8/19/2019 A Project Report on Impact of Npa on Pro
1/63
A PROJECT REPORT
ON
“IMPACT OF NPA ON PROFITABILITY:EMPIRICAL STUDY OFPRIVATE SECTOR BANKS IN INDIA”
Submitted t
Marwadi Education Foundation’s Group of Institutions
I! "#$ti#% &u%&i%%me!t & t'e $e(ui$eme!t & t'e #)#$d & $ t'e de*$ee & M#+te$ & Bu+i!e++ Admi!i+t$#ti !
U!de$
Gujarat Technological UniversityU!de$ t'e *uid#!,e &
F#,u%t- .uide P$ &/ A!u"#m# D#0e
Submitted b-:
MANALI B1AVASRE!$ %me!t N /: 234356783663
RIDD1IBA C1UDASAMAE!$ %me!t N /: 234356783664
MBA Seme+te$ III #!d IV
Marwadi Education Foundation’s Group of InstitutionsMBA rogra!
Affiliated to Gujarat Technological UniversityAh!eda"ad
8/19/2019 A Project Report on Impact of Npa on Pro
2/63
#TU$E%T $E&'A(ATI)%
9e MANALI B1AVSAR AND (I$$*IBA &*U$A#AMA 'e$eb- de,%#$e
t'#t t'e $e" $t & $ , m"$e'e!+i0e "$ ;e,t e!tit%ed “Im"#,t & NP
8/19/2019 A Project Report on Impact of Npa on Pro
3/63
(EFA&E
T'e i!+tituti !#% b#!=i!* i+ # 0e$- )ide #$e# & m#!#*eme!t/ 9e '#0e t$ied t , 0e$
im"#,t & NPA ! P$ &it#bi%it- #$e# & 23 "$i0#te +e,t $ b#!= i! I!di# +
9e '#0e t$ied t &u%&i%% #%% t'e $e(ui$eme!t+ t "$e"#$e t'i+ $e" $t +u**e+ti !+ &$ m
t'e *uide , %%e#*ue+ et,/
It *i0e+ u+ imme!+e "%e#+u$e t "$e+e!t t'i+ "$ ;e,t $e" $t/ It i+ & *$e#t "" $tu!it-
& $ m#!#*eme!t +tude!t+ t #,(ui$e =! )%ed*e #b ut im"#,t & NPA ! "$i0#te
+e,t $ b#!=/
8/19/2019 A Project Report on Impact of Npa on Pro
4/63
A&,%)-'E$GEME%T
9e #$e t'#!=&u% t #%% t' +e )' +e ) $=+ ide#+ '#0e bee! u+e&u% i! )$iti!* t'i+$e" $t> )e )i+' t e?"$e++ m- +i!,e$e #""$e,i#ti !/
Fi$+t & #%% )e ) u%d %i=e t "#- m- *$#titude t u$ De#!$r+ &*I%%AM (E$$. #I( /
9e #%+ , !0e- m- *$#titude t A%U AMA $A/E )' 'e%"ed #!d *uided me i!
t'e "$e"#$#ti ! & t'e "$ ;e,t $e" $t #!d #%+ t'e t'e$ ,u%tie+ & MA(-A$I
E$U&ATI)% F)U%$ATI)% G()U )F I%#TITUTE+
DATE
P%#,e: RAJKOT
8/19/2019 A Project Report on Impact of Npa on Pro
5/63
A(T01
8/19/2019 A Project Report on Impact of Npa on Pro
6/63
8/19/2019 A Project Report on Impact of Npa on Pro
7/63
M#$*i!#% #!d +ub m#$*i!#% "e$#t $+ #$e +)e"t #)#- b- t'e+e , !0u%+i !+/ B#!=+
bei!* +e!+iti0e i!+tituti !+ e!t$e!,'ed dee"%- i! t$#diti !#% be%ie&+ #!d , !0e!ti !+
)e$e u!#b%e t #d;u+t t'em+e%0e+ t t'e ,'#!*e+/ T'e- +u&&e$ed e#+- 0i,tim+ t t'i+
u"'e#0#% i! t'e i!iti#% "'#+e/
C !+e(ue!t%- b#!=+ u!de$)e!t t'i+ t$#!+iti ! +-!d$ me #!d %#!*ui+'ed u!de$
di+t$e++ #!d b#!=i!* ,$i+e+ +u$,ed i! (ui,= +u,,e++i ! !e & %% )i!* t'e t'e$ i!
m#!- , u!t$ie+/ But )'e! t'e b#!=i!* i!du+t$- i! t'e *% b#% +"'e$e ,#me ut & t'i+
met#m $"' +i+ t $e #d;u+t t t'e !e) $de$ t'e- eme$*ed $e0it#%i ed #!d #+ m $e
0ib$#!t #!d $ bu+t u!it+/ De$e*u%#ti ! i! de0e% "ed ,#"it#%i+t , u!t$ie+ "#$ti,u%#$%- i!
Eu$ "e )it!e++ed # $em#$=#b%e i!! 0#ti0e *$ )t' i! t'e b#!=i!* i!du+t$- )'et'e$
me#+u$ed i! te$m+ & de" +it *$ )t' ,$edit *$ )t' *$ )t' i!te$medi#ti !i!+t$ume!t+ #+ )e%% #+ i! !et) $=/
Du$i!* #%% t'e+e -e#$+ t'e I!di#! B#!=i!* )' +e e!0i$ !me!t )#+ i!+u%#ted &$ m
t'e *% b#% , !te?t #!d )#+ de! mi!#ted b- St#te , !t$ %+ & di$e,ted ,$edit de%i0e$-
$e*u%#ted i!te$e+t $#te+ #!d i!0e+tme!t +t$u,tu$e did ! t "#$ti,i"#te i! t'i+ 0ib$#!t
b#!=i!* $e0 %uti !/ Su&&e$i!* t'e de#$t' & i!! 0#ti0e +"i$it #!d ,' =i!* u!de$ u!due
$e*ime!t#ti ! I!di#! b#!=i!* )#+ %#,=i!* b;e,ti0e #!d "$ude!ti#% +-+tem+ &
bu+i!e++ %e#di!* &$ m e#$%- +t#*!#ti ! t e0e!tu#% de*e!e$#ti ! #!d $edu,ed $
!e*#ti0e "$ &it#bi%it-/ C !ti!ued " %iti,#% i!te$&e$e!,e t'e #b+e!,e & , m"etiti ! #!d
t t#% %#,= & +,ie!ti&i, de,i+i ! m#=i!* %ed t , !+e(ue!,e+ ;u+t t'e "" +ite & )'#t
)#+ '#""e!i!* i! t'e )e+te$! , u!t$ie+/ Im"e$&e,t #,, u!ti!* +t#!d#$d+ #!d
"#(ue b#%#!,e +'eet+ +e$0ed #+ t %+ & $ 'idi!* t'e +' $t, mi!*+ #!d i%i!* t
$e0e#% t'e "$ *$e++i0e dete$i $#ti ! #!d +t$u,tu$#% )e#=!e++ & t'e , u!t$-@+ b#!=i!*
i!+tituti !+ t "ub%i, 0ie)/ T'i+ e!#b%ed t'e !#ti !#%i ed b#!=+ t , !ti!ue t &% u$i+'
i! # de,e"ti0e m#!i&e+t#ti ! #!d %+e *%itte$ t' u*' +t$#- +-m"t m+ & t'e b$e)i!*
#i%me!t )e$e di+,e$!#b%e 'e$e #!d t'e$e/
T'e * 0e$!me!t '#+ti%- i!t$ du,ed t'e &i$+t "'#+e & $e& $m+ i! t'e &i!#!,i#% #!d
b#!=i!* +e,t $+ #&te$ t'e e, ! mi, ,$i+i+ & 2882/ T'i+ )#+ #! e&& $t t (ui,=%-
$e+u$$e,t t'e 'e#%t' & t'e b#!=i!* +-+tem #!d b$id*e t'e *#" bet)ee! I!di#! #!d
*% b#% b#!=i!* de0e% "me!t/ I!di#! B#!=i!* i! "#$ti,u%#$ PSB + +udde!%- ) =e u"
t t'e $e#%itie+ & t'e +itu#ti ! #!d t ,e t'e bu$de! & t'e +u$&eit & t'ei$ ) e+/Simu%t#!e u+%- m#; $ $e0 %uti !#$- t$#!+iti !+ )e$e t#=i!* "%#,e i! t'e$ +e,t $+ &
8/19/2019 A Project Report on Impact of Npa on Pro
8/63
t'e e, ! m- ! #,, u!t t'e !* i!* e, ! mi, $e& $m+ i!te!ded t )#$d+ &$eei!* t'e
I!di#! e, ! m- &$ m * 0e$!me!t , !t$ %+ #!d %i!=i!* it t m#$=et d$i0e! & $,e+ & $ #
(ui,= i!te*$#ti ! )it' t'e *% b#% e, ! m-/ Im" $t $e+t$i,ti !+ )e$e *$#du#%%- &$eed/
T#$i&&+ )e$e b$ u*'t d )! #!d (u#!tit#ti0e , !t$ %+ )e$e $em 0ed/ T'e I!di#!
m#$=et )#+ "e!ed & $ &$ee , m"etiti ! t t'e *% b#% "%#-e$+/ T'e !e) e, ! mi,
" %i,- i! tu$! $e0 %uti !#%i+ed t'e e!0i$ !me!t & t'e I!di#! i!du+t$- #!d bu+i!e++
#!d "ut t'em t +imi%#$ "$ b%em+ & !e) mi?tu$e O& "" $tu!itie+ #!d ,'#%%e!*e+/ A+
# $e+u%t )e )it!e++ t d#- # +,e!#$i & b#!=i!* t$#de #!d i!du+t$- i! I!di# #%%
u!de$* i!* t'e , !0u%+i !+ & t t#% $e& $m#ti ! b#tt%i!* t =i,= && t'e de,#de!,e &
t'e "#+t #!d t *#i! # !e) +t$e!*t' #!d 0i* $ & $ e&&e,ti0e %i!=+ )it' t'e *% b#%
e, ! m-/ M#!- #$e +ti%% %#!*ui+'i!* u!#b%e t *et $e%e#+ed &$ m t'e %d +et u" )'i%e
# &e) "$ *$e++i0e , $" $#te #$e m#=i!* # !i,'e & $ t'em+e%0e+ i! t'e *% b#% , !te?t/
Du$i!* t'i+ de,#de t'e $e& $m+ '#0e , 0e$ed #%m +t e0e$- +e*me!t & t'e &i!#!,i#%
+e,t $/ I! "#$ti,u%#$ it i+ t'e b#!=i!* +e,t $ )'i,' e?"e$ie!,ed m#; $ $e& $m+/ T'e
$e& $m+ '#0e t#=e! t'e I!di#! b#!=i!* +e,t $ $ #)#- &$ m t'e d#-+ &
!#ti !#%i #ti !/ I!,$e#+e i! t'e !umbe$ & b#!=+ due t t'e e!t$- & !e) "$i0#te #!d
& $ei*! b#!=+> i!,$e#+e i! t'e t$#!+"#$e!,- & t'e b#!=+@ b#%#!,e +'eet+ t'$ u*' t'e
i!t$ du,ti ! & "$ude!ti#% ! $m+ #!d ! $m+ & di+,% +u$e> i!,$e#+e i! t'e $ %e & t'em#$=et & $,e+ due t t'e de$e*u%#ted i!te$e+t $#te+ t *et'e$ )it' $#"id
, m"ute$i #ti ! #!d #""%i,#ti ! & t'e be!e&it+ & i!& $m#ti ! te,'! % *- t b#!=i!*
"e$#ti !+ '#0e #%% +i*!i&i,#!t%- #&&e,ted t'e "e$#ti !#% e!0i$ !me!t & t'e I!di#!
