Advance and Non Performing Assets

7/31/2019 Advance and Non Performing Assets

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REPORT

ONA COMPARITIVE STUDY OF ADVANCE AND NON

PERFORMING ASSETS OF PUBLIC AND PRIVATE SECTOR

BANKS

WITH SPECIAL REFERENCE TO INDIAN OVERSEAS BANK

AND INDUSTRIAL CREDIT AND INVESTMENT CORPORATION

OF INDIA

Submitted to:Kurukshetra University, Kurukshetra

(Session 2006-2008)

Under the supervision of:- Submitted By:-


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\Acknowledgment

This project report has been made possible through the direct & indirect co-

operation of various people whom I wish to express my thanks and

gratitude.First and foremost I am very thankful to Dr. D.D.Arora

(Head of Department, KUK) for helping me to do work on project.

I also wish to express sincere thanks to Dr. (Director

Tilak Raj Chadha Institute of Management & technology, Yamunanagar.)

I would also like to thanks the Mrs Monika Chawla faculty member

of the institute and my friends for their advice and guidance along kindled

inspiration in the face of difficulties encountered in the course of this work

and to create this project report.

Finally with blessings of my parents and who had been a source

of strength and inspiration for me in this endeavor.

( )


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CONTENTS

o INTRODUCTION.

PROFILE OF THE STUDY.

SIGNIFICANCE OF THE STUDY.

o OBJECTIVES OF THE STUDY.

o LITERATURE REVIEW.

o RESEARCH METHODOLOGY.

SAMPLING AND SAMPLING DESIGN

ANALYTICAL TOOL

DATA COLLECTION.

HYPOTHESIS TESTING

LIMITATIONS OF THE STUDY.

o RESULTS & FINDINGS

o RECOMMENDATIONS

o BIBLIOGRAPHY

o ANNEXXURE


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INTRODUCTION OF THE

STUDY


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INTRODUCTION:

The Indian banking can be broadly categorized into nationalized

banks (Government owned) private banks, foreign banks and development

banks. But now a days Indian banking sector is the availability of quality

assets. The most glaring culprit affecting the banks profitability is what is

known as Non performing assets(NPAs). According to economist, Omkar

Goswani, The biggest threat in the event of capital account convertibility

comes from the fact that high NPAs have made Indian public sector banks

non competitive vis--vis their foreign counter parts.

Any financial lending has the inherent risk of default. The default in

paying date is categorized as NPAs. With a view to enhance operational

efficiency, productivity, profitability and with the objective of implementing

international best practices in Indian banks especially with regard to revenue

recognition, assets classification, provisioning and capital adequacy ,

Reserve Bank Of India had introduced a new set of prudential norms during

the year 1992, in the wake of new economic reforms for banks as prescribed

by the first report of Narsimham committee. These norms, implemented in

the phased manner, have gradually become stricter and stricter. They

brought the much desire changes in the profitability performance as well as


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its evaluation in banks, presently any borrower account is treated as non

performing if either interest or principal is not serviced for six months.

In the year of implementation for these norms, most of the public

sectors banks reported substantial losses. As against a total profit of Rs. 558

crore in 1991-92, public sector banks recorded losses, Rs 3650 crore in the

year 1992-93, Rs 4349 crore in year 1993-94, and Rs 3095 crore in year

1994-95. The gross non performing assets (NPAs) of the public sector banks

increased to Rs 54773 crore on march 2001 from Rs 53033 crore on march

2000 and of the private sector banks from Rs 4761 crore to Rs 6030 and

foreign banks from Rs 2614 crore to Rs 3071 crore as on march 2001.


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MEANING OF NPAs:

Indian banks have for a long time treated all the sticky loan assets as

NPAs. The actual concept of accounting conventions has been followed

without reckoning the amount actually realized. It mean that if a loan given

by a bank fails to fetch a return in the forms of interest realized from the

borrower the banks has no right to debit the borrowers account with the

interest chargeable following the accrual principal. An assets which causes

to yield income for the bank should be treated as NPA, and income from

loan assets should not be booked as income until it is actually recovered.


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CLASSFICATION OF ASSETS UNDER

NON PERFORMING ASSETS:

In line with the RBI guideline from time to time, the loans given by banks

are classified as performing and non performing for the purpose of income

recognition and provisioning. Indian banking sector can classify its assets

under NPAs in four broad categories.

a) Standard assets/ performing assets.

b) Sub- standard assets.

c) Doubtful assets.

d) Loss assets.

A) Standard assets / performing assests:

Standard assets are those assets which doesnot disclose any problem

and which does not carry more than normal risk which attached to the bank

such as assets is not a non-performing such as assets is not a non-performing

assets loans where installments become due but not received with in a period

of one year should not be classified as a standard assets. Loans assets in

respects of which interest and principal are received regularly are called

standard or performing assets. Standard assets also includes loans where


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arrears of interest and/or of principal do not exceed 180 days at the ends of

financial year no provision required for such loans.

B Sub-standard assets:

Sub standard assets are those which are non-performing for a

period not exceeding two years. Eg an assets which has been treated

as nonperforming assets as on 31st march 1999 would be treated as

non performing assets upto 31st march 2000. In case of term loan

those where installments of principals are overdue for a period

exceeding one year but not exceeding two years should be treated as

sub- standard assets. An assets where the term of the loan agreement

regarding interest and principal have been renegotiated or reschedule

after six months of commencement of production a part of

rehabilitation package. Approved by the institution should be

classified as sub standard and should remain in such category for at

least two years of satisfactory performance under renegotiated or

rescheduled terms. Also in cases where the loan repayment is

rescheduled. RBI has asked to banks to recognize the loans as sub-

standard at least for one year.


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C). Doubtful assets:

Doubtful assets are those loans which have remained non-performing

for a period exceeding two years and which are not considered as loss assets

eg. Credit facility to a borrower which is treated as NPAs on 30th April 1992,

would be treated as doubtful from 1 may 1994. In case of term loan those

where installments of principal have remained overdue for a period

exceeding two years should be treated as doubtful assets. A major portion of

assets under this category relate to sick companies referred to the board for

industrial and financial reconstruction.

D) Loss assets:

A loss asset is one where loss has been identified by the banks but the

amount has not been written off wholly or partly. In other words, such as

assets is considered uncollectible. There may be some salvage value. All the

recalled loans may not be immediately classified as loss assets. Such loans

or assets may be treated as doubtful till a firm decision to pork to recover the

dues is taken up to two years from the date of recall notice and there after

may be classified as loss assets.


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NPAs AS PER RBI GUIDELINES:

According to RBI guideline NPAs are classified in three categories.

