Upload
chandrajadhav
View
226
Download
0
Embed Size (px)
Citation preview
8/2/2019 Rahul Fin Project
1/45
INTRODUCTION
The subject of NON PERFORMING ASSETS (NPA) been a over a long time and while good
amount of water has flown under the bridge of NON-PERFORMING ASSETS (NPA) and I
would like to add some more water to in the flow.
Enormous NPA over the year has acted as severe drain on profitability of the public sector
banks. The banks, which function as intermediaries and are an important source of financial
resources, have also to be sound and stable and enjoy this vital intermediating function. This
confidence on which banking edifice stands should not be allowed to be shaken even a little by
permitting the presence of such a high level of Non Performing Advances. There is urgent need
to stem this problem of NPA to minimize its recurrence in years to come and there by strengthen
the banks books for improved performance in terms of efficiency, productivity and profitability.
Since the problem emanates basically because of the failure of borrowers, there is an urgent need
to make the borrowers feel that the money borrowed by them from banks belongs to the general
public and has to be repaid.
The solution to the problem is that the banks should strengthen their credit portfolio over a
period by removing the present deficiencies observed in the standards of credit appraisal,
monitoring and follow-up and improving the overall lending policies of banks.
8/2/2019 Rahul Fin Project
2/45
OBJECTIVES OF THE STUDY
1 To study Non Performing Assets in detail. To know the concept of non performing assets,
detail study of management of non performing assets.
2 To study the general reasons for assets becomes NPAs. The borrower does not repay the
interest or installments regularly then that account become a NPA. So, to find out thereasons about the past due installments of borrower.
3 To find out the problems of Bank due to NPAs. After the assets became NPA, the bank
facing serious problems, such as recovery of loan.
4 To know the effects of the NPA on bank performance. As the NPA increases, the
profitability of the bank decreases. NPA largely affects on banks performance. So, it has
to know about the effects of NPA on bank performance.
5 To give the recommendations based on overall analysis of the NPA. The detail study of
NPA and methods of management of NPA can give the recommendations for decreasing
the percentage of NPA.
8/2/2019 Rahul Fin Project
3/45
INTRODUCTION
A bank is an establishment, which deals with money. The basic functions of banks are the
accepting of all kinds of deposits and lending of money. In general there are several challenges
confronting the banks in its day today operations. The main challenge facing the banks is the
disbursement of funds in quality assets (Loans and Advances) or other wise it leads to Non
performing assets. After the global financial turmoil in 2008, Indian banks begin the new year
with a lurking fear that their Non Performing Assets (NPA) would go up with their portfolios
coming under severe stress.
Union Bank of India is having more than 600 branches and extension counters all over the
country. Nearly 351 ATMs are installed. Online Tele banking facility is available for its
customers. Today there are more than 26,000 employees in Union Bank of India.
In addition to regular banking facilities of Union Bank of India, today customer can also avail
variety of other services like cash management service, insurance, mutual funds, Demat from the
Bank. Union Bank of India is a Public Sector Unit with 60.85% Share Capital held by the
Government of India.
The Bank has been awarded the prestigious Asian Banker IT implementation award
2007 by the Asian Banker, a Singapore based research and intelligence organization. The award
was given away at the Asian Banker Summit 2008 held in Hanoi, Vietnam in April, 2008
Focus on asset quality, stringent credit review and monitoring mechanism and robust
recoveries has brought about a significant reduction in both Gross and Net NPAs of the Bank to
2.18% and 0.17% as of March 2009 from 2.94% and 0.96% in the previous year. The Net NPA
% for Mar09 is among the best in the Industry.
Gross NPA level reduced from Rs.1873 crore in March 07 to Rs.1657 crore in March 08.
Net NPAs also reduced in absolute terms from Rs. 601 crore in March 07 to Rs. 126 crore as of
March 08.
The future plan of the Union Bank of India includes the target to reduce gross NPA level below2%.
8/2/2019 Rahul Fin Project
4/45
BANK ANNEXTURE
Name of the BANKUnion Bank of India
Address of Bank
8/2/2019 Rahul Fin Project
5/45
VISION of BANK
To become the bank of first choice in our chosen areas by building beneficialand lasting relationship with customers through the process of continuous improvement.