b#!=i!* +e,t $/
I! t'e b#,=*$ u!d & t'e+e , m"%e? ,'#!*e+ )'e! t'e "$ b%em & NPA )#+
be%#ted%- $e, *!i ed & $ t'e &i$+t time #t it+ "e#= 0e% ,it- du$i!* 2883 8H t'e$e )#+
$e+u%t#!t ,'# + #!d , !&u+i !/ A+ t'e "$ b%em i! %#$*e m#*!itude e$u"ted +udde!%-
b#!=+ )e$e u!#b%e t #!#%- e #!d m#=e # $e#%i+ti, $ , m"%ete #++e++me!t & t'e
+u$m u!ti!* +itu#ti !/ It )#+ ! t $e#%i ed t'#t t'e $ t & t'e "$ b%em & NPA )#+
,e!te$ed e%+e)'e$e i! mu%ti"%e %#-e$+ #+ mu,' ut+ide t'e b#!=i!* +-+tem m $e
"#$ti,u%#$%- i! t'e t$#!+ie!t e, ! m- & t'e , u!t$- #+ )it'i!/ B#!=i!* i+ ! t #
, m"#$tme!t#%i ed #!d i+ %#ted +e,t $ de%i!=ed &$ m t'e $e+t & t'e e, ! m-/ A+
'#+ '#""e!ed e%+e)'e$e i! t'e ) $%d # di+t$e++ed !#ti !#% e, ! m- +'i&t+ # "#$t &
it+ !e*#ti0e $e+u%t+ t t'e b#!=i!* i!du+t$-/ I! +' $t b#!=+ #$e m#de u%tim#te%- t
8/19/2019 A Project Report on Impact of Npa on Pro
9/63
&i!#!,e t'e % ++e+ i!,u$$ed b- , !+titue!t i!du+t$ie+ #!d bu+i!e++e+/ T'e
u!"$e"#$ed !e++ #!d +t$u,tu$#% )e#=!e++ & u$ b#!=i!* +-+tem t #,t t t'e
eme$*i!* +,e!#$i #!d de $i+= it+e%& t t'e ,'#%%e!*e+ t'$ )! b- t'e !e) $de$ t$-i!*
t +)it,' 0e$ t *% b#%i #ti ! )e$e !%- #**$#0#ti!* t'e ,$i+i+/ P#$ti#% "e$,e"ti !+
#!d '#+t- ;ud*me!t+ %ed t # " %i,- & #d ' , i+m )'i,' ,'#$#,te$i ed t'e #""$ #,'
& t'e #ut' $itie+ du$i!* t'e %#+t t) de,#de+ t )#$d+ &i!di!* + %uti !+ t b#!=i!*
#i%me!t+ #!d di+m#!t%i!* $e, 0e$- im"edime!t+/ C !ti!u u+ , !,e$! )#+
e?"$e++ed/ Re"e#ted , $$e,ti !#% e&& $t+ )e$e e?e,uted but " +iti0e $e+u%t+ )e$e
e0#di!*/ T'e "$ b%em )#+ de&-i!* # + %uti !/
T'e t'$e#t & NPA )#+ bei!* +u$0e-ed #!d +umm#$i ed b- RBI #!d . 0e$!me!t &
I!di# &$ m # $em te "e$,e"ti ! % =i!* #t # bi$d@+ e-e 0ie) ! t'e b#!=i!* i!du+t$-#+ # )' %e de%i!=ed &$ m t'e $e+t & t'e e, ! m-/ RBI % =+ #t t'e b#!=i!* i!du+t$-@+
#0e$#*e ! # m#,$ b#+i+ , !+ %id#ti!* #!d t#bu%#ti!* t'e d#t# +ubmitted b-
di&&e$e!t i!+tituti !+/ It '#+ , %%e,ted e?te!+i0e +t#ti+ti,+ #b ut NPA i! di&&e$e!t
&i!#!,i#% +e,t $+ %i=e , mme$,i#% b#!=+ &i!#!,i#% i!+tituti !+ u$b#! , "e$#ti0e+
NBFC et,/ But +ti%% it i+ # di+t#!t 0ie) & !e ut+ide t'e +-+tem #!d ! t t'e &e%t 0ie)
& # +u&&e$i!* "#$ti,i"#!t/ I!di0idu#% b#!=+ i!'e$it di&&e$e!t ,u%tu$e+ #!d t'e- &i!#!,e
di0e$+e +e,t $+ & t'e e, ! m- t'#t d ! t " ++e++ ide!ti,#% #tt$ibute+/ T'e$e #$edi+ti!,t di0e$+itie+ #+ #m !* t'e 38 "ub%i, +e,t $ b#!=+ t'em+e%0e+ bet)ee!
di&&e$e!t *e *$#"'i,#% $e*i !+ #!d bet)ee! di&&e$e!t t-"e+ & ,u+t me$+ u+i!* b#!=
,$edit/ T'e$e #$e t'$ee )e#= !#ti !#%i ed b#!=+ t'#t '#0e bee! ide!ti&ied/ But t'e$e
#$e #%+ , $$e+" !di!*%- t) bette$ "e$& $mi!* b#!=+ %i=e C $" $#ti ! #!d OBC/
T'e$e #$e #%+ b#!=+ t'#t '#0e +u,,e++&u%%- , !t#i!ed NPA #!d b$ u*'t it t +i!*%e
di*it %i=e S-!di,#te .$ ++ NPA /4 #!d A!d'$# .$ ++ NPA 5/2H / T'e
+,e!#$i i+ ! t + +im"%e t be *e!e$#%i ed & $ t'e i!du+t$- #+ # )' %e t "$e+,$ibe #$e#d-m#de "#,=#*e & # , mm ! + %uti ! & $ #%% b#!=+ #!d & $ #%% time+/
Simi%#$%- NPA , !,e$!+ & i!di0idu#% B#!=+ +umm#$i ed #+ # )' %e #!d e?"$e++ed
#+ #! #0e$#*e & $ t'e e!ti$e b#!= ,#!! t , !0e- # de"e!d#b%e "i,tu$e/ It i+ bei!*
+t#ti+ti,#%%- +t#ted t'#t b#!= $ Y '#+ 23 *$ ++ NPA/ But i& )e % = d )! &u$t'e$
)it'i! t'#t B#!= t'e$e #$e # &e) " ,=et+ " ++e++i!* bu%= +e*me!t+ & NPA $#!*i!*
76 t 6 *$ ++ )'i,' +' u%d , !+e(ue!t%- , !0e- t'#t t'e$e +' u%d #%+ be
+e0e$#% t'e$ +e*me!t+ )it' H t 7 $ e0e! NIL NPA #0e$#*i!* t'e b#!=@+ )' %e
8/19/2019 A Project Report on Impact of Npa on Pro
10/63
"e$& $m#!,e t 23 / Mu,' ,$iti,i+m i+ m#de #b ut t'e b%i*#ti ! & N#ti !#%i ed
B#!=+ t e?te!d "$i $it- +e,t $ #d0#!,e+/ But b#!=+ '#0e !eit'e$ $ed bette$ i! ! !
"$i $it- +e,t $/ T'e , m"#$#ti0e "e$& $m#!,e u!de$ "$i $it- #!d ! ! "$i $it- i+ !%- #
di&&e$e!,e & de*$ee #!d ! t t'#t & =i!d/
T'e #++e++me!t & t'e mi? & , !t$ibuti!* ,t $+ i!,%ude+:
2/ 'um#! ,t $+ t' +e "e$t#i!i!* t t'e b#!=e$+ #!d t'e ,$edit ,u+t me$+
3/ e!0i$ !me!t#% imb#%#!,e+ i! t'e e, ! m- ! #,, u!t & )' %e+#%e ,'#!*e+
#!d #%+
H/ I!'e$ited "$ b%em+ & I!di#! b#!=i!* #!d i!du+t$-/
V#$i#b%e +=i%% e&&i,ie!,- #!d %e0e% i!te*$it- "$e0#i%i!* i! di&&e$e!t b$#!,'e+ #!d i!
di&&e$e!t b#!=+ #,, u!t+ & $ t'e +)ee"i!* di+"#$itie+ bet)ee! i!te$ b#!= #!d i!t$#
b#!= "e$& $m#!,e/ 9e m#- #dd t'#t )'i%e t'e , $e $ b#+e %e0e% NPA i! t'e i!du+t$-
i+ due t , mm ! , !t$ibut $- ,#u+e+ t'e i!te$ +e 0#$i#ti !+ #$e ! #,, u!t & t'e
+t$u,tu$#% #!d "e$#ti !#% di+"#$itie+/ T'e 'e#0- , !,e!t$#ted "$e0#%e!,e & NPA i+
de&i!ite%- due t 'um#! ,t $+ , !t$ibuti!* t t'e +#me/
N b#!= #""e#$+ t '#0e , !du,ted +tudie+ i!0 %0i!* # ,$ ++ +e,ti ! & it+ "e$#ti!*
&ie%d +t#&& i!,%udi!* t'e #udit #!d i!+"e,ti ! &u!,ti !#$ie+ & $ # ,#!did #!d
, m"$e'e!+i0e i!t$ +"e,ti ! b#+ed ! # +u$0e- & t'e 0#$i#b%e+ & NPA bu$de!
u!de$ di&&e$e!t ,#te* $ie+ & +e,t $#% ,$edit di&&e$e!t $e*i !+ #!d i! i!di0idu#%
B$#!,'e+ ,#te* $i ed #+ )it' 'i*' medium #!d % ) i!,ide!,e & NPA/ 9e d ! t'e#$ t'e 0 i,e & t'e "e$#ti!* "e$+ !!e% i! t'e+e b#!=+ ,#!did%- e?"$e++ed #!d
e?"%#i!i!* t'ei$ i%u$e+/ E? b#!=e$+ i/e/ t'e "$ &e++i !#% b#!=e$+ )' '#0e $eti$ed
&$ m +e$0i,e but " ++e++ # de"t' & i!+ide =! )%ed*e d ! t ut " u$ ,#!did%- t'ei$
0ie)+/ A&te$ t'$ee de,#de+ & !#ti !#%i ed b#!=i!* )e mu+t '#0e + me 'u!d$ed+ &
$eti$ed B#!= e?e,uti0e+ i! t'e , u!t$- )' ,#! b %d%- #!d i!de"e!de!t%- but
b;e,ti0e%- 0 i,e t'ei$ 0ie)+/ E0e$- !e i+ +#ti+&ied i! b%#mi!* t'e t'e$+/ B#!=
e?e,uti0e+ ' %d @)i%%&u% deu%te$+@ $e+" !+ib%e & $ #%% t'e "%#*ue/ I!du+t$- #!d
bu+i!e++ b%#me+ t'e * 0e$!me!t " %i,ie+/
8/19/2019 A Project Report on Impact of Npa on Pro
11/63
Im" $t#!t ,t $e0e#%i!* i!& $m#ti ! & $ e#,' NPA #,, u!t i+ t'e *#" "e$i d bet)ee!
t'e d#te )'e! t'e #d0#!,e )#+ $i*i!#%%- m#de #!d t'e d#te & it+ be, mi!* NPA/ I&
t'e *#" i+ % !* it i+ t'e ,#+e & # +u!+et i!du+t$-/ T'i!*+ )e$e #%% $i*'t e#$%ie$ but
e, ! mi, 0#$i#!,e i! t$#de ,-,%e+ $ m#$=et +e!time!t+ '#0e ,$e#ted t'e NPA/
C$edit ,u+t me$+ )' #$e i! NPA t d#- but & $ -e#$+ )e$e e#$%ie$ $#ted #+ * d
"e$& $me$+ #!d ,$edit) $t'- ,%ie!t+ $#!*i!* )it'i! t'e t " 76 $ 266/ Si*!i&i,#!t "#$t
& t'e NPA i+ ! #,, u!t & ,% ut b#!=i!* $ )i%%&u%%- *i0e! b#d % #!+/ I!!t m $t#%it-
i! ,$edit i+ + %e%- ! #,, u!t & 'um#! ,t $+ #!d #b+e!,e & 'um#! i!te*$it-/
C$edit t di&&e$e!t +e,t $+ *i0e! b- t'e PSB + i! ,t $e"$e+e!t+ di&&e$e!t "$ du,t+/
Ad0#!,e t )e#=e$ +e,ti !+ be% ) R+/37666G $e"$e+e!t+ t'e #,tu#% + ,i#% b#!=i!*/
NPA i! t'i+ +e,t $ & $m+ 4 TO 26 & t'e *$ ++ #m u!t/ Ad0#!,e t #*$i,u%tu$e SSI#!d bi* i!du+t$ie+ e#,' ,#%%+ & $ di&&e$e!t +t$#te*ie+ i! te$m+ &credit assessment,
credit delivery, project implementation, and post advance supervision / NPA i!
