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Submitted in partial fulfillment of requirement of Master of Business Administration 2010-2012 Submitted by: Dr. Sunita Jindal Submitted to Anurag Mehta

GITARATTAN INTERNATIONAL BUSINESS SCHOOL (Affiliated to Guru Gobind Singh Indraprastha University)

In this scenario I want to study the lending performance of the public and private banks so I have decided to select two major public sector banks SBI and PNB whereas Private sector banks ICICI and Axis bank . so the return to the credits are very low. even due recent economical recession business are not running so good.STATEMENT OF THE PROBLEM DEFINATION In the present economic scenario Banks have many problem regarding recovery of the credit and NPA.

People now have started investing their money in the banks and banks also provide good returns on the deposited amount. Indian banking sector has the nation in developing the business and service sectors. It is found that many general people and business people borrow from the banks but due to some genuine or other reasons are not able to repay back the amount drawn to the banks. Due to NPAs the income of the banks is reduced and the banks have to make the large number of the provisions that would curtail the profit of the banks and due to that the financial performance of the banks would not show good results. The amount which is not given back to the banks is known as the non performing assets. banks have helped the people to achieve their socio economic objectives. PNB. . In this scenario my objective is to study the lending performance of public and private sector bank like SBI. Thus. The banks not only accept the deposits of the people but also provide them credit facility for their development.SCOPE OF THE PROJECT AND OBJECTIVES The banking sector has really helped the Indian people to utilise the single money in the best manner as they want. The people now have at the most understood that banks provide them good security to their deposits and so excess amounts are invested in the banks. But recently the banks are facing the problem of credit risk. Many banks are facing the problem of non performing assets which hampers the business of the banks. ICICI and Axis Bank.

To understand the impacts of NPAs on the operations of the Public and Private Sector Banks.Objective of the study Primary objective: The primary objective of the making report is: comparitive study on lending performance of top 4 financial institutions like sbi. Reason for selecting the Project I am interested in the banking sector and I want to make my future in the banking sector so decided to make my research study on the banking sector. . icici bank and axis bank Secondary objectives: The secondary objectives of preparing this report are: To understand what is lending process of public and private sector Banks. I will analyses first the factors that are important for the banking sector and I came to know that providing credit facility to the borrower is one of the important factors as far as the banking sector is concerned. To evaluate the comparative ratios of the Public Sector and Private Sector Banks. pnb.

Analysing the data 5. I will adopt the following procedure in completing my report study. the study aim is to explore the short comings of the present .Exploratory Study: To determine the approximate area where the problem lies.Research methodology The research methodology means the way in which we would complete our prospected task. . By analyzing the secondary data. Interpretation 6. RESEARCH DESIGN: Research was initiated by examining the secondary data to gain insight into the problem. · An understanding of its environment. Preparing research report RESEARCH PLAN: Preliminary Investigation: In which data on the situation surrounding the problems shall be gathered to arrive at · The correct definition of the problem. Determining the data sources 4. Research design 3. Before undertaking any task it becomes very essential for any one to determine the problem of study. Formulating the problem 2. 1.

system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement. .

Moreover respondents prefer to give direct answers. management books. A structured questionnaire was framed as it is less time consuming. The secondary data will be collected on the basis of organizational file. Financial data Available of all the nationalized and Private Banks Primary data: . In questionnaires open ended and closed ended. generates specific and to the point information. COLLECTION OF DATA: 1: Secondary Data: It will be collected from internal sources. easier to tabulate and interpret.DEVELOPING THE RESEARCH PLAN: The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used.magazines. preserved information in the company’s database and website of the company. both the types of questions has been used. news papers . official records.

The method of collection of primary data will be direct personal interview through a structured questionnaire. Because I have utilised the large number of data of the Public Sector Banks. DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data will be based on Survey Method and Field Activity. They will be the main source of Primary data.All the people from different profession will be personally visited and interviewed. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected The research design tells about the mode with which the entire project is prepared. . My research design for this study is basically analytical. it becomes necessary to take sample from the universe to know about its characteristics. SAMPLING SIZE:50 Bank Officials SAMPLING PLAN: Since it is not possible to study whole universe.

that is. ones that answer the question Assuming that the null hypothesis is true. a result is called statistically significant if it is unlikely to have occurred by chance. The phrase "test of significance" was coined by Ronald Fisher: "Critical tests of this kind may be called tests of significance.HYPOTHESIS A statistical hypothesis test is a method of making statistical decisions using experimental data. Hypothesis testing is sometimes called confirmatory data analysis. in contrast to exploratory data analysis. In frequency probability. After collecting data test will be implemented on and the result will be compare accordingly . In statistics. and when such tests are available we may discover whether a second sample is or is not significantly different from the first. these decisions are almost always made using nullhypothesis tests. what is the probability of observing a value for the test statistic that is at least as extreme as the value that was actually observed? One use of hypothesis testing is deciding whether experimental results contain enough information to cast doubt on conventional wisdom.

Chapter Scheme Chapter 1 : Introduction Profile of the Banks Chapter 2 : Literature Review Chapter 3: Objective of the Study Chapter 4: Research Methodology Chapter 5: Data Analysis Chapter 6: finding Chapter 7 : Recommendation and Suggestions Chapter 8 : Conclusion Bibliography Annexure Sample Size will be : 50 .