AMITY UNIVERSITY PUNJAB, MOHALI

A STUDY ON COVID CRISIS AND ITS IMPACT ON NON PERFORMING

ASSETS IN INDIAN BANKING SECTOR
Dissertation Report
Submitted in partial fulfillment of the requirements for
Master of Business Administration (MBA)
By
Abhinav Sharma
A25601921008
Batch of 2021-23
Under the supervision of
Dr Simran Waraich
May 2023

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 DECLARATION

I hereby declare that the following documented project report titled “COVID 19
CRISIS & ITS IMPACT ON NON PERFORMING ASSESTS IN INDIAN BANKING
SECTOR.” is an original & authentic work done by me.

Administration degree program I hereby certify that all the Endeavour put in the fulfillment of
the task are genuine & original to the best of my knowledge & I have not submitted it earlier
elsewhere

(Abhinav Sharma)
Amity University, Punjab
Enrollment No. A25601921008

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 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my faculty

guide who graciously gave me their time & expertise.

They have provided me with the valuable guidance, sustained efforts & friendly
approach. It would have been difficult to achieve the results in such a short span of time without
their help.

I deem it my duty to record my gratitude towards the Internal project supervisor Dr Simran
Waraich devoted her precious time to interact, guide & gave me the right approach to accomplish
the task & also helped me to enhance my knowledge & understanding of the project.

Abhinav Sharma

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 Table of Contents

S.NO PARTICULARS PAGE NO.

1 EXECUTIVE SUMMARY 1

2 INTRODUCTION 2-10

3 REVIEW OF LITERATURE 11-14

4 RESEARCH METHODOLOGY 15-18

5 ANALYSIS AND DISCUSSION 19-32

6 CONCLUSION AND ANALYSIS 33-36

7 ANNEXURE 37-40

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 EXECUTIVE SUMMARY

The corona virus had a huge negative influence Indian wealthy, mainly on financial zone & its
under performing (NPAs). It has significantly affected every region across the country. As there
was The economy was already in a precarious state before the flare-up of the corona virus, & the
shutdown of the economy has made the financial situation & the nationwide lockdown worse. As
a result, there may now be a significant downturn in the economy. Considering the size of the
country's population, its dependency on leisure time. The economy is currently having problems
as a result of the lockdown & unregulated banking.
The current piece emphasizes how the Corona virus issue has affected the Indian economy,
demonstrating that on financial area.
Influence of the corona virus on India's economy & financial sector. The review is a study of
information that is secondary in nature & draws on several research publications published on
the COVID19 pandemic outbreak. The report also looks into the many planning projections
made by the Indian government & central banking system at national moreover state levels
wealth. In order to examine the relationship between NPAs, advances, & productivity due to the
corona virus & the impact of the proceeding took by central bank as well as general people
authority in the Indian financial sector, we have divided Indian banks in this exploration study.

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 Chapter 1
INTRODUCTION

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1.1 Impact of Covid-19 over financial services
Transient interruption was probably going towards prompt openness matters also downsizing
common clients.
• Further delayed emergency is possibly engaging in increment client inclination towards
advanced channels & items, for example, protection, notwithstanding defaults associated with
SMEs.
• An out & out pandemic is probably going to prompt a huge decrease popular from
SMEs/corporate, primary changes in client conduct, & change of representative jobs & by &
large working model. While the public authority & RBI have previously gotten the ball rolling
with designated mediations, delayed disturbance could bring about additional drives working
with primary alteration business

The Save Board for nation’s review says Indian wealth might get back to upward development in
third quarter sooner at first. Undoubtedly, the RBI said its Monetary Movement List gauges
Gross domestic product development with poor 8.6 in Q2, proposing withdrawal. That continues
to tumble short than the withdrawal anticipated in 10 th month strategy week at 9.8 percent.
Furthermore, the Federal Bank concentrate on discusses a reasonable recuperation third quarter.
Monetary recuperation is straightforwardly connected to resource nature a financial institution
banks. At the point revenue of firm’s better, they utilize individuals & ongoing reimbursements
to banks. Assignment which waiting will be in the groove again. State Bank of India's financial
experts says feeling of dread toward gigantic spook in awful advances financial area perhaps
unwarranted. Approaching information recommends that, without a doubt, very not many this
keeps falling shorter than advance rebuilding up until this point. Just about one million dollars in
commercial earnings advances could go for rebuilding contrasted & seven billion assessed
before. The RBI's NPA assessments possibly an distortion & the majority of past tense
assessments have turned out badly, the SBI report said. Public Bank said it figured out how to do
keep home advance deals in October & crossed two billion contract resume. A telephone call
with columnists, ICICI Bank the board said there is a resurgence seen on the interest for home
advances.
Several banks offers announced that there are, without a doubt, 'not very many' applications up to
this point rebuilding or 'an inconsequential number' to report. Most banks have as of now put