di&&e$e!t +e,t $ i+ ! t ,#u+ed b- t'e +#me $e+u%t#!t ,t $+/ C !t#i!i!* (u#!tum &
NPA i+ t'e$e& $e t be "$ *$#mmed b- # +e,t $ )i+e +t$#te*- i!0 %0i!* # $ %e & t'e
#,ti0e%- e!*#*ed "#$ti,i"#!t+ )' ,#! te%% )'e$e t'e b t "i!,'e+ i! e#,' ,#+e/
Bu+i!e++ #!d i!du+t$- '#+ e(u#% $e+" !+ibi%it- t #,,e"t #,, u!t#bi%it- & $
, !t#i!me!t & NPA/ M#!- & t'e "$e+e!t deu%te$+ )e$e !,e t$u+ted #!d 0#%ued,u+t me$+ & t'e b#!=+/ 9'- '#0e t'e- be, me u!$e%i#b%e ! ) $ '#0e t'e-
T'e ,$edit " $t& %i & # !#ti !#%i ed b#!= #%+ i!,%ude+ # !umbe$ & % ) $i+= #!d
$i+= &$ee +e*me!t+ )'i,' ,#!! t ,$e#te NPA/ Sm#%% "e$+ !#% % #!+ #*#i!+t b#!=+@
)! de" +it+ #!d t'e$ t#!*ib%e #!d e#+i%- m#$=et#b%e +e,u$itie+ "%ed*ed t t'e
b#!= #!d 'e%d i! it+ ,u+t d- #$e & t'i+ ,#te* $-/ Su,' +m#%% % #!+ #$e u!i0e$+#%%-
*i0e! i! #%m +t #%% t'e b$#!,'e+ #!d 'e!,e t'e #**$e*#te , !+titute+ # +i*!i&i,#!t
&i*u$e/ T'e! t'e$e i+ & d ,$edit *i0e! t FCI & $ & d "$ ,u$eme!t #!d +imi%#$ ,$edit+
*i0e! t m#; $ "ub%i, Uti%itie+ #!d Pub%i, Se,t $ U!de$t#=i!*+ & t'e Ce!t$#%
. 0e$!me!t/ It i+ !%- t'e $e+idu#% &$#*me!t+ & B#!= ,$edit t'#t #$e e?" +ed t
,$edit i%u$e+ #!d $e#+ !+ & $ NPA ,#! be #+,e$t#i!ed b- +,$uti!i i!* t'i+ +e*me!t/
Se, !d%- NPA i+ ! t # di%emm# ,i!* e?,%u+i0e%- t'e B#!=e$+/ It i+ i! ,t #! #%%
"e$0#+i0e !#ti !#% +, u$*e +)#-i!* t'e e!ti$e I!di#! e, ! m-/ NPA i+ # + $e t'$ #t
& t'e I!di#! e, ! m- #+ # )' %e/ T'e b#!=+ #$e !%- t'e u%tim#te 0i,tim+ )'e$e %i&e,-,%e & t'e 0i$u+ i+ te$mi!#ted/
8/19/2019 A Project Report on Impact of Npa on Pro
12/63
N ) ' ) d e+ t'e . 0e$!me!t +u&&e$ 9'#t #b ut t'e $e,u$$i!* % ++ & $e0e!ue b-
)#- & t#?e+ e?,i+e t t'e * 0e$!me!t ! #,, u!t & ,% +u$e & +e0e$#% %#='+ &
e$+t)'i%e 0ib$#!t i!du+t$i#% u!it+ #!d i!e&&i,ie!t u+#*e & , +t%- i!du+t$i#%
i!&$#+t$u,tu$e e$e,ted )it' , !+ide$#b%e i!0e+tme!t b- t'e !#ti ! A+ "e$ +t#ti+ti,+
, %%e,ted t'$ee -e#$+ b#,= t'e$e #$e 0e$ t) #!d '#%& mi%%i ! +m#%% i!du+t$i#% u!it+
$e"$e+e!ti!* 0e$ 86 "e$,e!t & t'e t t#% !umbe$ & i!du+t$i#% u!it+/ A m#; $it- & t'e
i!du+t$i#% ) $= & $,e &i!d+ em"% -me!t 'e$e #!d t'e +e,t $@+ , !t$ibuti ! t i!du+t$i#%
ut"ut i+ +ub+t#!ti#% #!d i+ e+tim#ted #t 0e$ H7 "e$,e!t )'i%e it+ +'#$e & e?" $t+ i+
#%+ 0#%ued t be #$ u!d 6 "e$,e!t/ Out & t'e 3/7 mi%%i ! #b ut 26 & t'e +m#%%
i!du+t$ie+ #$e $e" $ted t be +i,= i!0 %0i!* # b#!= ,$edit ut+t#!di!* #$ u!d R+/7666
t 5666 C$ $e+ #t t'#t "e$i d/ It m#- be e0e! m $e ! )/ T'e+e ,% +ed u!it+
$e"$e+e!t + me t' u+#!d+ & di+"%#,ed ) $=e$+ P$e0i u+%- e!; -i!* *#i!&u%
em"% -me!t/ E#,' ,% +ed u!it )'et'e$ %#$*e medium $ +m#%% ,,u"ie+ , +t%-
de0e% "ed i!du+t$i#% %#!d/ Se0e$#% item+ & m#,'i!e$- & $m +e,u$it- & $ t'e NPA
#,, u!t+ +' u%d eit'e$ be %-i!* id%e $ ;u!=i!* ut/ I! t'e$ ) $d+ %#$*e 0#%ue &
%#!d m#,'i!e$- #!d m !e- #$e % ,=ed u" i! i!du+t$i#% +i,=!e++/ T'e+e #$e t'e
#++et+ ,$e#ted t'#t '#0e tu$!ed u!"$ du,ti0e #!d t'e+e $e"$e+e!t t'e $e#% "'-+i,#%
NPA )'i,' i!di$e,t%- #$e $e&%e,ted i! t'e &i!#!,i#% +t#teme!t+ & !#ti !#%i ed b#!=+
#+ t'e u%tim#te &i!#!,ie$+ & t'e+e #++et+/ I! t'e &i!#% #!#%-+i+ it $e"$e+e!t+ i!+t#bi%it-
i! i!du+t$-/ NPA $e"$e+e!t+ t'e )e+ & t'e ,$edit $e,i"ie!t+ i! tu$! t$#!+&e$$ed #!d
"#$=ed )it' t'e b#!=+/
Re, *!i i!* NPA #+ # + $e t'$ #t & t'e I!di#! e, ! m- t'e &ie%d %e0e% "#$ti,i"#!t+
+' u%d &i$+t #dd$e++ t'em+e%0e+ t &i!d t'e + %uti !/ 9'- ! t $e"$e+e!t#ti0e+ &
i!du+t$ie+ #!d , mme$,e #!d t'#t & t'e I!di#! B#!=+@ A++ ,i#ti ! , me t *et'e$
#!d ,#!did%- #!#%- e #!d &i!d #! e0e$%#+ti!* + %uti ! 'e$#%di!* t'e $e#% +"i$it & de$e*u%#ti ! #!d de,e!t$#%i #ti ! & m#!#*eme!t i! b#!=i!* +e,t $ #!d #,,e"ti!*
+e%& di+,i"%i!e #!d +e%& $e%i#!,e 9'#t #$e t'e de&i,ie!,ie+ i! ,$edit de%i0e$- t'#t
%e#d+ t it+ mi+u+e #bu+e $ % ++ 1 ) t ,'e,= mi+u+e #!d #bu+e #t + u$,e 1 )
t de#% )it' e$$i!* C $" $#te I! +' $t t'e &u!,ti !#% +t#&& & t'e B#!= #% !* )it' t'e
$e"$e+e!t#ti0e+ & bu+i!e++ #!d i!du+t$- '#+ t #,,e"t # ,#!did i!t$ +"e,ti ! #!d
#$$i0e #t # , de & di+,i"%i!e i! #!- &i!#% + %uti !/ A!d "$e0e!ti0e #,ti ! t be
+u,,e++&u% +' u%d +t#$t &$ m t'e ,$edit $e,i"ie!t %e0e% #!d t'e! e?te!d t t'e b#!=e$+/
RBI #!d . 0e$!me!t & I!di# ,#! " +iti0e%- ,i%it#te t'e "$ ,e++ b- "$ 0idi!*
8/19/2019 A Project Report on Impact of Npa on Pro
13/63
e!#b%i!* me#+u$e+/ D ! t t$- t +et $i*'t i!du+t$- #!d b#!=+ but 'e%" i!du+t$- #!d
b#!=+ t +et $i*'t t'em+e%0e+/ T'e !e) t % & de$e*u%#ted #""$ #,' '#+ t be
#,,e"ted i! + %0i!* NPA/
(EA#)%# F)( T*E E3I#TE%&E )F *UGE 'E/E' )F % A’# I% T*E I%$IA%
BA%,I%G #.#TEM 4IB#52
T'e $i*i! & t'e "$ b%em & bu$*e !i!* NPA + %ie+ i! t'e (u#%it- & m#!#*i!* ,$edit
$i+= b- t'e b#!=+ , !,e$!ed/ 9'#t i+ !eeded i+ '#0i!* #de(u#te "$e0e!ti0eme#+u$e+ i! "%#,e !#me%- &i?i!* "$e +#!,ti !i!* #""$#i+#% $e+" !+ibi%it- #!d '#0i!*
#! e&&e,ti0e " +t di+bu$+eme!t +u"e$0i+i !/ B#!=+ , !,e$!ed +' u%d , !ti!u u+%-
m !it $ % #!+ t ide!ti&- #,, u!t+ t'#t '#0e " te!ti#% t be, me ! ! "e$& $mi!*/
T +t#$t )it' "e$& $m#!,e i! te$m+ & "$ &it#bi%it- i+ # be!,'m#$= & $ #!- bu+i!e++
e!te$"$i+e i!,%udi!* t'e b#!=i!* i!du+t$-/ 1 )e0e$ i!,$e#+i!* NPA + '#0e # di$e,t
im"#,t ! b#!=+ "$ &it#bi%it- #+ %e*#%%- b#!=+ #$e ! t #%% )ed t b = i!, me !
+u,' #,, u!t+ #!d #t t'e +#me time b#!=+ #$e & $,ed t m#=e "$ 0i+i ! ! +u,'
#++et+ #+ "e$ t'e Re+e$0e B#!= & I!di# RBI *uide%i!e+/
A%+ )it' i!,$e#+i!* de" +it+ m#de b- t'e "ub%i, i! t'e b#!=i!* +-+tem t'e b#!=i!*
i!du+t$- ,#!! t #&& $d deu%t+ b- b $$ )e$+ +i!,e NPA + #&&e,t+ t'e $e"#-me!t
,#"#,it- & b#!=+/
Fu$t'e$ Re+e$0e B#!= & I!di# RBI +u,,e++&u%%- ,$e#te+ e?,e++ %i(uidit- i! t'e+-+tem t'$ u*' 0#$i u+ $#te ,ut+ #!d b#!=+ i% t uti%i e t'i+ be!e&it t it+ #d0#!t#*e
due t t'e &e#$ & bu$*e !i!* ! ! "e$& $mi!* #++et+/
#o!e of the other reasons % A’s were2
• A&te$ t'e !#ti !#%i #ti ! & b#!=+ +e,t $ )i+e #%% ,#ti ! & ,$edit
di+bu$+eme!t+ be,#me , m"u%+ $-/
8/19/2019 A Project Report on Impact of Npa on Pro
14/63
• B#!=+ )e$e , m"e%%ed t *i0e ,$edit t e0e! t' +e +e,t $+ )'i,' )e$e ! t
, !+ide$ed t be 0e$- "$ &it#b%e =ee"i!* i! mi!d t'e &ede$#% " %i,-/
• Pe "%e i! t'e #*$i,u%tu$#% +e,t $ )e$e '#$d%- i!te$e+ted i! $etu$!i!* t'e % #!+
#+ t'e- )e$e , !&ide!t t'#t t'e % #!+ )it' t'e i!te$e+t ) u%d be )$itte! && b-
t'e +u,,e++i0e * 0e$!me!t+/
• T'e +m#%% +,#%e i!du+t$ie+ #%+ #0#i%ed ,$edit e0e! t' u*' t'e- )e$e ! t +u$e
& "e$& $mi!* t t'e e?te!t & $etu$!i!* t'e % #!+/
• B#!=+ )e$e #%+ ! t i! t'e " +iti ! t "$e++ e! u*' +e,u$itie+ t , 0e$ t'e
% #!+ i! ,#%%+ & timi!*+/
• E0e! i& t'e #++et+ )e$e "$ 0ided t'e- "$ 0ed t be +ub+t#!d#$d #++et+ #+ t'e
0#%ue+ t'#t , u%d be $e#%i ed )e$e 0e$- % )/
• F$ee di+t$ibuti ! d !e du$i!* “% #! m#i%+” , !*$e++ $e*ime #%+ , !t$ibuted
t t'e 'e#0- i!,$e#+e i! NPA +/
• T'e +%#,=!e++ i! e&& $t b- t'e b#!= #ut' $itie+ t , %%e,t $ $e, 0e$ % #!#d0#!,e+ i! time #%+ , !t$ibute+ t t'e i!,$e#+e i! NPA +/
• L#,= & #,, u!t#bi%it- & t'e &&i,e$+ )' +#!,ti !ed t'e % #!+ %ed t # ,#+te
)' %e #""$ #,' b- t'e &&i,e$+ $e, 0e$i!* t'e % #!+/
• L #!+ +#!,ti !ed t u!de$ +e$0i,i!* ,#!did#te+ due t "$e++u$e &$ m t'e
mi!i+te$+ #!d t'e$ " %iti,i#!+ #%+ %ed t t'e ! ! $e, 0e$- & debt+/
• P $ ,$edit #""$#i+#% +-+tem %#,= & 0i+i ! )'i%e +#!,ti !i!* ,$edit %imit+/
• L#,= & "$ "e$ m !it $i!*/
• Re,=%e++ #d0#!,e+ t #,'ie0e t'e bud*et#$- t#$*et+/
• L#,= & +i!,e$e , $" $#te ,u%tu$e i!#de(u#te %e*#% "$ 0i+i !+ ! & $e,% +u$e
#!d b#!=$u"t,-/
8/19/2019 A Project Report on Impact of Npa on Pro
15/63
• C'#!*e i! e, ! mi, " %i,ie+Ge!0i$ !me!t/
• L#,= & , $di!#ti ! bet)ee! b#!=+/
#o!e of the internal factors of the organi6ation leading to % A’s
are2
• Di0i+i ! & &u!d+ & $ e?"#!+i ! di0e$+i&i,#ti ! m de$!i #ti ! u!de$t#=i!*
!e) "$ ;e,t+ #!d & $ 'e%"i!* #++ ,i#te , !,e$!+ t'i+ i+ , u"%ed )it'
$e,e++i !#$- t$e!d+ #!d i%u$e t t#" &u!d+ i! t'e ,#"it#% #!d debt
m#$=et+/
• Bu+i!e++ i%u$e "$ du,t m#$=eti!* et,/ i!e&&i,ie!t m#!#*eme!t
+t$#i!ed %#b $ $e%#ti !+ i!#""$ "$i#te te,'! % *- te,'!i,#% "$ b%em+
"$ du,t b+ %e+,e!,e et,/
• Re,e++i ! +' $t#*e & i!"ut " )e$ +' $t#*e "$i,e e+,#%#ti ! #,,ide!t+
!#tu$#% ,#%#mitie+ be+ide+ e?te$!#%i #ti ! "$ b%em i! t'e$ , u!t$ie+
%e#di!* t ! ! "#-me!t & 0e$due/
• TimeG, +t 0e$$u! du$i!* t'e "$ ;e,t im"%eme!t#ti ! +t#*e/
• . 0e$!me!t " %i,ie+ %i=e ,'#!*e+ i! t'e e?,i+e dutie+ " %%uti ! , !t$ %
$de$+/
• 9i%%&u% deu%t +i"' !i!* && & &u!d+ &$#ud mi+#""$ "$i#ti !