MISSION STATEMENT
A logical extension of the Vision Statement is the Mission of the Bank, which is to gainmarket recognition in the chosen areas.
To build a sizeable market shares in each of the chosen areas of business througheffective strategies in terms of pricing, product packaging and promoting the product in
the market.
To facilitate a process of restructuring of branches to support a greater efficiency in theretail banking field.
To sustain the mission objective through harnessing technology driven banking anddelivery channels.
To promote confidence and commitment among the staff members, to address theexpectations of the customers efficiently and handle technology banking with ease.
8/2/2019 Rahul Fin Project
6/45
Historical background of bank
Union Bank of India was inaugurated by the Father of the Nation, Mahatama Gandhi, on
November 11th
, 1919. Started as a limited company in Mumbai, it was one of the few Financial
Commercial banks in India. Until 1947, UBI had only 4 branches - 3 in Mumbai and 1 in
Saurashtra, all concentrated in key trade centers. Catering to all the sectors of the society, be it
agriculture, industry, trade and commerce, services or infrastructure, the bank has also played a
major role in rendering services to the financial needs of every section. Apart from this, the bank
also extended financial support to educational, housing and trade sector.
Union Bank of India undertook the task of establishment of village knowledge centers
and self-employment training centers. It was in 1975, that the Union Bank of India was
nationalized. It was, then, that it merged with the Belgaum Bank, a private sector bank. Another
merger was on cards in 1985, this time with the Miraj State Bank. Union Bank is a Public Sector
Unit with 55.43% Share Capital held by the Government of India. The Bank came out with its
Initial Public Offer (IPO) in August 20th
, 2002 and Follow on Public Offer in February 2006.
Presently 44.57 % of Share Capital is presently held by institutions, individuals and others.
Tech-Savvy
With the age of global banking, Union Bank of India also changed its style, boasting of
urbanized and computerized core banking systems. A front runner among public sector banks in
modern-day banking, it has all the facilities that a modern bank should have - internet banking
and centrally computerized branches. UBI was one of the pioneer public sector banks, which
launched Core Banking Solution in 2002. As of September 2005, more than 670
branches/extension counters of Bank are networked under Core Banking Solution. The Bank haslaunched multiple Electronic Delivery Channels and has installed nearly 423 networked ATMs.
In March 2008, Union Bank became the first large Public Sector Bank to network all its branches
under the Core Banking Solution (CBS).
8/2/2019 Rahul Fin Project
7/45
Union Bank of India is firmly committed to consolidating and maintaining its
identity as a leading, innovative commercial Bank, with a proactive approach to the changing
needs of the society. This has resulted in a wide gamut of products and services, made available
to its valuable clientele in catering to the smallest of their needs. Today, with its efficient, value-
added services, sustained growth, consistent profitability and development of new technologies,
Union Bank has ensured complete customer delight, living up to its image of, GOOD
PEOPLE TO BANK WITH. Anticipative banking- the ability to gauge the customer's needs
well ahead of real-time - forms the vital ingredient in value-based services to effectively reduce
the gap between expectations and deliverables
All Branches of the Bank have been 1135 networked ATMs, with online
Telebanking facility made available to all its Core Banking Customers - individual as well as
corporate. In addition to this, the versatile Internet Banking provides extensive information
pertaining to accounts and facets of banking. Regular banking services apart, the customer can
also avail of a variety of other value-added services like Cash Management Service, Insurance,
Mutual Funds and Demat.
The Bank will ever strive in its endeavour to provide services to its customer and
enhance its businesses thereby fulfilling its vision of becoming THE BANK OF FIRST
CHOICE IN OUR CHOSEN AREA BY BUILDING BENEFICIAL AND LASTING
Organizational status
The Bank is one of the largest Public Sector Banks in India with consolidated business
mix of Rs 236950+ crs and a branch network of 2661+ branches across India. In March 2008,
Union Bank became the first large Public Sector Bank to network all its branches under the Core
Banking Solution (CBS).