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away additional arrangements to cover the possible effect & practically everyone have being
ordinary development patterns in their retail credit portfolios.
•As per CARE stares organization, throughout ninth month of 2020, retail fragment enrolled a
development of 9.2 percent in September 2020 on a Y-o-Y premise as well as represented 28.2
percent portion of the complete acknowledge during the period as contrasted with 27.3 percent
during the period one time period prior.
•NPAs get to next level
• According to CARE, the GNPA proportion of SCBs increased to 7.7 percent in the quarter
that ended on September 20 from 9.3% during an time period-earlier session & 8.2% from a
section that ended on June 20th. Overall, the their impact share for PSBs, which accounts for
approximately 75 of SCBs' GNPAs, fell to 9.3% in the time period that ended on the nineteenth
from 11.6 percent the time period before & 9.8 percent the quarter before that.

1.2 Finance Network on Covid-19's consequences

Coronavirus has influenced practically all part of global lifeblood. Diminished efficiency
together shutdowns have proactively begun to cause significant damage at company’s location’s
accounting records. Store network disturbing, producing impediments each one injured
wellbeing frameworks need a significant the greater good & push to successfully complete
duties. Income by tourism, theme parks, & a lot more have past time periods made economic
times difficult. They have currently a global outbreak that has caused enormous losses in the
financial industry going much to Rs 59.87 billion dollars. Monetary booster confidence is at an
all-time low, & it has also grown evident how difficult its will turn out for lenders worldwide to
maintain alive their many assets & high revenue. Multiple debt repayments, especially in Europe
& the US, may stop as a result of the closures & pay back backlog, left finance companies in the
lurch. What were before their resources currently would turn into large gamble. US & Europe
can as of now be viewed as the arising focal point after China began in a financial catastrophe
since Covid shouted the country. The Ratings Assessments Centre has just issued a warning over
the use of the Coronavirus in the Italian Budget Structure. Then, countries who were at the time
entering a recession, like the nation of Greece, increased fiscal supporters' worry. People are in
trouble because the worldwide epidemic is draining their bank accounts because investment

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divisions are collapsing anywhere, despite having invested a sizable portion of their wealth in the
US or Europe. The dramatic decrease in bank stock prices demonstrates the waning confidence
in the global currency system. Retailer problems, production roadblocks, and guidelines for the
health of the impaired require solid general property & advancement to carry out jobs with ease.
Prior to now, the financial situation was crippled by pay from the vacation sector and other
diversions. These and other similar factors are putting stress on the global financial system, that
might also affect. Due to the pandemic-related a shutdown, only the greatest companies and
financial institutions in the nation are operating. In a crippled sector plagued by payment
cutbacks and job cuts, experts anticipate representatives to work for both buyers and
incorporated borrowers so that they can observe tardy payments and possibly failures. In the
meantime, national banks from all over the world have already taken proactive steps to calm
down business sectors and demonstrate responsibility by employing every single tool at their
disposal. The US Central bank (the Taken care of) recently decreased the nation's lending level
over fifty basis points in its first crisis-related step after the recession in 2008. In order to add
more to the broader financial framework and repo market, the Fed has also successfully
intervened.
1.3 Impact of Coronavirus.
The financial administrations in India are grouped under the fundamental administrations list.
Banking what's more, monetary organizations were under huge strain to guarantee the same old
thing in the midst of the lockdown & wellbeing emergency. Banking activities, for example, cash
stores, withdrawals, getting free from checks & other conventional teller administrations must be
executed by keeping a protected separation of basically a meter. Virtual entertainment was
buzzing with a bank representative's work to deal with checks with utensils & clean them with a
steam iron. The functional & specialized difficulties for both the clients & workers featured a
lacuna & the general absence of nimbleness in our financial frameworks when confronted with a
crisis circumstance. The prompt gaining's from the current Coronavirus circumstance will add
the truly necessary meticulousness towards digitizing & advancing the bank's backend activities.
This will dispense with the reliance on manual sections, individual drove audits for example
paper & worker intercession inside banks.
It is expected that Indian banks may change gears to avoid conventional financial practices once
the coronavirus situation is behind us. The traditional banks will have the opportunity to embrace

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cutting-edge banking innovations and pave the way for computerized change. 27 public sector
(PSU) banks in India are currently consolidating to form 10 big banks. Now is a good moment
for PSUs to look into better innovation coordination for customer reception. Several Indian
banks (public as well as privately owned) that are currently digital with some core banking skills
will focus on a total advancement by digitizing all of their tools, processes, and approaches.
Indian banks and financial institutions would also look closely at inheritance.

