PREFACE

The economic and banking sector reforms initiated by the government of India in the
nineties have revolutionized the whole banking system in the country. The
implementation of prudential norms as a part of the banking sector reforms has an impact
on the functioning of banks and has entirely change the approach of banking operations.
The introductions of NPA norms, as a part of prudential Norms have a deep-rooted
impact on the functioning of banking sector. Introduction of prudential norms by the RBI
has introduced the banking sector to far reaching consequential changes. The co-
operative banks implemented these norms from the accounting year 1996-97. As a result,
the banks have become more aware of their credit risks and have started striving hard to
reduce NPAs. On the other hand, they have started giving more focus on the loans which
may get bad and result in non-performing assets.
The Reserve Bank of India National Bank for Agriculture and
Rural Development has issued a number of circulars regarding the income recognition
and NPA norms.
 BRIEF PROFILE
THE ROPAR CENTRAL COOPERATIVE BANK LIMITED HEAD OFFICE
ROPAR

Name The Ropar central cooperative bank limited

Address The Ropar central cooperative bank limited head office
public school road, near civil hospital Ropar – 140 001.
Date of Estab. 29/01/1927.
Brief history:
The Ropar central coop. bank limited Registered on 29.01.1927 under the
cooperative societies act. 1912. The bank has completed 84 years of successful
service. Originally, Ropar was a sub division and a part of ambala district but after
reorganization of state of Punjab in the year 1966, this emerged as a fully-fledged
district having 4 tehsil. The area of operation of this bank extends to entire Ropar
district. the membership of the bank is open to cooperative societies functioning
in Ropar district as well the state Govt. it started functioning with the 93 member
with its share capital Rs.17400/- only at present the bank has 42 branches.
 INTRODUCTION

BANKING IN HISTORICAL PERSPECTIVE

The origin of banking in India can trace back to almost the Vedic period. The
transformation from pure money lending to proper banking appears to have taken before
the times of Manu, a great Hindu jurist has devoted a section of his work explaining the
deposits and advances and the event laid down certain rules on rate of interest.
Through out Maurya period and later on desi bankers played some role in
the economy of the country However, it was during the Mughal period that indigenous
bankers started playing a vital role in lending money and financing of the foreign trade
and commerce.

A. BANKING DURING BRITISH PERIOD

The first joint stock bank, namely the general bank of India was established in 1786.
Later on bank of Hindustan and Bengal bank also come in existence bank namely the
bank of Bengal in 1809, the bank of Bombay in 1840, and bank of madras in 1843.
They collectively called presidency banks and were well functioning independent
units.
The three banks established by the east India Company were amalgamated in 1920
and a new bank called imperial bank of India was established.
a number of private banks had been established by the businessman from mid of the
19th century onwards. In the surcharged atmosphere of swdeshi movement, a number
of banks with Indian management, namely Punjab national bank ltd, bank of India ltd,
canara bank ltd, and Indian bank ltd etc. were established.

The reserve bank of India was establish as the central in 1935 under an act called
reserve bank of India ct. later on with the passage of the banking regulation act passed
in 1949, RBI was brought under government control of the banks and licensing
powers and the authority to conduct inspections was given to it.
 B. AFTER INDEPENDENCE

In 1955, the imperial bank of India was nationalized and was given the name ‘state
bank of India’ it was established under state bank of India act 1955.
In 1960 was empowered to force the compulsory merger of the weak banks with the
strong ones. The led to reduction in the number of banks with the strong ones. This
led to reduction in the number of banks from 5566 in 1951 to about 89 in 1969.
July 18, 1969, 14 major banks were nationalized, and thus raising the number of
nationalized banks to 20.
On the suggestions of Narsimha committee, the banking regulation act was amended
in 1993 and thus the gates for the new private section banks opened.

EVOLUTION OF BANKS

The evolution of banking which lasted for centuries until two years of modern
banking developed in the industrially advance economies in the last nineteenth
century was an integral part of the expansion of capitalism. the techniques of banking
developed in the 17th century facilitated the industrial territorial expansion that begins
about the same time, banking system evolved to meet the demands of the
constituents, vested interests and regulations governing their establishment. the
British system evolved around central banking system with the central bank clearing
banks with a large network of offices regulated by the central bank while finance,
industry and government to provide multiple services to constituents. The bus system
however was set apart by the dominance of the unit banking which was the source of
several innovative practices such as follower credit or flexible rate lending. Before
nationalization, cooperative banks were only institutes’ deal finance to rural area. On
that time many people were depending upon moneylenders and they were getting
huge profit from the public to boost more finance to rural area and rejected sector,
government have formulated polices to open more branches in rural area. After
 nationalizations, commercial banks started to open many branches in rural area and to
increase finance in priority sector and neglected sector. As the 8-% population
depends upon agriculture, there was requirement to take more care for them and to
stop shifting of public from rural area.

ROLE OF THE BANKS IN INDIAN ECONOMY

The bank has an imported role for the development of Indian economy. The growth
of output in any economy depends on the increase in the proportion of saving investment
to a nation’s output of goods and Services. The financial institutions help in the diversion
of rising current income into saving/ investments. A financial system may be defined as a
set of institutions, instruments, markets which foster saving, and channels them to their
most efficient use. The system consists of individuals (savers), intermediaries, markets
user of saving. Economic activity and growth are greatly in term of efficiency of the
market in mobilizing saving and allocating them among competing users.
Well-developed financial markets are required for creating balanced
financial institution play more important role. Deep and liquid markets provide liquidity
to meet any surge in demand for liquidity in the times of financial crisis. Such types of
markets are also necessary to derive appropriate reference for pricing financial assets.

DEFINATION OF BANK
As per banking company’s act 1949, bank is one which transacts the business of banking
which means the accepting for the purpose of lending or investment of deposits of money
from the public repayable on deposits of money from the public repay able on demands
or otherwise. so we can say that banks are the institutions which accept deposit from
public, which is repayable on demand or at the time of maturity, if there is time deposit
and lends money to public for earning interest. The main aim is to earn maximum profit
so the main portfolio of banks were maximum risk and investment is involved, ISS
lending to public as per government guidelines. Government has decided and given
guidelines to bank to finance in priority sector defines as under.
~ financing to agriculture up to 17% of total credit
 ~ finance to SSI (small scale industries)
~ Artisans & village cottage industries
~ housing loan up to 5 lakh
~ Education loan
~ loan to weaker sections
~ SRTO (small road transport operator)
~ retail traders & small business.
40% of total credit is given to all propriety sector advances as per RBI and Govt.
guidelines. so banks are bound to follow RBI and government guidelines and to earn
maximum profit way of interest on loans.

