Professional Documents
Culture Documents
Chapter 1 INTRODUCTION
1.1 What Is Bank Finance is the life blood of trade commerce & industry. Now a days banking sector acts as the backbone of modern business. Development of any country mainly depends upon the banking. The term bank id derived From the old Italian world BANCA from a French world BANQUE both mean a bench a money exchange table. In olden days, European money lenders or money changes used to display coins of different countries in big heaps on benches or table for the purpose of lending or exchanging a bank is financial institution which deals with de[posit & advances & other related services. It receives money from those who want to save in the from those who of deposit & it lends money to those who need it. Also In simple words we can say that bank is financial institution that undertakes the banking activity. It accept deposit &then lends the same to earn certain profit activities, either directed by loaning of indirectly through. CAPITALMARKET: - A banks links together customers that have capital deficits & customers with capital surplus. Due the their influential status and upon national economies, banks are highly regulated in most countries most nations have institutionalised a system known as fractional reserve bankingin which banks hold only a small reserve of the funds deposited & lend how the rest for profit. They are generally subject to minimum capital requirements bujed on an international set of capital standards known as the Basel accords banking in its modern sense evolved in the 14 th century in rich cities of renaissance Italy but in many ways was q constitution of ideas and concept of credit and lending that had its rootless in the anciet histbanking number of banking dynasties have played central role over many centuries. History of banking the origins of modern banking early renaissance Italy, to the rich cities in the north like Florence Lucca, Siena, Venice & genoas. The Burdick & Peruzzi families dominated banking in 14TH century Florence In essence a bank is designed to ba a safe place to keep your money. If you keep it at home instead, there is a greater chance that it is going to be lost or stolen. But that is just how banking begins. Once the bank has lots of money,
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features banks therefore become a part of all aspects of fining planning & management. Definition of bank :Oxford dictionary definers a bank as establishment for custody of money. Which it pays out on customers order.
1) Dealing in money :- Bank is a financial institution which deals peoples money i.e. money depositors.
2) Individual/Firms/Company :- A bank may be a person firms or a company. A banking company means a company which is business of banking.
3) Acceptance of deposit :- A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of fixed period. It gives safety to the depositors of its customers. It also act as a custodian of funds of its customers.
4) Giving advances:-A bank lends out money in the form of loan to those who require it for different purpose.
5) Payment & withdrawal :- A bank provides early payment & withdrawal facility to its customers in the form of cheques & deposit. It also brings bank money in circulation. This money is in the form of cheques, drafts etc.
6) Agency & utility services :- A bank provides various banking facilities to its customers. They include generally utility services & agency services.
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8) Ever increasing functions :- Banking is an evolutionary concept there is continuous expansion & diversification as regards the functions, services & activities of a bank.
9) Connecting bank :- a bank act as a connecting link between borrowers & lenders of money. Banks collect money from those who have surplus money & give the same to those who are in need of money. 10) Banking business :- A banks main activity should be to do business of banking which should not be subsidiary to any other business.
11) Name identify :- A bank should always add the world bank to do its mane to enable people to know that it is at bank & that it is dealing in money.
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deposits from the public, various section of society, according to their needs & economic condition, deposit their savings with the banks. For example :- fixed& low income group people deposit their savings in small amounts from the point of view of security, income & saving promotion. On the other hand, traders & businessmen deposit their savings in the banks for the convince of payment. Therefore keeping the needs & interest of various section of society. Banks formulate various deposit schemes
I.
Fixed deposit :- These are the deposit which are deposited for a define period of time. This period is generally not less than one year and, therefore, these are called as long term deposit. These deposit cannot be demanded or withdrawn by the depositors at any time they want. Such deposit accounts are highly useful for traders & big business firms because they have to make payments and accept payments many time in day. Fixed deposit :-These are the deposit its which are deposited for a definite period of time. This period is generally not less than oneyear& therefore, these deposit cannot be stipulated time & therefore these are also called as time deposits.