A). Cash credit/ overdraft.

B). Term Loans.

C). Bills discounted

A). Cash Credit/overdraft:

When an account is out of order for any two quarters out of fourquarters of the year ending 31st march, the account will be treated as an

NPAs.

B). Term Loan:

If interest/ installments of principal remain unpaid for any two

quarter of the year ending 31st

March, the account will be treated as anNPAs.

C). Bill discounted:

The bills purchased will become NPA if they remain overdue andunpaid for two quarters at end of accounting year is an on 31st March.


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REASONS FOR NON PERFORMING ASSESTS:

At present , any borrowed account not serviced for either interest of

principal for at least 6 months after the specify time period will be called as

non-performing assets. Behind these NPAs have some reasons. Following

are the major reasons for borrower accounting turning out eventually into

non-performingassets.

1. Funds borrowed for a particular purpose but not used for the saidpurpose.

2. Poor recovery of receivables.

3. Inability of the corporate to raise capital through the issue of equityor other debt instrument from capital market.

4. Business failure.

5. Non availability, inadequacy of infrastructure facilities relevant tobackward areas like:

a). Inadequate capacity of substation.

b) Lengthy transmission lines

c) Lock of rail

d) Equipment being kept ideal or sold.


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EFFECTS OF NPAs AT MACRO LEVEL:

The general economic condition of a country can gauged by the

percentage of the total NPAs. Higher the NPA lower the economic

growth. NPAs have both quantitative ill effect on the economy.

Declining Fresh Credit For New Projects:

When the loans taken are not repaid so much of funds has gone

out of the financial system and the cycle of lending repaying borrowing is

broken. The banks also has to repay its depositors and others from whom

money has been borrowed. If the borrower does not pay, the banks has to

borrow additional funds to repay the depositors and creditors. This leads to a

situation where banks are reluctant to lend fresh funds to new projects of on

going projects thus choking the system. Once the credit to various sectors of

the economy slows down, the economy is badly hurt as we are witnessing

now. There is slow GDP industrial output and fall in the consequent

depression in the market.


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Declining Interest Income:

It is common knowledge that PSBs are the largest lenders and

correspondingly the largest earners of interest income at least theoretically.

Public sector banks account for more than 90% of the lending. The

government being sole shareholder of the banks, any dividend declared

would have gone to the government offers and which can be spend on

welfare and developments programs. Further the income that could have

been generated by the entities availing the bad debts amount in the form of

direct and indirect taxes, and other intangibles like employment generation,

developments of the region also have to be considered while evaluating the

adverse affect of the NPAs.

Liquidity Crunch:

Another damaging impact of NPAs on the economy is the

liquidity crunch. When the borrowers do not pay the banks on time the

bankers lose confidence on the borrowers. Consequently the bankers do not

come forward for further funding proposal be it working capital or viable

expansion / diversification projects. The banks and the institution also tap

the capital market for raising resources and mop up huge sums of money and

drain the markets of invest able funds. This is done though banks are not all


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that inclined to increase the credit to the industry for the fear of increasing

NPA. Added to this the fear of inquiry by vigilance department and other

law enforcing agencies. All this leads to a situation where there are lend able

funds. This is done though banks are not all that inclined to increase the

credit to the industry, for the fear of increasing NPA. Added to this the fear

of inquiry by vigilance department and other law enforcing agencies. All this

leads to a situation where there are lend able resources but no lending is

made and the entire economic system is chocked with funds shortage which

leads to liquidity crunch.

Rising fiscal deficit:

When capital support is given to any PSB on account of losses

booked any/or erosion of capital due to NPAs it comes out of either

government budgetary resources of from a public, as per the new

liberalization policy. Whether this money is from tax revenues or from the

hard earned savings of the investing public , in either the society is bearing

the cost of there NPA,s.


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Willful default of loans:

The recovery climate has been vitiated by political

indiscretions, epically with regard to the rural credit. During the

1990s and 1991 there was a massive waiver of rural debt

mounting to over Rs 15000 crore. This unimaginative exercise has

put a premium on willful default and dishonesty. It has lowered the

repayment ethics and even now rural sector borrowers wait for

another does of loan waiver. One time settlement is another macro

level concerns. As the judicial process is time consuming and

ineffective, banks have been advised by RBI to explore possibility

of out of court settlement with defaulting borrowers. This provides

scope for willful defaulters becoming eligible candidates for such a

settlement.

Take over accounts:

A recent study has revealed that incidence of NPAs more with regard

to take over account. This malady needs to be thoroughly probed into the

reason for take, and the subsequent slippage of these accounts into NPA

category raises many fundamental questions involving the motives, credit

investigation and appraisal system on the part of the bank. Banks must


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develop a credit information bureau in the own interest without waiting for

any initiative in this regard. The current situation encourages bad borrowers

to switch banks.

Risk taking ability of the banks:

Lastly, highly level of NPAs reduces risk taking ability of the banks,

it also affects the credit rating of banks, thereby restricting its ability to

approach the public for capital subscription alternatively, a low rating

substantially increases the cost of raising funds ever for tier 11 capital. Thus

it can be concluded that NPAs greatly affect the financial health of banks.


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Profile of the study


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RECOMMENDATION:

The NPAs could be segregated in to two categories.

1. NPAs arising due to genuine business problem.

2. NPAs arising due to willful defaults.

The first category defaulter could be tackled either by Advances family

concepts or by the specialized wing called Angle units . The second

category defaulters could be handled by the tool called NPA Trading.

Advance family concept:

This concept works on the principal of solidarity towards fraternity,

that is in difficult times other members of the family help the member in

trouble.The various advance accounts of any bank comprise diverse business

fields. These accounts could be viewed as members of a large family of the

bank. The member having at least one thing common availed advance from

the same bank. There would, of course be many others things common

Any business unit could find it self under problem, because ofmainly two reasons.


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a)Financial problem:

In this type of problem generally the banks branch manages is able to

help, provided that falls under his purview or with the intervention of the

higher authority, if needed.

b) Operational problem:

This is the area where the advance familys concept is really

applicable and should prove helpful. The following points should able to

illustrate this concept clearly.

Another example could be of sourcing the raw material or marketing

or finished goods problems. Here again the branch manager could

bring the prospective parties to the table and left them have

meaningful discussion.


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Angle units:

This concept is applicable only genuine case of default ( as assessedby the branch manager or other appropriate authority.)

During defaults times the borrowers accounts experience thefollowing two things.