CLASSIFICATION OF BANKS

The Indian banking can be broadly categorized into nationalize (government owned)
private banks and specialized banking institutions. The reserve bank of India acts a
centralized body monitoring any discrepancies and shortcoming in the system since.
The nationalized of banks in 1969. The public sector banks or the nationalized banks
have acquired a place of a performance and has since then seen tremendous progress.
The need to become highly customer focused has forced the slow-moving public
sector banks to adopt a fast track approach. The unleashing of products and services
through the net has galvanized players at all levels of the banking and financial
market grid to look anew at their existing portfolio offering. Co-operative banks are
nimble footed in approach and armed with efficient branch network focus to primarily
on the ‘high revenue’ niche retail segment. The Indian bank has come from a long
way from being sleepy business institutions to highly proactive and dynamic entity.
This transformation has been largely brought by the large dose of liberalization and
economic reforms that allowed banks to explore new business opportunities rather
than generating revenues from conventional streams (i.e. borrowing & lending). The
banking in India is highly fragmented with 30 banking units contributing to almost
50% of deposit and 60% of advances India nationalized banks continue to be the
 major lenders in the economy due to their sheer size and penetrative network which
assures them high deposit mobilization. Industries estimated indicate that out of 274
commercial banks operating in India. 223 banks are in public sector and 51 are in the
private sector. The private sector bank grid includes 24 foreign banks that have started
their operation here.
Reserve bank of India is required to follow the guidelines issued by the RBI the
present structure of Indian banking system is as follows.

Public sector banks

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10.Indian Bank
11.Indian Overseas Bank
12.Punjab National Bank
13. Punjab and Sind Bank
14.Vijaya Bank
15.United Bank of India
16.Union Bank of India
17.Syndicate Bank
18.Oriental Bank of commerce
19.Uco Bank
20. State Bank of India
21.State Bank of India &Associate
Private sector banks
Old generation private banks
New generation private banks
Foreign banks in India
Scheduled co-operative banks
Non-scheduled banks

Co-operative sector banks

Central cooperative banks
State co-operative banks
Land development banks
Primarily agriculture credit societies
Urban co-operative banks
State land development banks
Development banks
Export import bank of India (exim bank)
Industrial Finance Corporation of India (IFCI)
Industrial development bank if India
Small industries development bank of India (SIDBI)

CONCEPTUAL FRAME WORK

 Financial sector reforms in India has progressed on aspects like interest rate
deregulation, reduction in reserve requirements, barriers to entry, prudential norms and
risk based supervision. But progress on the structural-institutional aspects has been much
slower and is cause for concern. The sheltering of weak institutions while liberalizing
operational rules of the game is making implementation of the operational changes
difficult and ineffective. The changes required to tackle the NPA problem would have to
span the entire gamut of judiciary, polity and bureaucracy to be truly effective.
After nationalization, the initial mandate that banks were given was
to expand their branch network, increase the savings rate and extend credit to the rural &
SSI sectors. This mandate has been achieved admirably. Since the early 90’s the focus has
shifted towards improving quality of assets and better risk management.The‘directed’
lending approach has given way to more market driven practices.
The Narsimham Committee has recommended prudential norms on income
recognition, asset classification and provisioning. In a change from the past, income
recognition is now not on an accrual basis but when it is actually received. Past problems
faced by banks were to a great extent attributable to this. Classification of what an NPA is
has changed with tightening of prudential norms. Currently an asset is ‘non-performing’
if interest or installments of principal due remain unpaid for more than 90 days.
These basic principles include:
 The safety of the advance
 Purpose for which the loan is given
 Liquidity
 Security
 Profitability

The banks, because of the very nature of their deposits being received from the public,
should assess properly the need of the borrower. There are no set rules or methods to
appraise loan application.
The accuracy of credit decision depends upon the adequate knowledge, Sound
judgment and skill in the analysis of certain important factors avoid under financing/ over
financing of a unit. If a borrowing unit is over financed diversion of funds for fixed assets
or unwanted purposes may take place and if under financed the borrowing unit may
become sick due to shortage of funds &may face closure.
Now we have take care at the time of financing to priority sector
and the main purpose is to increase qualitative lending so that recovery will be expected
as per terms of lending.
As per Narsimham, committee has given guidelines for asset classification,
Income recognition, also capital adequacy and interest rate. The main aim was to Increase
the flow of credit to neglected sector of economy especially rural areas. Before
introduction of this committee, banks were charging interest on all types of loans/ It was
not essential that interest income has recovered or not and show their maximum profit
and pay interest on such amounts. After following these guidelines firstly banks had
shown losses instead of profits due to bad & doubtful assets and these are treated as non-
performing assets (NPA)

COOPERATIVE BANK

Introduction of Cooperative Bank

 The cooperative bank’s is history of almost100
year. The cooperative banks are important constitutions of the Indian financial system
judging by the role assigned to them, the expectation they are supposed to fulfill, their
number and the number of the offices they operate. The cooperative movement
originated in the west, but the importance that such banks have assumed in India is
rarely parallel anywhere else in the world. Their role in rural financing continues to
be important even today, and their business in the urban areas has increased in recent
years mainly due to the sharp increase in the number of primary cooperative bank.
While the cooperative bank in the rural areas mainly finance
agricultural based activities including farming,cattle,milk hatchery, personal finance
etc. along with some small scale industries , self employment driven activities ,the
cooperative bank in urban areas mainly finance various categories of people for self-
employment industries, small scale unite, home finance, consumer finance ,personal
finance etc.
Some of the cooperative banks are quite
forward looking and have developed sufficient core competencies to challenge state
and private sector banks. According to NAFCUB the total deposits and lending is
cooperative banks is much more than old private sectors banks and new private
sectors banks. The growth of cooperative bank is attributed mainly to their much
better local clientele. Through registered under the cooperative societies act of the
respective states, (where formed originally) the banking related activities of the
cooperative banks are also regulated by the Reserve Bank of India. They are governed
by the banking regulation act 1949 and banking laws (cooperative societies) act,
1995.

DEFINATION OF A COOPERATIVE BANK

Cooperative banks are organized and managed on
the principle of cooperative, self-help, and mutual help. They function with the rules
of “one member, one vote” Function on “no profit, no loss” basis. The cooperative
banks as a principle do not pursue the goal of the banking function of deposit
mobilizations, supply of credit and provision of remittance facilities.
 So cooperative banks provide limited banking
products and functionally specialists in agricultural related products. However, the
cooperative banks now provide housing loans also.
The state cooperative banks (SCBs) , central cooperative
banks (CCBs), and the urban cooperative banks(UCBs) can normally extent housing
loans to individual. The cooperative banks do banking business mainly in agricultural
and rural sectors.
However, state cooperative banks (SCBs), central
cooperative banks (CCBs), and the urban cooperative banks (UCBs) operate in semi
urban, urban and metropolitan areas also. The urban and the non –agricultural
business of these banks has over the years.

THE DETAIL OF MEMBER SOCITIES AS ON 31.03.10 AS UNDER:

Nature of Society No. of Societies

 Agriculture 185
Industrial 235
Milk Supply 96
L/C 91
Others 160
Punjab Government 01
Total 768

Distt. Manager Assistant General Manager

Computerization of The work of computerization of branches including Head

Branches Office are in the process of Computerization.