8/2/2019 Rahul Fin Project
8/45
Board of Directors
SHRI M.V.NAIR
Chairman & Managing Director
Mr. M.V.Nair took charge of Union Bank of India as Chairman and Managing Director
on 1st
April 2006. ). Mr. Nair successfully introduced a change process called Project Nav
Nirman by leveraging technology, changing processes and empowering people, thereby
transforming the Bank into a customer Centric marketing organization. Mr. Nair is the Deputy
Chairman of Indian Banks Association (IBA).
SHRI T.Y. PRABHU
Executive Director
Shri T.Y. Prabhu was appointed as Executive Director on 6th June, 2007. He has over 39
years of Banking experience Shri Prabhu's experience covers a broad range of banking areas
including international division, Corporate Credit, Commercial Credit, Foreign Exchange,
Treasury and Investments and general administration Shri Prabhu is a graduate in Commerce and
has a degree in Law. He is a Certified Associate of the Indian Institute of Bankers (CAIIB).
SHRI S.RamanExecutive Director
Prior to joining the Union Bank of India, Mr. Raman was with the Bank of India for over
34 years and had exposure to different segments including Corporate Banking, International
Business and Human Resources Management. Mr. Raman served in different parts of the country
including Mumbai, New Delhi, Ahmedabad, Pune, Hyderabad, Bhubaneshwar and Nagpur in
different capacities including as Zonal Manager in Orissa and Gujarat. Mr. Raman currently
oversees the portfolios of Risk Management, Human Resources, Rural Business, General
Administration and Retail.
8/2/2019 Rahul Fin Project
9/45
MOVEMENT OF NPA:-
(Rs. In Crore)
31.03.2009 31.03.2008
i Net NPAs to Net Advances (%) 0.17 0.96
ii Movement of NPAs (gross)
(a) Opening Balance 1872.62 2098.05
(b) Additions during the year 762.50 750.21
(c) Reductions during the year 978.52 975.64
(d) Closing Balance 1656.60 1872.62
iii Movement of Net NPA
(a) Opening Balance 601.22 833.95
(b) Closing Balance 127.57 601.22
iv Movement for provisions for NPAs
(excluding provisions on standard
assets)
(a) Opening Balance
1262.83 1252.83
(b) Provisions made during the year 585.22 330.00
(c) Write-off/write-back of excess
Provisions
337.03 320.00
(d) Closing Balance 1511.02 1262.83
8/2/2019 Rahul Fin Project
10/45
Products & Services
Deposits Accounts Loans Cards Insurance Cash Management Service Mutual Funds Demat ATMs E Banking Or Online Banking Remittance Service Bill Payment Service Tax Payment Service ATM Banking Tele Banking Online Demat Trading Cash Management Services Mutual Funds Railway Tickets Booking 8% Tax Saving Bonds Public Provident Fund (PPF) Direct Tax Collection Central Excise and Service Tax Collection Services Special Savings Schemes for Senior Citizens
8/2/2019 Rahul Fin Project
11/45
Retail Banking:
Choice of Accounts: Saving, Current, Demat, Pension, No Frills, Corporate Payroll andNRI Accounts.
Loans: Home loans or housing finance, personal loans and Vehicle loans, Educationloans for further education, loan against property, securities and IPO financing and
merchant establishment overdraft.
Anytime, Anywhere Banking: Mobile banking, Internet banking, SMS banking, ATMbanking.
Beyond Banking: Talking ATMs, Account alerts. Card Product: Debit card, Credit card, Card-to Card money transfer, Cash cards.
Deposits:
Fixed Deposits Recurring FDs
FUTURE PLANS
The Bank aims to reach a business mix of Rs 220000 crore by the end of March 2010, a growth
of approx. 22%. Of this, Rs 127500 crore will be Deposits (growth of 23%YoY) and Rs.
92500 crore will be Advances (growth of 22%YoY).
Bank will continue to focus on a four-pronged strategy for growth. Retail, Agri business, SME
and Corporate will continue to be the four growth engines.