"$ m te$+Gdi$e,t $+ di+"ute+ et,/
• De&i,ie!,ie+ ! t'e "#$t & t'e b#!=+ %i=e de%#- i! $e%e#+e & %imit+ #!d
de%#- i! $e%e#+e & "#-me!t+G+ub+idie+ b- t'e * 0e$!me!t/
)perational definitions2
NPA: A! #++et i+ ,%#++i&ied #+ ! ! "e$& $mi!* #++et NPA + i& due+ i! t'e & $m &
"$i!,i"#% #!d i!te$e+t #$e ! t "#id b- t'e b $$ )e$ & $ # "e$i d & 86 d#-+/
Standard Assets: Su,' #! #++et i+ ! t # ! ! "e$& $mi!* #++et/ I! t'e$ ) $d+ it,#$$ie+ ! t m $e t'#! ! $m#% $i+= #tt#,'ed t t'e bu+i!e++/
8/19/2019 A Project Report on Impact of Npa on Pro
16/63
Sub-standard Assets: It i+ ,%#++i&ied #+ ! ! "e$& $mi!* #++et & $ # "e$i d ! te?,eedi!* 24 m !t'+
Doubtful Assets: A++et t'#t '#+ $em#i!ed NPA & $ # "e$i d e?,eedi!* 24 m !t'+ i+
# d ubt&u% #++et/
Loss Assets: 1e$e % ++ i+ ide!ti&ied b- t'e b#!=+ , !,e$!ed $ b- i!te$!#% #udit $+
$ b- e?te$!#% #udit $+ $ b- Re+e$0e B#!= I!di# RBI i!+"e,ti !
(BI GUI$E'I%E# )% I%&)ME (E&)G%ITI)% 4I%TE(E#T I%&)ME )% % A’s5
I!, me Re, *!iti !: I!, me &$ m N ! Pe$& $mi!* A++et+ +' u%d ! t $e, *!i e
! #,,$u#% b#+i+ but +' u%d be b =ed #+ i!, me !%- )'e! it i+ #,tu#%%- $e,ei0ed/
T'e$e& $e i!te$e+t +' u%d ! t be ,'#$*ed #!d t#=e! i!t i!, me #,, u!t ti%% t'e
#,, u!t be, me +t#!d#$d #++et/
♦ I!te$e+t ,'#$*ed t be +t ""ed
♦ P$ 0i+i ! t be m#de
)ver $ue2 A!- #m u!t due t t'e B#!= u!de$ #!- ,$edit ,i%it- i+ “O0e$ due” i& it i+
! t "#id ! t'e due d#te &i?ed b- t'e B#!=/
)ut of )rder2 A! #,, u!t +' u%d be t$e#ted #+ “ ut & $de$”
♦ I& t'e ut+t#!di!* b#%#!,e $em#i!+ , !ti!u u+%- i! e?,e++ & t'e +#!,ti !ed
%imitG d$#)i!* " )e$/
♦ I! ,#+e+ )'e$e t'e ut+t#!di!* b#%#!,e i! t'e "$i!,i"#% "e$#ti!* #,, u!t i+
%e++ t'#! t'e +#!,ti !ed %imitG d$#)i!* " )e$ but t'e$e #$e ! ,$edit+
8/19/2019 A Project Report on Impact of Npa on Pro
17/63
continuously for 78 days #+ ! t'e d#te & B#!= + B#%#!,e S'eet $ 9'e$e
#$e ,$edit+ #$e ! t e! u*' t , 0e$ t'e i!te$e+t debited du$i!* t'e +#me
"e$i d/
A %on erfor!ing Asset shall "e an advance where2
Ter! 'oan2 I!te$e+t #!dG $ i!+t#%%me!t & "$i!,i"#% $em#i! “ 0e$ due” & $ # "e$i d &
!ore than 78 days+
&ash &redit9 )ver $raft2 I& t'e #,, u!t $em#i!+ out of order for a period !ore
than 78 days+
Bills2 O0e$due & $ # "e$i d & m $e t'#! 86 d#-+/
)ther accounts2 A!- #m u!t t be $e,ei0ed $em#i!+ 0e$due & $ # "e$i d & m $e
t'#! 86 d#-+/
#hort duration crops2 I& t'e i!+t#%%me!t & "$i!,i"#% $ i!te$e+t t'e$e ! $em#i!+
overdue for two crop seasons+
'ong duration crops2 I& i!+t#%%me!t & "$i!,i"#% $ i!te$e+t t'e$e ! $em#i!+ 0e$due
& $ O!e C$ " +e#+ !/
A! #,, u!t ) u%d be ,%#++i&ied #+ NPA !%- i& t'e i!te$e+t ,'#$*ed du$i!* #!-
(u#$te$ i+ ! t +e$0i,ed &u%%- )it'i! 86 d#-+ &$ m t'e e!d & t'e (u#$te$/
A##ET &'A##IFI&ATI)%
#tandard Assets2
I+ !e )'i,' d e+ ! t di+,% +e #!- "$ b%em #!d )'i,' d e+ ! t ,#$$- m $e t'#!
! $m#% $i+=+ #tt#,'ed t t'e bu+i!e++/
#u"standard Assets2
9'i,' '#+ $em#i!ed NPA for a period of less than or e:ual to 1; !onths+
8/19/2019 A Project Report on Impact of Npa on Pro
18/63
$ou"tful Assets2
I& it '#+ $em#i!ed % A for a period e
8/19/2019 A Project Report on Impact of Npa on Pro
19/63
G ()-T* > $ E/E') ME%T 4 E(&E%TAGE # *A(E 5
BANK PERCENTA.E
St#te B#!= & I!di# 24
Pu!;#b N#ti !#%B#!=
5
B#!= & B#$ d# 7
ICICI B#!= 7
B#!= & I!di# 7
C#!#$# B#!= 7
1DFC B#!=
IDBI B#!=
A?i+ B#!= H
Ce!t$#% B#!= & I!di#
H
Ot'e$+ 3
18% 6%5%
5%5%
5%3%3%4%4%
42%
Market share of leading bank State Bank of India Punjab National BankBank of Baroda ICICI BankBank of India Canara Bank
HD C Bank IDBI Bank!"i# Bank Central Bank of India
$t er#
FI.URE 2:
8/19/2019 A Project Report on Impact of Npa on Pro
20/63
?#ource2 I&(A@ Tho!as -hite (eport on Indian Ban ing
E(F)(MA%&E )T*E( #TATI#TI&A' $ATA4BA'A%&E #*EET 9I%/E#TME%T E(&E%TAGE 5
BA%, F.11
SBI 3 /25
PNB 37/27
BOB 28/83
C#!#$# B#!= 3 /86
BOI 3 / 7
ICICI B#!= HH/27
1DFC B#!= 37/7
A?i+ B#!= 38/55
8/19/2019 A Project Report on Impact of Npa on Pro
21/63
&'&&%
5'&&%
1&'&&%
15'&&%
2&'&&%
25'&&%
3&'&&%
35'&&%
FI.URE 3:
?# )U(&E : Annual reports@ press releases@ earning call transcripts and investor presentationspu"lished "y respective "an s
MAC)( BA%,# I% I%$IA
8/19/2019 A Project Report on Impact of Npa on Pro
22/63
ABN AMRO B#!= Abu D'#bi C mme$,i#% B#!= A%%#'#b#d B#!=
A!d'$# B#!= Ame$i,#! E?"$e++ B#!= B#!= & I!di# B#!= & B#$ d# B#!= & Pu!;#bB#!= & R#;#+t'#! B#!= O& M#'#$#+t$#B#$,%#-+ B#!= B#$,%#-+ B#!= C#!#$# B#!=
Ce!t$#% B#!= & I!di# CITIBANK I!di#C $" $#ti ! B#!= Cit- U!i ! B#!=C +m + C O"e$#ti0e B#!=De!# B#!=De0e% "me!t C$edit B#!=D'#!%#=+'mi B#!= Ltd/ Deut+,'e B#!= DBS B#!=
E?" $t Im" $t B#!= & I!di# Fede$#% B#!=.% b#% T$u+t B#!= Limited .u#$di#! S#'#=#$# B#!= Ni-#mit#1DFC B#!= Ltd/ICICI B#!= 1SBC B#!= IDBI B#!= LimitedI!di#! B#!=I!di#! O0e$+e#+ B#!=
I!du+I!d B#!= LimitedJ#mmu #!d K#+'mi$ B#!= K#$!#t#=# B#!= K#$u$ V-+#-# B#!= K t#= M#'i!d$# B#!= Ott#"#%#m C "e$#ti0e U$b#! B#!= Ltd/O$ie!t#% B#!= & C mmme$,ePu!;#b N#ti !#% B#!= Re+e$0e B#!= & I!di#S#$#+)#t C "e$#ti0e B#!=
S ut' I!di#! B#!= St#!d#$d C'#$te$ed B#!=
http://www.abnamroindia.com/http://www.adcbindia.com/http://www.allahabadbank.com/http://www.andhrabank.in/http://www.americanexpress.com/http://www.bankofindia.com/http://www.bankofbaroda.com/http://www.bop.com.pk/http://www.bankofrajasthan.com/http://www.bankofmaharashtra.in/http://www.barclays.com/http://www.bnpparibas.co.in/http://www.canbankindia.com/http://www.centralbankofindia.co.in/http://www.online.citibank.co.in/http://www.corpbank.com/http://www.cityunionbank.com/http://www.cosmosbank.com/http://www.denabank.com/http://www.dcbl.com/http://www.dhanbank.com/http://www.db.com/india/http://www.dbs.com/http://www.eximbankindia.com/http://www.federal-bank.com/http://www.globaltrustbank.com/http://www.guardianbank.org/http://www.hdfcbank.com/http://www.icicibank.com/http://www.hsbc.com/http://www.idbibank.com/http://www.indian-bank.com/http://www.iob.com/http://www.indusind.com/http://www.jkbank.net/http://karnatakabank.com/http://www.jkbankonline.com/http://www.jkbankonline.com/http://www.ottapalamurbanbank.com/http://www.obcindia.co.in/http://www.pnbindia.com/http://www.rbi.org.in/http://www.saraswatbank.com/http://www.southindianbank.com/http://www.standardchartered.com/in/http://www.adcbindia.com/http://www.allahabadbank.com/http://www.andhrabank.in/http://www.americanexpress.com/http://www.bankofindia.com/http://www.bankofbaroda.com/http://www.bop.com.pk/http://www.bankofrajasthan.com/http://www.bankofmaharashtra.in/http://www.barclays.com/http://www.bnpparibas.co.in/http://www.canbankindia.com/http://www.centralbankofindia.co.in/http://www.online.citibank.co.in/http://www.corpbank.com/http://www.cityunionbank.com/http://www.cosmosbank.com/http://www.denabank.com/http://www.dcbl.com/http://www.dhanbank.com/http://www.db.com/india/http://www.dbs.com/http://www.eximbankindia.com/http://www.federal-bank.com/http://www.globaltrustbank.com/http://www.guardianbank.org/http://www.hdfcbank.com/http://www.icicibank.com/http://www.hsbc.com/http://www.idbibank.com/http://www.indian-bank.com/http://www.iob.com/http://www.indusind.com/http://www.jkbank.net/http://karnatakabank.com/http://www.jkbankonline.com/http://www.jkbankonline.com/http://www.ottapalamurbanbank.com/http://www.obcindia.co.in/http://www.pnbindia.com/http://www.rbi.org.in/http://www.saraswatbank.com/http://www.southindianbank.com/http://www.standardchartered.com/in/http://www.abnamroindia.com/
8/19/2019 A Project Report on Impact of Npa on Pro
23/63
St#te B#!= & Bi=#!e$ #!d J#i"u$ St#te B#!= & 1-de$#b#dSt#te B#!= & I!di#St#te B#!= & I!d $e St#te B#!= & M-+ $eSt#te B#!= & P#ti#%# St#te B#!= & T$#0#!, $eS-!di,#te B#!=Te?ti%e T$#de$+ C "e$#ti0e B#!=T'#!e J#!#t# S#'#=#$i B#!= T'e C#t' %i, S-$i#! B#!= LtdT#mi% N#du Me$,#!ti%e B#!=T'e U!ited 9e+te$! B#!= Ltd/UCO B#!= U!i ! B#!= & I!di# UBI UTI B#!= G A?i+ B#!=U!ited B#!=Vi;#-# B#!=Ye+ B#!= I!* V-+-# B#!=
()$U&T# ()FI'E
T'e b#!= @T'e Kumb#= !#m B#!= Limited@ #+ it )#+ t'e! ,#%%ed )#+ i!, $" $#ted
#+ # %imited , m"#!- ! H2+t O,t be$ 286 / T'e &i$+t Mem $#!dum & A++ ,i#ti !