1 Defaults in repayments of the principal/ interest due to thebank.

2 More need of funds.

If we see both points together, the business units condition is bound to be

worse off because of one hand the defaults in repayment prevents the

borrower from having access to the funds and on the other hand unless funds

the need for funds is met with. The business would not yield anything and

thus triggers further defaults in repayments.

Present set-up:

Under present set up the branch manager takes up the NPA case with next

higher authority for the release of more funds and if it is deemed fit them the

funds are sanctioned.


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Suggested set up:

A separate wing could be spun off only for funding these loss making

units after a careful analysis of the viability of the unit concerned. The pre-

requisite for this only genuine cases be referred to this wing. After the

troubled unit turned around the previously out standing amount and some

free towards processing of further funds application could be charged, which

we think the borrower will be more than happy to pay up.

NPA Trading:

This could be bankers powerful tool to guard against the cases of

willful defaults. The functioning of this method could more easily

understand by the following example.

Mr A hailing from a well to do family takes a loan from banks

X and after some time starts defaulting the repayments, even

when his other accounts with bank Y and bank Z are

performing well with huge surplus in them.


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Present set-up:

Under present set up bank X will be fight on its own and after

exhausting all its attempts for non legal amicable settlement of its dues with

the borrower Mr A would resort to legal remedy by filing a suit in the court

of law. Thus triggering a virtually perennial wait for settlement of its dues.

Proposed set up:

Under proposed set up the bank X would be able to sell this NPA

account to bank Y at discount. This action would be the course, taken after

giving Mr A reasonable time to pay up. This bank Y would in turn try to set

off Mr. As dues with his accounts in this bank. If the bank Y is successful

in setting off the complete due amount them the amount realized minus the

amount paid to the bank X is the net profit to the bank Y in this deal.

In case bank Y is not able to set off Mr As account them it will

further sell it to the bank Z. Te bank Z will finally set-off the remaining

outstanding due in this account.


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NARASIMHAM COMMITTEES

RECOMMENDATIONS:

Committee on financial system Narsimhan committee which reported

in 1991. Mean while major changes have been taken place in the domestic

economic and institutional scene, indicating with the movement towards

global integration of financial services committee has presented second

genera in reforms.

1. To strength the foundation of financial system.

2. Related to this, streamlining procedure, upgradingtechnology and human resource development.

3. structural changes in the system.

It is recommended that an assets be classified as doubtful if it is in thesubstandard category for 18 months in the first instance and eventually for12 months as loss if it has been so identified but not written off. Thesenorms, which should be regarded as the minimum may be brought into forcein a phased manner.

NPA figured do not include advances covered by governmentguarantees which have turned sticky and which in the absence of suchguarantees would have been classified as NPAs.


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The committee believes that objective should be reduce the averagelevel of net NPA for all FIs to below 5% by the year 2002 and 3% by 2005.These target cannot be achieved in the absence of measure to tackle the

problem of backlog of NPAs on one time basis and the implementation ofstrict predential norms and management efficiency to prevent the recurrenceof this problem.

With regard to income recognition in India, income stops accruingwhen interest/ installment of principal is not paid with in 180 days. Howeverwe should move toward international practices in the regard and introducethe norms of 90 days in a phased manner by the year 2002.

At present there is no provision in India for a general provision onstandard assets. However a general provision say of 1% would beappropriate and RBI should consider its introduction in phased manner.

FIs should pay greater attention to assets liability management toavoid mismatch and to cove, among others liquidity and interest rate risks.


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SIGNIFICANCE OF THE STUDY


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SIGNIFICANCE OF STUDY

In the context of global competition, it is a paramount task for the banks tomanage the non performing assets more efficiently so that they can changetheir character from non performing assets to performing assets.

Following are the some of the point which shows the significance of thestudy

This study is an attempt to analysis classification of NPAS and alsoto identify the factors responsible for the growth of the NPAS

Reduction of NPAS is the need of the hour and this study will resultin the suggestion that would help the banks to reduce NPAS

Banks gain if NPAS are resolved at early stage so this study isrelevant.

This study is also significant as the impact of NPA,S on profitability ,

net advances of the banks.


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OBJECTIVES OF THE STUDY


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OBJECTIVES OF THE STUDY

If a study conducts there must have some objective because objectivesserves the basic of the study.

To find out the level of advances in the Indian public and privatesector banks.

To find out the level of Non Performing assets in the Indian publicand private sector bank.

To find out the effect of Non Performing assets on the profitability ofthe Indian public sector and private sector bank.

To find out the reasons behind the Non Performing assets.

Main objective of the study is to understand the comparison as takingNon Performing assets in public and private banks.

To study the effect of Non Performing assets on Indian economy.

To find out the level of advances in the Indian overseas bank andindustrial credit and investment corporation of India (yamuna Nagar)


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To find out the level of Non Performing assets in the Indian overseasbank and industrial credit and investment corporation of India(yamuna Nagar).

To find out the effect of Non Performing assets on the profitability ofthe Indian overseas bank and industrial credit and investmentcorporation of India (yamuna Nagar).

Another Main objective of the study is to understand the comparisonas taking Non Performing assets in Indian overseas bank andindustrial credit and investment corporation of India (yamuna nagar).

And also find out that these non performing assets by whom paid.


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Literature Review.

.Bhole L.M, Financial institution and market 9. In this theintroduction, meaning and concept of non performing assets are gives.Apart form this it also contain the guideline, objective managementcharactersticks of non performing assest are given. Apart from this bookalso contain some data related to non performing assets.

Srivastava R.M, Indian financial system. In this book classificationof loan assets of scheduled commercial banks from 1997 to 2000 are given.

Apart from this bank group wise gross and net non performing assets ofscheduled commercial banks from 1997 to 2000 are given..

Varshney P.N, Mittal D.K, Indian financialsystem7 In thisbook impact of priority sector advances on non performing assets, factor

for the non perform assets in Indian commercial banks. Suggession for

containing non performing assets in commercial banks and steps taken

by RBI for containing non performing assests.

RBI bulletin In the R.B.I bulletin information is given about the trends

and progress of the public sector banks which include sector wiseclassification of the non performing assets and financial performance of thecombined public and private sector banks.

Varshney P.N, Mittal D.K, Indian financial system In this book

incremental profits and provision vis a vis incremental assets. Gross andnet NPA of public sector banks and distribution of gross and net nonperforming assets of public sector banks and categorization of nonperforming assets and non performing assets of scheduled commercial

banks.

SOUTHERN ECONOMIST 2 In this journal gross and net nonperforming assets of the public sector banks. Apart from this classificationof advances of public sector banks and gross and net non performing assetsof public sector banks in percentage.