Containment of cost of funds will form central strategy of the Bank.
Gross NPA level is targeted below 2%.
8/2/2019 Rahul Fin Project
12/45
Definition of NPA:-
Action for enforcement of security interest can be initiated only if the secured asset is
classified as Non Performing Assets.
Non Performing Assets means an asset or account of borrower, which has been
classified by a bank or financial institutions as sub-standard, doubtful or loss asset, in accordance
with the directions or guidelines relating to asset classification issued by RBI.
OR
An asset becomes non-performing when it ceases to generate income for the bank.
Non-performing asset is defined as a credit facility in respect of which the interest &/or
installments of principle has remained past due for a specified period of time, which is 90
days at present.
An advance or loan is classified as an NPA where,
Interest &/or installment of principle remain overdue for a period of more than 90 days inrespect of term loan.
The account remains out of order in respect of an overdraft/cash credit for more than 90days. Though the a/c is in order, there is either no credit in the account during last 90
days
A bill remains overdue for a period of more than 90 days in the case of bill purchased &discounted.
Any amount to be received (like card usage, debits in suspense accounts etc) remainsoverdue for a period of more than 90 days in respect of any other accounts.
Stock or Book debt statements have not been submitted for last 6 months. The a/c isoverdue for review for last 90 days.
8/2/2019 Rahul Fin Project
13/45
There are three major types of NPA:
Sub-standard:
The account holder comes in this category when they dont pay three installment
continuously after 90 days and upto 1year. for this category bank has made 10% provision of
funds from their profit to meet the losses generated from NPA.
Doubtful NPA:
Under doubtful NPA there are three sub categories:
D1 i.e. up to 1 year: 20% provision is made by the banks
D2 i.e. up to 2 year: 30% provision is made by the bank
D3 i.e. up to 3 year: 100% provision is made by the bank.
Loss Assets:
Under this 100% provision is made. When account holder comes in this category
their account can be written off by the banks. After this the assets are handed over to recovery
agents for sale
8/2/2019 Rahul Fin Project
14/45
Research Methodology
Research is a process through which we attempt to achieve
systematically and with the support of data the answer to a question,
the resolution of a problem, or a greater understanding of a
phenomenon. This process, which is frequently called research
methodology, has eight distinct characteristics:
1. Research originates with a question or problem.
2. Research requires a clear articulation of a goal.
3. Research follows a specific plan of procedure.
4. Research usually divides the principal problem into more
manageable subproblems.
5. Research is guided by the specific research problem, question, or
hypothesis.
6. Research accepts certain critical assumptions.
7. Research requires the collection and interpretation of data in
attempting to resolve the problem that initiated the research.
8. Research is, by its nature, cyclical; or more exactly, helical.
Descriptive research is used in this project report in order to know
about cash management services to clients and determining their
level of satisfaction. This is the most popular type of research
technique, generally used in survey research design and most useful
in describing the characteristics of consumer behavior. The method
used were following:
8/2/2019 Rahul Fin Project
15/45
Questionnaire method Direct Interaction with the clients.
1.3.1 Research Design: -
There are three kinds of research designs namely;
Exploratory Descriptive Causative
In my project, a Descriptive Research was initiated because it was generally a
study which was carried out to describe the market characteristics of various
airlines, and of Indian Airlines in particular, as well as the buying behaviour of
travellers.
Situation Analysis: - Conducting a situational analysis means analysing the
company, its market, its competition and the industry in general. The situation
analysis is a background investigation. It involves obtaining information about the
company and its business environment by means of library, research.
8/2/2019 Rahul Fin Project
16/45
RESEARCH METHODOLOGY
The study is made on the basis of secondary data. The annual reports of the bank were of greathelp. In addition to this, the people of UNION BANK OF INDIA help for collection of data.
They very co-operative in forwarding the necessary information as and when required.
Tools for data collection:
Data require for this project is mainly two types i.e. primary data & secondary data and I
also use the Graphs in analysis of non performing assets which help to understand to everyone.
Primary Data: -
Those are collected fresh and the time and this happens to be original in character. The
primary data were collected through personal interaction with the manager and official of the
bank.
