CHAPTER- -1

INTRODUCTION

1
 INTRODUCTION
Advances and Loans Allowed by company banks really are invaluable for people intensely,
companies, businesses, and modern concerns. The expansion and development of business
exercises have been changed to a gigantic amount through fiscal financing. Loans and
improvements bolstered by banks help with fulfilling here today and longterm money
associated prerequisites of organizations. Conceding loans and advances for financial
development might possibly be the prime duty of banks. Loaning by the bank's department is
generally pumped on the lands which it will get the impact of resources being traded from the
frame to gainful intentions, together with these comparative lines that the market grows.
Nonetheless how Toward devoting conveys a danger termed credit chance in addition, which
stems from the downturn of debtor Non-performing. Resource alludes to loans that are in
danger of default. After the debtor has failed to make intrigue or primary payments for a
couple of weeks, in the authentic point the bank loan amount is considered being a Non-
performing Asset. Non-performing Assets (NPAs) are catchy and opportunity for the money
associated with foundations considering the fact they anticipate premium payments for the
cost.

Banks need to dictate Non-performing resources promote directly to the corresponding three
categories in light of this period where the advantage has stayed propounded along with the
realizability of this levy: 1 ). Substandard Assets (A substandard resource is just one that
includes stayed NPA to get a period not specifically or corresponding to annually ), two.
Dicey Assets (With impact from March 3 1, 2005, an asset has to be assigned fetched much,
as it's stayed NPA for more than per year), 3. Mis-fortune Assets would be such advantages
that are believed aboutuncollectible.
Now's a study paper A benefit is assigned non-performing resource (NPA) in the event the
debtor won't pay obligation is crucial and excitement for a little while of 180 days.
Depending on March 2004 But, the default status is going to be led in a debtor in case
obligation isn't paid for ninetydays.
Want for study
The banks The firm has undergone a sea change after a key number of fiscal advancement in
1991 and also for this reason credit management (Poongavanam, 2011). A superb banking
frame is fundamental for just about any economy attempting to perform development and
keep stable in

2
concentrated international small business requirements (Prasad and Veena, 2011).
A great Money associated frames will help attain the effective designation of resources
crosswise after a few years and distance by diminishing ineffective aspects arising from
market erosions along with different financial components. One of the numerous attractive
features of a well- working financial frame, the upkeep of several non-performing resources
(NPA) is still certainly an imperative one.
Record Of this issue:
Extensively, Non-Performing Asset (NPA) is distinguished because of propelling, where
installation of settlement or premium of a portion of crucial (when there has to be an incident
of duration loans payable from the industry venture banks) or possibly remains outstanding
for a specific period. In India, that really is of NPAs has shifted after an ideal moment. As
signaled by the Narasimhan Committee Report (1991), those benefits (advances, invoices
down declared, overdrafts, currency credit and therefore forth.,) that superior remains
because of awhile of 180 days ought to be considered NPAs.
Thus, This age has been diminished, also by March 1995 onwards gains that the premium has
since remained outstanding for a couple of weeks and has been considered NPAs.Non-
performing Assets (NPA) is rolling out as over an elongated stretch because of a troubling
threat into the Indian banking industry banking changes from the national government of
India and Reserve Bank of India (RBI) as much as both Narasimhan Committee Reports have
been already murdered by the wicked impacts of this slumping threat.Despite different
therapeutic advances controlled to take care to end this problem, solid consequences are
evading The seriousness of th challenge is nevertheless deeply endured by everyone the
branches of banks.
Inch. To Examine the Influence of NPA about the efficacy of chosen banks people
2. To gauge the efficacy in handling NPA involving yourchosen
3. To create recommendations Better NPA direction in banks that are chosen.
4. To Master part of RBI onNPA
Hypotheses of study
H0 = '' There Was Zero variable of NPA on efficacy between banks that are
chosen. H 1 = '' There Was Variable of NPA on efficacy between banks that are
chosen.
H0 = '' There Was Zero variable on efficacy in managing NPA between banks that are
chosen. H 1 = '' There Was Variable on efficacy in managing NPA between banks that are
chosen.

3
Strategy depicts The evaluation path to be studied afterward, the tools for use, world and
evaluation of this search to the knowledge to be accumulated, the instruments of analysis
utilized examples of locating decisions.
With the end The goal of this analysis, forms of loan sources of private and Outside banks
that are listed next Program of the Reserve Bank of India Act, 1939 has been completely
contemplated. The exam is dependent upon Optional info. The RBI productions such as,
"Offer a merchant accounts Hot-spots due to the investigation. To supplement the specified
advice, The scientist arranges other crucial information accessible from the annual reports of
The many available, remote and confidential small business monies, journal, internet sites,
and reading material.
SCOPE IN PERIOD OF STUDY

Like the scope of the Investigation can be involved Much, the Study Insures A Comparative
Evaluation of NPA Management between the public sector and private sector banks that are
operating in the USA. Enough timing of this study is just five years crossing from 2012 to
2016. Year The study was done for a five, i.e., throughout 2012-2016. The research is based
on secondary statistics.
SAMPLE IN DATA COLLECTION
The Sample
The universe of the academic examination comprise the entirety of the open division banks.
Here, inquire about has been done on chosen two private and open segment banks i.e.,
PNB/KOTAK and SBI and HDFC due to this similarexamination.
Information assortment apparatus and procedures
According to the idea of study following apparatuses and procedures are utilized for testing
the speculations:
• Tool: Ratio Analysis,Excel
• Statistical Techniques: - Mean, Standard deviation and T –test.
Information investigation
The investigation of the information is the center piece of the extensive research. Logical
strategies have just been utilized these days to acquire the yield or study made certifiable and
may likewise did the trick the explanation what the examination intended for. The gathered
information have just been handled onPC.

4
To achieve certain significant outcomes, the data gathered from all assets have just been
arranged, investigated and deciphered with the guide of fitting factual procedures. To have
the option to investigate the information and reach determinations right now, measurable
apparatuses like EXCEL. The investigation is bound an interim of five years i.e., from 2012
to2016.
Restrictions of the investigation
The present investigation experienced the accompanying impediments, for example,
1) Comparison is fixed to the two banks of open segment and private segment.
2) The examination is established on auxiliary information as distributed in an
assortment of productions of RBI and different reports. These information get from verifiable
bookkeeping idea, which disregards the effect ofexpansion.
3) The examination, as impediments, is bound and afterward the chose and limited
markers and the investigation is kept restricted to the hour of fiveyears.

5
 CHAPTER- -2

REVIEW OF LITERATURE

6
Survey 1

Non-Performing resources in open part banks: an investigation by Prof.B.D.Awasthi and

Rahul Singh

Unique:

Non-performing resource proposes non-executing and makes bank and broker non-executing
since it kills or yields reusing of advantages, denies pay from the great situation by strategy
for separates or premium preferred position by method for course of action. Constantly end,
NPA address the surveyed "credit chance". Right now attempted has been intended to
research the condition of NPAs straightforwardly division banks (PSBs), in the midst of the
current past.

Indian financial industry experiences really conflicted with different difficulties and danger
like the upkeep of NPAs. Non-performing resources stayed a matter of worry for the banks in
India dependably, be that as it may it's been center on the grounds that the financial zone
changes were started in 1992. Beginning now and in to the not so distant the entirety of the
bank trying endeavors to help the NPA Level in addition to they have winning right now a
gigantic degree. Around the whole of walk 2007, net NPAs in colaboration with net advances
for winning tad of open division banks were inside the level of 2 percent. Lok Adults, Debt
Recovery Tribunals (DRTs) and plan of corporate Debt Restructing have given noteworthy
push to banks to contain their NPAs. In the present past, furnished with Reconstruction and
securitization of Financial Assets and Enforcement of Security Interest Act, the financial
business has just settled the ability to lessen its NPAs with full life. Aside from Establishment
of 'Favored viewpoint Reconstruction Companies' has helped the banks to invalidate their
NPAs bigly.

