A PROJECT REPORT ON NON PERFORMING ASSETS IN PUBLIC SECTOR BANKS IN INDIA (COMPARATIVE ANALYSIS OF SBI,OBC AND PNB)

(Submitted in the partial fulfillment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION)

SUBMITTED TO: Mrs. Narinder Kaur (Asst. Prof.)

SUBMITTED BY: Anjana Rani MBA (Finance) 2104

Punjabi University School of Business Studies Guru Kashi Campus, Talwandi Sabo (2008-2010)

ACKNOWLEDGEMENT

With a deep sense of gratitude I express we thanks to all those who have been instrumental in the development of the project report. I am also grateful to Punjabi University School Of Business Studies, Talwandi Sabo (Bathinda) who gave me a valuable opportunity of involving me in real live business project. I am thankful to my lecturer Mrs. Narinder Kaur, whose positive attitude, guidance and faith in my ability spurred me to perform well. I am also indebted to all friends and associates for their valuable advice, stimulated suggestions and overwhelming support without which the project would not have been a success.

ANJANA RANI

DECLARATION

I am, Anjana Rani, of MBA IV Semester studying at Punjabi University School of Business Studies, Talwandi Sabo. Hereby declare that this project titled Non Performing Assets in Public Sector Banks in India has been prepared by me in the partial fulfillment of the award of MASTER OF BUSINESS ADMINISTRATION under Punjabi University, Patiala during session 2008-10.

ANJANA RANI

CERTIFICATE

Certified that this MAJOR PROJECT titled NON - PERFORMING ASSETS IN PUBLIC SECTOR BANKS IN INDIA has been prepared under the support and guidance of Mrs. Narinder Kaur (Lect.).This project was given to me by Mrs. Narinder Kaur (Lect.). To make me aware of the steps of how to prepare a project.

Project Guide

Narinder Kaur (Asst. Prof.)

CONTENT

CHAPTERS 1. INDIAN BANKING SYSTEM I. Introduction. II. History of Indian Banking System. III. Scheduled Commercial Banks In India. IV. Structure of Organized Indian Banking System.

PAGE NO. 1 - 11 1 2 8 11

2. NON PERFORMING ASSETS (NPA). I. Introduction. II. Meaning of NPA. III. Classification of Assets. IV. Reasons of existence of huge amount of NPAs. V. Factors Contributing to NPAs. VI. Guidelines on purchase/sale of Non Performing Assets.

12 - 27 13 14 15 18 19 21

3. REVIEW OF LITERATURE. 4. RESEARCH METHODOLOGY. 5. DATA INTERPRETATION & ANALYSIS. I. Analysis. II. Impact of NPAs. 6. CONCLUSION & SUGGESTIONS. BIBLIOGRAPHY APPENDICES

28 - 30 31 33 34 - 50 35 39 51 - 53 54 55 -