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SOUTHERN ECONOMIST 13 In this journal factor responsible foroccurrence of non performance assets and impact of non performing assetson profitability and lending spree of the banks and impact of the nonperforming assets on business banks.

SOUTHERN ECONOMIST 12 In this journal neoteric trends inbanking industry is given. Apart from this economics and financial data isgiven.

ECONOMIC AND POLITICAL WEEKLY 11 in this magazineinformation about non performer and public sector banks and nonperforming assets and Indian banking sector are explaining.

BUSINESS TODAY5. In this magazine challenges facing by publicsector banks and emergence of new private banks and non performingassets in public and private banks is given..

C.R Kothari 4 The information regarding the basics of research andresearch methodology , what are the different types of research designs,what is problem statement, what are the sources of data collection and whatare the methods of data collection is given in this section.

S.P Gupta 6. The information regarding the statistical tools and theirlimitations in different fields the research is given in this section. Thissection explains why to use correlation and what are the situations in whichcorrelation can be used, and what does correlation means. And also thissection explains the regression analysis technique.

WWW.ICICI.INDIACOM

Introduction about icici bank

NPA in in icici bank

Financial performance of icici bank.
http://www.icici.indiacom/http://www.icici.indiacom/


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www.equitymaster.com

o introduction about Indian overseas bank

o NPA recovery policy of the bank.

o Financial performance of Indian overseas bank.

www.Indiaininfoline.com

o reason for NPA

o management of NPA

WWW.RBI.ORG.IN

o Classification of loan assest of public and private sector

banks.o Trends and progress of bank for year

2001,2002,03,04,05,06.

WWW.BANKING.COM

RBI GUIDELINE FOR NPAS
http://www.equitymaster.com/http://www.indiaininfoline.com/http://www.rbi.org.in/http://www.banking.com/http://www.equitymaster.com/http://www.indiaininfoline.com/http://www.rbi.org.in/http://www.banking.com/


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RESEARCH METHODOLOGY


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RESEARCH DESIGN


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RESEARCH DESIGN

At the outset may be noted that there are several ways of

studying and tackling a problem. The formidable problem that follows the

task of defining the research problem is the preparation of the design of

research project popularly known as research design.

DESCRIPTIVE AND DIAGNOSTIC RESEARCH DESIGN: -

Descriptive research design are those design which

are concerned with describing the characteristics of particular individual or

of the group.

Research design in study: -

In the study I will apply descriptive research

design. As descriptive research design is the description of state of affairs,

as ix exists at present. In this type of research the researcher has no control

over the variables, he can only report what ahs happened or what is

happening.


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ANALYTICAL TOOL


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Statistical tool and data analysis.

CORRELATION

For analyzing the data I will use correlation and regression methods the correlation. I willuse correlation for knowing the relationship between the exports and FDI.And the regression I will use to know the nature of relationship in the FDI and exports.

I will use correlation and regression to check

A) Whether there is any correlation exists between exports and FDI.B) Nature of the relationship between them (regression)

In the correlation I will be using Spearmans Rank correlation coefficient in which

R=1-6d2/N (N2-1) or 1-6d2/N3-N

Where R= rank coefficient of the correlationD= difference of ranks between paired Items.N= no of items.

REGRESSION ANALYSIS

To show the relationship between the dependent variable

(exports) and independent variable (FDI)

So the regression equation will be X on Y

X=a+bY

X=Na+bY

XY=aY+bY2

for analyzing the data I will be use the software ofXLSTAT.


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NPAS IN THE INDIAN BANKING SYSTEM

PUBLIC SECTOR BANKS:

NPAS is the one of the major problem in Indian banking sector.

Indian banking sector is facing a crisis, in view of mounting Non-performing

assets(NPAS) which are to the tune of Rs 56000 crore in the year 2002. It

has reached a critical level and require major operation to set the position.

The earning capacity and probability of many banks and financial institution

has been adversely affected by the high level of NPAS. Thus reduction of

Non performing assets is posing the biggest challenge to banks in Indian

economy.

Gross and Net NPAS:

The non performing assets in the public sector banks have reached

alarming proportion. Non performing assets is an important parameter in the

analysis of financial performance of banks. After the implementation of

prudential norms and follow up of the recommendation of various

committees, the Gross NPAS of public sector banks increased from Rs

43577 crore as at the end of 1997 to Rs 54773 crore at the end of March

2003.In the case of net NPAS in absolute terms also increased from Rs

20285 crore at the end of March 1998 to Rs 27969 crores at the end of

March 2001.


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GROUP WISE CLASSIFICATION OF LOAN ASSETS

OF PUBLICSECTOR BANKS.

( Amount in crores)


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Comparison of net advances and non

performing assets of public sector banks

( Amount in crores).

year

s

Standard

assets

Sub-

standard

assets

Doubtful

assets

Loss assets Gross NPAs Net NPA

Amount % Amoun

t

% Amoun

t

% Amoun

t

% Amoun

t

% Amoun

t

2000 200637 82.2

12472 5 26015 10.7

5090 2.1

43577 17.8

20285

2001 239318 84.0

14463 5.1

25819 9.1 5371 1.9 45653 16.0

21232

2002 273618 84.1

16033 4.9 29252 9.0 6425 2.0

51710 15.9 24211

2003 326783 86.0

16361 4.3 30535 8.0 6398 1.7

53294 14.0

26188

2004 523724 90.6

14909 2.6

32340 5.6 6840 1.1

54089 9.4 27969

2005 610435 92.2 16909 2.5

28756 4.4 5876 0.9

59541 7.8 34877

2006 830029 94.6 11068 1.3 30771 3.5 5929 0.7

47796 5.4 39355

2007 1092607

96.2 11453 1.0

25028 2.2 5336 0.5

42117 3.7 44904


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Comparison of net advances &NPA

Years Net Advances Non performing assets

2000 220000 20000

2001 260000 21000

2002 290000 24000

2003 352000 26000

2004 399000 27000

2005 549000 34000

2006 630000 39000

2007 840000 44000


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0

200000

400000

600000

800000

1000000

2000 2001 2002 2003 2004 2005 2006 2007

net advances

NPAs

CORRELATION(Amount in thousand crores)

X Y Dx(X-Ax) dx2 dY(Y-Ay) dy2 dxdy

220 20 -179 32041 -7 49 1253

260 21 -139 19321 -6 36 834

290 24 -109 11881 -3 9 327

352 26 -47 2209 -1 1 47

399 27 0 0 0 0 0


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549 34 150 22500 7 49 1050

630 39 231 53361 12 144 2772

840 44 441 194481 17 289 7497

348 335794 19 577 13780

Since the actual mean are not whole number we take 399 as assumed meanfor X and 27 for Y.