Audit 2

NON-PERFORMING ASSTE IN INDIAN BANKs by B. SATHIS KUMAR

Unique

In Liberalizing economy banking and money related area get high need. Indian financial
segment having a significant issue due Non-performing. The monetary changes have caused
to a great extent to clean NPA was around Rs.52,000crores in the year 2004. The procuring
limit and

7
productivity of the bank are profoundly affected because of the NPA. The Indian financial
division is confronting difficult issue of NPA. The degree of NPA is relatively high in open
segment banks. To improve proficiency and productivity, the NPA must be planned.
Different advances have been taken by government to diminish NPAs. It is exceptionally
difficult to have zero rateNPA.But in any event Indian banks can have a go at contending
with remote banks to keep up global guidelines

Audit 3

Recuperation OF NPAs, NEED OF THE HOUR BY Dr. (Mrs.) VALSAMMA ANTONY

Unique

Hypothetical

In Liberalizing economy banking and money related portion get high need. Indian financial
territory having a considerable issue due Non-performing. The measure of cash related
changes have served to a brilliant degree to totally clean NPA was around Rs.52,000crores in
the whole year 2004. As far as possible and profit of the bank are influenced because of the
NPA uncommonly. The Indian financial part is standing up to serious issue of NPA. The
measure of NPA is high transparently fragment banks also. To improve advantage and
adequacy, the NPA ought to be reserved. Various advances have just been taken by
government to decrease NPAs. It truly is hard to have zero rate NPA exceptionally.But in any
event Indian banks can take a stab at matching outside banks to keep up general standards

Survey 4

The board OF NON PERFORMING ASSETS-A CURRENT

SCENARIO CHANDSN CHATTERJEE, JEET MUKHERJEE,

DR.RATANDAS

Conceptual

Today the Indian financial framework has genuinely experienced critical change following
budgetary part changes. A few prudential, installment, coordinating and provisioning
standards have been acquainted with improve effectiveness and cutting down the NPAs‟ to
improve the

8
money related wellbeing of the financial area. NPA includes the need of arrangements, any
expansion where bring down the entire productivity of banks; could be the marker of banking
wellbeing in a national nation. The issue of mounting non-performing resources is offering
butterflies to banking segment especially in an enormous sum a creating economy. This
article endeavors to concentrate on the outcomes and factors behind NPAs fundamentally,
strategy mandates of RBI, activities of Indian Government, situation of NPAs part savvy and
bank bunch astute and the corrective measures for NPAs in India finally

Audit 5

A STUDY ON RECENT TRENDS IN RISK MANAGEMENT OF NON PERFORMING

ASSETS (NPAS) BY PUBLIC SECTOR BANKS IN INDIA

ANSHU BANSAL

Dynamic

Without a doubt the world economy has eased back up, downturn arrives at its pinnacle,
internationally financial exchanges have tumbled and business itself gets hard to do. The
Indian economy has been abundantly influenced as a result of high financial deficiency, poor
foundation offices, clingy lawful framework, slicing of exposures to developing markets by
Banks. Under such a pickle, it's reasonable that banks are no special case as will undoubtedly
confront warmth of an overall downturn. The banks in India face the issue of growing non-
performing resources (NPAs) and the issue is getting progressively increasingly
unmanageable, in that capacity, the amassing of colossal non-performing resources in banks
has expected incredible significance with regards to hazard the board. Investors, along these
lines have understood that except if the measure of NPAs is decreased radically, they'll see it
difficult to endure. The investigation is planned for making a sound base for guaranteeing the
operational feasibility and money related adequacy of banks especially of these which are
confronting challenges and making battles to manage the administration of colossal NPAs. In
light of the abovementioned, the essential destinations of the insightful examination are to
appreciate the ideas and ongoing patterns of NPAs, to research the effect of NPAs, to pass
judgment on the motivation behind why for NPAs additionally to gauge the Preventive
Measures forNPAs.

9
Survey 6

A COMPARATIVE STUDY OF NON PERFORMING ASSETS IN NDIAN BANKING

INDUSTRY –

PACHA MALYADRI, S.SIRISHA

Theoretical

The Indian financial framework has experienced noteworthy change following money related
part changes. It really is receiving worldwide rules with a dream to reinforce the financial
area. A few provisioning and prudential standards have just been presented, in addition to
they are pressurizing banks to improve productivity and tone down NPAs to improve the
monetary wellbeing in the moneylender working framework. In the setting of the
improvements, this insightful examination endeavors to analyze the condition of undertaking
of the Nonperforming Assets (NPAs) of everybody segment banks and private division banks
in India with extraordinary reference to more fragile areas. The investigation is established on
the optional information recovered from Report on Trend and Progress of Banking in
India.The extent of the examination will the investigation of NPAs of everybody area bank
sand private segment banks NPAs with respect to just more vulnerable segments for enough
time seven (7) years for example from 2004-2010. It inspects pattern of NPAs in more
vulnerable segments in both open part and private area banks .The information has been
examined by measurable devices, for example, rates and Compound Annual Growth Rate
(CAGR). The insightful examination saw that everybody segment banks have accomplished a
progressively considerable infiltration in correlation with private area banks opposite the
more vulnerableareas.

Audit 7

NONPERFORMING ASSETS OF PUBLIC AND PRIVATE SECTOR

BANKS (A COPARATIVE STUDY)

KAMALPREET KAUR ; BALRAJ SINGH

Unique

10
Non-performing assets are among the genuine stresses for banks in India. NPAs reflect the
execution of banks. An anomalous province of NPAs proposes high chances of an impressive
number of credit defaults that impact the profitability and all out resources of banks and in
addition breaks down the estimation of the force. The need is roofed by The NPAs
improvement of game plans, which decreases the general advantages and financial specialists'
regard. The issue of Non-Performing Assets has been examined at long last for budgetary
structure wherever through the whole India. The issue of NPAs isn't just impacting the banks
yet and furthermore the whole economy. To be sure strange province of NPAs in Indian
banks is an impression of the strength of adequacy of the business undertaking and trade. The
Indian financial part is going up against a generous issue of NPAs. The measure of NPAs is
comparativelyhigher with no attempt at being subtle parts banks. To improve the efficiency
and profit, the NPAs ought to be arranged. Various advances have just been taken by
government to diminish the NPAs. It is very hard to have zero rate NPAs. In any full case, in
any event Indian banks may try battling with remote banks to keep up internationalstandard.
The issue of mishaps and lower beneficial thing about Non-Performing Assets (NPAs) and
commitment bungle in banks and money related part trust how various perils are managed
inside their business. An undertaking is fabricated in the paper thatwhat is NPAs? The
components expanding NPAs, the degree of NPAs, purposes behind high NPAs and their
effect on Indian financial undertakings. Aside from capital torisk weight age assets extent of
Public and Private portion banks, organization ofcredit danger and measures to direct the
danger of NPAs are in like manner talkedabout

11
NON-PERFORMING ASSETS OF PUBLIC AND PRIVATE SECTOR BANKS

ThestandardofIndianbanks‟resourceswillmostlikelydisintegrateoveranother2yrs.Thiswill be
driven by the log jam all through the market, and by the maturing of advances produced in
present day times. The NPAs are accepted as a critical parameter to guage the exhibition and
money related soundness of banks. The measure of NPAs is among the drivers of budgetary
security and development of the financial division. The Financial organizations and
establishments are these days confronting an issue of dealing with the Non-Performing Assets
(NPAs) as these benefits are demonstrating to become significant difficulty for the
development of the economy. NPAs in basic words could be thought as the borrower won't
pay head and enthusiasm for an interim of 180 days. However,it truly is mulled over given
that default status will be aimed at a borrower if levy aren't paid for 3 months. On the off
chance that any development or credit office allowed by the loan specialist to a borrower
becomes nonperforming, at that point the bank should treat the entirety of the advances/credit
offices conceded contrasted with that borrower as non-performing with no any respect to the
undeniable reality that there may in any case exists certain advances/credit offices having
performingstatus.

