TASK 17

ANALYSIS OF NON PERFORMING ASSETS OF BANK

NON PERFORMING ASSET
A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained
overdue for a period of 90 days.
Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.

FACTORS THAT CONTRIBUTE TO NPA

Ineffective Statutory Recovery Procedures, Willful Defaults, Natural Calamities, Industrial Sickness,
Lack of Demand. Change in Government Policies etc.
NPA OF STATE BANK OF INDIA (IN RS CR)
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
GROSS NPA 1,49,091.85 1,72,750.36 6 2,23,427.46
NET NPA 51,871.30 65,894.74 1,10,854.70
% OF GROSS NPA 6.15 7.53 10.91
% OF NET NPA 2.23 3.01 5.73

Analysis of NPA’s of SBI

From the analysis it can be seen that the gross NPA of banks showed an increase from FY 18 there is an
increase which is the highest while Rs 1,72,750.36 in FY 19 and 1,49,091.85 in FY20 there is decrease
of NPA’s compared to the previous years. The net NPA value was increasing while in FY18 it doubled
compared to FY16 and FY17,there is a decline in net NPA from Rs 1,10,854.70 to Rs 65,894.74 in FY
19 and Rs 51,871.30 in FY20.The gross NPA and Net NPA showed that in Fy18 there was an increase
and from then there was decrease which also shows that the return on assets ratio was negative in FY
18.The gross NPA is 6.5% in march 2016 and increased to 6.9% in march 2017 and it increased to
10.91% were the return on assets were negative in this year and the Gross NPA decreased to 7.53% in
march 2019 and it decreased to 6.15% in year 2020 which means that the rate at which NPAs growing
started showing decreasing trend and can also confirm that bank is able to get its loans back and there is
an efficient method might have been followed to control the NPA growth and decrease NPAs which
have raised in March 2018 indicates that the bank has taken efficient measures to control the NPA
growth. SBI has net profit of 35.8bn in Q4FY20 which was below 57% of the estimation, with the crisis
and moratorium and provisions there is a down trend in NPA level of bank.
PEERS COMPARISION
GROSS NPA
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
SBI 1,49,091.85 1,72,750.36 2,23,427.46
IDBI 47272.37 50027.94 55588.26
PNB 73478.76 78472.7 86620.05
UNION BANK 49085.3 48729.15 49369.93
BOI 61549.93 60661.12 62328.46
BOB 69381.43 48232.77 56480.39

The value of gross NPA in march 2018 was the highest for all the banks while it has much impact on the
State bank of India. SBI was not able to manage its NPAs as a result there was an increase in NPAs and
decrease. IDBI bank had consistently average rate of NPAs which means that it has efficient ways to
control their NPAs. Punjab National Bank NPAs were in control in FY2016 and FY2017 while there
was an increase in 2018 and there was decrease in FY 2019 and FY 2020.Union banks NPAs were at
lower compared to other banks but there was a slight increase and banks were consistent in their
operations and maintained to control it by having same NPA but the NPA level has not decreased. Bank
of India had same level of NPA’s while it increased in 2018 and there was no high level of increase or
decrease in NPA’s. The level of NPAs were constant but in 2018 there was rise and fall in 2019 and in
2020 there was an increase which tells that bank has not able to manage its increasing NPAs.
GROSS NPA%
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
SBI 6.15 7.53 10.91
IDBI 27.53 27.47 27.95
PNB 14.21 15.5 18.38
UNION BANK 14.15 14.98 15.73
BOI 14.78 15.84 16.58
BOB 9.4 9.61 12.26
The gross NPAs of SBI is higher in value but there are increasing at slower rate compared to other banks
there was similar percentage of rate of growth in FY2016 and FY2017 and it increased in FY2018 and
started down trending in FY2019 and FY2020.And the IDBI gross NPAs increased at higher phase and
they have reached maximum in FY2018 and in FY2019 and FY 2020 there was decreased and remained
constant. Punjab national bank has an increasing and decreasing trend in the gross NPA level. BOI NPA
level in 2016 and 2017 were similar and it increased in 2018 while the growth slowed down in 2019 and
2020.BOB gross NPA % is in controllable stage where it showed an increasing trend and bank managed
to control its increasing NPAs
NET NPA
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
SBI 51871.3 65894.7 110855
IDBI 5439.49 14837.4 28665.1
PNB 27218.9 30037.7 48684.3
UNION BANK 17303.1 20332.4 24326.3
BOI 14320.1 19119 28207.3
BOB 21576.6 15609.5 23482.7
Net NPAs for state bank of India are higher to the other banks where the net NPA showed an increasing
trend till 2018 and it started to decline in 2019 and 2020.NPAs of IDBI are in increasing trend and
decreased from 2018 same like SBI but their level of net NPAs are significantly lower to SBI except in
2020.PNB had an increasing and depressing trend till 2018 from 2019 the NPA has decreased
consistently, level of NPAs of union bank are increasing and decreasing while in case of BOI there is
drop in NPAs except in 2018 and BOB has NPAs which are in increasing and decreasing in nature, the
NPAs of BOB in 2020 has increased.
NET NPA %
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
SBI 2.23 3.01 5.73
IDBI 4.19 10.11 16.69
PNB 5.78 6.56 11.24
UNION BANK 5.49 6.85 8.42
BOI 3.88 5.61 8.26
BOB 3.13 3.33 5.49
The net percentage increase in NPA for IDBI is higher than any other bank and the increases rate of
IDBI bank in 2018 and 2019 were the highest. SBI had low growth rate and from 2019 it started to
decline. PNB NPAs were started to decline after 2018 similar to SBI net NPA percentage, Union bank
has increasing and decreasing rate while BOB and BOI NPA percentage decreased compared to the
previous years after 2018.
CAPITAL ADEQUACY RATIO
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
SBI 12.72 12.6 13.11
IDBI 13 12 10
PNB 9.73 9.2 11.66
UNION BANK 11.78 11.5 11.79
BOI 13 14 13
BOB 13 13 12
Capital adequacy ratio of SBI in the range and it decreased from 13.11 in 2018 to 12,6 in 2019 and
12.72 in 2020.And provision of IDBI increased from 2019 from 10 to 12 in 2019 and 13 in 2020,while
PNB ratio decreased consistently and ratios of union bank increased from 2018 .BOB ratios were
constant and decreased in 2018 then it increased and remained same to the previous year’s ratios, BOI
ratios shows an increasing trend till 2019 and decreased in 2020.