Secondary Data: -
Secondary data means data is already available i.e. they refer the data which have already
been collected and analyzed by someone else, then he has to look into various sources form
whose he can obtain them, usually the publications technical trade journal books, Magazines and
Internet and Reports of bank etc.
SOURCES OF COLLECTION OF DATA:-
1. Staff of the UNION BANK OF INDIA
2. Magazines and internet,
3. Annual General Report.
8/2/2019 Rahul Fin Project
17/45
Sample design
Doing research via sampling was important because of impossibility of finding
all of a population, as well as other restrictive parameters like cost, time etc. Our
sampling decision should be in-coordination with the research and data
objectives. The method opted for taking samples was `Non-probability
sampling. It was a `Purposive Non-probability sampling/ Judgement Sampling
was used. The key assumption underlined this type of sampling is that, with
sound judgement or expertise, and an appropriate strategy, one can carefully and
consciously choose the elements to be included in the sample, so that samples
can be developed that are suitable for ones needs.
Sample Size: - 80
8/2/2019 Rahul Fin Project
18/45
METHOD OF DATA COLLECTION
Instruments for data collection: -
The research instruments used for this survey were structured
questionnaires. The questionnaires were designed to find the
satisfaction levels of internet banking users.
Questionnaire: -
A questionnaire consists of a set of questions prepared to
respondents for their answers. Because of its flexibility, the
questionnaire is by far the common instrument used to collect
primary data. Closed Ended as well as Open Ended questionnaire
were used in my market research .
Drafting of a Questionnaire: -
The formulation of the questionnaire, i.e., the structure and the
disguise to be used in the questionnaire depends upon the kind of
information that is desired. Questionnaire was prepared over a
period of 5 days by intensive brainstorming. Valuable advice
regarding changes was given by my project guide, Ms. Richa Dabas,
has resulted in the formulation of the questionnaire through which
responses were collected and analysed. A copy of the questionnaire
has been attached as an annexure to the project.
Since my objective was to derive out the maximum information out
of the passengers without making the whole exercise boring and
troublesome, I decided to keep majority of the questionnaire close-
ended.
8/2/2019 Rahul Fin Project
19/45
In order to generate and sustain the interest of the respondents, the
initial questions pertained to the gathering of simple information like
the knowledge of inetrenet banking, the choice of their bank and the
main areas of their transactions. Since, I had to balance the twin
objectives of gathering maximum information and at the same time
retaining the interest of the customers, I was compelled to squeeze
in a lot of questions and club them up in a single question.
8/2/2019 Rahul Fin Project
20/45
SCOPE:-
Understand what is non performing assets, its reasons & methods of management ofNPA.
To know how the bank use methods of management of NPA. Give the suggestions to recover the NPA accounts.
8/2/2019 Rahul Fin Project
21/45
LIMITATIONS
8/2/2019 Rahul Fin Project
22/45
LIMITATIONS
Following are the limitations which were faced on the project.
Limitations of primary data:
Sometimes the data was important from the point of view of the project but staffs ofthe bank refuse to provide data for maintained the secrecy.
Confidential financial information cannot be disclosed.
The data available are based on annul reports.
Two months time was the main limitation because two months were not enough tounderstand the actual concept & management of non performing assets.
The objective was to collect as much as possible having no access to other records of thebank except the published statements, the interpretation of the results might not be perfect
and accurate.
8/2/2019 Rahul Fin Project
23/45
DATA ANALYSIS
& INTERPRETATION
2.1
8
0.1
7
8/2/2019 Rahul Fin Project
24/45
Comparative Analysis of Gross NPA & Net NPA of UBI & other Banks
Gross NPA (in %) Net NPA (in%)
BOB 1.46 0.35
BOI 1.48 0.45
DENA 2.37 1.16
PNB 2.09 0.45
UBI 1.82 0.59
0
0.5
1
1.5
2
2.5
BOB BOI DENA PNB UBI
BANK
GN
NN
P
E
C
E
NT
AG
R
E
8/2/2019 Rahul Fin Project
25/45
Interpretation of graph:
Above chart shows the gross NPA and net NPA of UBI bank, BOI bank,
DENA bank, PNB bank. From the above chart we come to know that the gross NPA of
Union Bank of India was more than the BOI and BOB and net NPA of UBI was more than
the PNB, BOI and BOB banks.