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1) Giving Loans :-The second important functions of banks is to advance loans to its customers. Banks charge intrest from the borrowers and this is the main source of their income. Banks advance loans not only on the basic of the deposit of the public rather they also advance loan on the basis of the depositing the money in the accounts of borrowers. In other words. They create loan out of deposit and deposit out of loan. These is called as credit creation by commercial banks. Modern banks give mostly secured loans for productive purpose. In other eords, at the time of advancing loans , they demand proper security or collateral is equal to the amount of loan. This is done mainly with a view to recover the loan money by selling the security in the event of non-refund of the loan. At times, banks give loan on the basis of personal security also. Therfore such loan are called as unsecured loan. Banks generally give a following types of loan & advances. a) Cash credit ;- In this type of credit scheme, banks advance loans to its customers on the basis of bonds, inventories & other approved securities. Under this scheme, banks enter into an agreement which its customers to which money can be withdrawn many times during year. Under this set up banks open accounts of their customers & deposit the loan money. With these type of loan, credit is created.
b) Demand loans :- These are such loans that can be recycled on demand by the banks. The entire loan amount is paid in lump-sum by crediting is to the loan account of the borrowers, & thus enter loan become chargeable to interest with immediate effect.
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3) Discounting of bills of exchange: - This is the most prevent & important method of advancing loans to the traders for short term purpose. Under this system, banks advance loan to the traders & business firms by discounting their bills. In these way. Businessmen get loans on the basis of their bills of
4) Investment of funds: - The bank invests their surplus fund in the three type of security. Government securities other approved securities, other securities. Government securities include both , central & state government such as treasury bills national saving certificate etc.
Other securities include security of state associated bodies like electricity bords, housing boards, debenture of land development banks units of UTI, shares of Regional rural bonds etc.
5) Agency functions :- Bank function in the form of agents and representative of their customers. Customers give their consent for performance such a
Bank collect cheques , drafts bills of exchange and give a dividends of the shares for their customers. Banks make a payment for their clients and at a time accept the bills of exchange. Of their customers for which payment is made at the fixed time. Banks pay insurance premium of their customers. Besides this , they also deposit instalment, income-tax interest . Bank purchase & sale securities, shares and debenture on behalf of their customers.
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The three letter NPA strike terror in banking sector and business circle today NPA Of Non-Performing Asset. The dreaded NPA rule says that, when interest or other due to bank. Remain unpaid for more than 90 days the entire bank loan automatically turn as a non-performing Asset the recovery of loan always a problem for bank and financial institution to overcome these first We need to think is it possible to avoid NPA.
NPAs are an inevitable on the banking industry. Banks need to monitor standards asset. To arrest any Account becoming an NPA. Today the success of bank depends upon the methods of managing NPAs and keeping them with in a to lance level.
NPA is non-performing asset is defined as a credit facility in respect of which the interest or installment of Principal has remained past due for specified. Non-Performing Assets, also called NON-Performing loans, are loans made by a bank or finance company.
On which repayment or interest payments are not being made on time. A loan is an asset for a bank as the interest payments and the repayment of the principal create stream of each flows. It is form the interest payments than a bank makes its profits. A high level of Non-Performing Assets compared to similar lenders may be a sign of problems, as may a sudden increase. How ever this needs to be looked at in the context of the type of lending being done
needs to be looked at in the context of the and type of lending being done. Some banks lend to higher risk customers than others and therefore tend to have a higher risk customers than others and therefore tend to have a higher interest rates, increasing spreads. A mortgage lenders will almost certainly have lower non-performing assets than a credit card sealift but the latter will have higher spreads and may well
make a bigger profit on the same assets,even if it eventually has to write off Non-performing loans
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repayment of installment of principal (in case of term loans) or both remains unpaid for of two quarters or more. beyond due date. As per recommendation of narasimhan committee, it has been decided that credit facilities granted by banks will be classified in to performing and Non performing asset. NPA is a loan (whether term loan, cash credit, overdraft, or bills discounted) which is in default for more than threemonths.In case of such assets, the income should be shown only on receipt and not shown in the banks book on a due basis. An amount under any of the credit facilities is to be treated as past due when it is remains unpaid for 30 days
