Research Journal of Economics & Business Studies - RJEBS - The ...
Research Journal of Economics & Business Studies - RJEBS - The ...
Research Journal of Economics & Business Studies - RJEBS - The ...
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Asset quality <strong>of</strong> the State Co-operative banks in India from 2002-03 to 2010-11<br />
(Rs.in crores)<br />
Table-1<br />
Year Sub-standard Asset Doubtful<br />
Asset<br />
Loss<br />
Asset<br />
Gross<br />
NPAs<br />
Provision<br />
for NPAs<br />
Net<br />
NPAs<br />
2002-03 3535 2443 306 6284 5690 594<br />
2003-04 3288 3010 250 6548 3608 2940<br />
2004-05 2961 1975 1136 6072 2982 3090<br />
2005-06 2763 2292 1680 6735 3558 3177<br />
2006-07 2957 2625 1122 6704 3200 3504<br />
2007-08 2779 2652 737 6168 3000 3168<br />
2008-09 1627 3822 276 5725 3310 2415<br />
2009-10 1332 2219 802 4353 4438 -85<br />
2010-11 1700 2500 1500 5700 3997 1703<br />
CAGR(%) -8.74 0.29 21.98 -1.21 -4.32 14.07<br />
Ratios for measurement <strong>of</strong> Asset quality <strong>of</strong> the State cooperative bank <strong>of</strong> India<br />
from 2002-03 to 2010-11<br />
Table -2<br />
Year Gross NPAs/ Net NPAs/ Total Investment/ Net NPAs/ Gross NPA<br />
Gross Advances Net Advances Total Assets Total Assets coverage ratio<br />
2002-03 16 1.67 29.74 0.97 90.54<br />
2003-04 15.28 7.2 34.06 4.01 55.1<br />
2004-05 13.98 7.64 32.43 4.3 49.11<br />
2005-06 13.81 6.59 36.21 3.66 52.83<br />
2006-07 12.4 6.88 28.14 4.08 47.73<br />
2007-08 11.01 5.99 33.2 3.35 48.64<br />
2008-09 10.57 4.75 43.07 2.23 57.81<br />
2009-10 8.06 -0.17 45.02 -0.07 101.95<br />
2010-11 8.2 2.62 38.55 1.32 70.12<br />
AM 12.14 4.79 35.6 2.65 63.75<br />
SD 2.89 2.78 5.72 1.59 19.83<br />
CV 23.8 58.03 16.06 60 31.1<br />
CAGR(%) -8.02 5.79 3.3 3.93 -3.14<br />
<strong>The</strong> overall NPAs <strong>of</strong> StCBs have increased during 2005-06 in contrast to decline witnessed during<br />
previous year. Substantial asset slippage continued during the year with a decline in the sub-standard<br />
assets and increase in doubtful and loss assets. NPAs <strong>of</strong> StCBs varied widely across the states at end<br />
march 2006 also. During 2006-07, the NPAs <strong>of</strong> StCBs declined in both absolute and percentage term.<br />
<strong>The</strong> improvement in asset quality is also discernible from the decline in loss assets and partly due to<br />
migration from lower categories. Thus there is an increase in the sub-standard and doubtful assets<br />
categories. In the year 2006-07 it is observed that only 11 out <strong>of</strong> 31 StCBs the NPA ratio are less than<br />
10%. During 2007-08 NPAs <strong>of</strong> StCBs posted a decline in absolute terms <strong>of</strong> the various categories <strong>of</strong><br />
NPAs. Out <strong>of</strong> the various categories <strong>of</strong> NPAs ‘Sub-standard’ and ‘Doubtful’ assets each constitutes<br />
over 40% <strong>of</strong> the total NPAs <strong>of</strong> StCBs at end march 2008. <strong>The</strong>re is a fall in terms <strong>of</strong> both growth and<br />
share <strong>of</strong> loss assets between 2007 and 2008. <strong>The</strong>re is considerable variation in the asset quality <strong>of</strong><br />
StCBs across states. While on the other hand, StCBs from the northern region had the lowest NPA<br />
www.theinternationaljournal.org > <strong>RJEBS</strong>: Volume: 02, Number: 06, April-2013 Page 79