Survey 8

The board OF NON-PERFORMING ASSETS IN COMMERCIAL

BANKS KIRANKUMAR

The most destructive issue standing up to business banks wherever over the world of late is
spiraling non-performing assets (Naps) which are impacting their practicality and
dissolvability and right now test with their authoritative endurance. Rests horribly impact
advancing activity of banks as non-recovery of advance part as in like manner excitement on
the advance portfolio invalidates the reasonability of credit-organization process. Non-
recovery of Loans hurt the benefit of banks in like manner. Moreover, manages an account
with anomalous province of Nap's must have an excess of had sponsors by path for capital
and make recoveries and game plan likewise to offer cushion to the credit mishaps. Banks
need to accounts for it on Naps from the pay learned by them on performingpronounces.

12
Before long, irregular territory of Naps in advance course of action of banks ensure they are
sensitive driving at long last with their failure. This will shake conviction both of nearby and
overall examiners in the financial structure that will have multiplier sway getting disaster the
economy. Along these lines, regulating horrible advances and keeping them leastwise
possible level is essential for banks. It might be noted at this stage world class banks don't
have Naps more prominent than 2% of total portfolio. A NPA level of significantly over 5%
is marker of poor of advance portfolio. With creating competition and Shrinking spreads
banks should attempt to keep Naps much inside the degree of 10% to make net gain required
for their endurance and improvement. It affected by various features just, for example,
starting components. Outer and Inner components RBI must make the basic steps for
accursed theNPAS

Audit 9

Productivity AND CREDIT CULTURE OF NPAS:

NAMITA RAJPUT; MONIKA GUPTA; MR. AJAY KUMAR CHAUHAN

Unique

Post change period has changed the total structure of banking segment of India. The rising

rivalry has prompted new difficulties for the Indian banks. Consequently, parameters for
assessing the presentation of banks have changed. This paper has an exact technique for the
examination of gainfulness markers with an inside point on non-performing resources
(NPAs) of business banks in the Indian setting. The paper examines NPA, Factors adding to
NPA, Consequences and Magnitude. Using scientific point of view, the paper saw that NPAs
influenced to the exhibition of the banks in the fundamentally present situation. Be that as it
may, factors like better credit culture, dealing with the opportunity and business conditions
which bring about bringing down of NPAs. The experimental discoveries utilizing perception
strategy and factual instruments like DEA, connection, information and relapse portrayal
strategies, found that there doubtlessly is a poor connection between productivity nPAs
andmeasure.

Effect of NPAS on Banking activities

13
 The effectiveness of a bank isn't reflected uniquely by how large is its accounting report yet
in addition by the

level of profit for its advantages. The NPAs as a rule don't produce premium salary for banks.
At the equivalent

time, banks must give arrangements to NPAs from their present benefits. The

NPAs have malicious impact on the arrival on resources in the following ways:

1. The premium salary of banks will fall in reality it is to be accounted uniquely on receipt
premise.

2. Banks benefit is influenced because of the giving of dubious obligations and

unfavorably subsequent to discounting it asobligation.

3. Profit for speculations (ROI) isdecreased.

4. The regulatory focus sufficiency proportion is upset as NPAs enter itsestimation.

5. The cost of capital will upgo.

6. Obligation and Asset bungle willenlarge.

7. It limits reusing of the assets.

Proposals

Capturing slippage of records through tenacious spotlight and observing on the

ceaseless feasibility of the acquiring apprehensive about improved resource arrangement is
must. All the while all records in the commonplace classification should never to be taken for
conceded and ought to experience periodical and inside and out audit in a methodical
way through a sound satisfactory advance survey component set up.
Categorization of standard records directly into a, B, C predicated on genuine recuperation
ofintriguefurthermore, portions due, can support an engaged and reinforced checking.
Ø Banks should ensure that they should move with speed and accused offorce
in arranging off losing resources. It is on the grounds that as vulnerability increments with the
section of time, there is all likelihood that the recoverable estimation of benefit diminishes
moreover

what's more, it can't get great cost. Whenever went up against with such a circumstance
contrasted with the very reason for getting assurance underneath the Securitization Act, 2002
will be crushed and theexpectation of seeing a flat out must have developing financial part
can just evaporate.

14
Bank ought to comply with "Know Your Customer" standards for distinguishing proof of
borrower,underwriter and confirmation of their addresses to diminish the opportunity of
default in case oflodging area loaning. Agreeing of horticultural advances, recuperation camp
should be
sorted out through the gather season.

Audit 10
Credit AND NPA MANAGEMENT
MR KUMAR RAJESH, MR GUPTA KAMLESH

A credit is a sort of obligation. Like all obligation instruments, financing involves the
redistribution of money related resources over the long haul, between your loan specialist and
the borrower. Non-performing resources, called non-performing advances additionally, are
advances, made by an account or bank organization, which premium or reimbursements
installments aren't being made instantly. The most catastrophic issue confronting banks over
the world as of late is spiraling non-performing resource (NPA). Which are influencing their
suitability and dissolvability and presenting challenge with their definitive endurance in this
way. NPA antagonistically influence loaning movement of banks as non-recuperation
ofadvance

portion as likewise enthusiasm on the advance portfolio invalidates the intensity of credit -
administration process. Non recuperation of advance hurt the benefit of banks additionally,
other than keeps money with cutting edge of NPA need to convey holds and arrangement
likewise to give pad to advance misfortunes. Banks need to make arrangements on NPA from
out of pay learned by them on performing resource

15
 CHAPTER-3

INDUSTRY AND

COMPANY PROFILE

16
COMPANY PROFILE

The Kotak Mahindra Group was conceived in 1985 as Kotak Capital Management Finance
Limited. This organization was advanced by UdayKotak, Sidney A. A. Pinto and Kotak and
Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that
is the point at which the organization changed its name to Kotak Mahindra Finance Limited.

Since then it’s been a steady and confident journey to growth and success.

1986: - Kotak Mahindra Finance Limited starts the activity of

BillDiscounting. 1987: - Kotak Mahindra Finance Limited enters the lease and

hirepurchase
market.

1990: - The Auto Finance Division isstarted.

1991: - The Investment Banking Division is

started. 1992: - Enters the Funds Syndicationsector.

1995: - Brokerage and Distribution Businesses incorporated in to a

separate company - Kotak Securities Investment Banking Division
incorporated intoa
separate company – Kotak Mahindra Capital Company.

1996: - The Auto Finance Business is hired off into a separate company –
Kotak Securities investment Banking Division Incorporated into aseparate
company - Kotak Mahindra Capital Company.

1998: - Enters the Mutual Fund Marker with the launch of Kotak Mahindra
asset ManagementCompany.

2000: - Kotak Mahindra tie up with old Mutual PIC for the
lifeinsurance business.
Kotak Securities launches its on-line broking site ( www.kotaksecurities
.com )

2001: - Matrix sold to Friday Corporation launches insuranceServices

2003: - Kotak Mahindra Finance Limited converts to a Commercial

Bank – The first Indian Company to doso.
17
2004: - Launches India growth fund, a private equityfund.