Applying the formula,

Ndxdy - dx. dy.r = ____________________________________________

N dx2-(dx)2 N dy2-(dy)2

= 8*13780-349*19_________________________________

8*335794-(348)2 8*577-(19)2

= 103628 0.99Ans.104065

so there is a high degree correlation between net advances and nonperforming assets of private sector banks and conclude that due to increasein net advances non performing assets also increase.

HYPOTHESIS TESTING

IN THIS STUDY HYPOTHESIS IS :

H0: There is no correlation between Net advances and Non performing

assets.

H1: There is a correlation between Net advances and Non performing

assets. Now we will test the hypothesis by rank correlation.


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Scattergram of the data

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

0 200000 400000 600000 800000 1000000

220000

Spearman's correlation coefficient test (non parametric test):

Observed =.990Two tailed =


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2001 8.2

2002 8.1

2003 7.4

2004 7

2005 4.5

2006 3.1

2007 2.1

% of NPA of net advances


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0

2

4

6

8

10

2000 2001 2002 2003 2004 2005 2006 2007

% of NPA of net

advances

PRIVATE SECTOR BANKS:

The eight new private banks that have emerged on Indian financial

topography since 1994 are clear out performance in an otherwise troubled

sector. In seven years, these banks have grown to account for six percent of

the total assets and 10% of the total profit of the banking industry.

It was the Narasimhan committee report dated 1991 that envisaged a


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large role of private sector banks. The RBI of the India agreed, and in an

effort to make the sector more efficient and competitive it issued in January

2000, the guideline governing the entry of new private banks, a minimum

capital of Rs-100 Crore among others.

The new private banks have grown not just organically but also

through mergers and acquisition. HDFC bank merged with Times Bank in

all stock deal had set up 510 ATMs ( Automatic teller machines), HDFC

bank 350 (ATMs). In general, the new private banks have rapidly taken to

technology.

Although these banks also facing the problem of NPAS as public

sector banks is facing. NPAS is also a major challenge which facing by the

private sector banks. In private sector banks NPAS also increasing year by

year. NPAS increased in private sector banks to Rs 6039 crore in March

2004 from Rs 4761 crore in march 2002.


OF PRIVATESECTOR BANKS.

( Amount in crores)


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performing assets of private sector banks

( Amount in crores)

year

s

Standard

assets

Sub-

standard

assets

Doubtful

assets

Loss assets Gross NPAs Net NPA

Amoun

t

% Amoun

t

% Amoun

t

% Amoun

t

% Amoun

t

% Amoun

t

%

1999 27417 91.5 1370 4.6

899 3.0

283 0.9

2542 8.5 1539 5

2000 33567 91.3 1766 4.8

1077 2.9 343 0.9

3186 8.7 1863 5

2001 39848 89.6

2655 6.0

1584 3.6 404 0.9

4643 10.4

2956 6

2002 53317 91.5 2137 3.7 2355 4.0

439 0.8

4932 8.5 3120 5

2003 46761 91.1 1474 2.9 2772 5.4

321 0.6

4567 8.9 2548 5

2004 53516 92.4 1161 2.0

2727 4.7

504 0.9

4392 7.6 3142 3

2005 66212 94 784 1.1 2868 4.0 549 0.8 4201 6.0 3859 2

2006 81414 95.6 710 0.8

2551 3.0

479 0.6

3740 4.4 4368 1


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Comparison of net advances and NPAs of private bank


2000 28000 1500

2001 33000 1800

2002 42000 2900

2003 56000 3100

2004 49000 2500

2005 55000 3100

2006 67000 3800

2007 81000 4400


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0

10000

20000

30000

40000

50000

60000

70000

80000

90000

2000

2001

2002

2003

2004

2005

2006

2007

NPA

net advances

CORRELATION

(Amount in hundred crores)

X Y dx(X-Ax) dx2 dY(Y-Ay) dy2 dxdy280 15 -210 44100 -10 100 2100

330 18 -160 25600 -7 49 1120

420 29 -70 4900 4 16 -280


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560 31 70 4900 6 36 420

490 25 0 0 0 0 0

550 31 60 3600 6 36 360

670 38 180 32400 13 169 2340

810 44 320 102400 19 361 6080

190 217900 31 767 12140

Since the actual mean are not whole number we take 490 as assumed meanfor X and 25 for Y.


Ndxdy - dx. dy.r = ____________________________________________

N dx2-(dx)2 N dy2-(dy)2

= 8*12140-190*31_________________________________

8*217900-(190)2 8*767-(31)2

= 91230 0.97Ans.94032


HYPOTHESIS TESTING

IN THIS STUDY HYPOTHESIS IS :

H0: There is no correlation between Net advances and Non performing

assets.

H1: There is a correlation between Net advances and Non performing

assets. Now we will test the hypothesis by rank correlation.


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Significance level: 0.05


0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

0 20000 40000 60000 80000 100000

28000

Spearman's correlation coefficient test (non parametric test):

Observed =.959Two tailed =


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2000 5.4

2001 5.3

2002 6.9

2003 5.6

2004 5.2

2005 3.8

2006 2.7

2007 1.6

Net NPAs of private sector bank


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0

1

2

3

4

5

6

7

2000 2001 2002 2003 2004 2005 2006 2007

% of NPA of netadvances

COMPARISON OF GROUP WISE CLASSIFICATION

OF LOAN ASSETS OF PUBLIC SECTOR BANKS AND

PRIVATE SECTOR BANKS.

(Amount in crores)

Year 2000 2001 2002 2003 2004 2005 2006 2007


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Standard Assets

Public 200637 239318 273618 326783 523724 610435 830029 1092607

Private 27417 33567 39848 53317 46761 53516 66212 81414

Sub-Standard Assets

Public 12472 14463 16033 16361 14909 16909 11068 11453

Private 1370 1766 2655 2137 1474 1161 784 710

Doubtful Assets

Public 26015 25819 29252 30535 32340 28756 30771 25028

Private 899 1077 1584 2355 2772 2727 2868 2551

Loss Assets

Public 5090 5371 6425 6398 6840 5876 5929 5336

Private 283 343 404 439 321 504 549 479

Standard assets of public and private sector bank


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0

200000

400000

600000

800000

1000000

1200000

2000 2001 2002 2003 2004 2005 2006 2007

public sector

private s ector

Doubtful assets of public and private sector

0

5000

10000

15000

20000

25000

30000

35000

2000 2001 2002 2003 2004 2005 2006 2007

net advances

NPAs


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COMPARISON OF NON PERFORMING ASSETS PUBLIC

SECTOR BANKS AND PRIVATE SECTOR BANKS

PUBLIC SECTOR BANKS PRIVATE SECTOR BANKS

Years % of Net NPAs Years % of Net NPAs

2000 9.2 2000 5.4

2001 8.2 2001 5.3

2002 8.1 2002 6.9

2003 7.4 2003 5.6

2004 7 2004 5.2

2005 4.5 2005 3.8

2006 3.1 2006 2.7

2007 2.1 2007 1.6


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NPAs of public and private sector bank

0

2

4

6

8

10

12

14

16

2000

2001

2002

2003

2004

2005

2006

2007

% of NPA in

private sector

%of NPA in public

sector


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LIMITATIONS

Probably the time and money constraints can affect my research

Lack of knowledge about the topic.