http://www.sbbjbank.com/http://www.sbhyd.com/http://www.sbi.co.in/http://www.indorebank.org/http://www.mysorebank.com/http://www.sbp.co.in/http://www.sbtr.com/http://www.syndicatebank.com/http://www.ttcbank.com/http://www.thanejanata.co.in/http://www.casybank.com/http://www.casybank.com/http://www.uwbankindia.com/http://www.ucobank.com/home.htmhttp://www.unionbankofindia.com/http://www.utibank.com/http://www.unitedbankofindia.com/http://www.vijayabank.com/http://www.vysbank.com/http://www.vysbank.com/http://www.sbbjbank.com/http://www.sbhyd.com/http://www.sbi.co.in/http://www.indorebank.org/http://www.mysorebank.com/http://www.sbp.co.in/http://www.sbtr.com/http://www.syndicatebank.com/http://www.ttcbank.com/http://www.thanejanata.co.in/http://www.casybank.com/http://www.casybank.com/http://www.uwbankindia.com/http://www.ucobank.com/home.htmhttp://www.unionbankofindia.com/http://www.utibank.com/http://www.unitedbankofindia.com/http://www.vijayabank.com/http://www.vysbank.com/http://www.vysbank.com/
8/19/2019 A Project Report on Impact of Npa on Pro
24/63
)#+ +i*!ed b- t)e!t- de0 ted #!d "$ mi!e!t ,iti e!+ & Kumb#= !#m i!,%udi!*
S#$0#+'$i R/ S#!t'#!#m I-e$ S/K$i+'!# I-e$ V/K$i+'!#+)#mi I-e!*#$ #!d
T/S/R#*'#0#,'#$i#$/ T/S/R#*'#0#,'#$i#$ )#+ t'e Fi$+t A*e!t & t'e B#!=/
/
4 http://www.cityunionbank.com/english/AboutUs.aspx )
It )#+ & u!ded i! 288 / It + 'e#d(u#$te$ i+ i! Mumb#i/ T'ei$ "$ m te$+ i!,%ude UTI
t'e %#$*e+t #!d be+t &i!#!,i#% i!+tituti ! i! , u!t$-/ T'ei$ , de #!d " %i,ie+ e!+u$e+i$ "$#,ti,e+ #!d &u%%- t$#!+"#$e!,-/
(http://www.axisbank.com/about-us/about-us.aspx )
T'e 1 u+i!* De0e% "me!t Fi!#!,e C $" $#ti ! Limited 1DFC )#+ #m !*+t t'e
&i$+t t $e,ei0e #! i! "$i!,i"%e #""$ 0#% &$ m t'e Re+e$0e B#!= & I!di# RBI t +et
u" # b#!= i! t'e "$i0#te +e,t $ #+ "#$t & RBI + %ibe$#%i+#ti ! & t'e I!di#! B#!=i!*
I!du+t$- i! 288 / T'e b#!= )#+ i!, $" $#ted i! Au*u+t 288 i! t'e !#me & 1DFCB#!= Limited )it' it+ $e*i+te$ed &&i,e i! Mumb#i I!di#/ 1DFC B#!= , mme!,ed
"e$#ti !+ #+ # S,'edu%ed C mme$,i#% B#!= i! J#!u#$- 2887/
(http://www.hdfcbank.com/aboutus/gene al/default.htm )
http://www.cityunionbank.com/english/AboutUs.aspxhttp://www.axisbank.com/about-us/about-us.aspxhttp://www.hdfcbank.com/aboutus/general/default.htmhttp://www.cityunionbank.com/english/AboutUs.aspxhttp://www.axisbank.com/about-us/about-us.aspxhttp://www.hdfcbank.com/aboutus/general/default.htm
8/19/2019 A Project Report on Impact of Npa on Pro
25/63
I!du+I!d B#!= de$i0e+ it+ !#me #!d i!+"i$#ti ! &$ m t'e I!du+ V#%%e- ,i0i%i+#ti ! #
,u%tu$e de+,$ibed b- N#ti !#% .e *$#"'i, #+ @ !e & t'e *$e#te+t & t'e #!,ie!t
) $%d@ , mbi!i!* # +"i$it & i!! 0#ti ! )it' + u!d bu+i!e++ #!d t$#de "$#,ti,e+/
M$/ S$i,'#!d P/ 1i!du;# # %e#di!* N ! Re+ide!t I!di#! bu+i!e++m#! #!d 'e#d &
t'e 1i!du;# .$ u" , !,ei0ed t'e 0i+i ! & I!du+I!d B#!= t'e &i$+t & t'e !e)
*e!e$#ti ! "$i0#te b#!=+ i! I!di# #!d t'$ u*' , %%e,ti0e , !t$ibuti !+ &$ m t'e NRI
, mmu!it- t )#$d+ I!di#@+ e, ! mi, #!d + ,i#% de0e% "me!t b$ u*'t u$ B#!= i!t
bei!*/
(http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/ou -p ofile/index.html )
It )#+ & u!ded i! 2838 #!d it+ mi++i ! i+ T eme$*e #+ t'e m +t "$e&e$$ed b#!= i!
t'e , u!t$- i! te$m+ & b$#!d 0#%ue+ "$i!,i"%e+ )it' , $e , m"ete!,e i! & +te$i!*
,u+t me$ #+"i$#ti !+ t bui%d 'i*' (u#%it- #++et+ %e0e$#*i!* ! t'e +t$ !* #!d
0ib$#!t te,'! % *- "%#t& $m i! "u$+uit & e?,e%%e!,e #!d ,u+t me$ de%i*'t #!d t
be, me # m#; $ , !t$ibut $ t t'e +t#b%e e, ! mi, *$ )t' & t'e !#ti !/
(http://www.southindianbank.com/content/!iew"ontent#!l1.aspx$
#ink%d#!l2&' #ink%d#!l &*+ link%d&*+ )
http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/our-profile/index.htmlhttp://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67http://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/our-profile/index.htmlhttp://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67http://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67
8/19/2019 A Project Report on Impact of Npa on Pro
26/63
At ,arnata a Ban )e u!de$+t#!d t'#t #%% ,u+t me$+ #$e di&&e$e!t i! u!i(ue )#-+
)'i,' i+ )'- $e*#$d%e++ & t'e +i e & - u$ bu+i!e++ $ - u$ #+"i$#ti !+ )e t$e#t
e0e$- !e #+ i!di0idu#% #!d +"e,i#%/ T'i+ me#!+ &&e$i!* - u ,' i,e+ ! t !%- i!
$e%#ti ! t u$ "$ du,t+ #!d +e$0i,e+ but #%+ i! t'e )#- - u i!te$#,t )it' u+/ 9e
u!de$+t#!d t'e ,'#!*e+ i! - u$ %i&e+t-%e $e, *!i e t'e+e ,'#!*e+ #!d +u"" $t - u
)it' # 'i*' +t#!d#$d & "$ &e++i !#%i+m #!d +e$0i,e/ A+ # "$emie$ b#!= )e '#0e de0e% "ed co!prehensive range of custo!i6ed
products > services suita"le for every ind of !ar et@ trade or perceived need
0 Business or ersonal+ T'e- i!,%ude b $$ )i!* ,i%itie+ de" +it+ "$ 0idi!*
"timum $etu$!+ ! +u$"%u+ &u!d+ $ 'e%"i!* )it' 0e$+e#+ t$#!+#,ti !+/
(http://www.ka natakabank.com/ktk/Aboutus.,sp )
IN. V-+-# B#!= Ltd i+ # "$emie$ "$i0#te +e,t $ b#!= )it' $et#i% "$i0#te #!d
)' %e+#%e b#!=i!* "%#t& $m+ t'#t +e$0e 0e$ t) mi%%i ! ,u+t me$+/ 9it' 46 -e#$+ &
'i+t $- i! I!di# #!d %e0e$#*i!* IN. + *% b#% &i!#!,i#% e?"e$ti+e t'e b#!= &&e$+ #
b$ #d $#!*e & i!! 0#ti0e #!d e+t#b%i+'ed "$ du,t+ #!d +e$0i,e+ #,$ ++ it+ 73b$#!,'e+/ T'e b#!= )'i,' '#+ ,% +e t 26 666 em"% -ee+ i+ #%+ %i+ted i! B mb#-
St ,= E?,'#!*e Limited #!d N#ti !#% St ,= E?,'#!*e & I!di# Limited/
(http://www.ing!ysyabank.com/pe sonal-banking/ing-!ysya/about-us/company-
o!e !iew.aspx )
http://www.karnatakabank.com/ktk/Aboutus.jsphttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspxhttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspxhttp://www.karnatakabank.com/ktk/Aboutus.jsphttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspxhttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspx
8/19/2019 A Project Report on Impact of Npa on Pro
27/63
K t#= M#'i!d$# B#!= Ltd i+ # !e +t " +' " & $ #%% b#!=i!* !eed+/ T'e b#!= &&e$+
"e$+ !#% &i!#!,e + %uti !+ & e0e$- =i!d &$ m +#0i!*+ #,, u!t+ t ,$edit ,#$d+
di+t$ibuti ! & mutu#% &u!d+ t %i&e i!+u$#!,e "$ du,t+/ K t#= M#'i!d$# B#!= &&e$+
t$#!+#,ti ! b#!=i!* "e$#te+ %e!di!* 0e$ti,#%+ m#!#*e+ IPO+ #!d "$ 0ide+ ) $=i!*
,#"it#% % #!+/ K t#= '#+ !e & t'e %#$*e+t #!d m +t $e+"e,ted 9e#%t' M#!#*eme!t
te#m+ i! I!di# "$ 0idi!* t'e )ide+t $#!*e & + %uti !+ t 'i*' !et ) $t' i!di0idu#%+
e!t$e"$e!eu$+ bu+i!e++ mi%ie+ #!d em"% -ed "$ &e++i !#%+/
(http://aboutus.kotak.com/kotak-mahind a-g oup/ou -businesses.html )
Ye+ B#!= i+ # "$i0#te b#!= i! I!di#/ It )#+ & u!ded b- A+' = K#"u$ #!d R#!#
K#" $ )it' t'e du ' %di!* # , %%e,ti0e &i!#!,i#% +t#=e & 3 /25 / M$/A+' = K#"u$
)#+ =i%%ed i! # te$$ $i+t #tt#,= i! 3664 i! Mumb#i/
*ead:uarters 2 Mumb#i i!di#
&E) 2 R#!# K#" $
(https://www.google.co.in/ &yes bank )
http://aboutus.kotak.com/kotak-mahindra-group/our-businesses.htmlhttps://www.google.co.in/search?biw=1366&bih=623&q=yes+bank+headquarters&stick=H4sIAAAAAAAAAGOovnz8BQMDgxUHnxCXfq6-gWV6bk68mZZWdrKVfn5RemJeZlViSWZ-HgrHKiM1MaWwNLGoJLWoWEnQ6siPJ2cvcOfY2KoJJDp52Ey8BQASYIMxVwAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CMsBEOgTKAEwFQhttps://www.google.co.in/search?biw=1366&bih=623&q=mumbai&stick=H4sIAAAAAAAAAGOovnz8BQMDgwsHnxCXfq6-gWV6bk68mRIHiG1SllugpZWdbKWfX5SemJdZlViSmZ-HwrHKSE1MKSxNLCpJLSq-2vQr0e5t35Ukrb9Kbz3MXvVmnTgOANhKHaJhAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CMwBEJsTKAIwFQhttps://www.google.co.in/search?biw=1366&bih=623&q=yes+bank+india&stick=H4sIAAAAAAAAAGOovnz8BQMDgxsHnxCXfq6-gWV6bk68mRKYXV6VZVxcpqWVnWyln1-UnpiXWZVYkpmfh8KxykhNTCksTSwqSS0qnrM7prjNYsedNGbtAI6-7rubjEMWAQDCRSD0YwAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CM0BEJsTKAMwFQhttps://www.google.co.in/search?biw=1366&bih=623&q=yes+bank+ceo&stick=H4sIAAAAAAAAAGOovnz8BQMDgyEHnxCXfq6-gWV6bk68mZZidrKVfn5RemJeZlViSWZ-HgrHKjk1fzeT8e7XOw3fLnr5-op5ZojY2kUu2QBuW6eITgAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CNEBEOgTKAEwFghttps://www.google.co.in/search?biw=1366&bih=623&q=rana+kapoor&stick=H4sIAAAAAAAAAGOovnz8BQMDgy0HnxCXfq6-gWV6bk68mRKYnZxsEl9mqqWYnWyln1-UnpiXWZVYkpmfh8KxSk7Nf8YxyziyensiS72ahNGPa8HM7iFqAPScdE9aAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CNIBEJsTKAIwFghttps://www.google.co.in/#q=yes+bankhttp://aboutus.kotak.com/kotak-mahindra-group/our-businesses.htmlhttps://www.google.co.in/search?biw=1366&bih=623&q=yes+bank+headquarters&stick=H4sIAAAAAAAAAGOovnz8BQMDgxUHnxCXfq6-gWV6bk68mZZWdrKVfn5RemJeZlViSWZ-HgrHKiM1MaWwNLGoJLWoWEnQ6siPJ2cvcOfY2KoJJDp52Ey8BQASYIMxVwAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CMsBEOgTKAEwFQhttps://www.google.co.in/search?biw=1366&bih=623&q=mumbai&stick=H4sIAAAAAAAAAGOovnz8BQMDgwsHnxCXfq6-gWV6bk68mRIHiG1SllugpZWdbKWfX5SemJdZlViSmZ-HwrHKSE1MKSxNLCpJLSq-2vQr0e5t35Ukrb9Kbz3MXvVmnTgOANhKHaJhAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CMwBEJsTKAIwFQhttps://www.google.co.in/search?biw=1366&bih=623&q=yes+bank+india&stick=H4sIAAAAAAAAAGOovnz8BQMDgxsHnxCXfq6-gWV6bk68mRKYXV6VZVxcpqWVnWyln1-UnpiXWZVYkpmfh8KxykhNTCksTSwqSS0qnrM7prjNYsedNGbtAI6-7rubjEMWAQDCRSD0YwAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CM0BEJsTKAMwFQhttps://www.google.co.in/search?biw=1366&bih=623&q=yes+bank+ceo&stick=H4sIAAAAAAAAAGOovnz8BQMDgyEHnxCXfq6-gWV6bk68mZZidrKVfn5RemJeZlViSWZ-HgrHKjk1fzeT8e7XOw3fLnr5-op5ZojY2kUu2QBuW6eITgAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CNEBEOgTKAEwFghttps://www.google.co.in/search?biw=1366&bih=623&q=rana+kapoor&stick=H4sIAAAAAAAAAGOovnz8BQMDgy0HnxCXfq6-gWV6bk68mRKYnZxsEl9mqqWYnWyln1-UnpiXWZVYkpmfh8KxSk7Nf8YxyziyensiS72ahNGPa8HM7iFqAPScdE9aAAAA&sa=X&ei=OiqTUoT9NMiPrQfY0IH4BQ&ved=0CNIBEJsTKAIwFghttps://www.google.co.in/#q=yes+bank
8/19/2019 A Project Report on Impact of Npa on Pro
28/63
D'#!%#?mi B#!= Ltd/ )#+ i!, $" $#ted i! 283 #t T'$i++u$ Ke$#%# b- # *$ u" &
#mbiti u+ #!d e!te$"$i+i!* e!t$e"$e!eu$+/O0e$ t'e 45 -e#$+ t'#t & %% )ed
D'#!%#?mi B#!= )it' it+ $i,' 'e$it#*e '#+ e#$!ed t'e t$u+t #!d * d)i%% & ,%ie!t+/ It
i+ due t u$ +t$ !* be%ie& i! t'e !eed t +ee= i!! 0#ti ! de%i0e$ be+t +e$0i,e #!d
dem !+t$#te $e+" !+ibi%it- t'#t )e '#0e *$ )! &$ m +t$e!*t' t +t$e!*t'/ Be it i! t'e
!umbe$ & ,u+t me$+ t'e +,#%e & bu+i!e++ t'e b$e#dt' & u$ "$ du,t &&e$i!*+ t'e
b#!=i!* e?"e$ie!,e )e &&e$ $ t'e t$u+t t'#t "e "%e i!0e+t i! u+/ 9it' m $e
t'#! 5 6 t u,' " i!t+ #,$ ++ I!di# #t - u$ +e$0i,e> u$ & ,u+ '#+ #%)#-+ bee! !