Sub-Division & There are two sub-divisions Viz. Ropar and Anandpur Sahib.
Blocks There are 5 blocks Viz. Nurpur Bedi, Chamkaur Sahib and
Morinda

Total Villages Served 871 Villages.

No. of societies with 768Societies

Bank

Schemes Offered Short Term Agriculture: This is a short term crop Loan to
Farmers. Now Crop Loan Scheme has been modified and
further loan is being advance under the Kissan Credit
Scheme.
Non Agriculture This facility is extended to the Non -Agriculturist member of
Loan PACS and other societies and the maximumcredit limit is fixed
by the Registrar’s Cooperative Societies Punjab i.e. at Present
 it is Rs.25, 000/-

C.D Loan Consumer durable loan is granted for purchase of Consumer goods
like Freezes, T.V. Furniture etc.This facility is available to salary
earners only. Such loan is given up to Rs. 1,00,000 only for maxi.
period 3 years.

Over Draft Limit This facility is given to Bank Staff members and RCS office
employees and Coop. Audit Staff to Overdraw up to Rs.3 lac.
@10%.

CC Limit to-Traders / This cash credit facility is available up to Rs.20.00Lac.

Businessmen/Govt .
Contractor etc.

N.F.S Non Farmer Sector facility is given to the artisans, educated

unemployed youth, partnership firms and cooperative societies.
Under this scheme composite loan is extended above Rs. 5 Lac
and no maxi. limit. Loan for vehicle i.e truck, pickup and
Auto rickshaw under S.R.T.O. scheme & maximum up to Rs. 20
Lac

Revolving C.C. Limit This facility is extended to farmers based on land holding to
meet the domestic needs maximum up to 6 Lac.@ 11%.

Vehicle Loan This loan is given for car for personal use.The loan is given upto
85% of the cost of vehicle.

Rural/Urban Loan up to Rs.25 Lac for construction, repair and addition is

Housing scheme being provided.
Rural Godown Loan is being given for construction of Godown in rural area as
per NABARD scheme. up to Rs.50 Lac.

Loan against NSC / This loan is given to anyone, maximum up to50% of the face
KVP of the security.

Educational Loan This loan is available to students for higher education maximum
up to Rs. 10, 00,000.

Personal Loan Personal Loan up to Rs. 2 Lac is being advanced to the employees
of the bank Punjab Govt. and the
Semi Govt. Board P.S.U.the rate of interest in such loan is 13%.

M.T. Loan In terms of R.C.S circular dated 17.05.83 loaning facility is extended
through societies to the members of societies.

Loan for Dairy Loan up to Rs.80, 000/- is advanced for the purchase of two milky
Schemes cattle to the members of milk producer societies.

Long Term Loan for Under this scheme bank the loan facility is extending to the
Mini Dairy Scheme farmers directly for dairy development of mini dairy
for purchase of 20 milky cattle up to Rs. 3 Lac maximum.

Deposits The bank has introduced Sehkari Bank Bima Yojna and
pension cum gratuity scheme for Mobilizing the deposits for
the last3 years is annexed at ‘A’.

OBJECTS: The objects of banks are to facilitate the operations of the affiliated Coop.
Societies. In pursuance of the objects the bank may undertake the following activities :
  To carry on banking and credit business;
 To provide credit facilities to its members on as convenient and easy terms as
practicable,
 To encourage thrift and saving amongst its members by offer suitable
facilities;
 To make arrangement for supervision and inspection of its affiliated Co-
operative Societies;
 To undertake such measures as are conductive to the spread of Cooperative
education and training.

MEMBERSHIP

The following shall be eligible for membership of the bank:-

 Co-operative societies registered within the area of operation of the bank.

 No individual shall be admitted as the member of the bank (shares of existing
individual members shall be retired in the manner prescribed in the Punjab
Cooperative Societies Act and the rules framed there under.)
 Nominal membership will be opened to a person or a class of persons, coop.
society or a class of societies. Alternatively, an association or a class of
associations approved by the Registrar. For this purpose, by any general or
special order and admitted by the board to enable the bank to transact the
business with, provide the banking facilities and render service to them such
as the advances overdraft, cash credit bill, discounting etc. A written
application for nominal membership shall be submitted in the form along
with an admission fee of Rs.50/- which shall be non-refundable.

INCOME RECOGNITION NORMS

 Income recognition norms should be the main objective. The basic aim of which is
recovery than on any subjective consideration. Unrealized income should not be taken to
profit and loss account. The recognition norms are as follows:

1.) INTEREST INCOME

As per guidelines, interest income has been divided into three categories:-
Interest received
Interest due not realized
Accrued interest

Interest received accrual interest can be taken as income to the profit and
loss subject to condition the accrued interest should be realized in next year. A matching
provision for the interest accrued to the extent it could not be realized, should be made.
These guidelines are applicable even to those loans accounts which are backed by
Government Guarantees and the interest from discounting of bills.
Interest due but not received cannot be as income in the profit and loss
account. This condition will be applicable in case of Government Guaranteed advances.
However interest on advances against term deposits, NSCs, IVPs, KVPs & life policies
may be taken to income A/C on the due date provided adequate margin is available in
these accounts.
In order to comply with these guidelines, it is not necessary that bank
should keep unrealized interest in separate A/C as interest receivables. At the end of the
year calculate the unrealized interest using the formula as given and create the provision
for the same in the profit and loss account to only interest received.

INCOME FROM RE NEGOTIATED / RESCHEDULED

OUTSTANDING DEBTS
Some relaxation is given to banks under these guidelines banks are allowed to recognize
interest as income whether received or not in the context of rescheduled loan accounts.
The relaxation is available over the period covering the renegotiated or rescheduling of
credit. When rescheduled period is over, interest will be recognized as the income in the
profit and loss account if received.

3) GUARANTEES CREDIT FACILITIES BACKED BY

GOVERNMENT
In the case of credit facilities backed by government guarantee,
Overdue interest can be take to profit and loss account only if matching provision is
made.

4) CREDIT FACILITY IN THE FORM OF BILLS PURCHASE

The bills purchased/discounted should be treated as overdue if

the same remain unpaid interest may be charged to such overdue bills and taken to profit
and loss account provided and matching provision is made.
INTRODUCTION OF THE NON-PERFORMING ASSETS
NON-PERFORMING ASSETS (NPA)
NPA are those loans where chances of recovery are less i.e. there is risk of money
being lost. RBI has asked the banks to estimate the amount of principle expected to be
lost in their profit and loss account i.e., the provision for NPA in order to estimate the
amount of principle expected to be lost.