2005: - Kotak group realigns Joint Ventures in ford credit; Buys Kotak
Mahindra prime and sells ford credit KotakMahindra.

Launches a Real-estate Fund.

CORPORATE HIERARCHY

Corporate Manager

Branch Manager

Dealer (user)

18
 CHAPTER-4

DATA ANALYSIS AND INTERPREATION

19
 DATA ANALYSIS
% of Gross NPA: Gross NPA is the amount outstanding in the borrowed account, in books
of the bank other than the interest which has been recorded and not debited to the borrowed
account.

Gross NPAs Ratio = Gross NPAs / Gross

Advances

% of Gross NPA:

Year 2016 2015 2014 2013 2012 Mean SD

SBI 6.5 4.25 4.95 4.75 4.44 4.978 0.798584
PNB 13 6.55 5.25 4.27 2.93 6.4 3.506645
KOTAK 6 4 0 0 0 2 2.529822
HDFC 1 1 1 1 1 1 0

0.03927

% of Gross NPA

20
 Chart 1: Gross NPA

ANOVA
df SS MS F Significan
ce F
Regressi 1 135.859 135.85 4.7482 0.060953
on 6 96 3
Residual 9 257.514 28.612
3 69
Total 10 393.373
9

Coefficie Standard t Stat P-value Lower Upper Lower Upper

nts Error 95% 95% 95.0% 95.0%
Intercept 0 #N/A #N/A #N/A #N/A #N/A #N/A #N/A
KOTAK 1.54386 0.70850 2.1790 0.0572 -0.05889 3.1466 - 3.1466
3 43 64 06 0.0588 06
9

21
 Chart Title
SBI PNB ICICI HDFC

13

6.5 6.55
6
54.295
4.75 4.44
4 25 4.27
2.93

1 1 1 1 1
0 0 0
2016 2015 2014 2013 2012

Translation:

From the above table and framework we can decipher that the gross NPA extent of PNB is
hardly extending. The gross NPA extent of SBI was 3.28 of each 2011 and after that
extendedto
4.44 out of 2012. In the year 2013 extent was 4.75 and a while later extended to 4.95. In 2015
extent was declined to 4.25. The gross NPA extent of PNB in 2012 was 1.79, 2.93. In the
year 2013 and 2014 it was 4.27, 5.25. In 2015 it was 6.55,in 2016 it was 13.KOTAK started
this example in 2015 with 4 and 2016 it was 6.5.HDFC kept up reliable 1 from 2012-216

T-test regard is 2.17 which is over the significance level for example 0.306. So the theory is
to be recognized. There is no basic complexity of NPA on general execution between open
part and private banks. There is no colossal differentiation on efficiency in administering
NPA between open division and private banks.

% of Net NPA:

Net NPAs is the proportion of gross NPAs less (1) interest charged to borrowal and not
recovered and not saw as pay and kept in interest pressure (2) proportion of courses of action
heldinrespectofNPAsand(3)proportionofguaranteegotandnotappropriated.TheReserve

22
Bank of India describes Net NPA as Net NPA = Gross NPA – (Balance in Interest Suspense
account + DICGC/ECGC claims got and held pending adjustment + Part portion got and kept
in expectation account + Total courses of action held).

Net NPAs are found out by diminishing all out change of courses of action extraordinary at a
period end from net NPAs. Higher extent reflects rising dreadful nature of advances.

NPA extent = Net non-performing assets/Loans given

The Reserve Bank of India Banks has urged the banks to process their Gross Advances, Net
Advances, Gross NPAs and Net NPAs as per the going with forma .

23
% of Net NPA:

Year 2016 2015 2014 2013 2012 Mean SD

SBI 3.81 2.12 2.57 2.1 1.82 0.788435
PNB 9 4.06 2.85 2.35 1.52 3.22 2.669859
KOTAK 3 2 1 1 1 0.934 0.844941
HDFC 0.21 0.1 0.75 0.25 0.03 0.283231
-
0.15382

24
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.550258
R Square 0.302784
Adjusted 0.191673
RSquare
Standard 3.372027
Error
Observatio 10
ns

ANOVA
df SS MS F Significan
ce F
Regression 1 44.4417 44.441 3.9084 0.083437
1 71 87
Residual 9 102.335 11.370
1 57
Total 10 146.776
8

Coefficie Standar t Stat P-value Lower Upper Lower Upper

nts dError 95% 95% 95.0% 95.0%

PVT 1.63229 0.82564 1.9769 0.0794 -0.23545 3.5000 - 3.5000

4 89 44 27 0.2354 27
5

25
 Table 2: NetNPA

Chart 2: NetNPA

Chart Title
SBI PNB Kotak HDFC

3.81 4.06
3 2.8557
2 12 2.135
1 1.82
1.52
01.75
0.25 1
0.21 0.1 2013 0.03
2016 2015 2014 2012

Translation:

From the above table and chart we can interpret that the net NPA extent of PNB is to some
degree growing. The net NPA extent of SBI was extended to 1.82 out of 2012. In the year
2013 extentwas
2.10 and a while later extended to 2.57. In 2015 extent was
declinedto2.12.ThenetNPAextentofPNBin2012was0.65,
1.52.Intheyear2013and2014itwas2.35,2.85.In2015itwas
4.06 in private division banks HDFC is kept up underneath 1 edge 2012-2016.KOTAK bank
in the hour of 2012 1 and 2013 similarly kept up 1 Comparing with Public confined banks
private banksare

26
kept up incredible NPA.

T-test regard is 1.97 which is over the centrality level for example
0.30. So the theory is to be recognized. There is no enormous differentiation of NPA on
general execution among SBI and PNB. There is no immense differentiation on profitability
in administering NPA between private fragment and open division banks.

Profit for resources (ROA):

Profits for resource proportion is the overall gain (benefits) created by the bank on its all out
resources (counting fixed resources). The higher the extent of normal income resources, the
better would be the subsequent profits for all out resources. Essentially, ROE (returns on
value) demonstrates returns earned by the bank on its all out totalassets.

27
 ROA = Net profits / Avg. total assets
Return on Assets %:

Year 2016 2015 2014 2013 2012 Mean SD

SBI 0.44 0.76 0.65 0.91 0.88 0.191233
PNB -0.59 0.53 0.64 1 1.19 0.641 0.620714
KOTAK 1.34 1.72 1.64 1.55 1.36 1.599 0.153767
HDFC 1.73 1.73 1.72 1.68 1.52 0.08961
-
0.29251

Chart 3: Return on Asset

Return on Asset
SBI PNB Kotak HDFC

1.73 1.732 1.7624 1.68

1.55 1.52
1.34 1.36
1.19
1
0.91 0.88
0.76
00..6645
0.53
0.44

2016 2015 2014 2013 2012

-0.59

28
SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.792264
R Square 0.627682
Adjusted 0.516571
RSquare
Standard 0.508519
Error
Observatio 10
ns

ANOVA
df SS MS F Significan
ce F
Regressio 1 3.92357 3.9235 15.172 0.004575
n 5 75 86
Residual 9 2.32732 0.2585
5 92
Total 10 6.2509

Coefficie Standar t Stat P-value Lower Upper Lower Upper

nts dError 95% 95% 95.0% 95.0%
Intercept 0
PVT 0.390176 0.10016 3.8952 0.0036 0.163582 0.6167 0.1635 0.6167
8 36 46 71 82 71