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1.5 IMPORTANCE OF NON PERFORMING ASSETS: The one major cause for the current weakened state of banking sector is the level and volume of NPAs. The problem has not been looked at in its proper perspective. Description such as decreased portfolio and figures running into thousands of cores have all led to treating the problem as a major one-time aberration requiring emergency treatment. The casual explanation - politica interface, willful defaults, targeted lending and even fraudulent behavior by banks allowed them selves to be pressurized into lowering their guard in the one area of business that is their bread and butter of existence-risk assessment. Lending to priority medium and small companies is likely to be the banks main activity in the time to come. The bigger, established corporations would have the wide world to choose from and to meet their requirement. The shift to medium-sized borrowers and slightly riskier lending will form prime activity of
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introduction of CAC is subject to the NPA level being brought down to less than 5% from the present level if around 16%. The government of India already initiated several steps to help banks in reducing their NPAs. Several of these NPAs are still outstanding in the books of accounts because they are not supported by adequate provisions. Introduction of prudential norms on income, recognition, asset classification and provisions during 1992-93 and other steps initiated apart from bringing in transparency in the loan portfolio of banking industry have significantly contributed towards improvement of the pre-sanction appraised and post sanction supervision which is reflected in lowering of the level of fresh accretion of NPAs of banks after 1992. The researcher has undertaken the study of the fast developing CENTRAL bank with reference to its and review, it is necessary to understand financial position of bank. It presents a picture of movement of NPA
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2.1 Introduction The concept of non-performing asset refers to which ceases to generate income. In case of bank, all loan and advances are its assets, which can be classified into performing and non-performing assets, which can be classified into performing and non-performing assets. Rbi has advises the banks not to charge interest on those loans and advance classified as non-performing asset. NPA is short form of Non-Performing Asset. The dreated NPA rule say simply this: when Intrest or other due to a bank remains unpaid for than 90 days. The entire bank loan automatically turns non performing assets. The recovery of the loan has always been problem for the bank and financial institutes to come out to this first we need problem for the bank and financial institutes To come out of this first we need to things is it possible to avoid NPA no cannot be then is to look back after the factor responsible for it and managing those factors. Over a long period of time the performance of urban co-operative banks (UCBS) has been deteriorating due to non-recovery of interest and installment on loan portfolio. After the deregulation of Indian economy the government has announced a number of reform measures on the basis of recommendations of Narsimham committee to make banking sector economically viable and competitively strong. The RBI introduced the concept of NPA and certain norms with effect from 1st April 1992. These norms were introduced not only to know the true financial picture in the financial statements but also to take corrective action for improving the performing in the recent years.
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2.
3. The bill remains overdue for due harvest season but for a period not exceeding two half years in the case of an advance granted for agriculture purpose, and
4. Interest and/or installment of principal remains overdue for two harvest season but for a period not exceeding two half years in the case of an advances granted purpose,
Assets
Standard assets
Sub-standard assets
Doubtful assets
Loss assets
Standard assets
Standard assets
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2.3 Provisions Of Norms In order to narrow down the divergences and ensure adequate provisioning by banks it suggested that a banks statutory auditors, if they so desire, could have a dialogue with RBIs Regional Office/ inspectors who carried out the banks inspection during the previous year with regard to the accounts contributing to the difference. Pursuant to this, offices were advised to forward a list of individual advances, where the variance in the provisioning between the RBI and the bank is above cut off levels so that the bank and the statutory auditors take into account assessment of the RBI while making provisions for loan loss, etc The primary responsibility for making adequate provision for any diminution in the value of loan assets, investment or other assets is that of the bank managements and the statuary auditors. assessment made by the statutory
auditors in taking a decision In regard to making adequate and necessary provisions in terms of prudential guidelines.
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Doubtful assets: 100% of the extent to which the advance is not covered by the realizable value of the security to which the bank has a valid recourse and the realizable value estimated on a realistic basis.
2.4 Provisioning Norms against NPAs:In order to improve the quality of assets and robust resilience of banks to handle the future event of downturn and crisis, the provision norms have been further tightened. Accordingly, in additional to the existing
prudential guidleines to segregate the surplus provisions into a pool known as counter cyclical buffer under the provision coverage ratio (PCR) to be reached to 70% for non performing assets(NPAs) as per on dated sep 30, 2010, RBI has now proposed to enhance the provisioning requirement on certain categories of NPAs. As a result it can be observed that there is substantial rise in the quantum of provision to be made against the NPAs. The total amount of additional provision will have a bearing on the profit ability the banks. As such any enhancement in the provision gives rise to different outcomes.