DEFINITION OF NPA
An asset becomes non-performing when it ceases to generate income
for the bank. A NPA is defined generally as a credit facility in respect of which interest
and installment has remained post due for two quarters or more. Now it is one quarter or
more. An amount due any credit facility is treated as past due when it has not been paid
within 90 days from the due date. So we can say that NPA is the major decease which
affects the profit of present year of bank and also provisioning of NPA will reduce the
existing profit of the bank.

REASONS
NPA of banks has been increased due to various reasons. We discusses as under:-
1) Change in Government Policies
Sometimes government gives the guidelines due to which the recovery of
the banks is affected. In 1990, govt. gave relief to agriculture loans up to Rs.1,000/-.In
this way the people willfully not pay the bank loans due to which accounts become sticky
and convert into NPA.
2) Natural Calamity
Due to draughts, flood, earthquakes, affects the crops of effected
area so loanees become helpless to repay.
3) Poor Appraisal
Poor appraisal affects the repayment of loans. Loan sanction with
improper amount and not timely disbursement affects recovery of loan.

4) Lack of Thorough Inspections

 Selection of customer without proper inquiry and lack of inspection after
the disbursement and before selection will affect the Recovery of loan.

5) Inadequate/ poor follow up

It is necessary to follow up the customer after disbursement of loans. Proper
follow up saves loans from becoming overdue. If we will not remind the borrower then
they will not repay. so, the improper follow up also affects recovery.

4.1) HOW TO CALCULATE NPA

Banks have to perform the following steps:-
a) Identify NPA accounts
b) Asset Classification

Identify NPA accounts:-

For identify NPA, the detailed guidelines have been issued.
Banks provide loans under different schemes.NPA can be identified as per schemes.To
identify whether account is NPA or not, the loans and advances are categorized as
follows:

1. Agriculture Advances
2. Term Loan Including Non Farm Sector Advances
3. Cash Credit Limits
4. Bills Discounting

AGRICULTURE ADVANCES
In case of agriculture advances where interest payment is half-
yearly basis synchronizing with harvest, banks should adopt the agriculture season as the
basis for classification of NPA. Loan for agriculture purpose is classified as NPA if not
recovered wholly with within 12 months from the due date. In other words, agriculture
loan accounts overdue for a period of 12 months with factor of date of the installment
when becomes due are treated as NPA.
 In case of agriculture advances we have two types, loans are given:-
 Short term loan

In case of short term loans, NPA will become after two crop seasons or
one year from the due date of loan account and in case of long term loans, it will become
NPA after two crop seasons one year Commencing from due date of installment when
becomes due.

2. TERM LOAN:-
All loan advances for period exceeding one year are called term
Loans except agriculture loans, cash credit limits. All other categories of loans like the
consumer durables, vehicle loans, composite and the integrated loans etc are covered
under this category.
The term loan account becomes NPA if installment of principle Or interest
remain overdue for a period of six months or above as per RBI guidelines, term loan
account is treated as NPA if any of two i.e. Installment of principle or interest is not
received within six months from the due date.

3. CASH CREDIT AND OVERDRAFT ACCOUNTS

A cash credit and overdraft account is treated as NPA if any of
the Following three conditions are applicable to it:-

a) If the outstanding balance in a cash credit limit/overdraft account remains in excess of

the sanctioned limit continuously for a period of 6 months from 1-10 to 31-3 of the
following year.
Or
b) If there is no credit entry in cash credit / overdraft account for six months from 1-10 to
31-3 of the following year and if the amount credited to the cash credit/overdraft account
during half-year from1-10 to 31-3 is not enough to cover the amount of interest debited to
the account that half year.
Or
c) If any cash credit /overdraft account remains unrecovered for a period of 6 months as
above. This condition is applicable to those accounts, which renewed on 31 March.

4. BILLS PURCHASED / DISCOUNTED

In case of credit facility given in the form of bills purchased/discounted the bill that
remains overdue for a period of more than180days (now90 days) shall be treated as NPA.

5. ADVANCES AGAINST TERM DEPOSITS, NSC, KVP etc

Advances against term deposits, NSC eligible for surrender KVPs / IVPs
and life policies carry normal rate of risk as attached to the business hence these advances
should be treated as part of standard asset.

6. ADVANCES AGAINST GOVERNMENT GUARANTEE

a) Advances guaranteed by state governments where guarantee has been invoked and
has remained in default for more than two quarters should be classified as NPA.
b)However in such the cases where the government guaranteed advances are in default
and a bank fails to invoke the guarantee for any reason, the advances will the qualify to
be classification normal risk attached to business.

7. ADVANCES AGAINST GOLD/ GOVERNMENT SECURITIES

Advances against gold ornaments, government’s securities and all the other kinds of
securities are not exempted from NPA provision requirements.

8. CONSORTIUM ADVANCES
In case of consortium advances, each bank is required to classify the borrower
accounts according to its own record of recovery of the lead banks. Even if the recovery
in the bank is not transferring the share of recovery to the member bank, then the member
bank will classify its account as NPA. The banks participating in the consortium should,
therefore, arrange to get their share of recovery transferred from the lead bank or get on
express consent from the lead bank for the transfer of their share of recovery, to ensure
proper asset classification in their books.

ASSETS CLASSIFICATION
After identification of different loan a/c as NPA, next steps are the
classification of loan a/c in different categories as given the structure below:

LOAN ACCOUNT

1) Standard Loan Accounts 2) NPA Accounts

2.1 sub-standard a/c
2.2 doubtful loan a/c
2.3 loss a/c

1. STANDARD LOAN ACCOUNT

These are those loan accounts in which the recovery is regular. These
accounts do not disclose any problem & do not carry more than normal risk attached to
business. In other words, these are Non- NPA accounts.

2. NPA ACCOUNTS
NPA accounts are those loan accounts in which chances of recovery are
less. In these accounts the recovery is not regular. These accounts are identified as NPA
accounts as per guidelines of bank. NPA accounts can be classified into following three
categories :-

a. Sub Standard a/c

b. Doubtful loan a/c
c. Loss assets a/c
a) SUB STANDARD a/c
 An a/c which has remain overdue for a period not Exceeding 3
years in respect of both the agriculture and non-Agriculture loans should be treated as
NPA.
In case of all type of term loans, where installments are overdue for a
period not exceeding three years, entire outstanding In term loan should be treated as
NPA.

b) DOUBTFUL LOAN A/C

These are those Non-Performing accounts, where the Installments
remained overdue for a period exceeding 3 years; the Entire outstanding is treated as
NPA.

c) LOSS ASSET A/C

These accounts are those NPA accounts in which chances of Recovery
are almost nil and where asset created out of the bank finance has lost are called loss
assets. Few of the cases which loan account can be treating as loss asset are as follows:-

 Decrees or execution petitions have been time barred, Documents are lost, or other
legal proof is not available to claim the debt.
 Where members and their sureties are declared insolvent Or have died leaving no
tangible asset.
 Where the members have left the area of operation of the Society leaving no property
and their sureties have No means to pay the dues.
 Where the loans are fictitious or when great misutilization is noticed.

