Project proposal

On
COMPARATIVE ANALYSIS ON NON
PERFORMING ASSETS OF PRIVATE
AND PUBLIC SECTOR BANKS.

Submitted by:
Anindya Sankar kundu
Enrol:-08pmp00418
e-mail-info_anindya@yahoo.co.in
Mob:-9995692995

Project Proposed :-COMPARATIVE ANALYSIS ON NON PERFORMING

ASSETS OF PRIVATE AND PUBLIC SECTOR BANKS.
Description of the project in brief:

The accumulation of huge non-performing assets in banks has

assumed great importance. The depth of the problem of bad
debts was first realized only in early 1990s. The magnitude of
NPAs in banks and financial institutions is over Rs.1,50,000 crore.

While gross NPA reflects the quality of the loans

made by banks, net NPA shows the actual burden of banks. Now
it is increasingly evident that the major defaulters are the big
borrowers coming from the non-priority sector. The banks and
financial institutions have to take the initiative to reduce NPAs in
a time bound strategic approach.

Public sector banks figure prominently in the

debate not only because they dominate the banking industries,
but also since they have much larger NPAs compared with the
private sector banks. This raises a concern in the industry and
academia because it is generally felt that NPAs reduce the
profitability of a bank, weaken its financial health and erode its
solvency.

For the recovery of NPAs a broad framework has

evolved for the management of NPAs under which several options
are provided for debt recovery and restructuring. Banks and FIs
have the freedom to design and implement their own policies for
recovery and write-off incorporating compromise and negotiated
settlements.
RESEARCH METHODOLOGY
Type of Research
The research methodology will adopt for carrying out the study are as

 In this project Descriptive research methodologies will be

use.

 At the first stage theoretical study will be attempt.

 At the second stage Historical study will be attempt.

OBJECTIVES OF THE STUDY

The basic idea behind undertaking the Grand Project on NPA was to:

 To evaluate NPAs (Gross and Net) in different banks.

 To study the past trends of NPA.
 To calculate the weighted of NPA in risk management in Banking
 To analyze financial performance of banks at different level of NPA
 To evaluate profitability positions of banks
 To evaluate NPA level in different economic situation.
 To Know the Concept of Non Performing Asset
 To Know the Impact of NPAs
 To Know the Reasons for NPAs
 To learn Preventive Measures

Limitation:-

• The study is based only on the secondary data. So the authentication

of data may not be provided.
• Time is the biggest limitation of this study.

Schedule:-
 Project Proposal 17th August 2009
Interim Report 9th December 2009
Final Report 9th March 2010

Faculty Guide Name: Rajarsee Nandi

References:-

➢ http://www.indiastat.com/banksandfinancialinstitutions/3/perform
ance/16063/nonperformingassetsnpas/377761/stats.aspx

➢ http://www.bankcapitalgroup.net/services-non-performing-
assets.php

➢ http://rituparnodas.blogspot.com/2009/01/npa-management.html

➢ http://www.finanssivalvonta.fi/en/Statistics/Credit_market/Nonper
forming_assets/Pages/Default.aspx

➢ http://findarticles.com/p/articles/mi_hb5562/is_200905/ai_n31896
461/

Signature of the student

Anindya Sankar kundu