I have used the secondary data for conducting the research that isinsufficient for the research.

Difficulty in collection of the data.


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SAMPALING DESIGN


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SAMPLING DESIGH:

In all sphere of life such as economics, social , business the need for

statistical investigation and data analysis is rising day by day. There are two

method for collecting the data.

1) census method.

2) Sampling method.

Sampling design used in my study:

I will use simple random sampling technique in my study. Followingare the expiation of sample I will use in my study.

In case of public sector banks.

INDIAN OVERSEAS BANK.

In case of private sector banks.

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA


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DATA COLLECTION


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DATA COLLECTION

After the research problem has been identified and selected the next

step is to gather the requisite data. While deciding about the method of data

collection to be used for the the researcher should keep in mind two types of

data VIZ. primary and secondary.

METHODS USED IN STUDY: -

I have collected the data through the secondary sources such as

SECONDARY DATA:

Books

Magazines

Newspapers

Internet


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IN CASE OF PUBLIC SECTOR BANK

INDIAN OVERSEAS BANK:

Indian Overseas Bank (IOB) is a one of the major bank based in Chennai,with over 1,400 domestic branches and 6 branches abroad.

India Overseas Bank was established in 1937 to encourage overseas bankingand foreign exchange operations. The Indian Overseas Bank startedsimultaneously with three branches. They are:

Indian Overseas Bank Chennai Indian Overseas Bank Rangoon Indian Overseas Bank Singapore

From the begining Indian Overseas Bank served Chettinad, Ceylon (Sri

Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra and Saigon.

In 1960 Indian Overseas Bank absorved five weaker private sector banks

including Kulitali Bank. In the year 2000 India Overseas Bank India

engaged in IPO which brought the government's share in the bank's equity

down to 75%.

IOB International expansion:

1937-38: As mentioned above, IOB was international from itsinception with branches Indian Overseas Bank Rangoon, IndianOverseas Bank Penang, and Indian Overseas Bank Singapore.


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1941: IOB opened a branch in Malaya that presumably closed almostimmediately because of the war.

1946: IOB opened a branch in Ceylon.

1947: IOB opened a branch in Bangkok and re-opened others.

1948: United Commercial Bank (see below) opened a branch inMalaya.

1949: IOB opened a branch in Bangkok.

1963: The Burmese government nationalized IOB's branch inRangoon.

1973: IOB, Indian Bank and United Commercial Bank establishedUnited Asian Bank Berhad. (Indian Bank had been operating inMalaysia since 1941 and United Commercial Bank Limited had beenoperating there since 1948.) The banks set up United Asian to complywith the Banking Law in Malaysia, which prohibited foreigngovernment banks from operating in the country. Also, IOB and sixIndian private banks established Bharat Overseas Bank as a Chennai-

based private bank to take over IOB's Bangkok branch. The BaharatOverseas Bank is the only private bank that the Reserve Bank of Indiahas permitted to have a branch outside India. The ownership was:Indian Overseas Bank (30%), Bank of Rajasthan (16%), Vysya Bank(14.66%), Federal Bank (19.67%), Karur Vysya Bank (10%), SouthIndian Bank (10%) and Karnataka Bank (8.67%). Bharat Overseasserves the Indian ethnic community in Thailand.


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1977: IOB opened a branch in Seoul.

1991: Bank of Commerce (BCB), a Malaysian bank, acquired UnitedAsian Bank (UAB). In 1999 BCB merged with Bank BumiputraMalaysia to form Bumiputra-Commerce Bank Berhad.

GROUP WISE CLASSIFICATION OF LOAN ASSETS OF

INDIAN OVERSEAS BANK.

( In thousands)

Years Standardassets

Sub-standardassets

Doubtfulassets

Lossassets

Netadvances

NonPerformingAssets

Amount Amount Amount Amount Amount Amount %

2003 33889 394 942 - 35000 1300 5

2004 37080 250 425 - 37000 1700 3

2005 49807 302 519 - 51000 1800 2.5

2006 66794 133 526 - 67000 2600 1.6

2007 84505 89 476 - 85000 3600 1


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performing assets of Indian overseas bank.

( Amount in thousand)


2003 35000 1300

2004 37000 1700

2005 51000 1800

2006 67000 2600

2007 85000 3600


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Comparison of net advances and NPA of IOB

0

20000

40000

60000

80000

100000

2003 2004 2005 2006 2007

net advances

NPAs


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CORRELATION

(Amount in 00

thousand)

X Y x (x-x) x2 Y (y-y) y2 xy350 13 -200 40000 -9 81 1800

370 17 -180 32400 -5 25 900

510 18 -40 1600 -4 16 160

670 26 120 14400 4 16 480

850 36 300 90000 14 196 4200

2750 110 178400 334 7540

X = X Y= YN N

2750 = 550 110 = 22

5 5


xyr = ____________________________________________

x2 *y2

= 7540_________________________________

178400*334

= 7540 = 0.899 Ans8383


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REGRESSION

X Y XY x2350 13 4550 122500

370 17 6290 136900

510 18 9180 260100

670 26 17420 448900

850 36 30600 722500

2750 110 68040 1690900

Regression equation y on x.

Y=a+bx

The two normal equation are

y = Na +bx---------(1)

xy = a X + bx2---------(2)

substituting the value110=5a+2750b68040=2750a+1690900bmultiply 1 by 550 is2750a + 1512500b = 605002750a + 1690900b = 68040

after calculation the value of b is 0.04 and value of a is 44.

Y=44 + 0.04 X for 2007 the expected valueof net advance will be 940.

So expected non performing assets for year 2007 will be.

Y = 44 + 0.04*940


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= 81.6

so for 2007 net advances will be 94000 and non

performing assets are 8160

ESTIMATION OF FUTURE VALUE OF YEAR 2007OF NET ADVANCES WITH THE HELP OF TREND

ANALYSIS.