Amount Involved in Frauds

NABARD has observed that the amounts involved in frauds,
Misappropriation, embezzlement, defalcations etc are not being classified property.
Another important observation is that inadequate efforts are made to get the cases settled
and investigated and amounts recovered are defrauded and hence the cases are rarely
closed. In view of this, all banks are advised to undertake proper investigation of all
shortages in cash bal. / bank balances of proper asset classification. Amounts involved in
frauds etc may also be classify into the sub- standard, doubtful or the loss assets
depending on the prospects of recovery in individual cases out the availability of
insurance cover, court decree or the security deposits within a reasonable period, say two
years. These assets may not be classify as standard / sub-standard for longer periods on
the grounds of their being under police investigation as being sub indices.

PROVISIONING NORMS BASED ON ASSET CLASSIFICATION:

Need of Provisioning:
Provisioning is necessary considering the erosion in the value of Security
charged to the banks over a period of time. The detail of Provisioning requirements in
respect of various categories of the Assets is given below:

Type of Asset Provision Rate

1) Standard Asset 0.25%

2) Sub-Standard Assets 10%
3) Doubtful Assets:-
a) Overdue 3 to 4 Years 20%
b) Overdue 4 to 6 Years 30%
c) Overdue Above 6 Years 50%
4) Loss Assets 100%
After calculating the total amount of provision required for
NPA accounts ,deduct it from the balance already outstanding in Provision account and
also the amount of bad and doubtful reserve Funds lying with the bank.
The provisions towards the standard assets need not to
be netted from gross advances. It should be shown separately as “contingent Provision
against the standard assets “under the bother liabilities and provisions in the balance
sheet.
STUDY OF NPA IN DIFFERENT BANKS

Rs.Crore/ NPA% GNPA NPA provision

Bank 2012 2013 2012 2013 2012 2013
Allahabad 7.08 2.37 410.60 377.91 182.63 478.44
bank
Andhra 1.79 0.93 236.96 294.56 184.30 258.60
bank
Bank of 3.72 2.99 713.39 1077.76 544.03 673.63
Baroda
Bank of 4.82 2.46 267.45 220.82 161.97 276.66
Maharashtra
Canara bank 3.59 2.89 1227.65 1890 476.15 1238.63

Corporation 1.65 1.80 176.81 162.04 174.19 106.36

Bank
Bank of 5.37 4.50 1226 204.14 682.03 784.19
India
ICICI bank 5.21 2.21 1193.77 1419.43 670.48 731.81

IDBI bank 1.18 0.20 603.56 492.41 235.33 544.84

HDFC bank 0.37 0.16 106.41 107.29 88.30 119.09

Indian overseas 5.23 2.85 603.56 492.41 235.33 544.43

Bank
Punjab national 3.86 0.98 1546.41 1044.45 1077.84 1401.65
Bank
State bank of 4.50 3.48 4688.57 5721.34 2958.68 3824.08
India
Syndicate bank 4.29 2.58 386.95 428.46 100.07 304.66

UCO bank 4.36 3.65 391.07 577.62 221.75 335.04

Union bank of 4.91 2.87 683.12 677.64 417.48 643.61

India
UTI bank 2.39 1.29 85.61 240.88 116.83 243.35

Vijaya bank 2.61 0.91 149.12 273.08 192.60 36.48

RESEARCH METHODOLOGY
The research methodology means the way in which we would complete our prospected
task. Before undertaking any task, it becomes very essential for anyone to determine the
problem of study.

Tools and Techniques

As no study could be successfully complete without proper tools and techniques, same
with my project for the better presentation and right explanation I used tools of statistics
and computer for the completion of my project.

Basic tools which I used for project from statistics are-

• Bar Charts
• Pie charts

Bar charts and pie charts are useful tools for every research to show the result in a well
clear, ease and simple way. Because I used bar charts and pie charts in project for
showing data in a systematic way, so it need not necessary for any observer to read all the
theory.

Objective of the Study

 To find the reasons of why NPAs are the great challenges for the banks.
 To understand what is Non performing Assets and what are the reasons for the
emergence of the NPAs.
 To understand the impact of NPAs on the operation of the bank.
 To study the loan disbursement pattern in Ropar Central Co-operative Bank.
 To study the status of non-performing assets (NPA) In ropar Co-operative Bank

Need of the Study

NPA is a major problem in banks.NPA occurs due to loans recovery problems. Banks are
giving loan to the people under various schemes. If they don’t return it within a specific
time, then their account will become NPA.For reducing this concept, we have to study the
concept of NPA and try to recover it.

Nature of the Study

The nature of the study is exploratory because the every aspect related to NPA has been
described and some suggestions are also given to reduce NPA in RCCB.

Method of Data Collection

 Secondary data is used in this research. In secondary data, the published and
unpublished material is collected from the Ropar Central Co-operative Bank.
Unpublished data is taken from the staff members of the bank.

Limitations of the Study

 The data, which I collected, is limited to The Ropar central cooperative bank.
 I received only 5-year’s data because cooperative Bank started to consider the
issue of NPA from the year Ended 31 March 2005 – 10.
DATA ANALYSIS
AND
INTERPERTATION

STATUS OF NPA ON MARCH 2009

Total Loan Outstanding 24848.77

Standard Assets 23224.90

% of Standard Assets 93.46%

Total NPA 1623.87

% of NPA 6.54%

CLASSIFICATION OF NPA
 Sub-Standard Assets 1033.31

Overdue 3 to 4 Years 81.24

Overdue 4 to 6 Years 141.96

Overdue Above 6 Years 129.75

Loss Assets 237.61

This chart shows the position of NPA in RCCB. In 2006 the contribution
of sub- standard assets in NPA is 64% and the overdue 3-4 year is 5%, 4 to 6 years 9%
and overdue above 6 years is 8%. The loss assets of the bank are 14% of the total NPA.
Standard assets in 2006 are 93.46% of the total assets and NPA is 6.54%. In 2006 NPA
has been decreased than 2005 in the Ropar Central Co-Operative Bank. The bank should
have taken effective steps to reduce the NPA because this reduction was not sufficient to
improve recovery of loan balances.

