A SYNOPSIS

on

“NON PERFORMING ASSET AND MANAGEMENT”

CONDUCTED AT

“BANK OF INDIA”

For the award of Degree of

“MASTER OF BUSINESS ADMINISTRATION”

(MBA) 2009-2011

SUBMITTED BY

MITESH PATEL

REG.NO:09XPCMA037

(MBA IV SEMESTER)

REGIONAL INSTITUTE OF CO-OPERATIVE

MANAGEMENT
#67, PADMANBHANAGAR, BSK 2ND STAGE,

BANGALORE – 560070.
 INTRODUCTION

From the foregoing, it may be observed that the prudential Norms have twin effect on the
profitability of the Banks. One, the income from the Non-performing Assets cannot be
recognized (except to the extent of actual recovery). Two, Bank is required to create provision
for the Nonperforming Assets. Both these have a negative impact on our profitability. Hence, the
endeavor of the Bank should be to prevent the loan accounts from slipping to NPA category. In
case any asset becomes NPA, appropriate steps are to be initiated to upgrade the assets.
However, if up gradation is not at all possible, immediate recovery steps are to be initiated The
Branches are also to be guided by the Circulars issued by the HO from time to time in this
regard..

ASSET CLASSIFICATION:
All loan assets are broadly classified as performing assets or standard assets (PA) and Non-
performing Assets (NPA). The classification is based on the record of recovery of
interest/principal in these accounts.
1. Nonperforming asset
2. Standard asset
3. Sub standard asset
4. Doubt full asset (LPD)
5. Non LPD

Analysis was made on movement of NPA in SSI in past 4 years and analyzed information is put
in graph and in pie charts. Analysis was also made on impact of RBI guide lines on NPA.

OBJECTIVE OF THE STUDY

1. To understand the nature of NPA in SSI.

2. To know why the level of NPA is increasing in SSI sectors.

3. Manager perception about NPA.

 SCOPE OF THE STUDY

1. The study is expected to reveal the hidden reasons for growing NPA level in the SSI sectors.
2. The study is also reveals the bank perception about NPA.

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It is the science of
studying how research is done scientifically.”Research comprises of defining and redefining
problem ,formulating hypothesis or suggested solution, making deduction and reaching
conclusion ,and at last carefully testing the conclusion to determine whether they fir the
formulating hypothesis.”

PROBLEM TO BE EXAMINED

The incidence of NPA is affecting the performance of the Bank both financial and psychologically
which has been reflecting ultimately on the balance sheet of the bank.

DATA COLLECTION AND STATISTICAL TOOL

The data constituted of both primary data and secondary data

1. PRIMARY DATA

Data are collected through survey Circle office and various branches.

2. SECONDARY DATA

Websites
Bank journals
Annual reports
Secondary data was collected from texts, internet, magazines etc.
METHOD OF ANALYSIS

The data from the bank was first analyses by making a comparative study for the previous four
years and inferences were drawn. The data obtained from the respondents was edited and valid
responses were retained for the purposes of analysis. Analysis involves converting the series of the
recorded observations in to descriptive statements and to draw inferences about the perception of
NPA and DRT from the respondents. Tabular analysis was carried out.
Statistical tools like graphs, tables, etc. were used for analysis. Findings, conclusions and
recommendation were derived based on the analysis of the responses.

BIBLIOGRAPHY

o Newspapers

1. Times of India

2. Economic Times

o Websites

1. www.bankofindia.co.in
2. www.economictimes.com