29
Understanding:
From the above table and diagram we can interpret that the appearance on asset extent of
PNB is reducing. The ROA extent of SBI was and after that extended to 0.88 of each 2012. In
the year 2013 extent was 0.91 and after that 0.65 out of 2014. In 2015 extent was declined to
0.76. In 2016 extent was declined to - 0.59 The ROA extent of PNB in 2012 was 1.34, 1.19.
In the year 2013 and 2014 it was 1, 0.64. In 2015 it was 0.53. KOTAK was and after that
extended to 0.88 of each 2012. In the year 2013 extent was 0.91 and after that 0.65 out of
2014. In 2015 extent was declined to 0.76. In 2016 extent was declined to -0.59
T-test regard is 0.91379 which is over the centrality level for example 0.306. So the
hypothesis is to be recognized. There is no important complexity of NPA on general
execution among SBI and PNB. There is no tremendous complexity on efficiency in directing
NPA among SBI and PNB. Profit for Net Worth:
Profit for value (ROE) is a proportion of benefit that figures what number of dollars of benefit an
organization produces with every dollar of investors' value.
ROE is in some cases called "return on total assets."
Profit for Net Worth (RONW) is utilized in money as a proportion of an organization's
benefit RONW = Net Income/Shareholders' Equity

30
 Return on Net Worth (%):

Year 2016 2015 2014 2013 2012 Mean SD

SBI 6.89 10.2 9.2 14.26 13.94 3.161933
PNB -11.2 8.12 9.69 15.19 18.52 10.898 10.39759
KOTAK 11.19 13.89 13.39 12.48 10.7 10.197 1.505165
HDFC 16.91 16.47 19.5 18.57 17.26 1.256849
-0.2251

SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.750001
R Square 0.562501
Adjusted 0.45139
RSquare
Standard 8.518656
Error
Observatio 10
ns

ANOVA
df SS MS F Significan
ce F
Regressio 1 839.712 839.71 11.571 0.009337
n 8 28 47
Residual 9 653.107 72.567

31
 5 5
Total 10 1492.82

Coefficie Standar t Stat P-value Lower Upper Lower Upper

nts dError 95% 95% 95.0% 95.0%
Intercept 0 #N/A #N/A #N/A #N/A #N/A #N/A #N/A
pvt 0.598035 0.17580 3.4016 0.0078 0.200335 0.9957 0.2003 0.9957
5 87 52 34 35 34

32
 Chart 4: Return on net worth

25

20

15

10
SBI
5 PNB ICICI HDFC

20162015201420132012
-5

-10

-15

Understanding:

From the above table and graph we can decipher that the arrival on total assets proportion of
PNB and SBI are diminishing. The arrival on total assets proportion of SBI was 11.34 in
2011 and afterward expanded to 13.94 in 2012. In the year 2013 proportion was 14.26 and
afterward diminished to 9.2. In 2015 proportion was 10.2. The arrival on total assets
proportion of PNB in
2011and2012was22.12,18.52.Intheyear2013and2014itwas15.19,9.69.In2015itwas
8.12.ProfitforNetWorthconnectionbetween'sprivatesegmentbanksandopensegmentbanks
- 0.2251

T-test esteem is 3.40 which is beneath the centrality level for example 0.306. So the theory is
to be dismissed. There is critical contrast of NPA on in general execution between private
segment banks and open segment banks . There is noteworthy contrast on productivity in
overseeing NPA between private segment banks and open area banks.

33
 CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSION

34
Discoveries of NPA translation

Gross NPA of Public division banks is higher than the private section banks which
shows its organizationviability.

Net NPA of PNB is higher than the SBI which reveals its extraordinaryposition.

Return on assets of PVT banks is lower than Public anyway it is declining. In the
event that there ought to emerge an event of PNB it isn't as much as SBI
anywaygrowing.

Return on all out resources of SBI is higher yet in the event that there ought to be an
event of PNB is growing where as it is declining if there ought to emerge an event ofSBI

A record Rs 30,313-crore flood in clingy advances yanked State Bank of India's March
quarter net advantage around 66% anyway the wide therapeutic action earned
recognitions from budgetary pros. The stock rose 6.42% to close at Rs 195.55 on the
BSE on 2016 as advantage hung to Rs 1,264 crore, underneath wants. The state-had
banking bellwether said it had put another Rs 31,350 crore of favorable circumstances
on the watch list, as per the Reserve Bank of India's structure to moneylenders to c
..Many of the credits delegated fresh non-performing assets (NPAs) have been given to
units that are so far working yet are concerned as a result of nonattendance ofcash

Age, a situation that can be exchanged if there's an adjustment in the economy, envision
that acknowledge advancement will relate for 13-14% this budgetary .positive
pondering extending theory driving fiscal activity. SBI's working advantage developed
11.2% year- on-year to Rs 14,192 crore in the quarter. A 15% drop in treasury pay to
Rs 1,400 cr due to lifted security yields and a unimportant 3.9% climb in net premium
compensation at Rs 15,291 cr included to the strain benefits.

35
Suggestions:

The organization of banks may offer getting ready to the experts in the art of crediting
to the different classes and they may continue empowering updating their
understanding and capacities in recovering the advances and advances.

36
Bank organization may have explicit FICO appraisal associations to complete the
obtaining furthest reaches of the potential borrowers beforehand offering credit to the
poor people.

Steps ought to be taken to recover the advance in time by grasping all around arranged
recovery segment.

There is an off-base inclination in the cerebrums of the farmers that cultivating credit
may be conceded one day or other. In this manner, the horticulturalist who can repay
the agrarian credit may not way to deal with repay the advances in time. Thusly the
farmers in our country requires an extensive proportion of prompting and the bank
officials busy with this development should give basic urging and managing.

Effect of NPA:

NPA influence the execution and advantage of banks. The most striking impact of NPA
is change in financier's emotions which may square credit augmentation to beneficial
explanation. Banks may incline towards more risk free theories to keep up a key good
ways from and decline threat, which isn't useful for the advancement of economy. If the
degree of NPAs isn't controlled advantageous theywill:

O Reduce the triumphant furthest reaches of preferences and seriously impact the
ROI.

O The cost of capital will goup.

O The assets and commitment screw up willexpand.

O Higher provisioning essential on mounting NPAs horribly impact capital

abundancy extent and banksbenefit.

O The money related regard builds (EVA) by banks gets angry considering the
way that EVA is identical to the net working advantage short expense ofcapital.

O NPAs causes to lessen the estimation of offer to a great extent even underneath
their book a motivator in the capitalmarket.

O NPAs impact the danger standing up to limit ofbanks.

37
As NPA has a crucial impact in productivity and execution estimation of a bank so a
bank should constantly have a power over it according to the disclosures, the Gross
NPA of SBI is higher so it requires diminishing the gross NPA by capable
recoveryorganization.

End

The issue of Non-Performing Assets (NPAs) is a huge issue and risk to the private division
banks and open fragment banks, since it wrecks the sound budgetary spots of them. The
customers and general society would not keep trust on the banks any more if the banks have
higher pace of NPAs. Thusly, the issue of NPAs must be dealt with in such a manner, to the
point that would not crush the cash related positions and impact the image of thebanks.

The RBI and the Government of India have figured out how to decrease the volume of NPAs
of the private territory banks and open fragment banks . The recuperating estimates taken by
Government of India, Reserve Bank of India and the Bank organization starting late,
diminished NPAs essentially as proposed by Shri M. Narasimham. To upgrade the capability
and advantage, the NPA must be diminished further.

A couple of Strategies to be trailed by Banks for diminishing NPA can be given as underneath:

• Notices.

• Guarantor consequent meet-ups.

• Telephone.

• Newspaper presentation for credits of more than fivelakhs.

• Propertyseizes.

• RecoveryCertificate.

• Courtcase.