YEARS NET ADVANCES Y DEVIATIOIN FROM 2001 XY X2

2002 350 1 350 1

2003 370 2 740 4

2004 510 3 1530 9

2005 670 4 2680 162006 850 5 4250 25

2750 15 9550 55

The straight line trend is defined by the equation

Y=a+bx


y = Na +bx---------(1)xy = a X + bx2---------(2)

substituting the value2750=5a+15b9550=15a+55bmultiply 1 by 3 is15a + 45b = 825015a + 55b = 9550

after calculation the value of b is 130 and value of a is 160.

Y=160 + 130 X

For 2007 the value of x is 6


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Y = 160 + 130*6

= 940

Hypothesis Testing:

Significance level: 0.05


0

500

1000

1500

2000

2500

3000

3500

4000

0 20000 40000 60000 80000 100000

35000

Observed value 0.968

Two-tailed p-value 0.032

Alpha 0.05

Decision:

At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of absence of correlation.

In other words, the correlation is

significant.

Net NPAs of Indian overseas bank.


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years % of NPAs of net advances

2003 5

2004 3

2005 2.5

2006 1.6

2007 1


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%of NPA of net advances

0

1

2

3

4

5

2003 2004 2005 2006 2007

% OF npa OF NET

ADVANCES


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IMPACT OF NET ADVANCES ON THE NET PROFIT

OF THE INDIAN OVERSEAS BANK.

(Amount in thousand)Years Net Profit Net Advances

2003 3592 35000

2004 3990 37000

2005 4235 51000

2006 5376 67000

2007 6493 85000


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IN CASE OF PRIVATE SECTOR

BANK

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF

INDIA.

ICICI Limited, was established in 1955 by the World Bank, the

Government of India and the Indian Industry, for the promotion of industrialdevelopment in India by giving project and corporate finance to theindustries in India.

ICICI Bank has grown from a development bank to a financial conglomerateand has become one of the largest public financial institutions in India.ICICI Bank has financed all the major sectors of the economy, covering6,848 companies and 16,851 projects. As of March 31, 2000, ICICI haddisbursed a total of Rs. 1,13,070 crores, since inception.

ICICI Bank is India's second-largest bank with total assets of about Rs.2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs.25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn(US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has anetwork of about 614 branches and extension counters and over 2,200ATMs. ICICI Bank offers a wide range of banking products and financialservices to corporate and retail customers through a variety of deliverychannels and through its specialised subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and assetmanagement. ICICI Bank set up its international banking group in fiscal2002 to cater to the cross border needs of clients and leverage on itsdomestic banking strengths to offer products internationally. ICICI Bankcurrently has subsidiaries in the United Kingdom, Russia and Canada,

branches in Singapore, Bahrain, Hong Kong, Sri Lanka and DubaiInternational Finance Centre and representative offices in the United States,


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United Arab Emirates, China, South Africa and Bangladesh. Our UKsubsidiary has established a branch in Belgium. ICICI Bank is the mostvaluable bank in India in terms of market capitalisation.

ICICI Bank's equity shares are listed in India on the Bombay StockExchange and the National Stock Exchange of India Limited and itsAmerican Depositary Receipts (ADRs) are listed on the New York StockExchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indianfinancial institution, and was its wholly-owned subsidiary. ICICI'sshareholding in ICICI Bank was reduced to 46% through a public offering ofshares in India in fiscal 1998, an equity offering in the form of ADRs listed

on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of MaduraLimited in an all-stock amalgamation in fiscal 2001, and secondary marketsales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICIwas formed in 1955 at the initiative of the World Bank, the Government ofIndia and representatives of Indian industry. The principal objective was tocreate a development financial institution for providing medium-term andlong-term project financing to Indian businesses. In the 1990s, ICICItransformed its business from a development financial institution offeringonly project finance to a diversified financial services group offering a wide

variety of products and services, both directly and through a number ofsubsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the firstIndian company and the first bank or financial institution from non-JapanAsia to be listed on the NYSE.


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OFINDUSTRIAL CREDIT AND INVESTMENT

CORPORATION OF INDIA.

.

( In thousands)

Years Standardassets

Sub-standardassets

Doubtfulassets

Lossassets

Netadvances

NonPerformingAssets

Amount Amount Amount Amount Amount Amount %

2003 - - 1775 - 36000 1700 4

2004 - - 938 - 45000 1900 2

2005 - - 815 - 57000 2100 1.6

2006 - - 592 - 72000 2500 1

2007 1601 - 100000 2800 1


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COMPARISON OF NET ADVANCES AND NON

PERFORMING ASSETS OF INDUSTRIAL CREDITAND INVESTMENT CORPORATION OF INDIA.

( Amount in thous)

Comparison of net advances with NPA


2003 36000 1700

2004 45000 1900

2005 57000 2100

2006 72000 2500

2007 100000 2800


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0

20000

40000

60000

80000

100000

2003 2004 2005 2006 2007

net advances

NPA


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CORRELATION

(Amount in 00

thousand)

X Y x (x-x) x2 Y (y-y) y2 xy360 17 -260 67600 -5 25 1300

450 19 -170 28900 -3 9 510

570 21 -50 2500 -1 1 50

720 25 100 10000 3 9 300

1000 28 380 144000 6 36 2280

3100 110 253000 80 4440

X = X Y= YN N

3100 = 620 110 = 22

5 5


xyr = ____________________________________________

x2 *y2

= 4440_________________________________

253000*80

= 4440 = 0.987 Ans4498



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REGRESSION

X Y XY x2360 17 6120 129600

450 19 8550 202500

570 21 11970 324900

720 25 18000 518400

1000 28 28000 1000000

3100 110 72640 2175400

Regression equation y on x.

Y=a+bx


y = Na +bx---------(1)

xy = a X + bx2---------(2)

substituting the value110=5a+3100b72640=3100a+2175400bmultiply 1 by 620 is

3100a + 1922000b = 682003100a + 2175400b = 72640

after calculation the value of b is 0.02 and value of a is 34.4.

Y=34.4 + 0.02 X for 2007 the expected value

of net advance will be 1085.

So expected non performing assets for year 2007 will be.

Y = 34.4 + 0.02*1085

= 56

so for 2007 net advances will be 108500 and non

performing assets are 5600 (private sector NPA is less

then public sector.


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ESTIMATION OF FUTURE VALUE OF YEAR 2007

OF NET ADVANCES WITH THE HELP OF TREND

ANALYSIS.