STATUS OF NPA ON MARCH 2010

Total Loan Outstanding 32403.00

Standard Assets 29561.44

% of Standard Assets 91.13%

Total NPA 2871.56

% of NPA 8.87%

CLASSIFICATION OF NPA

Sub-Standard Assets 1407.72

Overdue 3 to 4 Years 531.10

Overdue 4 to 6 Years 303.24

 Overdue Above 6 Years 235.44

Loss Assets 394.06

This chart shows that in the year 2007 sub-standard Assets are
55% of the total NPA .The assets with overdue 3 to 4 Years are 9%, 4 to 6 years are 7%
and assets with overdue above 6 years are2% of the total NPA. The % amount of loss
assets is same in 2007 which is also 14%. Standard assets are 91.13 % in this year and
NPA is 8.87 % in 2007 which is greater than last Three years. Thus 8.87 % has been
reduced in the profit of RCCB In 2007.
 STATUS OF NPA ON MARCH 2011
Total Loan Outstanding 23414.89

Standard Assets 21732.34

% of Standard Assets 92.8%

Total NPA 1682.55

% of NPA 7.18

CLASSIFICATION OF NPA

Sub-Standard Assets 991.15

Overdue 3 to 4 Years 128.85

Overdue 4 to 6 Years 90.14

Overdue Above 6 Years 93.65

Loss Assets 378.76

This chart shows that in the year 2008 sub-standard Assets are 58% of the total NPA .The
assets with overdue 3 to 4 Years are 8%, 4 to 6 years are 5% and assets with overdue
above 6 years are 6% of the total NPA. The amount of loss assets has increased in 2008,
which is 23%. Standard assets are 92.8 % in this year and NPA is 7.18 % in 2008, which
is less than last years. Thus 7.18 % has been reduced in the profit of RCCB In 2008.
 STATUS OF NPA ON MARCH 2012
Total Loan Outstanding 22595.60

Standard Assets 20368.88

% of Standard Assets 90%

Total NPA 2226.72

% of NPA 10%

CLASSIFICATION OF NPA

Sub-Standard Assets 1241.4

Overdue 3 to 4 Years 480.62

Overdue 4 to 6 Years 49.48

Overdue Above 6 Years 113.82

Loss Assets 341.40

 This chart shows that in the year 2009 sub-standard Assets are 56 %
of the total NPA .The assets with overdue 3 to 4 Years are 22 %, 4 to 6 years are 2% and
assets with overdue above 6 years are 5 % of the total NPA. The amount of loss assets has
decreased in 2009, which is 15 %. Standard assets are 90 % in this year and NPA is 10 %
in 2009, which is greater than last years. Thus 10 % has been reduced in the profit of
RCCB In 2009.
STATUS OF NPA ON MARCH 2013

Total Loan Outstanding 27145.74

Standard Assets 25238.03

% of Standard Assets 92.97 %

Total NPA 1907.71

% of NPA 7.03 %

CLASSIFICATION OF NPA
 Sub-Standard Assets 1060.93

Overdue 3 to 4 Years 318.25

Overdue 4 to 6 Years 115.59

Overdue Above 6 Years 105.37

Loss Assets 307.57

This chart shows that in the year 2010 sub-standard

Assets are 56 % of the total NPA .The assets with overdue 3 to 4 Years are 17 %, 4 to 6
years are 6 % and assets with overdue above 6 years are 5 % of the total NPA. The
amount of loss assets has increased in 2010, which is 16 %. Standard assets are 92.97 %
in this year and NPA is 7.03 % in 2010, which is less than last years. Thus 7.03% has
been reduced in the profit of RCCB In 2009.
 FINDINGS

LOAN OUTSTANDING ON MARCH 31, 2009

KIND AMOUNT(IN LAKHS)

AGRICULTURE 9819.65
C.C LOAN 2600.88
PERSONAL LOAN 2918.48
M.T. LOAN 3399.00
NFS LOAN 811.18
HOUSE LOAN 1258.98
VEHICLE LOAN 623.35
EDUCATION LOAN 6.00
LOAN AGAINST NSC/KVP ETC. 685.69
OTHER LOANS 2725.56
TOTAL 24848.77

LOAN OUTSTANDING AS ON MARCH 31, 2010

KIND AMOUNT(IN LAKHS)

AGRICULTURE 7453.00
C.C LOAN 2151.00
PERSONAL LOAN 1738.00
M.T. LOAN 468.00
NFS LOAN 551.00
HOUSE LOAN 1010.00
VEHICLE LOAN 618.00
EDUCATION LOAN 6.00
LOAN AGAINST NSC/KVP ETC. 326.00
OTHER LOANS 18082.00
TOTAL 32403.00
LOAN OUTSTANDING ON MARCH 31, 2011

KIND AMOUNT(IN LAKHS)

AGRICULTURE 9096.29
C.C LOAN 2991.30
PERSONAL LOAN 1702.93
M.T. LOAN 655.12
NFS LOAN 499.86
HOUSE LOAN 1070.89
VEHICLE LOAN 567.22
EDUCATION LOAN 13.93
LOAN AGAINST NSC/KVP ETC. 478.82
OTHER LOANS 6338.53
TOTAL 23414.89

LOAN OUTSTANDING ON MARCH 31, 2012

KIND AMOUNT(IN LAKHS)
AGRICULTURE 10385.64
C.C LOAN 3399.42
PERSONAL LOAN 1732.28
M.T. LOAN 828.09
NFS LOAN 506.18
HOUSE LOAN 1260.77
VEHICLE LOAN 769.28
EDUCATION LOAN 15.19
LOAN AGAINST NSC/KVP ETC. 480.26
OTHER LOANS 3218.49

TOTAL 22595.60

LOAN OUTSTANDING ON MARCH 31, 2013

KIND AMOUNT(IN LAKHS)

AGRICULTURE 12255.21
C.C LOAN 4845.56
PERSONAL LOAN 1930.73
M.T. LOAN 4824.51
NFS LOAN 471.47
HOUSE LOAN 1185.77
VEHICLE LOAN 812.70
EDUCATION LOAN 30.01
LOAN AGAINST NSC/KVP ETC. 414.88
OTHER LOANS 374.90
TOTAL 27145.74

LOAN OUTSTANDING FROM 2009 TO 2013

YEAR AMOUNT (in lacs)

MARCH 2009 24848.77

MARCH 2010 32403.00

MARCH 2011 23414.89

MARCH 2012 22595.60

MARCH 2013 27145.74

The table and figure, show that RCCB has increased or decreased Finance in the last 5
years.The RCCB has given maximum loan. In 2007 RCCB has increased finance both for
agriculture and non agriculture sector.
In 2006 bank has given 24848.77 lac but in 2007 it has increased to
32403.00.And in 2008 it has decreased by 8988.11lac. In 2009 loan outstanding further
decreased by 819.29lac as compared to previous year (2008) and reached 18157.08. The
main reason of decreasing the amount of loan in RCCB is the partition of Ropar district
and formation of a new district S.A.S Nagar (Mohali) in previous year (2006-2007).
Therefore the two sub-divisions Mohali and Kharar and block Majri became the of part
cooperative bank Mohali. Thus loan Outstanding of RCCB is also divided and decreased.
 Percentage of NPA in loan outstanding in different years

year Loan NPA(in lacs) % of NPA

outstanding
(in lacs)
2006 24848.77 1623.87 6.54%
2007 32403.00 2871.56 8.87%
2008 23414.89 1682.55 7.18%
2009 22595.60 2226.72 10%
2010 27145.74 1907.71 7.03%