,u+t mi i!* +e$0i,e+ #!d "e$+ !#%i i!* $e%#ti !+/
(http://www.dhanbank.com/aboutus/about0us.aspx )
ICICI B#!= i+ I!di#@+ %#$*e+t "$i0#te +e,t $ b#!= )it' t t#% #++et+ & R+/ 7 H5 /87
bi%%i ! US 88 bi%%i ! #t M#$,' H2 362H #!d "$ &it #&te$ t#? R+/ 4H/37 bi%%i ! US
2 7HH mi%%i ! & $ t'e -e#$ e!ded M#$,' H2 362H/ T'e B#!= '#+ # !et) $= & H 738
b$#!,'e+ #!d 22 65H ATM+ i! I!di# #!d '#+ # "$e+e!,e i! 28 , u!t$ie+ i!,%udi!*
I!di#/
(http://www.icicibank.com/aboutus/about-us.html )
http://www.dhanbank.com/aboutus/about_us.aspxhttp://www.icicibank.com/aboutus/about-us.htmlhttp://www.dhanbank.com/aboutus/about_us.aspxhttp://www.icicibank.com/aboutus/about-us.html
8/19/2019 A Project Report on Impact of Npa on Pro
29/63
T'e L#=+'mi Vi%#+ B#!= Limited LVB )#+ & u!ded ei*'t de,#de+ #* i! 2835 b-
+e0e! "e "%e & K#$u$ u!de$ t'e %e#de$+'i" & S'$i V/S/N/ R#m#%i!*# C'etti#$
m#i!%- t ,#te$ t t'e &i!#!,i#% !eed+ & 0#$ied ,u+t me$ +e*me!t+/ T'e b#!= )#+
i!, $" $#ted ! N 0embe$ 6H 2835 u!de$ t'e I!di#! C m"#!ie+ A,t 282H #!d
bt#i!ed t'e ,e$ti&i,#te t , mme!,e bu+i!e++ ! N 0embe$ 26 2835 T'e B#!=
bt#i!ed it+ %i,e!+e &$ m RBI i! Ju!e 2874 #!d i! Au*u+t 2874 it be,#me #
S,'edu%ed C mme$,i#% B#!=/
(http://www.l!bank.com/aboutus.aspx )
()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87
Interest #pread 00 + ; + D + H
Adjusted &ash Margin4 5 2 /6 27/ 4 25/8H 27/2H%et rofit Margin 2H/6 2 / 27/ 3 2H/8(eturn on 'ong Ter! Fund4 5 22 /88 23H/48 26 /H6 267/
(eturn on %et -orth4 5 28/53 33/7 32/H5 24/76
Adjusted (eturn on %et -orth4 5 28/53 33/7 32/H 24/ H
(eturn on Assets E
8/19/2019 A Project Report on Impact of Npa on Pro
30/63
()FITABI'IT. (ATI) )F A3I# BA%, ()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87
Interest #pread 00 00 00 D+7J
Adjusted &ash Margin4 5 25/H8 25/ 3 24/74 2 /5H%et rofit Margin 27/H7 27/ 2 /23 25/26(eturn on 'ong Ter! Fund4 5 7/ 3 44/4 3/37 55/H
(eturn on %et -orth4 5 27/5 24/78 2 /4H 27/5
Adjusted (eturn on %et -orth4 5 27/5 24/78 2 /4H 27/58
(eturn on Assets E
8/19/2019 A Project Report on Impact of Npa on Pro
31/63
(http://www.moneycont ol.com/financials/hdfcbank/ atios/ 3451 )
()FITABI'IT. (ATI) )F I%$U#'A%$ BA%,()FITABI'IT. Mar’1D Mar’1;
Mar’11 Mar’18 Mar’87
(http://www.moneycont ol.com/financials/indusindbank/ atios/%% )
()FITABI'IT. (ATI) )F #)UT* I%$IA% BA%, ()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87
Interest #pread /5 7/H3 5/62 5/H7Adjusted &ashMargin4 5
22/H5 22/H3 23/66 22/ 5
%et rofit Margin 26/7H 26/73 22/26 26/58(eturn on 'ong Ter! Fund4 5 232/ 2 277/84 23H/83 224/4
(eturn on %et -orth4 5 25/ 3 28/43 2 /37 27/8HAdjusted (eturn on %et -orth4 5 25/ 3 28/ 4 2 /H2 27/8H
(eturn on Assets E
8/19/2019 A Project Report on Impact of Npa on Pro
32/63
()FITABI'IT. (ATI) ,A(%ATA,A BA%,
()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87
Interest #pread + +;8 D+1 J+
Adjusted &ash Margin4 5 /46 4/5 /8 23/46%et rofit Margin /37 /46 /6 22/83(eturn on 'ong Ter! Fund4 5 263/25 43/6H 26H/87 228/32
(eturn on %et -orth4 5 8/ 4/ 3 8/22 2 /62
Adjusted (eturn on %et -orth4 5 8/H7 4/H8 8/26 2 /62(eturn on Assets E
8/19/2019 A Project Report on Impact of Npa on Pro
33/63
()FITABI'IT. (ATI) )F ,)TA, MA*I%$(A BA%,
()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87
Interest #pread +11
Adjusted &ash Margin4 5 25/33 25/ 8 24/ H 2 / 5%et rofit Margin 2 / 4 27/27 25/ 5 27/3H(eturn on 'ong Ter! Fund4 5 3/6 55/38 4/37 4/ 2
(eturn on %et -orth4 5 2 / 6 2H/57 23/6H 23/H7
Adjusted (eturn on %et -orth4 5 2 / 6 2H/57 23/6H 23/ 3
(eturn on Assets E
8/19/2019 A Project Report on Impact of Npa on Pro
34/63
()FITABI'IT. (ATI) )F $*A%'A3MI BA%,
()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87
Interest #pread 00 +;8 +8D D+;
Adjusted &ash Margin4 5 3/H5 7/ 6 H/8H 7/3%et rofit Margin 6/24 /75 3/ 8 H/ H(eturn on 'ong Ter! Fund4 5 2 2/77 2 2/H5 46/75 87/4H
(eturn on %et -orth4 5 6/H7 27/4 H/64 7/38
Adjusted (eturn on %et -orth4 5 6/H7 25/63 H/63 7/2H
(eturn on Assets E
8/19/2019 A Project Report on Impact of Npa on Pro
35/63
(http://www.moneycont ol.com/financials/icicibank/ atios/%"%52 )
)FITABI'IT. (ATI) )F 'A3MI /I'A# BA%, ()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87
Interest #pread 00 +D1 +7 J+D
Adjusted &ash Margin4 5 7/8 /4H 26/24 /%et rofit Margin /5 5/ 2 4/ 8 H/6(eturn on 'ong Ter! Fund4 5 2 H/8 2 /83 262/76 8 /2
(eturn on %et -orth4 5 8/63 23/2 23/ 7 /2
Adjusted (eturn on %et -orth4 5 8/63 23/2 23/ /2H
(eturn on Assets E
8/19/2019 A Project Report on Impact of Npa on Pro
36/63
'iterature review
A $e0ie) & %ite$#tu$e ! "$ &it#bi%it- #!d "e$& $m#!,e & I!di#! b#!=+ '#+
t'$ )! #m"%e %i*'t ! b#!=+@ +t#tu+ i! t'e "$e+e!t e, ! mi, +,e!#$i / N#$#!*
et #% 3622 C'#ud'$- 3623 #!d U""#% et #% 3623 #!d m#!- t'e$+ '#0e
e?#mi!ed I!di#! b#!=i!* +-+tem i! te$m+ & t'ei$ "e$& $m#!,e #!d
"$ &it#bi%it- 'e & u!d t'#t + me b#!=+ #,'ie0ed e?,e%%e!t "e$& $m#!,e )it'
$e*#$d t i!de? & i!te$e+t e#$!ed t t t#% #++et+ $#ti /A!d m#de #! #!#%-+i+
& t'e "e$& $m#!,e & +e%e,ted "ub%i, #!d "$i0#te b#!=+ i! I!di# ! t'e b#+i+
& "#$#mete$+ $e, mme!ded i! t'e CAMEL M de%/ Re+e#$,'e$+ '#0e t#=e!
8/19/2019 A Project Report on Impact of Npa on Pro
37/63
0#$i u+ "#$#mete$+ t e0#%u#te b#!=+@ "e$& $m#!,e +u,' #+ bu+i!e++ "e$
em"% -ee "$ &it "e$ em"% -ee t t#% de" +it+ t t#% #d0#!,e+ t t#%
i!0e+tme!t t t#% #++et+ t t#% i!, me t t#% e?"e!ditu$e #!d !et "$ &it+/#%+
e?#mi!ed ,e$t#i! =e- "#$#mete$+ t e0#%u#te t'e "e$& $m#!,e & t'e I!di#!
b#!=+ du$i!* t'e *% b#% &i!#!,i#% tu$m i%/
Lite$#tu$e ! , mmu!it- b#!= "e$& $m#!,e e+"e,i#%%- $e%#ted t e&&i,ie!,-
#!d b#!= St$#te*- , !ti!ue+ t e?"#!d/ T'e & %% )i!* di+,u++i ! +umm#$i e+
+ me $e+e#$,' i! t'i+ #$e# 0e$ t'e "#+t de,#de/ 9#%% 2847 e?#mi!ed +m#%%
#!d medium +i ed b#!=+ &$ m t'e e#$%- 28 6 + u!ti% de$e*u%#ti ! ,,u$$ed i!
t'e e#$%- 2846 +/ 1e & u!d t'#t "$ &it#b%e b#!=+ '#d % )e$ i!te$e+t #!d ! !