Comparative Analysis of Gross % of NPA & Net % of NPA over the
period of four years in UBI
0
0.5
1
1.5
2
2.5
3
2008 2009
2.94
2.18
0.96
0.17
YEAR
GrossNet %
P
E
R
C
E
N
T
A
G
E
8/2/2019 Rahul Fin Project
26/45
2009
Interpretation of graph:-
Above graph shows the percentage of gross and net NPA in Union Bank of India. From the
above chart we come to know that the percentage of gross & net NPA of bank is reduced during the last
four years.
Comparative Analysis of Total Deposits and Advances over the period of two
years in UBI
0
20000
40000
60000
80000
100000
120000
2007-08 2008-09
85180
103859
63658
75878
Rs. in crores
YEAR
Deposites
Advances
8/2/2019 Rahul Fin Project
27/45
Interpretation of graph:-
Above graph shows the total deposits and advances of Union Bank of India in 2007-08
and 2008-09.
From above graph we come to know that the deposits and advances of bank are increased
from the year 2007-08 to 2008-09.
Comparative Analysis of Total Advances & Total NPA as on 31 March 2009 in
Alandi Branch
8/2/2019 Rahul Fin Project
28/45
Interpretation of graph:-
Above graph shows the classification of disbursed advances with NPA as on 31 march 2009.
It also shows that total disbursement of home advances and NPA was 2017401 and 797803
respectively.
The NPA in home advances is higher as compare to other advances.
0
500000
1000000
1500000
2000000
2500000
Secured Home RetailTrade
Unioncomfort
358609
2017401
503567412147
83147
797803
25553
395793
Rs.
ADVANCES
Total Advances
Total NPA
8/2/2019 Rahul Fin Project
29/45
Comparative Analysis of Standard, Sub-standard, Doubtful & Loss Assets as
on 31 March 2009 in Alandi Branch
8/2/2019 Rahul Fin Project
30/45
Interpretation of graph:-
4223667
15523
102403
395793
Asset Classification
Standard
Sub-standard
Doubtful
Loss
8/2/2019 Rahul Fin Project
31/45
Above graph shows the classification of assets (advances) according to RBI norms
which is done in standard, sub-standard, doubtful and loss assets.
It shows that the standard assets were 4223667 in Alandi branch and also sub-standard,
doubtful and loss was 15523, 102403, and 395793 respectively.
8/2/2019 Rahul Fin Project
32/45
FINDINGS
FINDINGS
8/2/2019 Rahul Fin Project
33/45
Non Performing Assets affects on the banks profitability. As NPA decreases, theprofitability of the bank increases. So, NPA largely affects on the banks
performance.
The deposits and advances are increasing in the bank. The comparative analysis oftotal deposits and total advances shows that the total deposits and advances are
increasing in UBI in 2007-08 & 2008-09.
Home loan constitute maximum part in the total advances of branch. Thecomparative analysis of total advances and NPA, shows that total disbursement of
home advances & NPA is maximum than other advances.
Union comfort scheme include more NPA as compare to other advances. In UnionComfort Scheme bank could not make any documentation as a secured point of
view. Borrowers take loan under this scheme but many of them take loan
intentionally & do not repay it. So because of it under this scheme NPAs are
increased.
The classification of assets is to be done in the bank and provisions on that classifiedassets has to be made according to the RBI norms.
8/2/2019 Rahul Fin Project
34/45
SUGGESTIONS
SUGGESTIONS
8/2/2019 Rahul Fin Project
35/45
1. Branch should try to improve its profitability by reducing NPA through
applying following measures,
To check proper credit worthiness & attitude of borrower at the time ofdisbursement. Some borrowers take the loan intentionally & do not able to repay
it. It should have to check his capacity to repay the loan.