• Debt Recovery Tribunal ought to realize to recover theNPAs

• Banks should be very wary in considering settlement exchange offproposals

38
• Banks should try to introduce a course of action of internal survey of support of
credits before installment for far reachingmidpoints.

The organization of nonperforming assets is a staggering task for each Bank in the Banking
industry. The imperative explanation and requirement for organization of NPA is relied upon
to their multi dimensional impact on the exercises, execution and position of bank. Eventual
outcomes of focus through light fair and square of nonperforming assets of private part banks
and open zone banks .It is found that degree of NPAs both gross and net is on an ordinary in
upward example in SBI anyway sliding example for KOTAK Bank for one year then upward
example in second year. The non performing asset is an essential issue and impediment
looked by banking industry. Willful defaults, inappropriate planning of advance proposals,
poor checking and so forth are the purposes behind speaks to finding a good pace. NPAs
impact the circumstance and likewise execution in a couple of courses, for instance, interest
pay, advantages, and game plans against NPA‟s and whatnot. Subsequently steps should be
taken to fix this issue at soonest and in a powerfulmanner.

The total aggregate of Gross Non-Performing Assets (NPAs) for open and private section
banks is around Rs. 6 lakh crore. The NPA figures close by signify commitment for every
one of the 49 open and private part banks were shared by the Ministry of Finance considering
a Parliament question on Friday.

The proportion of best twenty Non Performing Assets (NPA) records of Public Sector Banks
stays at Rs. 1.54 lakh crores.

The advances given by banks are called assets, which produce wage by methods for
premiums and partitions. If the part isn't paid until the due date, it is known as an awful
credit. If it loosens up recent days, it is named NPA. The extent of NPAs to indicate impels
given by a bank is a for the most part used marker reflecting the quality of the financial
system.

In preeminent terms, State Bank of India has the most significant estimation of Gross NPA
around Rs. 93,000 crores. Punjab National Bank (Rs. 55,000 crores) and Bank of India (Rs.
44,000 crores) come straightaway.

39
Specific measures have been taken for sections where the pace of NPA is high, the
lawmaking body said in view of the parliament question. To improve the assurance or
recovery of bank advances, IBC (Insolvency and Bankruptcy Code) has been requested and
SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest) Act and RDDBFI (Recovery of Debts as a result of Banks and Financial
Institutions) have been updated, the response said. Further, six new Debt Recovery Tribunals
(DRTs) have been developed for improving recovery.

40
BIBILOGRAPHY

http://www.rbi.co.in/data/1/reservebankofindia.

htmlhttp://en.wikipedia.org/wiki/Non-

performing_asset

1. Annual reports ofhdfc

2. Annual reports ofpnb

3. Annual reports ofsbi

4. Annual reports of Kotak

Avkiran. N.K. (1999) "The Evidence of Efficiency Gains: The Role of Mergers and the
Benefits to the Public", Journal of Banking and Finance, Vol. 23,pp 991-1013.

Bhatia. S. what's more, Verma. S. (1998-99) "Elements Determining Profitability of Public

Sector Banks in India: An Application of Multiple Regression Model", Pranjan, Vol. XXVII
(4), pp433-445.

Chidambaram. R.M. what's more, Alamelu. K. (1994)"Profitability in Banks, a matter of

Survival", The Banker, May, 18, pp 1-3.

Kaveri. V. S. (2001) "Anticipation of NPA Suggested Strategies", Vinimaya, 23 (8).

Prashanth. K. Reddy. (2002) "A near investigation of Non-performing Assets in India in the
worldwide setting – similitudes and dissimilarities, healing measures", CYTL Paper, Indian
Institute of Management, Ahmedabad.

Ramu. N. (2009) "Measurements of Non-performing Assets in Urban Cooperative Banks in

Tamil Nadu", Global Business Review, July/December,10(2) Pp 279-297.

41
State Bank of India »
StandaloneBalanceSheet------------------- in Rs. Cr.-------------------
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12
12 mths 12 mths 12 mths 12 mths

Capital and Liabilities: 671.04

Total Share 776.28 746.57 746.57 684.03
Capital
Equity Share 776.28 746.57 746.57 684.03 671.04
Capital
Reserves 143,498.16 127,691.65 117,535.68 98,199.65 83,280.16
Net Worth 144,274.44 128,438.22 118,282.25 98,883.68 83,951.20
Deposits 1,730,722.44 1,576,793.24 1,394,408.51 1,202,739.57 1,043,647.36
Borrowings 224,190.59 205,150.29 183,130.88 169,182.71 127,005.57
Total Debt 1,954,913.03 1,781,943.53 1,577,539.39 1,371,922.28 1,170,652.93
Other Liabilities 159,875.57 137,698.05 96,412.96 95,455.07 80,915.09
& Provisions
Total Liabilities 2,259,063.04 2,048,079.80 1,792,234.60 1,566,261.03 1,335,519.22
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths 12 mths

Assets 54,075.94
Cash & Balances 129,629.33 115,883.84 84,955.66 65,830.41
with RBI
Balance with 37,838.33 58,977.46 47,593.97 48,989.75 43,087.23
Banks, Money at
Call
Advances 1,463,700.42 1,300,026.39 1,209,828.72 1,045,616.55 867,578.89
Investments 477,097.28 495,027.40 398,308.19 350,927.27 312,197.61
Gross Block 9,819.16 9,329.16 8,002.16 6,595.71 5,133.87
Net Block 9,819.16 9,329.16 8,002.16 6,595.71 5,133.87

42
Capital Work In 570.12 0.00 0.00 409.31 332.68
Progress
Other Assets 140,408.41 68,835.55 43,545.90 47,892.03 53,113.02
Total Assets 2,259,063.05 2,048,079.80 1,792,234.60 1,566,261.03 1,335,519.24

Contingent 1,064,167.65 1,093,422.51 1,091,358.37 993,018.45 899,565.18

Liabilities
Book Value (Rs) 185.85 172.04 1,584.34 1,445.60 1,251.05

43
State Bank of India Previous Years »

Standalone Profit &

Loss account ------------------- inRs. Cr. -------------------
Mar 16 Mar 15 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths

INCOME 90,537.10
Interest / Discount on 115,666.01 112,343.91 112,343.91 102,484.10
Advances / Bills
Income from Investments 42,303.98 37,087.77 37,087.77 31,941.87 27,200.63
Interest on Balance with 621.07 505.12 505.12 409.31 545.14
RBI and Other Inter-Bank
funds
Others 5,094.25 2,460.27 2,460.27 1,515.52 1,374.23
Total Interest Earned 163,685.31 152,397.07 152,397.07 136,350.80 119,657.10
Other Income 28,158.36 22,575.89 22,575.89 18,552.92 16,034.84
Total Income 191,843.67 174,972.96 174,972.96 154,903.72 135,691.94
EXPENDITURE 75,325.80
Interest Expended 106,803.49 97,381.82 97,381.82 87,068.63
Payments to and 25,113.82 23,537.07 23,537.07 22,504.28 18,380.90
Provisions for Employees
Depreciation 1,700.30 1,116.49 1,116.49 1,333.94 1,139.61
Operating Expenses 14,968.24 14,024.08 14,024.08 11,887.63 9,763.91
(excludes Employee Cost
&Depreciation)
Total Operating 41,782.37 38,677.64 38,677.64 35,725.85 29,284.42
Expenses
Provision Towards Income 3,577.93 6,689.95 6,689.95 4,227.47 5,951.06
Tax
Provision Towards 245.47 -477.56 -477.56 1,055.25 -107.97
Deferred Tax