1.4 Challenges faced by banks during pandemic-

The financial institutions as a whole were improving their organizations due to regulatory and
significant conflicts, a targeted credit pricing framework, and transforming clientele. By
providing people with essential financial services, banks provide the groundwork for all nations
and the lives of their citizens. Under precisely a time of need, banks truly ought to remain open.
Banks really should stay functional during such an emergency. The continuous COVID19
pandemic further serious test for them.
Fallen down in income age because of lower client foot falls, small interest, decreased & remote
working of staff & logical weight on net interest pay attributable to slanted interest cost.
Regardless of these difficulties, there is a critical chance for banks to change themselves in
regions like expense improvement, digitalization & efficiency, & become strong, coordinated &
productive. Clients have understood that banking doesn't stop regardless of whether they can't
visit branches. Would this change client conduct & how they collaborate with banks. How could
banks upgrade their working costs as they update future retail banking models? Which expenses
can banks keep on causing to yield benefit & which costs put extra squeeze on the main concern.
Can banks send some imaginative remuneration models to help efficiency while improving labor
supply costs? Do banks have an adequate number of apparatuses to screen & lift efficiency, &
guarantee quality & consistence for one representatives & sellers? How might banks advance
their working costs as they overhaul future retail banking models? Which expenses can banks
keep on causing to yield productivity & which costs put extra pre the main concern. Can banks
convey some inventive pay models to help efficiency while improving labor supply costs? Do
banks have an adequate number of devices to screen & lift efficiency, & guarantee quality &
consistence for remote working circumstances for representatives & merchants? How might
banks speed up a helped digit deals model where both the vender & the client are more alright

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with computerized channels? Are a portion of the current functional cycles of banks repetitive in
present situations? Can they to become appropriate to the present situations & what's in store?
The momentary interruption has shows 10% income disintegration for l& organization's stop in
development exercises & basically incomes for the time period .Trouble in for daily schedule
activities, default in credit installments, of unnecessary tasks & critical homegrown & cross-line
exchange. The huge compensation cuts & high insolvency rate particularly among carriers & far
reaching scratch-offs & changes.

The key regions banks have centered during Coronavirus . Arrangement & reception of
innovation, & advancement & execution of new standard & hard working techniques client &
inner activities. The incomes are feeling the squeeze, banks need to improve expenses to
guarantee that their main concern is secured. Coronavirus emergency should be visible as a
chance for a striking expense change . It is significant for banks to separate between great
expenses & terrible expenses. While bad spending can be stopped, good costs will enable more
efficient employment or expansion. Institutions can differentiate between demand &s based on
how much period needed & concentrate on swift results but still dealing all efforts. The Indian
financial area left on the computerized change venture a couple a long time back. While the
underlying goal might have been to counter the opposition from educated, trendy players, the
Coronavirus emergency could be a distinct advantage, pushing banks to embrace computerized
innovation. It is significant not exclusively to deal with the Coronavirus, however likewise plan
for post-emergency recuperation. Due to India's highly flexible national and metro frontiers for
data ingress & a voice, banks ought to anticipate to stay on top of advances. Many vendors and
consumers now want more innovation as a result of the existing circumstances. For offering
clients with greater individualized finance, companies can collaborate with technology suppliers
or develop their own computerized alternatives
1.5 MEANING OF NPAs
A criticism zone’s underperforming resource. The supplied credit is regarded as a non-
performing resource not able to pay dividends or make payments on time for 90 days. The use of
nonperforming resources by financial institutions is a description that is directly related to that
happens because credit/advance/advance installments are not made. When a borrower misses 90
days principal payments, the credit extended. NPAs, to put it simply, are resources or projects

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that don't generate income to the extent & for the duration first anticipated. The bank prepares
for the possibility that this move would prevent it from recovering all of the credit it has already
granted on schedule. Nevertheless, in fact, NPAs arise as a result of legitimate causes,
mistakes/failures, & poor behavior.