It will improve the quality of assets because logically banks will strengthen the surveillance and monitoring mechanism to keep their provision levels low to insure that their profit ability is not hurt. At the same time it will improve the
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2.5 Income Recognition Policy The policy of income recognition has to be objective and based on the record of recovery. Income from non-performing assets (NPA) is not recognized on accrual bases but is booked as income only when it is actually received. Therefore, banks should not take to income account interest on non-performing assets on accrual basis. However, interest on advance against term deposit, NSCs, IVPs, KVPs and life policies may be taken to income account on the due date, provided adequate margin is available in the accounts. Fees and commission earned by the banks as a result of re-negotiation or rescheduling of outstanding debts should be recognized on the accrual basis over the period of time covered by the re-negotiation or rescheduled extension of credit. If government guaranteed advanced become over due and thereby NPA the entrust on such advances should not be taken to income account unless the interest has been realized. Reversal of income on accounts becoming NPAs:
If any advanced including bills purchased and discounted become NPA as at the close of any year, interest accrued and credited to income account in the corresponding pervious year, should be reversed or provided for if the same is not realized. This will apply to government. Guaranteed accounts also. If interest income from asset in respect of a borrower becomes subject to non accrual, fees, commission and similar income with respect to sane borrower
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1.
Effects on profitability
a) They erode current profits through provisioning requirement. b) They result in reduced interest income. They require higher provisioning. c) Requirement affecting profits and capacity to increase good quality risk assets in future. d) They limit recycling of funds. e) Bank has to spend for making efforts for recovery such as expenses on notice; follw-up and filing of civil suit & because of this expenses profit get reduced. f) This decline in profit has a bearings on variable like the capital to riskweighted asset ratio (CRAR) with of civil suit& because of this expenses profit get reduced. g) Bank to raise Tier-I capital This is because Tier-I capital consist of statutory and capital reserve that are essential built from profit. h) In the face of declining profit, in order to maintain the stipulated CRAR, the bank may have to raise Tier-2 capitals through bond issue the interest cost then will be higher.
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a) Narrow banking means only operation with the existing assets base & not expanding
b) The business. If NPs are high RBI may ask a bank to do only narrow banking. c) RBI may impose adverse restriction on business of bank if NPA percentage is very d) high. For Example-Restriction on opening new branches, Expansion of
3. Effects on efficiency
a) When NPAs are very high all productivity ration of the bank such as ROI (Return On Investment) Productivity per employee and profitability ration are adversely affected. b) The most important business implication of the NPAs is that it lead to the credit risk management assuming priority over other aspects of banks functioning. The banks whole machinery would thus be pre-occupied with recovery procedure rather that concentrating on expanding business. c) Implication can be psychological like play safe attitude and risk aversion, lower moral and disinclination to take decision at all level of staff in the bank. Factors affecting rise in NPAs: The banking sector has been facing the serious problem of the rising NPAs. But the problem of NPAs is more in public sector banks when compared to private sector banks and foreign banks. The NPAs in PSB are growing due to external as well as internal factors. 1. External factor The government has set of number of recovery tribunals, which works for recovery of loan and advances. Due to their negligence and ineffectiveness in their profitability and liquidity.
Willful Defaults There are borrowers who are able to payback loans but intentionally withdrawing it. measure. These groups of people should be identified and proper
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policies give birth to industrial sickness. Hence the banks that finance those industries ultimately end up with a low recovery of their profit and liquidity. Lack of demand Entrepreneurs in India could not foresee their product demand and starts production which ultimately piles up their product thus making them unable to pay back the money borrow to operate these activities. The banks recover the amount by selling of their assets, which covers a minimum label. Thus.
INTERNAL FACTORS the banks record the non recovered part as NPAs and has to make provision for it. Change on Government policies With every new govt. Banking sector gets new policies for its operation thus it has to cope with the changing principles and policies for the regulation of the rising of NPAs 4. Internal factor Defective lending process There are three cardinal principles of bank lending that have been followed by commercial banks since long. I. II. III. Principles of safety Principles of liquidity Principles of profit ability
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a) Capacity to pay depend upon: 1) Tangible assets 2) Success in business Willingness to pay depend on: 1) Character 2) Honest 3) Reputation of borrower The banker should, therefore take out must care in ensuring that the enterprise or business for which a loan is sought is a sound one and the borrower is capable of carrying it out successfully he should be a person of integrity and good character. Inappropriate Technology Due to in appropriate technology and management information system, market driven decision real time cant be taken. MIS and financial accounting system is not implemented in the bank which leads to poor credit collection, thus NPA all the branches of the bank should be computerized. Analyze the balance sheet: True picture of business will be revealed on analysis of profit/loss/a/c and balance sheet. Purpose of the loan When bankers give loan, the should analyze the purpose to the loan. To ensure safety and liquidity, banks should grant loan for productive purpose only should analyses the profitability, viability, long term ace tabooed of the project while financing. Poor credit appraisal system: Poor credit appraisal is another factor for the fire in NPAs. Due to poor credit appraisal; the bank gives advances to those who are not able to repay back. They should use good credit appraisal to decrease the NPAs.
