management of non performing assets - a current scenario

IRJC
International Journal of Social Science & Interdisciplinary Research
Vol.1 Issue 11, November 2012, ISSN 2277 3630
provisions, and which is still held in banks' books of account. Net NPA is obtained by deducting
items like interest due but not recovered, part payment received and other income kept in
suspense account from Gross NPA.
In India, when the loan is sanctioned against any security, provision has to be created. Further,
Indian Banks have to make a100 per cent provision which is treated as a „doubtful‟advance,
while in some countries; it is 50 per cent or just 75 per cent. According to the RBI, "Reduction of
NPAs in the Indian banking sector should be treated as a national priority item to make the
system stronger, resilient and geared to meet the challenges of globalization. It is necessary that a
public debate is started soon on the problem of NPAs and their resolution. "
OBJECTIVES
1) To understand the NPAs sector wise.
2) To make a comparative study of NPA‟s of public sector banks, private sector banks and
foreign sector banks.
3) To understand the relationship between NPA‟s net profit and advances
4) To understand the recovery of NPAs through various channels.
METHODOLOGY
The present study is aims to analyze the NPA‟s of Indian Banks. For the purpose of the study
data has been collected from secondary sources. The main source of information has been
through RBI reports and bulletins.
CASE STUDY :AN ANALYTICAL DISCUSSION
Here the Scheduled Commercial Bank is taken as a sample to analyze the management of Non
Performing Assets. At first we will study the lending composition of SCBs by analyzing the
three core sectors of economy i.e. priority sector, public sector and non-priority sector.
Non Performing Assets Sector-wise:
Bank mainly lends to three sectors i.e. priority sector, public sector and non-priority sector. The
lending composition of the Indian Banks is studied from the Table No - 1
Secondly the graphical analysis of the lending composition of scheduled commercial bank is
shown in Figure - 1 and Figure - 2. The only reason behind these is to study the trend of
nonperforming assets in scheduled commercial bank of India.
Thirdly the tabular analysis of the Gross and Net NPAs of SCBs- Bank Group Wise is displayed
in Table no-2 to study the percentage of Gross NPA and Net NPA to Gross and Net Advances
respectively.
Then the Graphical Analysis of respective Gross and Net NPAs of SCBs Bank Group wise is
shown in Figure - 3 and Figure - 4 in order to assess the NPA management of SCB.
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