1.6 DEFINITION OF NPAs:

A resource, including a rented resource, becomes non-performing when it quits producing pay
for the bank. A non performing resource (NPA) was characterized as a credit office in regard of
which the interest or potentially portion of rule has stayed 'past due' for a particular period was
diminished
NPA as characterized by RBI:

Any material, & this even rented resources, is no longer payable through the lender.
It is an alteration or enhancement that takes place:
 For a period of a period of ninety days, interest or a portion of a standard amount might
be assessed late.
 It's possible for an overdraft or money credit to be botched up, as it is seen here.
 the portion for two harvest seasons for a short term of yields is late, regardless that's a
requirement or a privilege, on the unlikely event of the payments are acquired or
restricted, they stay behind for longer than ninety days.
 This setup for long-term crops along this trajectory, how it be an interest or a guideline
sum, comes soon.

1.7 Current Banking Structure:

Scheduled Banks:
The Second Scheduled Bank of India Act of 1934 lists these banks as existing in India. Only the
banks on this list that satisfy the conditions outlined in section 52(6)(a) of the act are included by
Rbi. As of June 30, 1999, India has 300 scheduled banks & a network of 64, 918 branches. The
State Bank of India & its affiliates (8), nationalized banks (19), foreign banks (45), privately held
lenders (32), co-ops, & regional rural banks are among the business-oriented bankers in India
that are listed.

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Non-scheduled Banks: financial institution that is not a planned banker is referred to as a non-
planned banker according to clause (c) of section 5 of the Banking Regularity Act, 1949 (10 of
1949).
Provisions

S.NO TYPE OF ASSET offering

1 COMMON ASSET 0.25% for all standard asset advance

2 SUB -ST&ARD ASEET 10% for all sub- standard asset advance

3 DOUBLEFUL ASSET -Up to one time period 100% of unprotected

borrowing & 20% of security borrowing

-one to three time period 100% of unprotected borrowing moreover

30% of security loan

-more than three time period 100% of unprotected borrowing moreover

100% of security loan

4 Loss asset 100% of unprotected borrowing moreover

100% of security loan

After the cessation of modern operations due to the Corona virus, several banks across the nation

have expressed concern that the amount may increase by near in future. It should be noted that

on March 24, 2020, the Indian Public Authority announced a nationwide lockdown for corona

virus. After then, almost all activities (such as traffic, industry, moreover so forth) were severely

constrained in the country, with the exception of the most basic services.

1.8 Need of the study

1) To determine the main effects of COVID-19 on the NPAs that the Indian banking industry is
dealing with.

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2) To learn what steps taken central agencies to address COVID economy's current situation.

3) To determine the main impact on NPAs that Banks experienced during the COVID-19 period.

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 Chapter 2
Review of Literature

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Saha, M., moreover Zaman, A. (2021) UBI data revealed that financial institution output
increased when NPA levels decreased

Hawaldar, I.T, Spulkar, C., Lokesh, A., Birau, R., Robegen, C. (2020

they broke down non-performing resources in agribusiness credits in their analysis. There isn't
much of a difference between before moreover following acceptance of agricultural loans
moreover the oversight of ineffective capacities by lenders, according to an empirical study
conducted in India. Commitment relief agreements announced by partisan organisations are the
cause of the deliberate fail by recipients moreover the rise in NPAs in banks.

Jethwani, B., Dave, D., Ali, T., Phansalker, S., moreover Ahhirao, S. (2020) in their review
Indian horticulture Gross domestic product moreover NPA: A relapse model found that the
reimbursement of homestead credit unfavorably influences as variables like provincial populace,
low commodity worth of harvest moreover low yield creation for the time period. It ought to be
perceived that the homestead credit waivers can't tackle the issue.

The T. Singhal Covid "Illness 2019 (Coronavirus) as well as forestalling the spread of the
infection, this new infection has introduced serious difficulties to the monetary, clinical
moreover general wellbeing construction of China moreover especially adjoining nations. The
four periods of a cross country lockdown stoppage that significant production lick have
profoundly raised a ruckus around town."

Anya Kumra Effect on Indian Economy Coronavirus said that, "The Coronavirus pandmic has
unfavorably affected basically all of the full scale level variables of the Indian economy, but it is
crazy to hope to know the particular impact of the contamination on the economy till the
pandemic is wrapped up. There can be esteem climb in regions like agribusiness so gauges
should be taken to stay aware of acceptable gather moreover keep the stock organization moving
ahead true to form. The risk of a rating limits moreover an addition in the financial shortage will
make it hard to get also, spend later on, so the Govt. what's more technique makers in India
should carefully evaluate methodology decisions moreover pick simply those that have the most
raised payouts in the short run just as the since quite a while in the past run."

