ENTERPRISE

PERFORMANCE
MANAGEMENT(EPM)
UNDER GUIDANCE OF:
PROF. JITENDRA SHARMA SIR

SUBMITTED BY:
NIKITA TAPPE
MANISH PALIWAL
PERFORMANCE EVALUATION PARAMETERS OF BANK
 CUSTOMER BASE
 Customer base is parameter by which the bank and
bank groups compete with each other.
 The major purpose behind this competition is to
improve their base and profitability by increasing their
efficiency.
 A bank will know his customers better by analysing the
customer base, based on parameters such as customer
profile demography, about the progress of that bank
group.
 Customer base may be more or less the same as
customer loyalty whereby customers who regularly
make purchases are counted as customers. For example,
a shampoo that considers customers who have
purchased the product at least 9 times in the past 12
months to be its customer base.
 NON PERFORMING ASSETS (NPAs)
 Definition: A non performing asset (NPA) is a loan or advance for which the principal or
interest payment remained overdue for a period of 90 days. Description: Banks are required to
classify NPAs further into Substandard, Doubtful and Loss assets.
 A 'non performing asset' (NPA) was defined as credit in respect of which interest and/ or
instalment of principal has remained 'past due' for a specific period of time.
 NPAs can be classified as a substandard asset, doubtful asset, or loss asset, depending on the
length of time overdue and probability of repayment.
 Sub-Standard Assets: Loans and advances which are non-performing assets for a period of 12
months, fall under the category of Sub-Standard Assets.
 Doubtful Assets: The Assets considered as non-performing for a period of more than 12
months are known as Doubtful Assets.
 Loss Assets: All those assets which cannot be recovered by the lending institutions are known
as Loss Assets.
DEPOSITS
RETURN ON INVESTMENTS (ROI)
 FINANCIAL INCLUSION
MEANING
The Committee of Financial Inclusion has defined financial inclusion as “the process of ensuring
access to financial services and timely and adequate credit where needed by vulnerable groups
such as weaker sections and low income group atan affordable cost.”

PROCESS
Financial inclusion is to be undertaken in three steps:
1.Providing access to financial products and services.
2.Availability of financial products and services in a fair and equitable manner.
3.Credit counselling which includes providing sound services to arrest deterioration of incomes,
re-structuring of debt solution to overcome debt burden, and improve money-management skills.
 FINANCIAL INCLUSION BENEFITS

The benefits of Financial Inclusion are as follows:

 The rural masses will get access to banking.
 Creating a platform for inculcating the habit to save money.
 Providing formal credit avenues.
 Plug gaps and leaks in public subsidies and welfare programs.
 Direct cash transfers to beneficiary bank accounts.
 Faster growth in the economy.
 RBI POLICIES ON FINANCIAL INCLUSION
 Pradhan Mantri Jan Dhan Yojana (PMJDY), under which 34 crore accounts have
been opened.
 Schemes such as the Pradhan Mantri Suraksha Bima Yojana to provide accidental
death or disability cover and Atal Pension Yojana to provide pension cover to
subscribing bank account holders. 
 Bank-led model of financial inclusion adopted by the RBI through issuance of
differentiated banking licenses (small finance banks and payments banks) and the
launch of Indian Post Payments Bank in September 2018 has helped bridge the gap
in last mile connectivity.
 For providing universal access to financial services, RBI noted that while schemes
such as PMJDY have created the required banking infrastructure to enable financial
inclusion, efforts are required to improve access to insurance and pension services.
BANK SPREAD MANAGEMENT
 CREDIT APPRAISAL
 Credit appraisal means an investigation or assesment done by bank prior before providing any
loans and advances/project finance and also check the commercial,financial and technical
viability of the project propsedits funding patternand further check its primary and collateral
security cover available for recovery of such funds.
 Credit appraisal is a process to ascertain the risk associated with the extension of credit facility.
 It is generally carried by the financial institutions which are involved in providing financial
funding to its customers.
 Credit appraisal process involves steps such as credit processing , credit approval ,credit
documentation ,credit administration,disbursement ,monitoring and control of individual credit
.
 Credit appraisal is an important process and carries significant benefits such as decrease in
risk, increse in confidenceamong corporate bankers, reduction in NPA and possibilty of finacial
loss
 BANK INVESTMENTS AND BANK INVESTMENT POLICY
1.SLR Investment :
Statutory Liquidity Ratio or SLR is a minimum percentage of deposits that a
commercial bank has to maintain in the form of liquid cash, gold or other securities.
It is basically the reserve requirement that banks are expected to keep before
offering credit to customers.

2. Non SLR Investment:

Non-SLR securities include debentures/bonds,preference shares,equity shares,
mutual fund units, commercial paper, and investment in securities issued by a
securitization/reconstruction company.
“YOU LEARN NOTHING FROM
LIFE, IF YOU THINK YOU ARE
RIGHT ALL THE TIME
”
THANK YOU