owner : Government of India
VISION
“The most preferred bank with global standards”
MISSION
“To expand our reach to meet the financial needs of people”
“to provide full range of banking services with innovative products”
Products and services

 Business loans
 Global loans
 Education loans
 Machinery loans
 Vehicle loans
SWOT ANALYSIS:
Strength
 The bank provides on time service and satisfactory service to the bank customers.
 Right strategy for right people.
 Lower time elapse with efficient and effective service.
WEAKNESS
 Too much of competition with other banks
 The bank not given much importance towards advertisement sector especially through internet and news papers
OPPURTUNITES
 Government providing funds for the development and expansion
 With the use of latest technology the bank has come up with ATMs and provides electronic payment system to its customer
THREATS
 At present the bank is facing threats from its competitors like other commercial banks, co-operative banks
and housing loans banks.
Public banks Private banks Foreign banks
1. State Bank of India 1. HDFC Bank 1. HSBC

2. Andhra Bank 2. ICICI Bank 2. Bank of America
3.Allahabad Bank 3. Karnataka Bank 3. CITY Bank
4. Canara Bank 4. YES Bank 4. Bank of Taiwan
5. Bank of Baroda 5. Kotak Mahindra Bank 5. United Overseas Bank
AREAS OF OPERATION
 Mumbai
 Karnataka
 Haryana
 Gujarat
 Madhya Pradesh
Theoretical background of the study
Non performing assets :

as a credit facility in respect of which the interest or installment of bond finance principal has
remained past due for a specified period of time
Types of non performing assets:

1. performing assets
2. Non performing assets
Performing assets
 Substandard assets.
 Bad and doubtful debts.
 Loss assets.
non-performing assets:
 substandard asset.
 Doubt assets
 Loss assets
Impacts of Non-performing asset:
 Reduces earning capacity of the assets
 Blocks capital
 Incurrence of additional cost
 Reduces EVA( economic value added)
 Low yield advances
 Affect on return on asset
Fundamental causes of NPA

 Willful default
 Failure of a business unit
 Lack of adequate risk assessment
 Internal factors
 Government or political interferences
Apart from the above said points the following points are the cause for NPA in
banking sector;
 The quality of loans

 The quality of assets
 Borrowers integrity
 Political interferences
 Lack of professionalism
 Inadequate education and communication efforts.
Statement of problem:
 The banking industry being competitive and turbulent as it is now with the
entrance of foreign bank and other private banks. The political system being so
unstable with constant change in rules n norms also reserve bank of in India
being monitoring the functioning of banks quite vigilantly them before managing
npa becomes essential components of the bank this study is carried out to identify
the problem of npa to understand how it affects the performance of bank the
extend to which corporation bank as been successful in controlling npa
SCOPE OF THE STUDY
 The study throw light on the factors influencing Non-performing asset of the bank and the steps taken by
the bank to minimize the NPA and guidelines issued by the Reserve Bank of India.
 This study is confined to corporation bank and the research covers the period of two years that is 2005-06
and 2006-07.
 The information collected will be very useful to the bank, students and to the customer. The project will
help the bank to take steps based on the suggestions and recommendations given at the end of the project.
SOURCES OF DATA
 PRIMARY DATA: The primary data is collected through direct communication with the staff members.
 SECONDARY OF DATA: In this study secondary data is collected from various sources like company
records, journals, magazines and internet.
Objectives of the study
 To study the problem and causes of NPA.

 To study the regulation of the reserve bank of India regarding non-performing
asset
 To study asset and liabilities structure in bank.
 To understand how it affect the performance of a bank.
 To give suggestion and recommendations which would help them in controlling
their level of non performing asset.
REVIEW AND LITRETURE
 Narula and singla 2001:

Evaluate the non-performing assets of Punjab national bank and its impact on profitability and to see the
relation between total advance, net profit, gross and Net NPA. The study uses on a report of Punjab national
bank for the period of 6 years from 2006-07 to 2011-12. These papers conclude that there is positive relation
between Net profit and NPA Punjab national bank. It is because of the mismanagement on the side of bank.
 Arora and ostwal 2002 :

The connected study on “unearthing the epidemic of non-performing assets” A study of public and private sector
banks with deals with the concepts of non-performing assets and analyze the classification of public and private
sector banks. The study concluded that private management done in nonperforming and suggest that there is
need to check the NPA and public sector banks so that Indian banking system becomes efficient.
 Toor N.s:
The recovery of non-performing assets through process of compromise by direct
talks rather than by lengthy and costly procedure of litigation. He suggested that by
constant monitoring. It is possible to detect, the sticky accounts, the incipient
sickness of the early stages itself and an attempt could be made to review unit and
put it back on the road to recovery.
 Priyanka mohanani and monal Deshmukh 2005:

Many studies have been conducted by researchers on nonperforming assets in banking industry. The researchers
has made attempt to person brief review of the literature available, which are published in the form of research
articles and technical papers published in the journals, magazines and websites in the related areas. Kaveri
studied the non-performing assets of various the extent of non-performing assets.
LIMITATIONS
 The study is limited to the extent of available data.
 An in depth study cannot be done because of time constrain.
 Owing the confidentially enforced by the bank, all the data could not be obtained.
 Since the area wise NPA data are not available for study, overall concept is taken for the study.
Data analysis
Graph Showing Net NPA in Amount to Total advances
Chart Title
160000
145066.03 140322.24
137086.3
140000
118716.65
120000
100000
80000
60000
40000
20000
869.38 1410.88 3180.56 4464.98
0
2012-13 2013-14 2014-15 2015-2016
Amount of NPA In crore TotalAdvances in crore

Graph showing net NPA in percentage
9
8.33
7
6.53
3.08
3
2.32
1.19
1
0
2012-2013 2013-14 2014-15 2015-16 2016-17
Level of NPA in %
THANK YOU

A Study On Non - Performing Assets: Subramani (1MV16MBA81)

Uploaded by

Copyright:

Available Formats

A Study On Non - Performing Assets: Subramani (1MV16MBA81)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Study On Non - Performing Assets: Subramani (1MV16MBA81)

Uploaded by

Copyright:

Available Formats

A STUDY ON NON –PERFORMING ASSETS

 BANKING FINANCIAL INSTITUTION

 Features of banking system

 Electronic payment services E cheques

Products and services

1. State Bank of India 1. HDFC Bank 1. HSBC

Non performing assets :

Types of non performing assets:

Fundamental causes of NPA

 The quality of loans

 To study the problem and causes of NPA.

 Narula and singla 2001:

 Arora and ostwal 2002 :

 Priyanka mohanani and monal Deshmukh 2005:

Amount of NPA In crore TotalAdvances in crore

You might also like