To handover the recovery of branch to the recovery tribunal. The Debt RecoveryTribunal is like the court that makes compromise in between the bank &
borrower. It helps to recover the loan.
To have sound receivable management with proper planning.
2. Branch should cope with changing principals & policies for the regulation of the rising ofNPA. With every new govt. banking sector gets new policies for its operation, so the
branch should cope with it.
3. Branch should adapt the regular training & development program to increase theperformance of its staff. The training & development program gives training about how
the recovery is done, how to handle the borrower to recover loan from him.
8/2/2019 Rahul Fin Project
36/45
CONCLUSIONS
CONCLUSIONS
8/2/2019 Rahul Fin Project
37/45
The percentage of gross NPA & net NPA is reducing during the years. The bankmakes management in recovery of loan so during last four years the percentage of
gross NPA & net NPA reduced.
The bank conducted 6058 recovery camps & recovered maximum assets from thecamps. The bank tries to conduct more & more recovery camps & Make
provisions to recover the maximum assets.
The profitability of the bank increases as the percentage of NPA reduces. Duringthe last four years the percentage of gross NPA & net. NPA decreases. The bank
conducted more recovery camps. So the profitability of the bank increases.
The bank also uses the follow up & spot visit method for recovery. Manager givethe spot visit & follows borrower to recover loan.
8/2/2019 Rahul Fin Project
38/45
BIBLIOGRAPHY
BIBLIOGRAPHY
8/2/2019 Rahul Fin Project
39/45
Reference Books:-
Managing Non Performing Assets in banksAuther - S. N. Bidani; April 2008; Page no. 88-98
Study on NPA in private & public sector banksAuther - Jigar Soni & Nirav Gusai; July 2008; Page no. 120-125
Annual Report March 2009 of UBI
Internet Websites:-
www.unionbankofindia.com www.google.com
8/2/2019 Rahul Fin Project
40/45
ANNEXURE
ANNEXURE
8/2/2019 Rahul Fin Project
41/45
BALANCE SHEET
(Rupees in Thousand)
As on 31.03.2009 31.03.2008
Capital and liabilities
Capital 5051179 5051179
Reserve and surplus 68425816 46847503
Deposits 1038586450 851802191
Borrowings 47604922 42155322
Other liabilities and provisions 81064339 80922563
TOTAL 1240732706 1026778758
Assets
Cash and balances with reserve Bank of India 94547414 59175728
Balances with Banks and money at call and short notice 6430966 25088697
Investments 338226309 279817724
Advances 743482947 623864289
Fixed assets 22004044 8249968
Other assets 36041026 30582352
TOTAL 1240732706 1026778758
8/2/2019 Rahul Fin Project
42/45
HIGHLIGHTS OF UBI IN MARCH 09
Balance sheet:-
o Business stands at Rs. 179737 crore; growth 20.76%
o Deposits at Rs. 103859 Cr; growth 21.93%
o CASA at 34.86% of total deposites
o Advances at Rs. 75878 Cr.
o Business per Employee Rs. 6.20 Cr.
o Net profit per Employee Rs. 5.39 lakh
8/2/2019 Rahul Fin Project
43/45
o Net profit Rs. 1387 Cr.; growth 64.14%
Questionnaire:-
Company Name:-
Name:-
8/2/2019 Rahul Fin Project
44/45
1. When are the NPA reports prepared by the bank?1
stQuarterly
Half Yearly
Yearly
2. Does the provisions for NPA are made by RBI?Yes
No
3. Does any Health Code of the bank to NPA?Yes
No
4. Does the bank check credit position of Brower at time of sanction of loan?Yes
No
5. Is any reporting of NPA done to RBI?Yes
No
6. Which factor is more affect on NPA Accounts?Internal Factor
External Factor
8/2/2019 Rahul Fin Project
45/45
7. Does the bank take step for control of NPA Accounts?Yes
No
8. Is there any limit for the amount of loan?Yes
No
9. Is there any legal remedies are applicable to recover the amount of loan?
Yes
No
10.How are they applicable?-----------------------------------------------------------------------------------------
--------------------------------------------------------