Reasons for NPA’s in IndusInd Bank

Submitted by

Karan Tejpal
CROSS TABS

In the given crosstab only causes for rising NPA

has 2 missing cases whereas the remaining are
100% valid entries
Inferences
• In MSME only one respondents has sighted the reason
for government policies for rising NPA
• IN leather Industry majority of respondents have opted
for selection of wrong borrowers for rising NPA
• In Pharmaceutical industry 5 company has stated
reason of High Competition for the
• In automobile sector Highest number of respondents
said government policies as reasons for their NPA
Frequencies

Inferences
Around 50% are having Neutral opinion on whether the
collateral helps in mitigating the risk of NPA
Only 3.1% of the respondents agree that having collateral
53.1% of the respondents are Neutral on the issue
Whereas 25% of the respondents Disagree to the respective question
One Way ANNOVA

Inferences
From the means written in the descriptive table we
can infer that
Almost all the industries believe that the rising of
NPA is due to govt policies
However,the significance level for the annova is
more than 0.05 that shows there is no significant
impact on the variable
Inferences
From the given means we can infer that all
industries agree Liquidity Crunch as a issue to
their Business
Form the anova table we can observe that there
is no significant impact of liquidity crunch in the
Factors resulting in Non-payment
 Pharmaceutical industry
is facing highest Liquidity Crunch

Whereas on Service Industry Liquidity

Crunch is the lowest

Leather Industry is also facing Liquidity

crunch but relatively lower than
Pharmaceutical
 Correlations

Inferences
The co-efficient of correlation between causes of rising NPA in banks and
automotive sector is -0.188 that is 18.8%
However the significance level is 0.302 which is more than 0.05
Therefore there is no significant relation between them.