i!te$e+t e?"e!+e t'#! %e++ "$ &it#b%e b#!=+/ I! #dditi ! t'e m $e "$ &it#b%e
b#!=+ '#d % )e$ , +t & &u!d+ *$e#te$ u+e & t$#!+#,ti !+ de" +it+ m $e
m#$=et#b%e +e,u$itie+ #!d 'i*'e$ ,#"it#% %e0e%+/
A $e0ie) & %ite$#tu$e +tudie+ t'e $e%#ti !+'i" bet)ee! t'e b#!=i!* i!du+t$-
#!d +e%e,ted "$i0#te b#!=+ i! #dditi ! t t'i+ it #%+ +tud- t'e "e$& $m#!,e &
% #!+ !et "$ &it #!d NPA/ L#+t de,#de '#+ )it!e++ed m#!- ,'#!*e+ i! t'e
b#!=i!* i!du+t$-/ I! t'i+ "#"e$ )e #$e t$-i!* t t'$ ) %i*'t ! t'e e&&e,t & t'e
% #!+ #!d #d0#!,e+ ! t'e I!di#! E, ! m-/ B#!=+ m#i!%- m#=e "$ &it &$ m
t'e di&&e$e!,e & i!te$e+t $e,ei0ed #!d % #!+ "#id/ N )#d#-+ b#!=+ #$e
"e$& $mi!* t'e !umbe$ & &u!,ti !+ i! #dditi ! t it+ t) m#i! &u!,ti ! %e!di!*
#!d #,,e"ti!* de" +it+/ B#!=+ *$#!t % #!+ i! $de$ t +#ti+&- t'e *$ )i!*
,$edit !eed+ & t'e di&&e$e!t +e,ti !+ & t'e + ,iet- but +i!,e t'e "$i0#te b#!=+
#$e "$ &it m#=i!* $*#!i #ti ! t'u+ t'e- '#0e "$ &it m#=i!* dime!+i ! #dded
t t'e #d0#!,e+ *$#!ted b- t'em/ I! t'i+ "#"e$ )e '#0e & ,u+ed ! t'e
m 0eme!t & NPA L #!+ #!d Net P$ &it & t'e "$i0#te b#!=i!* i!du+t$- b-
#!#%- i!* t'e d#t# &$ m t'e -e#$ 366 t 3622/ 9'e$e0e$ t'e d#t# & $ t'e
-e#$+ t t'e -e#$ 366 , u%d be t#=e! '#0e bee! t#=e! & $ #!#%-+i+/
T'i+ "#"e$ "$ 0ide+ # ,$iti,#% $e0ie) & t'e t'e $eti,#% #!d em"i$i,#% b#+i+ & & u$ ,e!t$#% #$e#+ & &i!#!,i#% $#ti #!#%-+i+/ T'e $e+e#$,' #$e#+ $e0ie)ed #$e
8/19/2019 A Project Report on Impact of Npa on Pro
38/63
t'e &u!,ti !#% & $m & t'e &i!#!,i#% $#ti + di+t$ibuti !#% ,'#$#,te$i+ti,+ &
&i!#!,i#% $#ti + ,%#++i&i,#ti ! & &i!#!,i#% $#ti + #!d t'e e+tim#ti ! & t'e
i!te$!#% $#te & $etu$! &$ m &i!#!,i#% +t#teme!t+/ It i+ b+e$0ed t'#t it i+ t-"i,#%
& &i!#!,i#% $#ti #!#%-+i+ $e+e#$,' t'#t t'e$e #$e +e0e$#% u!e?"e,ted%- di+ti!,t
%i!e+ )it' $e+e#$,' t$#diti !+ & t'ei$ )!/ A , mm ! &e#tu$e & #%% t'e #$e#+
& &i!#!,i#% $#ti #!#%-+i+ $e+e#$,' +eem+ t be t'#t )'i%e +i*!i&i,#!t
$e*u%#$itie+ ,#! be b+e$0ed t'e- #$e ! t !e,e++#$i%- +t#b%e #,$ ++ t'e
di&&e$e!t $#ti + i!du+t$ie+ #!d time "e$i d+/ T'i+ %e#0e+ mu,' +"#,e & $ t'e
de0e% "me!t & # m $e $ bu+t t'e $eti,#% b#+i+ #!d & $ &u$t'e$ em"i$i,#%
$e+e#$,'/
The first objective of this study was to determine and evaluate the effects of
bank-specific factors; Capital adequacy, Asset quality, liquidity, operational
cost efficiency and income diversification on the profitability of commercial
banks in Kenya The second objective was to determine and evaluate the
effects of market structure factors; forei!n ownership and market
concentration, on the profitability of commercial banks in Kenya This study
adopted an e"planatory approach by usin! panel data research desi!n tofulfill the above objectives Annual financial statements of #$ Kenyan
commercial banks from %&&% to %&&$ were obtained from the C'K and
'ankin! (urvey %&&) The data was analy*ed usin! multiple linear
re!ressions method The analysis showed that all the bank specific factors
had a statistically si!nificant impact on profitability, while none of the market
factors had a si!nificant impact 'ased on the findin!s the study recommends
policies that would encoura!e revenue diversification, reduce operational
costs, minimi*e credit risk and encoura!e banks to minimi*e their liquidity
holdin!s +urther research on factors influencin! the liquidity of commercials
banks in the country could add value to the profitability of banks and
academic literature
A $e0ie) & t'e %ite$#tu$e b$i!*+ t t'e & $e i!+i*'t+ i!t t'e dete$mi!#!t+ &
NPL #,$ ++ , u!t$ie+/ A , !+ide$ed 0ie) i+ t'#t b#!=+ %e!di!* " %i,- , u%d
8/19/2019 A Project Report on Impact of Npa on Pro
39/63
'#0e ,$u,i#% i!&%ue!,e ! ! !"e$& $mi!* % #!+ Redd- 366 / 1e ,$iti,#%%-
e?#mi!ed 0#$i u+ i++ue+ "e$t#i!i!* t te$m+ & ,$edit & I!di#! b#!=+/ I! t'i+
, !te?t it )#+ 0ie)ed t'#t Qt'e e%eme!t & " )e$ '#+ ! be#$i!* ! t'e i%%e*#%
#,ti0it-/ A deu%t i+ ! t e!ti$e%- #! i$$#ti !#% de,i+i !/ R#t'e$ # deu%te$ t#=e+
i!t #,, u!t "$ b#bi%i+ti, #++e++me!t & 0#$i u+ , +t+ #!d be!e&it+ & 'i+
de,i+i ! Fu$t'e$m $e i! t'e , !te?t & NPA+ ! #,, u!t & "$i $it- +e,t $
%e!di!* it )#+ " i!ted ut t'#t t'e +t#ti+ti,+ m#- $ m#- ! t , !&i$m t'i+/
T'e$e m#- be !%- # m#$*i!#% di&&e$e!,e i! t'e NPA+ & b#!=+ %e!di!* t
"$i $it- +e,t $ #!d t'e b#!= + %e!di!* t "$i0#te , $" $#te +e,t $/ A*#i!+t t'i+
b#,=*$ u!d t'e +tud- +u**e+t+ t'#t *i0e! t'e de&i,ie!,ie+ i! t'e+e #$e#+ it i+
im"e$#ti0e t'#t b#!=+ !eed t be *uided b- i$!e++ b#+ed ! e, ! mi, #!d
&i!#!,i#% de,i+i !+ $#t'e$ t'#! +-+tem & , !0e!ti !+ i& $e& $m '#+ t +e$0e
t'e me#!i!*&u% "u$" +e/ E?"e$ie!,e +' )+ t'#t " %i,ie+ & %ibe$#%i #ti !
de$e*u%#ti ! #!d e!#b%i!* e!0i$ !me!t & , m& $t#b%e %i(uidit- #t #
$e#+ !#b%e "$i,e d ! t #ut m#ti,#%%- t$#!+%#te t'em+e%0e+ i!t e!'#!,ed
,$edit &% )/
A review of literature study the performance of public, private and forei!n
banks in ndia in terms of rofitability in the post reform era The study is
based on balanced panel data of annual financial statements of banks in ndia
for the period .)))-%&.% The results show that Capital stren!th, interest
payment, / A, si*e ne!atively affect profitability and are statistically
si!nificant 0iquidity risk has positive and si!nificant relationship with
profitability Amon! macro-economic variables, 12 and inflation have
positive relation with 34A ublic ownership is ne!atively associated with
bank profitability and forei!n ownership is positively associated with 34A
Munya!"onera E6ra Francis 4;8185
T'i+ +e,ti ! e?"% $e+ t'e em"i$i,#% %ite$#tu$e #!d t'e 0#$i u+ met' d+ u+ed i!
+tud-i!* , mme$,i#% b#!= + "$ &it#bi%it-/ I! t'e $- dete$mi!#!t+ #$e
,#te* $i ed i!t t'$ee i!di,#t $+: b#!= +"e,i&i, i!du+t$- +"e,i&i, #!dm#,$ e, ! mi,/ B#!= +"e,i&i, i!di,#t $+ i!,%ude: *$ )t' i! b#!= #++et+
8/19/2019 A Project Report on Impact of Npa on Pro
40/63
,#"it#% #de(u#,- "e$#ti !#% e&&i,ie!,- #!d %i(uidit-/ T'e , mm ! me#+u$e
& $ i!du+t$- +"e,i&i, $e"$e+e!t#ti0e u+ed i! t'e 0#$i u+ +tudie+ i+ b#!=
, !,e!t$#ti !/ 9'i%e ! t'e t'e$ '#!d t'e =e- m#,$ e, ! mi, 0#$i#b%e+
i!,%ude: *$ )t' i! .DP .DP "e$ ,#"it# i!&%#ti ! e?"e,t#ti ! i!te$e+t $#te #!d
it+ +"$e#d/ T'e em"i$i,#% e0ide!,e "$ 0ide+ t'e 0#$i u+ met' d+ em"% -ed i!
+tud-i!* b#!= "$ &it#bi%it- u+i!* t'e+e dete$mi!#!t+/ Mu,' & t'e em"i$i,#%
%ite$#tu$e #*$ee+ t'#t b#!= %e0e% #+ )e%% #!d m#,$ e, ! mi, ,t $+ %#$*e%-
i!&%ue!,e b#!= "$ &it#bi%it-/ T'e$e i+ ' )e0e$ %imited e0ide!,e t'#t i!du+t$-
+"e,i&i, ,t $+ '#0e #!- i!&%ue!,e ! b#!= "$ &it#bi%it-/ It i+ #*#i!+t t'i+
b#,=*$ u!d t'#t t'e +tud- uti%i ed !%- b#!= %e0e% #!d m#,$ e, ! mi, ,t $+
t e+tim#te "$ &it#bi%it-/
BA&,G()U%$ )F T*E #TU$.
8/19/2019 A Project Report on Impact of Npa on Pro
41/63
• T'i+ +tud- )i%% 'e%" t #!#%- e t'e $e,e!t ! $m+ & NPA/
• T'i+ +tud- 'e%"+ t #!#%- e ' ) NPA C#u+i!* P$ b%em+ t B#!=i!* Se,t $
#!d )'#t mi*'t be t'e + %uti ! t 0e$, me &$ m t'i+ "$ b%em #!d #%+ it+
im"#,t ! P$ &it#bi%it- & Ne) P$ &it B#!=+/
()B'EM #TATEME%T )F #TU$.
P$ &it#bi%it- i+ , !+ide$ed #+ # be!,'m#$= & $ e0#%u#ti!* "e$& $m#!,e & #!-
bu+i!e++ e!te$"$i+e i!,%udi!* t'e b#!=i!* i!du+t$-/ 1 )e0e$ i!,$e#+i!* N !Pe$& $mi!* A++et+ '#0e # di$e,t im"#,t ! "$ &it#bi%it- & b#!=+ #!d &i!#!,i#%
i!+tituti !+/ Le*#%%- +"e#=i!* b#!=+ #!d &i!#!,i#% i!+tituti !+ #$e ! t #%% )ed t b =
i!, me ! +u,' #,, u!t #!d #t t'e +#me time+ t'e- #$e & $,ed t m#=e "$ 0i+i ! !
+u,' #++et+/ S T'i+ "$ ;e,t i+ u!de$t#=e! t ! ) im"#,t & NPA ! P$ &it#bi%it- &
P$i0#te Se,t $ B#!=+/
)BCE&TI/E# )F T*E #TU$.
T #!#%- e t'e "e$& $m#!,e , m"#$i+ ! & Ne) P$i0#te B#!=+ N !
"e$& $mi!* #++et & $ "#+t 7 -e#$+/
T #!#%- e t'e im"#,t & NPA ! "$ &it#bi%it-/
(E#EA(&* MET*)$)')G.
8/19/2019 A Project Report on Impact of Npa on Pro
42/63
(E#EA(&* $E#IG% 2
Re+e#$,' De+i*! & u$ $e" $t i+ De+,$i"ti0e #!d
A!#%-ti,#% Re+e#$,'/
#)U(&E# )F $ATA :
9e '#0e u+ed #econdary data + u$,e i! t'i+ $e" $t/
$ATA &)''E&TI)% MET*)$2 Ou$ d#t# , %%e,ti ! met' d i! t'i+ $e" $t i+
Jud*me!t S#m"%i!*
) U'ATI)%#2
T'e$e #$e 23 "$i0#te +e,t $ b#!=+ #!#%- ed b- u+/
$ATA &)''E&TI)% I%#T(UME%T#2
I!+t$ume!t+ & d#t# , %%e,ti !+ #$e//
2 . *%e/, m
3 )))/$bi . $*/i!