The above table shows the amount of loan outstanding and share of NPA from such
outstanding. In year, 2006 the total amount of loan outstanding is 24848.77 lacs &
percentage of NPA from such outstanding is 6.54% & in the year 2007 the total amount
of loan outstanding is 32403.00 lacs the percentage of NPA from such outstanding is
8.87%. The highest amount of loan outstanding is in 2007 but the highest percentage of
NPA is in year 2009.
Increase in amount of NPA is a serious problem for the banks, because greater the amount
of NPA means greater the blocking of money and greater the loss to the bank.
 RECOMMENDATIONS

Narsimham committee recommended framework of banking sectors reform

In first phase of banking reform the effort at strengthening banking system focused on
arresting the qualitative deterioration in their in their performance in term of efficiency
/network. The task of strengthening the system in the second phase related to enhancing
its ability to meet the challenges of competition and the need to adapt its functioning to
the evolving requirement of an expanding economy which is also interacting in the
greater measure with the international economy . The recommended framework includes
1) capital adequacy
2) Asset quality, NPA and directed credit
3) system and methods in banks

 Capital adequacy
The minimum capital of risk assets ratio should increased with regard
to capital adequacy, the narsimham committee has recommended the following-
1) Pending the emergence of markets where market risk can cover, capital
adequacy requirements should take into account market risk in addition to the credit
risk. The entire portfolio of government securities should be marked to the market
within three years in a phased manner. There should be 5% weight for market risk
weight now. The risk weight for a government guarantee advance should be at par
with other advances with effect from the time of prescription of this norm.
2) There is an additional capital requirement of 5 percent of the foreign
exchange open position limit. Such risk should integrate into the calculation of risk-
weighted asset and carry 100% weight.
3) The minimum capital to risk assets ratio should increase to 10% from its
present level of 8% in a phased manner.

Asset quality, NPA and direct investments

The main recommendation is given blew:
 An asset should be classified as doubtful if it is in the sub standard category for
18
Months in the first instance and 12 months eventually and loss when identified thought
not written off.
 For purposes of evaluating the quality of assets portfolio the advances covered
by government guarantee but have turned sticky and but for such guarantee
would have been classified as NPAs, should be a treated as NPAs. Alternatively,
such advances should separately show as an aspect of fuller disclosure and
greater transparency.
 The practice of “ever greening” by making fresh advances to borrowers only
with a view to setting interest dues and avoiding classification of the loan as
NPAs , should immediately cease.
 No further recapitalization of bank should undertake from the government
budget.
 In place of the ARF proposal of the Narsimham Committee, there are two
possible approaches to the solution of the high NPAs in the portfolio of some
banks. First, the loans/assets in the doubtful and loss categories could be
transferred to an asset reconstruction company(ARC) at their realizable value in
return for NPA swap bonds. The ARC could set up by one bank or set of banks
or even in private sector. To facilitate funding of an ARC, it should treat on par
with venture capital funds for tax purposes, and the stamp duties are minimal.
Second and alternative could be that the bank issue bonds as part of tier-2
capital.
 These bonds may guarantee by government so that they are eligible for SLR
investment by banks and approved investments for LIC, GIC and provident
funds.
 To correct the distortions arising out of directed credit and its impact on asset
quality of banks, there is continuing need for the banks to extend credit to
agriculture and small-scale sector on commercial considerations and based on
credit worthiness.
 Given the special needs of the weaker section, the current practice of earmarking
10% of bank credit to priority sector may continue. The branch manager be fully
responsible of the identification of the beneficiaries under the government
sponsored credit linked schemes for poverty alleviation and employment
generation. Further, given the importance and needs of employment-oriented
 sector such as food processing and related activities in agriculture, fishing
poultry and dairying, these sectors should also covered under the scope of
priority sector lending. The interest subsidy element in credit for the priority
sector should eliminate and interest rate on loans under RS.2 lakh should be
deregulated.
System and methods in banks:
Operation method and procedures and the internal organizational systems are
important determinates of the efficiency and productivity of the banking system. the
related aspect of human resource development and technology up gradation also
determine the efficiency and productivity of the system. The recommendation related to
a) Internal system
b) Human resource development and

Internal system:
There can be no substitute for adequate good quality internal control/audit/inspection.
under advice from RBI ,the banks have detailed policy document of various aspects of
banks functioning such as loan policy including suitable method of assessment of
working capital , recovery policy, and so on bases on the guideline issued by the RBI
from time to time on difference aspects of working of banks, namely- opening of
customer deposit accounted etc.
The banks are expect to drown up a detailed operational manual and check list procedure
to be followed and precaution to be putting through each variety of activities/
transactions. The NC has made the following recommendation in this regard:
Banks should bring out revised operational manual and update them regularly, keeping in
view the emerging needs and ensure adherence to the instruction so that these operation
are conduct in the best interest of a bank.

Human resource management:

The main recommendations are listed below:
 The system of recruiting skilled man power from the open market need urgent
consideration to tone up their skill base by reporting , on an ongoing basis, to the
 lateral induction of experienced and skilled personal particularly for quick entry
into new activities .
 The scope of the external investigation agencies with regard to the banking
business should be Redefinition. External agencies should have the requisite to
take into account the commercial environments in which decision taken.
 Urgent review of the changing training needs in individual banks in the context of
their own business environment .ongoing inflow of emerging training package
and methodologies they should explore the feasibility of collaborative
arrangement with institute in India/ Aboard for specialized training programmes
in the financial services industry.
OTHER SUGGESTIONS

1. Credit Appraisal System:

Banks need to have better credit Appraisal systemas to
prevent NPAs to come into existence, the problem can be solved only if there is enabling
legal structure, since recovery of NPAs often requires litigation and court orders to
recover stuck loans. With long-winded litigation in India, debt recovery takes a very long
time.

2. Debt Recovery Tribunals:

Banks are now working on developing the debt recovery
tribunals to solve this problem. The Government has also mooted the suggestion of an
asset reconstruction company, which will be a specialized agency set up for rehabilitating
revivable NPA and recovering funds out unreliable NPAs

3. Don’t Eliminate Manage:

Studies have shown that management of NPAs rather than
elimination is prudent. India’s growth rate and bank spreads are higher than the western
nations. As a result, we can support a non-zero level of NPAs which balances the risk vis-
à-vis return appropriate to the Indian context.