A span assessment by S. Mahendra Dev moreover Rajeshwari Sengupta said, " Impact of
Corona virus on the Indian Economy A span assessment that Corona virus altogether influences

12
the Indian economy moreover the monetary region. The country tremendous people moreover
unstable state of the economy moreover over-reliance on easygoing work, lockdown moreover
various measures have changed the economy into a more hazardous state." As indicated by him,
the damage to the economy is depended to be check. Needs to change the projected recompense
assistance to prevent expenses from spiraling out of control moreover to ready network providers
for action ahead the response slow down the contamination moreover safeguard wealth from
long stretch damage need to."

S. That's what mahendra Dev moreover Rajeshwari Sengupta said, "Covid fundamentally
influences two regions in India, one is the prosperity region moreover the other is the Indian
economy moreover banking region. This has changed the Indian economy into an irksome state
with a colossal people moreover an overdependence on relaxed work moreover the post-Corona
virus - 19 season of the financial region. India's monetary region especially the public region
banks has been seriously battered. These banks are doing combating to adjust to the mounting
mishaps s on their resource reports. Sort has negatively affected the credit improvement in India
moreover when the pandemic hit India this issue started hurting the credit market in India. India
overseeing twin money currency maintains form following time period." In any case, (RBI) took
a few mending actions to address the currency crisis set of 10 generally powerless banks in a
concise supportive movement framework

Kaur, M. also, Kumar, R. (2018) A correlation was found among accessible moreover hidden
location banks in their study, "Sectoral Examination of NPA's during Pre moreover Post
Emergency Time of Selected Business Banks," which was focused on NPA's of want moreover
non-need areas. They discovered in their examination that the level of NPA in the need area was
larger in open moreover closed banks over the pre-emergency phase, however after the
emergency both showed a negative development.

Gayathri, G., moreover Suvitha, K. (2018) zone of banks is larger the level in confidential
area banks, according to specialists who centered upon the different papers. Unreasonable bank
arrival moreover increased credit appeal by stubborn defaulters .

According to Tripathi R. (Dr.) moreover Sayad A. A. (2017)'s review titled "Investigation of

NPA, Patterns moreover Basel Standards; Measurable Proof," priorities bulk loan over excellent

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loans, NPAs are regularly rising. Without the legislature proper assistance, created to increase
lending in needy areas, that results in increased NPA..

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 Chapter 3
Research Methodology

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As previously stated, the force importance research is thoroughly based on supporting data for
the corona virus on financial region, examination, moreover context-oriented investigation of
Bank. This supporting information is gathered from credible English newspapers, periodicals,
websites, moreover other relevant evaluation journals in the field, as well as from experts at
public moreover global institutions like the RBI, IMF, Axis Bank, moreover on In order to make
accurate judgments for this piece, the information available on numerous places, periodicals,
magazines, moreover destinations has been carefully examined moreover studied. It is essentially
obvious that the survey is possible. The review's premise is very enlightening.

3.1 Relevance of study:

The study's findings would be beneficial to a variety of fields, including banks, who would use
the study's findings to determine where they should focus their lending efforts.

 Additional Analyst: Since this review will improve their knowledge of the topic,
professionals will be the task's main beneficiaries.
 They gain knowledge of the current state of this sector's financial status in the economy.
 Students: profit comprehensive considerate the NPA concept.

Ensure a representative sample, were chosen for the review.

Sample procedure is easy to use. For India's three governmental banks moreover its three private
banks, the ground level of their investment were selected for the investigation.

3.2 Study timeframe:

The timeframe for this project of 5 time periods from 2017 till 2021.

3.3 Data analysis:

Data are organized, reviewed, nor a translation has presented based through quantifiable
analysis. Both physically moreover via a PC, information handling moreover analysis have been
completed.

Devices for using plain technique, proportion examination, moreover relationship investigation.
Study many proportions are established in the succeeding assignment as well as a relationship
examine has completed using the SPSS measures investigation tool.

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Sample distribution pattern information have equal demonstrate in the form of measure chart,
histogram, etc.

Sources of data :-conclusions of this study exist ground along data point that has already been
published. these statistic constitute gather from a variety of sources, including:.

 Annual reports from SBI, ICICI, AXIS Bank, BOB, BOI, moreover HDFC Bank are
available below.
 SBI, ICICI, AXIS Bank, BOI, BOB moreover HDFC Bank Press Releases.