44
Provision Towards Other 0.00 0.00 0.00 0.00 2.82
Taxes
Other Provisions and 29,483.75 19,599.54 19,599.54 15,935.35 11,130.83
Contingencies
Total Provisions and 33,307.15 25,811.93 25,811.93 21,218.07 16,976.74
Contingencies
Total Expenditure 181,893.01 161,871.39 161,871.39 144,012.55 121,586.96
Net Profit / Loss for The 9,950.65 13,101.57 13,101.57 10,891.17 14,104.98
Year
Net Profit / Loss After EI 9,950.65 13,101.57 13,101.57 10,891.17 14,104.98
& Prior Year Items
Profit / Loss Brought 0.32 0.32 0.32 0.34 0.34
Forward
Total Profit / Loss 9,950.98 13,101.89 13,101.89 10,891.51 14,105.32
available for
Appropriations
APPROPRIATIONS 4,417.86
Transfer To / From 2,985.20 4,029.08 4,029.08 3,339.62
Statutory Reserve
Transfer To / From Capital 345.27 0.00 0.00 0.00 19.17
Reserve
Transfer To / From 4,267.35 5,994.56 5,994.56 5,013.40 6,453.26
Revenue And Other
Reserves
Dividend and Dividend 0.01 0.00 0.00 0.01 0.00
Tax for The Previous Year
Equity Share Dividend 2,018.32 2,557.28 2,557.28 2,239.71 2,838.74
Tax On Dividend 334.51 520.65 520.65 298.45 375.95
Balance Carried Over To 0.32 0.32 0.32 0.32 0.34
Balance Sheet

45
Total Appropriations 9,950.98 13,101.89 13,101.89 10,891.51 14,105.32
OTHER INFORMATION
EARNINGS PER SHARE 210.06
Basic EPS (Rs.) 12.98 17.55 18.00 156.76
Diluted EPS (Rs.) 12.98 17.55 18.00 156.76 210.06
DIVIDEND PERCENTAGE
Equity Dividend Rate (%) 260.00 350.00 350.00 300.00 415.00

46
Punjab National Bank Previous Years »

Standalone Balance Sheet ------------------- inRs. Cr. -------------------

Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share 392.72 370.91 362.07 353.47 339.18
Capital
Equity Share 392.72 370.91 362.07 353.47 339.18
Capital
Reserves 35,072.64 37,321.06 34,125.07 30,894.58 26,028.37
Net Worth 35,465.36 37,691.97 34,487.14 31,248.05 26,367.55
Deposits 553,051.13 501,378.64 451,396.75 391,560.06 379,588.48
Borrowings 59,755.24 45,670.55 48,034.41 39,620.92 37,264.27
Total Debt 612,806.37 547,049.19 499,431.16 431,180.98 416,852.75
Other Liabilities 16,273.94 17,204.89 15,093.44 15,019.15 13,524.18
& Provisions
Total Liabilities 664,545.67 601,946.05 549,011.74 477,448.18 456,744.48
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash &Balances 26,479.07 24,224.94 22,245.58 17,886.25 18,492.90
with RBI
Balance with 47,144.02 31,709.23 22,972.87 9,249.13 10,335.14
Banks, Moneyat
Call
Advances 412,325.80 380,534.40 349,269.13 308,725.21 293,774.76
Investments 157,845.89 151,282.36 143,785.50 129,896.19 122,629.47
Gross Block 5,222.73 3,551.48 3,419.74 3,357.68 3,168.86

47
Revaluation 2,844.78 1,387.55 1,408.18 1,428.85 1,449.53
Reserves
Net Block 2,377.95 2,163.93 2,011.56 1,928.83 1,719.33
Other Assets 18,372.94 12,031.19 8,727.10 9,762.58 9,792.88
Total Assets 664,545.67 601,946.05 549,011.74 477,448.19 456,744.48

Contingent 359,017.11 293,586.00 238,008.93 231,810.55 224,750.05

Liabilities
Book Value (Rs) 180.61 203.24 952.50 884.03 777.39

48
Punjab National Bank Previous Years »

Standalone Profit & Loss

------------------- in Rs. Cr. -------------------
account

Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Interest Earned 47,424.35 46,315.36 43,223.25 41,893.33 36,428.03
Other Income 6,877.02 5,890.73 4,576.71 4,215.92 4,202.60
Total Income 54,301.37 52,206.09 47,799.96 46,109.25 40,630.63
Expenditure
Interest expended 32,112.57 29,759.79 27,077.28 27,036.82 23,013.59
Employee Cost 6,425.95 7,336.91 6,510.45 5,674.72 4,723.48
Selling, Admin &Misc 19,341.52 11,677.58 10,517.26 8,331.53 7,717.10
Expenses
Depreciation 395.73 370.23 352.39 318.50 292.26
Operating Expenses 9,972.46 10,491.55 9,338.21 8,165.05 7,002.75
Provisions & 16,190.74 8,893.17 8,041.89 6,159.70 5,730.09
Contingencies
Total Expenses 58,275.77 49,144.51 44,457.38 41,361.57 35,746.43
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year -3,974.40 3,061.58 3,342.58 4,747.67 4,884.20
Total -3,974.40 3,061.58 3,342.58 4,747.67 4,884.20
Equity Dividend 0.00 627.98 362.07 954.38 746.19
Corporate Dividend Tax 0.00 106.72 58.66 162.20 121.05
Per share data (annualised)

49
Earning Per Share (Rs) -20.24 16.51 92.32 134.31 144.00

Equity Dividend (%) 0.00 165.00 100.00 270.00 220.00

Book Value (Rs) 180.61 203.24 952.50 884.03 777.39
Appropriations
Transfer to Statutory -3,974.40 2,326.88 2,921.85 3,631.10 4,016.96
Reserves
Transfer to Other 0.00 0.00 0.00 -0.01 0.00
Reserves
Proposed 0.00 734.70 420.73 1,116.58 867.24
Dividend/Transfer to
Govt
Total -3,974.40 3,061.58 3,342.58 4,747.67 4,884.20

50
HDFC Bank Previous Years »

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 16 Mar 15 Mar 15 Mar 14 Mar 13

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share 505.64 501.30 501.30 479.81 475.88
Capital
Total Share 505.64 501.30 501.30 479.81 475.88
Capital
Reserves and 72,172.13 61,508.12 61,508.12 42,998.82 35,738.26
Surplus
Total Reserves 72,172.13 61,508.12 61,508.12 42,998.82 35,738.26
and Surplus
Total 72,677.76 62,009.42 62,009.42 43,478.63 36,214.15
ShareHolders
Funds
Deposits 546,424.19 450,795.64 450,795.64 367,337.48 296,246.98
Borrowings 53,018.47 45,213.56 45,213.56 39,438.99 33,006.60
Other Liabilities 36,725.13 32,484.46 32,484.46 41,344.40 34,864.17
and Provisions
Total Capital 708,845.57 590,503.07 590,503.07 491,599.50 400,331.90
and Liabilities
ASSETS
Cash and 30,058.31 27,510.45 27,510.45 25,345.63 14,627.40
Balances with
Reserve Bankof
India