CANARA BANK
NPA
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
GROSS NPA 37,041.15 39,224.12 47,468.47
NET NPA 18,250.95 22,955.11 28,542.40
% OF GROSS NPA 8.00 9.00 12.00
% OF NET NPA 4.22 5.00 7.00
From the analysis it can be seen that the gross NPA of banks showed an decrease from FY 18 while Rs
39,224.12 in FY 19 and 37,041.15 in FY20 there is decrease of NPA’s compared to the previous years.
The net NPA value was increasing while in FY18 it doubled compared to FY16 and FY17,there is a
decline in net NPA from Rs 28542.4 to Rs 22955.11 in FY 19 and Rs 18250.95 in FY20.The gross NPA
and Net NPA showed that in Fy18 there was an increase and from then there was decrease which also
shows that the return on assets ratio was negative in FY 18.and the Gross NPA decreased to 9% in
march 2019 and it decreased to 8% in year 2020 which means that the rate at which NPAs growing
started showing decreasing trend and can also confirm that bank is able to get its loans back and there is
an efficient method might have been followed to control the NPA growth and decrease NPAs which
have raised in March 2018 indicates that the bank has taken efficient measures to control the NPA
growth.
PEERS COMPARISION
GROSS NPA
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
CANARA BANK 37,041.15 39,224.12 47,468.47
SBI 1,49,091.85 1,72,750.36 2,23,427.46
IDBI 47272.37 50027.94 55588.26
PNB 73478.76 78472.7 86620.05
UNION BANK 49085.3 48729.15 49369.93
The value of gross NPA in march 2018 was the highest for all the banks while it has much impact on the
State bank of India. Canara bank was not able to manage its NPAs as a result there was an increase in
NPAs and decrease. IDBI bank had consistently average rate of NPAs which means that it has efficient
ways to control their NPAs. Punjab National Bank NPAs were in control in FY2016 and FY2017 while
there was an increase in 2018 and there was decrease in FY 2019 and FY 2020.Union banks NPAs were
at lower compared to other banks but there was a slight increase and banks were consistent in their
operations and maintained to control it by having same NPA but the NPA level has not decreased.
GROSS NPA%
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
CANARA BANK 8.00 9.00 12.00
SBI 6.15 7.53 10.91
IDBI 27.53 27.47 27.95
PNB 14.21 15.5 18.38
UNION BANK 14.15 14.98 15.73

The gross NPAs of SBI is higher in value but there are increasing at slower rate compared to other banks
there was similar percentage of rate of growth in FY2016 and FY2017 and it increased in FY2018 and
started down trending in FY2019 and FY2020.And the IDBI gross NPAs increased at higher phase and
they have reached maximum in FY2018 and in FY2019 and FY 2020 there was decreased and remained
constant. Punjab national bank has an increasing and decreasing trend in the gross NPA level
NET NPA
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
CANARA BANK 18,250.95 22,955.11 28,542.40
SBI 51871.3 65894.7 110855
IDBI 5439.49 14837.4 28665.1
PNB 27218.9 30037.7 48684.3
UNION BANK 17303.1 20332.4 24326.3
Net NPAs for canara bank are higher to the other banks except pnb where the net NPA showed an
increasing trend till 2018 and it started to decline in 2019 and 2020.NPAs of IDBI are in increasing
trend and decreased from 2018 same like canara bank but their level of net NPAs are significantly lower
to SBI except in 2020.PNB had an increasing and depressing trend till 2018 from 2019 the NPA has
decreased consistently, level of NPAs of union bank are increasing and decreasing
NET NPA%
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
CANARA BANK 4.22 5.00 7.00
SBI 2.23 3.01 5.73
IDBI 4.19 10.11 16.69
PNB 5.78 6.56 11.24
UNION BANK 5.49 6.85 8.42
The net percentage increase in NPA for union bank is higher than any other bank and the increases rate
of union bank in 2018 and 2019 were the highest. SBI had low growth rate and from 2019 it started to
decline. PNB NPAs were started to decline after 2018 similar to SBI net NPA percentage
CAPITAL ADEQUACY RATIO
PARTICULARS MARCH 2020 MARCH 2019 MARCH 2018
CANARA BANK 14.00 12.00 13.00
SBI 12.72 12.6 13.11
IDBI 13 12 10
PNB 9.73 9.2 11.66
UNION BANK 11.78 11.5 11.79

Capital adequacy ratio of canara bank in the range and it decreased from 13.00 in 2018 to 12.00 in 2019
and 14.00 in 2020.And provision of IDBI increased from 2019 from 12 to 13 in 2020,while PNB ratio
decreased consistently and ratios of union bank increased from 2018 .