3.4 Study scope:

 New investigation of non-performing assets, India’s populace moreover common

soldier sector banks are the only ones included.
 To determine the origins, conditions, moreover outcomes of npa. to review the
previous npa vogue in both public moreover private sectors.
 Banks are able to improve their fiscal place or addition their credit recompense with
the help of this Endeavour.
 significant to realize the source of npa expansion.
3.5 Hypothesis:

 H0 - There is no appreciable connection among NPA nor loans acquired by financiers in

everyone in addition their own businesses.

 H1 - There is a link across NPA along with loan recoveries for banks in viewers
moreover their own businesses.
 There are two types of NPAs: gross moreover net.

 According to RBI criteria as of the closing date of the balance sheet, gross NPA is the
total of any funding that have been categorized as NPA. Gross NPA is a good indicator of
the caliber of bank loans. It consists of all nonstandard assets, such as loss, dubious,
moreover substandard assets. The following ratio can also be used to determine it:

Net NPA:

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 Net npas are those case of npas for which the banking concern has subtract the sum for npas.
The actual loading of banks is shown by the net npa. Since indian bank balance sheets
contain a lot of npas, moreover the process of recovering moreover writing off loans is time-
consuming, the provisions that the banks must make against the npas in accordance with
central bank rules are quite significant. The difference between gross moreover net npa is
therefore quite large. it can be calculated as follows: net npa = gross npa - supply porcine
advance- victuals it can be figure as follows: it can be cipher as follows:

3.6 Study's limitations

 The fact that the review relies on supplemental data.

 This information is based on an honest accounting principle that ignores the impact of
growth. NPAs are evolving as time goes on.
 Without making any predictions about the course

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 Chapter 4

ANALYSIS and DISCUSSION

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4.1 Gross NPA value of government banks India FY 2017-2021
In table
(IN TRILLION)
TIME PERIODS GPNA

2017 8.41

2018 8.96

2019 7.4

2020 6.78

2021 6.17

PIE CHART

Gross Non-Performing Asset of Public Bank

2017
2018
2019
2020
2021

INTERPRETATION

As we see financial end of the fiscal time period 2021, insolvent assets owing by Indian
government banks were about 6.17 billion Indian rupees. In terms of non-paying resources in
state banks, this sum was much higher in the upcoming fiscal time period, at roughly 7.5 trillion
currency, indicating a gradual but slight improvement for India's finances.
4.2 Gross NPA of private banks India FY 2017-2021
(in trillion)

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 TIME PERIOD GNPA

2017 0.94

2018 1.86

2019 1.84

2020 2.1

2021 2

Gross Non-Performing Asset of Private Bank

2017
2018
2019
2020
2021

INTERPRETATION

Macroeconomic pointers such Gross domestic product (GDP) development, the proportion of the
gross monetary shortfall to Gross domestic product, moreover expansion in view of the customer
cost list. This figure for gross NPAs, as per Live Mint, is the most elevated in the past 20 time
periods. The NPAs arrived at an undeniable level prior in 1999. The gauge presented by RBI
moreover S&P Worldwide Appraisals are almost same. India's NPAs are supposed to arrive at
14.6 percent by 2022, as indicated by an expectation made by S&P Worldwide Evaluations.

4.3 Comparison of both areas

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 TIME PERIOD Government bank Privately owned bank

2017 0.94
8.41

2018 1.86
8.96

2019 1.84
7.4

2020 2.1
6.78

2021 2
6.17

10
9
8
7
6
5 public bank
4 private bank
3
2
1
0
2017 2018 2019 2020 2021

Analysis

The relationship across average npas of branches in the governmental moreover personal
industries is described in the current article. From 2017 through 2021, banks that are privately
owned will experience increased expansion

4.4 Net NPA of private banks India FY 2017-2021

(IN BILLIONS)
TIME PERIODS NPAs

2017 490.52

2018 931.08

22
 2019 674.37

2020 561.23

2021 557.83

1000
900
800
700
600
500
NNPA
400
300
200
100
0
2017 2018 2019 2020 2021

INTERPRETATION

As we observed that in 2021, 557 billion Indian currency. This was another decline compared to
the prior time period because the value of the firms time period 2018 had reached its peak. The
earnings moreover viability of bigger banks have decreased due to a lack of volatile or non-
paying assets, which has a detrimental effect on the economy of the nation. India's net
unsuccessful wealth moved in the opposite direction of its GPNAs value, which sharply grew
during 2019 moreover 2020
4.5 Net NPA of public banks India FY 2017-202 (in trillion)
TIME PERIOD NNPA