4. Effects of Capital Norm Tightening:

There is a fear that disposal through the provision of
the excessive reserves may result in deflationary spiral. A thorough provision of
reserves will have no negative impact on the long-term dividends paid to
shareholders. Firstly, it helps restore credibility in financial system. Further, which
capital gains can create an adjustment mechanism and future profits that will result
from the disposal of NPAs, will pass back to the creditor and taxpayers who incurred
the losses today. The swift disposal of NPAs during the great depression in the middle
of a severe deflationary current helped restore the credibility of the financial system.
5. Legal Issues:
 There have been instances of banks extending credit to
doubtful debtors (who willfully default on debt) and getting kickbacks for the same.
Ineffective legal mechanisms and inadequate internal control mechanisms made this
problem grow. Quick action has to be taken on both counts so that both the defaulters
and authorizing officer are punished heavily. Without this all the mechanisms
suggested above may prove to be ineffective.
 CONCLUSION

Conclusion:
 The factor that decides performance of the banks nowadays is non-
performing assets (NPA). NPAs are those loans given by a bank or financial institute
where borrower defaults or delays interest or principle payments.
Cooperative Banks are now required to recognize such loans
faster and then classify them as problem assets. These assets affect the profitability of the
bank adversely.
Eventually, increasing NPAs means that funds locked are not
being used properly or not producing adequate returns. If a bank has high NPAs, then it
may not be to earn enough to pay depositors interest or repay their principal.
Therefore, NPA is a major problem of Cooperative Bank. It
should be controlled at all the levels & take precautions at the time of new financing &
recovery. Cooperative banks are trying to reduce the issue of NPA with efforts and
precautions.
 BIBLIOGRAPH
Y
BIBLIOGRAPHY
1 Machiraju H.R, Indian Financial System, Vikas Publishing House Second Edition
(2002)
2 Kothari CR, Research Methodology, Methods and Techniques, Wishwa Prakashan,
Second Edition (2003)
3 WWW. RBI.ORG.CO.IN
 THE ROPAR CENTRAL COOPERATIVE BANK LTD. ROPAR
As on 31.03.08
(Figs. In Lacs)
Sr. Name of Branch Loan N.P.A As on
no. outstanding 31.03.08 %
31.03.08
1 H.O. ROPAR 2930.78 378.08 12.9
2 CHANDIGARH 598.31 136.44 22.8
3 MORINDA 1094.55 5.63 0.5
4 CHAMKOR SAHIB 1567.45 39.29 2.5
5 NOORPUR BEDI 1009.91 70.47 7.0
6 NANGAL 367.48 37.51 10.2
7 ANANDPUR SAHIB MAIN 419.75 55.84 13.3
8 MIAPUR 364.45 41.37 11.4
9 ROLU MAJRA 375.93 48.04 12.8
10 BHANAUPLI 356.84 22.98 6.4
11 TAKHATPUR 1325.57 108.40 8.2
12 KIRATPUR SAHIB 908.11 56.78 6.3
13 PURKHALI 448.00 32.10 7.2
14 DUMEWAL 785.24 61.59 7.8
15 EVENING BRANCH 360.29 38.12 10.6
16 GHANAULI 631.45 32.98 5.2
17 BELA 1810.52 79.02 4.4
18 SUGARMILL MORINDA 3463.38 2.03 0.1
19 KAINOUR 606.17 1.85 0.3
20 DHER 319.05 26.06 8.2
21 BHARATGARH 383.70 24.39 6.4
22 CHAKLAN 454.72 3.03 0.7
23 JHALLIAN KALLAN 401.97 34.43 8.6
24 SUREWAL 335.25 23.76 7.1
25 SUKHE MAJRA 336.25 38.53 11.5
26 B.O. ROPAR 1554.58 203.30 13.1
27 ANANDPUR SAHIB 205.20 80.53 39.2
TOTAL 23414.90 1682.55 7.2
 THE ROPAR CENTRAL COOPERATIVE BANK LTD. ROPAR
As on 31.03.09
(Figs. In Lacs)
Sr. Name of Branch Loan N.P.A As on
no. outstanding 31.03.09 %
31.03.09
1 H.O. ROPAR 835.72 341.34 40.8
2 CHANDIGARH 551.08 365.43 66.3
3 MORINDA 1289.52 6.64 0.5
4 CHAMKOR SAHIB 1756.96 67.69 3.9
5 NOORPUR BEDI 1061.37 82.24 7.7
6 NANGAL 462.78 34.96 7.6
7 ANANDPUR SAHIB MAIN 442.00 57.6 13.0
8 MIAPUR 425.83 77.98 18.3
9 ROLU MAJRA 442.92 57.19 12.9
10 BHANAUPLI 366.00 28.36 7.7
11 TAKHATPUR 1399.62 149.63 10.7
12 KIRATPUR SAHIB 996.48 57.86 5.8
13 PURKHALI 473.42 45.06 9.5
14 DUMEWAL 851.75 105.22 12.4
15 EVENING BRANCH 400.84 59.98 15.0
16 GHANAULI 739.06 31.84 4.3
17 BELA 2002.24 110.41 5.5
18 SUGARMILL MORINDA 2894.99 4.77 0.2
19 KAINPUR 695.92 32.32 4.6
20 DHER 367.16 18.47 5.0
21 BHARATGARH 382.04 19.43 5.1
22 CHAKLAN 523.79 19.92 3.8
23 JHALLIAN KALLAN 409.46 130.08 31.8
24 SUREWAL 381.85 35.94 9.4
25 SUKHE MAJRA 357.38 48.02 13.4
26 B.O. ROPAR 1892.49 153.61 8.1
27 ANANDPUR SAHIB 192.93 84.73 43.9
TOTAL 22595.60 2226.72 9.9
THE ROPAR CENTRAL COOPERATIVE BANK LTD. ROPAR
 As on 31.03.10
(Figs. In Lacs)
Sr. Name of Branch Loan N.P.A As on
no. outstanding 31.03.10 %
31.03.10
1 H.O. ROPAR 393.48 306.56 77.91
2 CHANDIGARH 417.9 248.30 59.43
3 MORINDA 156 2.66 .017
4 CHAMKOR SAHIB 2050 84.45 4.12
5 NOORPUR BEDI 1203.82 66.09 5.49
6 NANGAL 481.06 33.29 6.92
7 ANANDPUR SAHIB MAIN 471 55.53 11.80
8 MIAPUR 450.51 97.04 21.54
9 ROLU MAJRA 512.44 23.06 4.50
10 BHANAUPLI 386 26.75 6.93
11 TAKHATPUR 1483.34 153.23 10.33
12 KIRATPUR SAHIB 1156.08 48.44 4.19
13 PURKHALI 481 78.00 16.22
14 DUMEWAL 933 77.91 8.35
15 EVENING BRANCH 419.86 45.47 10.83
16 GHANAULI 793.80 17.94 2.26
17 BELA 2279.33 95.96 4.21
18 SUGARMILL MORINDA 1524.37 4.56 0.30
19 KAINPUR 836.50 11.46 1.37
20 DHER 401.13 49.58 12.36
21 BHARATGARH 439.25 18.80 4.28
22 CHAKLAN 630.37 20.55 3.26
23 JHALLIAN KALLAN 387.56 103.40 26.68
24 SUREWAL 448 25.35 5.66
25 SUKHE MAJRA 390.53 39.21 10.04
26 B.O. ROPAR 2159.54 105.17 4.87
27 ANANDPUR SAHIB 171.90 68.95 40.23
TOTAL 22871.37 1907.71 8.34