51
Balances with 8,860.53 8,821.00 8,821.00 14,238.01 12,652.77
Banks Money at
Call and Short
Notice
Investments 163,885.77 166,459.95 166,459.95 120,951.07 111,613.60
Advances 464,593.96 365,495.03 365,495.03 303,000.27 239,720.64
Fixed Assets 3,343.16 3,121.73 3,121.73 2,939.92 2,703.08
Other Assets 38,103.84 19,094.91 19,094.91 25,124.60 19,014.41
Total Assets 708,845.57 590,503.07 590,503.07 491,599.50 400,331.90
OTHER ADDITIONAL
INFORMATION
Number of 4,520.00 4,014.00 4,014.00 3,403.00 3,062.00
Branches
Number of 87,555.00 76,286.00 76,286.00 68,165.00 69,065.00
Employees
Capital Adequacy 16.00 17.00 17.00 16.00 17.00
Ratios (%)
KEY PERFORMANCE
INDICATORS
Tier 1 (%) 13.00 14.00 14.00 12.00 11.00
Tier 2 (%) 2.00 3.00 3.00 4.00 6.00
ASSETS QUALITY
Gross NPA 4,392.83 3,438.38 3,438.38 2,989.28 2,334.64
Gross NPA (%) 1.00 1.00 1.00 1.00 1.00
Net NPA 1,320.37 896.28 896.28 820.03 468.95
CONTINGENT
LIABILITIES,
COMMITMENTS
Bills for 55,242.58 22,304.93 22,304.93 20,943.06 26,103.96
Collection

52
Contingent 821,565.54 975,233.95 975,233.95 723,154.91 720,122.43
Liabilities

53
HDFC Bank Previous Years »
Standalone Profit & Loss ------------------- in Rs. Cr. -------------------
account
Mar 16 Mar 15 Mar 15 Mar 14 Mar 13

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Interest / Discount on 44,827.86 37,180.79 37,180.79 31,686.92 26,822.39
Advances / Bills
Income from 14,120.03 10,705.61 10,705.61 9,036.85 7,820.26
Investments
Interest on Balance with 361.61 517.10 517.10 355.99 281.63
RBI and Other Inter-
Bank funds
Others 911.95 66.41 66.41 55.78 140.59
Total Interest Earned 60,221.45 48,469.90 48,469.90 41,135.53 35,064.87
Other Income 10,751.72 8,996.35 8,996.35 7,919.64 6,852.62
Total Income 70,973.17 57,466.26 57,466.26 49,055.18 41,917.50
EXPENDITURE
Interest Expended 32,629.93 26,074.24 26,074.24 22,652.90 19,253.75
Payments to and 5,702.20 4,750.96 4,750.96 4,178.98 3,965.38
Provisions for
Employees
Depreciation 705.84 656.30 656.30 671.61 651.67
Operating Expenses 10,571.66 8,580.29 8,580.29 7,191.61 6,619.07
(excludes Employee
Cost &Depreciation)
Total Operating 16,979.70 13,987.54 13,987.54 12,042.20 11,236.12
Expenses
Provision Towards 6,507.59 5,204.03 5,204.03 4,269.41 3,275.76
Income Tax

54
Provision Towards -165.88 -91.23 -91.23 24.27 -251.42
Deferred Tax
Provision Towards 0.00 0.75 0.75 0.75 0.60
Other Taxes
Other Provisions and 2,725.61 2,075.01 2,075.01 1,587.27 1,676.40
Contingencies
Total Provisions and 9,067.32 7,188.56 7,188.56 5,881.70 4,701.34
Contingencies
Total Expenditure 58,676.96 47,250.34 47,250.34 40,576.80 35,191.21
Net Profit / Loss for 12,296.21 10,215.92 10,215.92 8,478.38 6,726.28
The Year
Net Profit / Loss After 12,296.21 10,215.92 10,215.92 8,478.38 6,726.28
EI & Prior Year Items
Profit / Loss Brought 18,627.79 14,654.15 14,654.15 11,132.18 8,399.65
Forward
Total Profit / Loss 30,924.01 24,870.07 24,870.07 19,610.56 15,125.93
available for
Appropriations
APPROPRIATIONS
Transfer To / From 3,074.05 2,553.98 2,553.98 2,119.59 1,681.57
Statutory Reserve
Transfer To / From 222.15 224.92 224.92 58.27 85.85
Capital Reserve
Transfer To / From 1,229.62 1,021.59 1,021.59 847.84 672.63
General Reserve
Transfer To / From -8.52 27.54 27.54 3.22 17.66
Investment Reserve
Dividend and Dividend -11.71 0.84 0.84 4.85 4.47
Tax for The Previous
Year

55
Equity Share Dividend 2,401.78 2,005.20 2,005.20 1,643.35 1,309.08
Tax On Dividend 488.95 408.21 408.21 279.29 222.48
Balance Carried Over 23,527.69 18,627.79 18,627.79 14,654.15 11,132.18
To Balance Sheet
Total Appropriations 30,924.01 24,870.07 24,870.07 19,610.56 15,125.93
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 48.84 42.15 42.00 35.47 28.49
Diluted EPS (Rs.) 48.26 41.67 42.00 35.21 28.18
DIVIDEND PERCENTAGE
Equity Dividend Rate 475.00 400.00 400.00 343.00 275.00
(%)

56
KOTAK Bank Previous Years »
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share 1,163.17 1,159.66 1,155.04 1,153.64 1,152.77
Capital
Total Share 1,163.17 1,159.66 1,155.04 1,153.64 1,152.77
Capital
Revaluation 2,817.47 0.00 0.00 0.00 0.00
Reserve
Reserves and 85,748.24 79,262.26 72,051.71 65,547.84 59,250.09
Surplus
Total Reserves 88,565.72 79,262.26 72,051.71 65,547.84 59,250.09
and Surplus
Employees Stock 6.70 7.44 6.57 4.48 2.39
Options
Total 89,735.58 80,429.36 73,213.33 66,705.96 60,405.24
ShareHolders
Funds
Deposits 421,425.71 361,562.73 331,913.66 292,613.63 255,499.96
Borrowings 174,807.38 172,417.35 154,759.05 145,341.49 140,164.91
Other Liabilities 34,726.44 31,719.86 34,755.55 32,133.60 17,576.98
and Provisions
Total Capital 720,695.10 646,129.29 594,641.58 536,794.68 473,647.09
and Liabilities
ASSETS
Cash and 27,106.09 25,652.91 21,821.83 19,052.73 20,461.29

57
Balances with
Reserve Bank of
India
Balances with 32,762.65 16,651.71 19,707.77 22,364.79 15,768.02
Banks Money at
Call and Short
Notice
Investments 160,411.80 186,580.03 177,021.82 171,393.60 159,560.04
Advances 435,263.94 387,522.07 338,702.65 290,249.44 253,727.66
Fixed Assets 7,576.92 4,725.52 4,678.14 4,647.06 4,614.69
Other Assets 57,573.70 24,997.05 32,709.39 29,087.07 19,515.39
Total Assets 720,695.10 646,129.29 594,641.58 536,794.68 473,647.09
OTHER ADDITIONAL
INFORMATION
Number of 4,450.00 4,050.00 3,753.00 3,100.00 2,752.00
Branches
Number of 72,175.00 66,327.00 72,226.00 62,065.00 58,276.00
Employees
Capital Adequacy 17.00 17.00 18.00 19.00 19.00
Ratios (%)
KEY PERFORMANCE
INDICATORS
Tier 1 (%) 13.00 13.00 13.00 13.00 13.00
Tier 2 (%) 4.00 4.00 5.00 6.00 6.00
ASSETS QUALITY
Gross NPA 26,221.25 15,094.69 10,505.84 9,607.75 9,475.33
Gross NPA (%) 6.00 4.00 0.00 0.00 0.00
Net NPA 12,963.08 6,255.53 3,297.96 2,230.56 1,860.84
Net NPA (%) 3.00 2.00 1.00 1.00 1.00
Net NPA To 3.00 2.00 1.00 1.00 1.00

58
Advances (%)
CONTINGENT
LIABILITIES,
COMMITMENTS
Bills for 68,932.74 16,212.97 13,534.91 12,394.53 7,572.06
Collection
Contingent
Liabilities

59