2017 1.2

2018 5.17

2019 2.8

2020 2.2

2021 1.9

23
IN GRAPH

3
NNPAs publiv sector bank

0
2017 2018 2019 2020 2021

INTERPRETATION

 As we see in above Net NPAs in 2017 is 1.2 trillion but in 2018 which is five time
increases in 2018 is 5.17 trillion .
 In 2019 it decreases double from the previous time period moreover it decreases till 2021
is 1.9 trillion

4.6 Comparison of NET NPAs

TIME PERIOD Government bank Privately owned bank

2017 120.36 490.52

2018 517.69 931.08

2019 280.33 674.37

2020 221.33 561.23

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 2021 192 557.83

IN GRAPH

1000
900
800
700
600
500 public
private
400
300
200
100
0
2017 2018 2019 2020 2021

INTERPRETATION

 Rising shifts in government-owned lenders through 2017 to 2018

 After that it decreases till 2021 in further time period as we can see in table
 The above graph demonstrates that there are more net non performing assets, or NPAs,
for government banks than for privately owned banks, indicating that greater adjustments
have been taken for government banks to lower the liability lack of recuperation.

4.7 Consolidation of Net moreover Gross Non-Performing Assets for Government banks (in
billion)

TIME PERIOD Gross NPAs Net NPAs

2017 120.36
8410

2018 517.69
8960

2019 280.33
7400

2020 221.33
6780

2021 192
6170

25
 1000
900
800
700
600
GNPAs
500
NNPAs
400 Column1
300
200
100
0
2017 2018 2019 2020 2021

INTERPRETATION

In above diagram Consolidation of Net moreover Gross Non-Performing Assets for

Government banks o we can study the data.

4.8 Differentiation of Gross NPAs moreover NET NPAs of Privately owned banks (in
billion)

TIME PERIOD Gross NPAs Net NPAs

2017 940 490.52

2018 1860
931.08

2019 1840 674.37

2020 2100 561.23

2021 2000 557.83

26
 2500

2000

1500

GNPAs
NNPAs
1000

500

0
2017 2018 2019 2020 2021

INTERPRETATION

The correlation among surplus moreover totally npa ratios is shown in this report. From 2017 to
2021, there will be a boost in private banking.

4.9 Comparison of Asset RATIO

TIME PERIOD GNPA % NNPA %

2017-2018 11.2 6.0

2018-2019 9.1 3.7

2019-2020 8.2 2.8

2020-2021 6.9 2.2

27
 12

10

8
GNAP
6 NNAP
Column1
4

0
2017-2018 2018-2019 2019-2020 2020-2021

INTERPERETATION

 The growth of both government banks increased from 2017 to 2018, moreover the
remaining reduction is anticipated to take place between 2019 moreover 2021.
 As we see in bank is increasing from 2017-2021 0.98 to 2 but its also increases the risk
of non – recovery .

4.10 Comparison of Loan Asset of Banks: Standard Asset Ratio (%)

TIME PERIOD Privately owned Government

bank
bank

2017 1.92 4.67

2018 0.98 3.43

2019 1.92 9.36

2020 2.96 8.36

2021 1.98 3.96

28
 10
9
8
7
6
public
5
private
4 Series3
3
2
1
0
2017 2018 2019 2020

INTERPERETATION

 It is clesrly observed that Privately owned Banks is decreasing constantly from 2017 to
2021 moreover downfall to 4.673% from 3.96% government institution moreover to
1.92% from 1.98% for Government banks.

4.11 Sub-Standard Asset Ratio (%)

TIME PERIOD Government bank Privately owned bank

2017 .04 .25

2018 .04 .17

2019 .03 .15

2020 .03 .21

2021 .04 .20

In graph

29
 0.3

0.25

0.2

public
0.15
private
Series3
0.1

0.05

0
2017 2018 2019 2020

INTERPERETATION

 from 2014 to 2018 moreover has dropped to 0.04%from 0.06% in Privately owned banks to
0.17% from 0.26%.
Government banks are in advantageous place than the Privately owned banks.

4.12 Doubtful Asset

TIME PERIOD Government bank Privately owned bank

2017 .06 .05

2018 .06 .06

2019 .05 .03

2020 .07 .04

2021 .06 1.1

30
 1.2
1
0.8
0.6
public
0.4 private

0.2
0
2017 private
2018
2019 public
2020
2021

INTERPERETATION

 Since the ratios for both are arbitrary, the just affair that separates the depository financial
institution is that this proportion for the world sphere is increasing, while that for the
individual sphere is constant..
 So, privately owned banks obtain benefits from this ratio.