YEARS NET ADVANCES Y DEVIATIOIN FROM 2001 XY X2

2003 360 1 360 1

2004 450 2 900 4

2005 570 3 1710 9

2006 720 4 2880 16

2007 1000 5 5000 25

3100 15 10850 55

The straight line trend is defined by the equation

Y=a+bx


y = Na +bx---------(1)

xy = a X + bx2---------(2)

substituting the value

3100=5a+15b10850=15a+55bmultiply 1 by 3 is15a + 45b = 930015a + 55b = 10850

after calculation the value of b is 155 and value of a is 155.

Y=155 + 155 X

For 2007 the value of x is 6

Y = 155 + 155*6

= 1085


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NET NPAS OF INDUSTRIAL CREDIT AND

INVESTMENT CORPORATION OF INDIA.

years % of NPAs of net advances

2003 4

2004 2

2005 1.6

2006 1

2007 1

%of NPA Of the Net Advances


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IMPACT OF NET ADVANCES ON THE NET PROFIT

OF THE

INDUSTRIAL CREDIT AND INVESTMENT

CORPORATION OF INDIA.

.

0

0.5

1

1.5

2

2.5

3

3.54

2003 2004 2005 2006 2007

% of NPA of net advances


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(Amount in thousand)Years Net Profit Net Advances

2003 3592 36000

2004 3990 45000

2005 4235 57000

2006 5376 72000

2007 6493 100000

COMPARISON OF NON PERFORMING ASSETS OF INDIAN

OVERSEAS BANK AND INDUSTRIAL CREDIT AND

INVESTMENT CORPORATIONOF INDIA.

INDIAN OVERSEAS BANK INDUSTRIAL CREDIT AND

INVESTMENT CORPORATION

OF INDIA

Years % of Net NPAs Years % of Net NPAs


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2003 5 2003 4

2004 3 2004 2

2005 2.5 2005 1.6

2006 1.6 2006 1

2007 1 2007 1

Comparison of NPA of IOB and ICICI


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0

1

2

3

4

5

2003 2004 2005 2006 2007

%of NPA in IOB

% of NPA in ICICI


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RESULTS AND FINDINGS

FINDINGS

Non performing assets is the major problem which is facing by theIndian banking sector.


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In reality non-performing assets are very high in the banks.

In the last 3-4 years there is a decreasing trend in the non performingassets as percentage of net advances.

If we compare public and private sector banks, there is more nonperforming assets in the public banks as compare to private banks.

Non performing assets directly affect the growth of the banks.

Due to faulty legal system recovery of non performing assets takeslong time.

Target of the non performing assets recovery is not successfullyachieved by the banks.

Now banks are working on developing debt recovery tribunals tosolve the problem

Non performing assets reduce the risk taking ability of banks.


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RECOMMENDATIONS


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Recommendations

Banks needs to have better credit appraisal systems as to prevent nonperforming assets from occurring.

However, once non performing assets do come into existence, theproblem can be solved only if there is enabling legal structure, sincerecovery of non performing after requires litigation and court order torecover stuck loans.

Only strong and efficient bank will be allowed to give commercialloans, while the weak bank will take position in less risky assets suchas government securities and inter-bank lending.

Efficient management system must be established by the banks.

More attention should be given by the banks to recovering the smallloans.

More delegation of powers must be done by the banks to its branches.

Some sticky policies should be adopted by the banks in recovering thenon performing assets.

Banks must established separate counter for recovery of the nonperforming assets.


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Bibliography


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Bibliography

BOOKS

1. Mithani D.M, money banking and international trade, himalaya publishinghouse.

2. Bhole L.M, Financial institution and market,, Forth edition. (PageNo.256 to 266)

3. Srivastava R.M, Indian financial system , himalaya publishing house.(pageno.-1.40 to 1.53

4. Kothari C.R, Research Methodology, New age international publications,second Edition

5. Khan M.Y , Fianancial survices, third edition(page no. 620-640)

6. Gupta S.P, Business Statistics, 30th edition, Sultan Chand & sons (Page no378-418)

7 Varshney P.N, Mittal D.K, Indian financial system, Sultan chand and sons.( page no 356 to 366)

JOURNALS & NEWSPAPERS

8 SOUTHERN ECONOMIST May 1 2005, CO-OPERATIVEBANKING IN INDIA (page no.-52-64)

10 SOUTHERN ECONOMIST OCTOBER 1 2003, MANAGEMENT OF NONPERFORMING ASSETS IN PUBLIC SECTOR BANKS.(page no.-9-12)

11 SOUTHERN ECONOMIST MARCH 1 2003, MANAGEMENT OF NONPERFORMING ASSETS IN BANKS.(page no.-15-17)

12 SOUTHERN ECONOMIST MAY 1 2002, NON PERFORMING ASSETSMANAGEMENT BY K.G.JOSE.(page no.-12-15)

13 SOUTHERN ECONOMIST MAY 1 2002, PERFORMANCE APPRAISALOF COMMERCIAL BANKS BY BHEEMANGOUDA.(page no.5-8)


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14 RBI bulletin, TREND AND PROGRESS OF BANK OF DEC 1999 (pageno.-887)



17 SOUTHERN ECONOMIST JUNE 1 2000, NEOTERIC TREND INBANKING INDUSTRY(page no.-15-17)

18 SOUTHERN ECONOMIST FEB 1 2001 ECONOMIC AND FINANCIALDATA (page no.-15-17)

19 ECONOMIC AND POLITICAL WEEKLY DEC 2 2000 NONPERFORMERS

20 INDIA TODAY BANKING, BED PENNY

21 BUSINESS TODAY FEB 2002 CHALLENGES FACING BY PUBLICSECTOR BANKS.

22 BUSINESS TODAY FEB 2002 EMERGENCE OF NEW PRIVATE BANKS.

Websites

23 WWW.ICICI.INDIACOM

Introduction about icici bank

NPA in in icici bank

Financial performance of icici bank.
http://www.icici.indiacom/http://www.icici.indiacom/


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24 www.equitymaster.com

introduction about Indian overseas bank

NPA recovery policy of the bank.

Financial performance of Indian overseas bank.

24 www.Indiaininfoline.com

reason for NPA

management of NPA

WWW.RBI.ORG.IN

Classification of loan assest of public and private sector banks.

Trends and progress of bank for year 2001,2002,03,04,05,06.

WWW.BANKING.COM

RBI GUIDELINE FOR NPAS
http://www.equitymaster.com/http://www.indiaininfoline.com/http://www.indiaininfoline.com/http://www.rbi.org.in/http://www.banking.com/http://www.equitymaster.com/http://www.indiaininfoline.com/http://www.rbi.org.in/http://www.banking.com/

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