PROJECT REPORT ON

A STUDY OF NON PERFORMING ASSETS IN INDIAN COMMERCIAL BANKS

AT

PRESENTED BY

RAVI JAISWAL

(13/154)

(2013-2015)

UNDER THE GUIDENCE OF

Asso. Prof. G.KRISHNA

OBJECTIVES OF THE STUDY

Primary objective:

To Study the challenges faced by public and private sector banks with NPA’s in India.

To analyze the NPA position of selected public and private sector banks in India.

Secondary objectives:

To understand what is Non-Performing Assets and what are the underlying reasons for

the emergence of the NPAs.

To understand the impacts of NPAs on the operations of the Public and Private Sector Banks.

To know what steps are being taken by the Indian banking sector to reduce the NPAs?

FINDING

Findings from the study can be classified into two parts. In first part the findings were made with reference to the data

recorded from Asset department and in the second part the general reasons for non performing of assets were

highlighted.

It is found that the bank is efficient in achieving the budgeted target and mobilizing the funds from customers.

It is found that the amount of loan outstanding is gradually increasing year after, it shows that bank is inefficient in

proper appraisals and control system.

NPA’s Increasing year by year of all commercial banks in India because of their increases in Advances.

Nonperforming asset is one which does not generated income for the bank. In other words, an advance account

which ceases to yield income is a non- performing asset.

NPA of all banks shows that the growth in their losses by NON-

PERFORMING ASSETS has been increased.

• 1st rank- Vijaya Bank

(Gross NPA=198600 lakhs which

is 2.41 % gross NPA’s Of Gross

Advances)

• 20th rank- United bank of India

with 10.47% of Gross NPA’s

• 19th rank- Central bank of India

with 6.27%. Gross NPA’s

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

Public Sector bank 2013-14

As on march 31,2014 Gross NPA's As on march 31,2014 Gross Advances

As on march 31,2014 G.NPA's % As on march 31,2014 Rank

Gross NPA’s for the year 2013-14

INTERPRITATION

RECOMMENDATIONS

Securitization is another way which transforms non performing assets to performing. So the bank shall go for

securitization of assets.

Bank employees need to give more attention on the activities of the NPA’s and slow recovery of overdue loans.

If the customer intentionally tries to become NPA then take serious or legal action. If they do this the other NPA’s

account which are slow in payment will be recovered fast.

Bank should properly evaluate all loan applications and analyze project feasibility. Bank staff should be properly trained

in this regard.

Try to deal softy with NPA customer and motivate them to repay the loan.

Thank You ! ! !