4.13 Loss Asset Ratio (%):

TIME PERIOD Government bank Privately owned bank

2017 .004 .06

2018 .003 .07

2019 .002 .08

2020 .01 .01

2021 0.01 .02

31
 0.02
0.018
0.016
0.014
0.012
0.01
public
0.008
0.006 private
0.004
0.002
0
2017 private
2018
2019 public
2020
2021

INTERPERETATION

2017 - 2021 decreases from .04% from .01% for Privately owned banks moreover to .002%
from .006% for Government bank. So, we can determine that Government banks are in
beneficial position.

32
 CHAPTER 5
Conclusion and Findings

33
5.1 FINDINGS

 According to the report, private area banks have more gross NPA moreover gross
advances than public area banks.
 Private area banks are seeing an increase in their standard resources over the course of
the intervals, whereas neighborhood lenders have learned how to decrease their standard
resources throughout the intervals of time.
 The inadequate resources of both banks are running out.
 The number of private area banks is declining even if the number of public area banks is
rising. The calamity funds at the two banks have a declining trend.

5.2 SUGGESTIONS:
Development proportion throughout the time periods is expanding step are:-

 It expresses that private area bank supply extreme arrangement in gross NPA moreover
gross advances as contrast with general civil.
 Expensive area bank had figured out how to diminish the typical resources over the
course of the time periods yet the banks expensive region has a rising pattern in their
standard resources.
 Unacceptable resources for one moreover other money depositors are diminishing.
 Dubious resource of public area banks is expanding yet they are consistent with private
area banks..
 Misfortune resources of the two banks are showing diminishing pattern.
 Plus connection among NPA moreover exclusive benefit area in which is because of
misguided selection of customer.
 Unfavorable impact fluidity of stock.
 Pulling away of giving credit to the newly clients because of absence of assets which
emerges because of NPA.
 Incapable recuperation, stiff-necked defaults moreover imperfect loaning steps which is
significant element those were answerable regards ascendance of depositors.
 NPA lessen acquiring limit for bank wisely gravely influence the benefit for funding.

34
5.3 CONCLUSION:
 NPA is one of the main problems that Indian banks are currently dealing with, moreover if
good NPA administration is not practiced, the banks' profitability would suffer. Regarding the
Indian banking industry, it might prove disastrous if the concept of NPA was dismissed. The
enormous amount of NPA offered might limit current gain dividends moreover have any effect
on how smoothly money reusing operates. Financial firms also transfer expenses to different
users by raising costs. Lower deposit rates moreover higher borrowing costs discourage
resources moreover investing, a situation that turn restrains the growth of the economy. Privately
owned banks being stronger compared to government-owned banks in terms of all the other
characteristics which provide them better inadequate grades rather institutions in the people
zone.

India, the nonperforming plus hold incessantly equal a problem, just it be also a trouble for the
depository institution, non just for the bank, but also for the economy. The money deposited in
an NPA has a aim outcome on the banks' profitability, as Indian banking company are heavily
subordinate on the interestingness on the loans. According to this report, the prevalence of NPA
is relatively high in world sphere banks. Although several measure have got been lead aside the
authorities to eliminate NPAs such as the s4a (scheme for sustainable structuring of defense
assets) moreover the indra dhanush scheme, a lot remains to be done to solve this issue. The
NPA level in our money dealing is still high. Zero NPAs are unable.

After fare whole the work (h1), i found that the following information be useful. A correlation
coefficient between NPA moreover lend regain by world sphere depository financial institution
moreover common soldier sphere banks for 5 time periods has been accepted. Many predicted
that the deposit sphere would be nether pressure as a solution of the pandmic, but this was dead
on target chiefly referable to two factors: a salubrious bodied sector moreover meeting the
required uppercase sufficiency requirements. Even if this category has been deleveraging, it
report for 54% of all spoilt lend moreover 77% of NPAs.

A decrease in corporations may be seen when the borrowing – equity mix with thirteen sixty
individual nonprofit organizations is taken into account; it is a factor of two (July 2021, RBI).
Every aspect booked retail banks have a median equity ratio of 15%, which is higher than the
bare essential of 11.22%. While the public servants had mean equity levels of 14.28%, with 2.3%

35
acting as a safety net for investors in this field. Furthermore, the provision coverage rate were
high compared to the bare necessities. In contrast to previous decades (the mid-2010s), where
business domains' NPA moreover borrowed money positions declined moreover suitable
adjustments were taken by the banks, the huge number of NPAs is still significant currently.

36