H M !e-, !t$ %/, m
B#%#!,e +'eet+
8/19/2019 A Project Report on Impact of Npa on Pro
43/63
$ATA A%A'.#I#A%$
I%TE( (ETATI)%
8/19/2019 A Project Report on Impact of Npa on Pro
44/63
To analy6e the perfor!ance of rivate Ban s on %on perfor!ing
asset for last past J years
8/19/2019 A Project Report on Impact of Npa on Pro
45/63
&IT. U%I)% BA%,
.EA( %ET % A ?MI''I)%3668 52226326 H853622 4 33623 7 6362H 85
2&&) 2&1& 2&11 2&12 2&13&
1&&&
2&&&
3&&&
4&&&
5&&&
6&&&*&&&
6111
3)6*
4842
54&)64
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
INTERPRETATION:
Ab 0e t'i+ ,'#$t )e ,#! +#- t'#t &$ m -e#$ 3668 t 362H t'e #m u!t & NPA '#+
bei!* de,$e#+ed/ S It i+ * d & $ # b#!=/ A!d #%+ " +iti0e Im"#,t ! "$ &it#bi%it-/
A3I# BA%,
8/19/2019 A Project Report on Impact of Npa on Pro
46/63
.EA( %ET % A ?MI''I)%3668 H3 2H3626 28663622 26H73623 35362H 6 2
2&&) 2&1& 2&11 2&12 2&13&
5&&&
1&&&&
15&&&
2&&&&
25&&&3&&&&
35&&&
4&&&&
45&&&
32*13
41)&& 41&35
4*26 *&41
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ ,'#$t )e ,#! +#- t'#t &$ m -e#$ 3668 t 362H t'e #m u!t & NPA '#+
bei!* de,$e#+ed/ S it i+ " +iti0e Im"#,t ! "$ &it#bi%it- & b#!=/
*$F& BA%,
.EA( %ET % A ?MI''I)%3668 53 536326 H8367
8/19/2019 A Project Report on Impact of Npa on Pro
47/63
3622 385 23623 H73H362H 586
2&&) 2&1& 2&11 2&12 2&13&
1&&&&
2&&&&
3&&&&
4&&&&
5&&&&
6&&&&
*&&&&62*62
3)2&5
2)641
3523 46)&
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ ,'#$t )e ,#! +#- t'#t &$ m -e#$ 3668 t 362H t'e #m u!t & NPA '#+
bei!* de,$e#+ed/ T'e $e#+ ! & de,$e#+i!* NPA & b#!= )e ,#! +#- t'#t
P$ "e$ "$e e!(ui$- & b#!= & $ +#!,ti !i!* # % #! t # ,u+t me$/
I%$U#'A%$ BA%,
.EA( %ET % A ?MI''I)%3668 2 82H6326 2624H3622 83623 8362H 2H54
8/19/2019 A Project Report on Impact of Npa on Pro
48/63
2&&) 2&1& 2&11 2&12 2&13&
2&&&
4&&&6&&&8&&&
1&&&&12&&&14&&&16&&&18&&&2&&&&
1*)13
1&183
*282
)4* 1368
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ ,'#$t )e ,#! +#- t'#t &$ m -e#$ 3668 t 3623 t'e #m u!t & NPA '#+
bei!* de,$e#+ed/A!d i! 362H NPA #m u! '#+ bei!* i!,$e#+ed/1e$e ! t'i+ t#b%e t'e
$e#+ ! & i!,$eme!t & NPA i+ !e & t'e )i%%&u% deu%te$ m#- be +#id/
#)UT* I%$IA% BA%,
.EA( %ET % A ?MI''I)%3668 2H H26326 25273622 56633623 57362H 3 87
8/19/2019 A Project Report on Impact of Npa on Pro
49/63
2&&) 2&1& 2&11 2&12 2&13&
2&&&
4&&&
6&&&
8&&&
1&&&&
12&&&
14&&&
16&&&
13431
615* 6&&2
*65
24)5
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e 'i*'e+t NPA #m u!t i+ ! -e#$ 3622/#!d %e++
#m u!t i+ ! 3623/T'e #m u!t & NPA i+ * i!* t &%u,tu#te/
,A(%ATA,A BA%,
.EA( %ET % A ?MI''I)%3668 225266326 244523622 346H3623 H73362H H 4
8/19/2019 A Project Report on Impact of Npa on Pro
50/63
2&&) 2&1& 2&11 2&12 2&13&
5&&&
1&&&&
15&&&
2&&&&
25&&&
3&&&&
1161&
18861
28&34
4352 3**8
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t &$ m -e#$ 3668 t 3622 '#+ bei!* i!,$e#+ed NPA/
A!d te! NPA '#+ bei!* +t#$ted t de,$e#+e ! -e#$ 3623 #!d 362H/Be,#u+e &
I!,$e#+i!* i! I!te$e+t $#te i! % #! )'i,' '#+ t#=e! b- b $$ )e$ it ,#! be # $e#+ ! t
i!,$e#+e NPA i! -e#$ 3668 t 3623/
I%G /.A#.A BA%,
.EA( %ET % A ?MI''I)%3668 367876326 3324H3622 82 83623 737362H 82
8/19/2019 A Project Report on Impact of Npa on Pro
51/63
2&&) 2&1& 2&11 2&12 2&13&
5&&&
1&&&&
15&&&
2&&&&
25&&&
2&5)522183
)1*)
525 )1
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e %e++ #m u!t & NPA i+ ! -e#$ 362H i+ 82
Mi%%i !/
,)TA, MA*I%$(A BA%,
.EA( %ET % A ?MI''I)%3668 H8546326 H56373622 322253623 3H362H H22
8/19/2019 A Project Report on Impact of Npa on Pro
52/63
2&&) 2&1& 2&11 2&12 2&13&
5&&&
1&&&&
15&&&
2&&&&
25&&&
3&&&&
35&&&
4&&&&
45&&&
3)68436&25
21116
23*4 3114
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e %e++ #m u!t & NPA i+ ! -e#$ 3623 #!d t'e
'i*'e+t #m u!t & NPA i+ ! -e#$ 3668/
.E# BA%,
.EA( %ET % A ?MI''I)%3668 2256326 23883622 8273623 2 7362H 6
8/19/2019 A Project Report on Impact of Npa on Pro
53/63
2&&) 2&1& 2&11 2&12 2&13&
5&&
1&&&
15&&
2&&&
25&&
3&&&
35&&
4&&&
45&&4116
12)))15
1*5 *&
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e $e#+ ! & %e++ #m u!t & NPA ! 362H -e#$ i+
e&&i,ie!t m#!#*eme!t & b#!= $e*#$di!* it+ " %i,- & % #! #%+ /
$*A%'A3MI BA%,
.EA( %ET % A ?MI''I)%3668 3433626 283622 7463623 746362H 3526
8/19/2019 A Project Report on Impact of Npa on Pro
54/63
2&&) 2&1& 2&11 2&12 2&13&
5&&
1&&&
15&&
2&&&
25&&
3&&&
35&&
4&&&
45&&
2824
41)4
26**
58&
261&
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e %e++ #m u!t+ & NPA ! -e#$ 3622 #!d 3623
#$e +#me #!d t'e 'i*'e+t ) u%d be ! 3626 -e#$/
I&I&I BA%,
.EA( %ET % A ?MI''I)%3668 77H86326 H4 2223622 3 6 H53623 24564362H 33H65
8/19/2019 A Project Report on Impact of Npa on Pro
55/63
2&&) 2&1& 2&11 2&12 2&13&
5&&&&1&&&&&15&&&&2&&&&&25&&&&3&&&&&35&&&&4&&&&&45&&&&5&&&&&
4553)4
384111
24&436
186&8 223&6
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e 'i*'e+t #m u!t & NPA ! -e#$ 3668/T'e
$e#+ ! be'i!d t'#t )e ,#! +#- t'#t it m#- be $e,e++i ! i! E, ! m- #%+ #!d #+ )e%%
#+ "$i,e $i,e/
'A3MI /I'A# BA%,
.EA( %ET % A ?MI''I)%3668 5 476326 37 43622 3443623 2 2362H 34H4
8/19/2019 A Project Report on Impact of Npa on Pro
56/63
2&&) 2&1& 2&11 2&12 2&13&
5&&&
1&&&&
15&&&
2&&&&
25&&&
3&&&&
6485
25**8
*288
1**1 2838
NET NPA [RS.in million]
N+, NP! -.S'in/illion0
I%TE( (ETATI)%2
Ab 0e t'i+ t#b%e )e ,#! +#- t'#t %e++ #m u!t ! NPA i+ ! 3623 #!d t'e 'i*'e+t
#m u!t i+ ! -e#$ 3626/
To analy6e the i!pact of % A
on profita"ility+
8/19/2019 A Project Report on Impact of Npa on Pro
57/63
T'e " 0#%ue & $ e#,' te$m te+t+ t'e !u%% '-" t'e+i+ t'#t t'e , e&&i,ie!t i+ e(u#% te$ ! e&&e,t / A % ) " 0#%ue 6/67 i!di,#te+ t'#t - u ,#! $e;e,t t'e !u%%
'-" t'e+i+/ I! t'e$ ) $d+ # "$edi,t $ t'#t '#+ # % ) " 0#%ue i+ %i=e%- t be #me#!i!*&u% #dditi ! t - u$ m de% be,#u+e ,'#!*e+ i! t'e "$edi,t $@+ 0#%ue #$e$e%#ted t ,'#!*e+ i! t'e $e+" !+e 0#$i#b%e/
C !0e$+e%- # %#$*e$ i!+i*!i&i,#!t " 0#%ue +u**e+t+ t'#t ,'#!*e+ i! t'e "$edi,t $ #$e! t #++ ,i#ted )it' ,'#!*e+ i! t'e $e+" !+e/
1+ Interest spread
Coefficie
nts
Standard
Error t Stat P-
value
8/19/2019 A Project Report on Impact of Npa on Pro
58/63
I!te$,e"t 3H 4 /54
24636/H2
2/H3664
6/283667
I!t+"$e#d 27 2/523 368/8
6/H HH6
6/ 26342
I!te$"$et#ti !:
I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & I!te$e+t +"$e#d i+ ! t+i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/ 26342/ 1 )e0e$ t'e " 0#%ue & $ I!te$e+tS"$e#d 6/ 26342 i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e% & 6/67 )'i,' i!di,#te+t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/
; + Adjusted cash !argin
Coefficie
ntsStandard
Error t Stat P-
value
I!te$,e"t23 5/H2
78H62H2/ 82
56/ 2 6
746/546H
78 Ad; C#+'m#$*i!
2HH7/5H84H
33 4/ 4624
6/78 628
6/77 468
I!te$"$et#ti !:
8/19/2019 A Project Report on Impact of Npa on Pro
59/63
I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Ad;u+ted C#+'m#$*i! i+ ! t +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/77 468 / 1 )e0e$ t'e "0#%ue & $ Ad;u+ted C#+' m#$*i! 6/77 468 i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e%
& 6/67 )'i,' i!di,#te+ t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/
D+ %et profit !argin
Coefficie
ntsStandard
Error t Stat P-
value
I!te$,e"t 24 68/8535853/ 8
4626/543 8
446/ 8
73Net "&tm#$*i!
85 /H 852
336 /7266H8
6/ H5487
6/55H4H
I!te$"$et#ti !:
8/19/2019 A Project Report on Impact of Npa on Pro
60/63
I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Net "$ &it m#$*i! i+! t +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/55H4 H/ 1 )e0e$ t'e " 0#%ue & $ Net"$ &it m#$*i! 6/55H4 H i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e% & 6/67 )'i,'i!di,#te+ t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/
+ (eturn on long ter! fund
Coefficie
ntsStandard
Error t Stat P-
valueI!te$,e"t 2H 635/4
H3H4H/55828
/3H2H75
4/H E67
Ret !%/t/& 22H2/7 2
H37/65 47H
H/ 468 6/666875
8/19/2019 A Project Report on Impact of Npa on Pro
61/63
I!te$"$et#ti !:
I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Retu$! ! % !* te$m&u!d i+ +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/666875/ 1 )e0e$ t'e " 0#%ue & $ Retu$! ! % !* te$m &u!d 6/666875 i+ %e++ t'#! t'e , mm ! #%"'# %e0e% & 6/67)'i,' i!di,#te+ t'#t it i+ +t#ti+ti,#%%- +i*!i&i,#!t/
J+ (eturn on net worth
Coefficie
ntsStandard
Error t Stat P-
value
I!te$,e"t5 H74/2H
H3 3 /3H
3683/563
3H6/622
33
Ret !!et ) $t'
3523/567
25 7/ 72 4
2/7786 6/233
8/19/2019 A Project Report on Impact of Npa on Pro
62/63
I!te$"$et#ti !:
I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Retu$! ! !et ) $t'i+ ! t +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/23 3/ 1 )e0e$ t'e " 0#%ue & $Retu$! ! !et ) $t' 6/23 3 i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e% & 6/67 )'i,'i!di,#te+ t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/
+ (eturn on assets revaluation
CoefficientsStandar d Error t Stat P-value
I!te$,e"t 5455/7 HH7 2H8 6/35 6/ 8272 6/53 83
8/19/2019 A Project Report on Impact of Npa on Pro
63/63
Ret !#++et+$e0#%u#ti ! 287/ 4 H5
77/ 5H5
H/73 H8
6/6664H5
I!te$"$et#ti !:
I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Retu$! ! #++et+$e0#%u#ti ! i+ +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/6664H5/ 1 )e0e$ t'e "0#%ue & $ Retu$! ! #++et+ $e0#%u#ti ! 6/6664H5 i+ %e++ t'#! t'e , mm ! #%"'#%e0e% & 6/67 )'i,' i!di,#te+ t'#t it i+ +t#ti+ti,#%%- +i*!i&i,#!t/