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Notice to Guarantors
Completion of
Recovery expenses Lawyers argue before issuing Stopped recovery process after receiving
During the project work I came across with cases of compromising proposals. Thus these cases are taken in order to the practice feel of the Banks compromises offer and recovery process adopted thereaft
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Type Industry
BSE&NSE:CENTRALBK Financial Commercial banks 21 December 1911; 102 years ago Mumbai, India Shri. Rajeev Rishi, Chairman & Managing Director 19149.50 crore
Revenue Website
Central Bank of India, Mumbai Central Bank of India a government-owned bank, is one of the oldest and largest commercial banks in India. It is based in The bank has 4100 branches and 270 extension counters across 27 Indian states and three Union Territories. At present, Central Bank of India has one overseas office, which is a joint venture with Bank of India, Bank of Baroda, and the Zambian government. The Zambian government holds 40 per cent stake and each of the banks has 20 per cent. Recently it has also opened a representative office at Nairobi, Kenya. Central bank of India is one of 18 Public Sector banks in India to get recapitalisation finance from the government over the next 24 months. Central Bank of India has approached the Reserve Bank of India (RBI) for permission to open representative offices in five more locations - Singapore, Dubai, Doha, London and Hong Kong.
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3.2 History It was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir Pherozeshah Mehta as Chairman and claims to have been the first commercial Indian bank completely owned and managed by Indians. In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the Alliance Bank of Simla. In 1969, the Indian Governmentnationalized the bank on 19 July, together with 13 others. In the 1980s the managers of the London branches of Central Bank of India, Punjab National Bank, and Union Bank of India were caught up in a fraud in which they made dubious loans to the Bangladeshi jute trader Rajender Singh Sethia. The regulatory authorities in England and India forced all three Indian banks to close their London branches. Central Bank of India was one of first bank to issue credit cards in the year 1980 in collaboration with MasterCard Central Bank of India announces Financial Result for year ended 2013-Total Business Rs.402000 Cr. Net ProfitRs.1015 Cr. On August 1st Central Bank of India appoints new CMD Rajiv Rishi, who was previously ED of Indian Bank and General Manager of OBC. Raj Kumar Goyal new ED of the bank.1st November 2013 Bank open 2nd Representative Office at Hongkong.
3.3 Bank Details Central Bank of India, a public sector banking institution is one of the oldest and largest commercial banks in India. The bank has their branches in 27 States and four Union Territories in India. The Bank's main business is taking
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3.5 Products and Services offered by Bank Central Bank offers wide variety of Loans Products and services in India ton suit your requirements with convenience of networked branches/ ATMs and facility of E-channels like internet and Mobile Banking, Central Bank brings banking at your Doorstep.
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Select any of our loan product and provide your details online and our representative will contact for getting loans.
1.
Home loans
2. Car loans 3. Personal loans 4. Commercia vehicle loans 5. Two Wheeler loans
1. HOME LOANS :Home loan Amount- restricted to a maximum of 80% of the cost of the property or the cost of construction as applicable. Tenor- Maximum tenure of your home loan can be 20 years. However, in case of salaried customers it is capped at retirement age. Home Loan Repayment Terms In our endeavor to make taking a Home loan an easy process for you, we at CENTRAL BANK address all your queries about the repayment terms of loan with respect to tenure, home loan EMIS, methods of home loan EMI payments and Pre EMI intrest. THE REPAYMENT TENURE Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of option for the tenure of the loan. You can take a home loan for up to 20 years provided you do not reach the age of 65 years or retire within that period. Loan repayment An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. repayment and interest payment. Repayment starting Emi payments start from the month following the month in which the full disbursement has been made. It comprises of both, principal
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EMI payment The EMI to be paid every month through post-dated cheques (PDCS) or Electronic Clearing System (ECS).If you are opting for PDCS upfront. The PDCS are to dated on the 1st of every month. However, if you receive your salary a few days later, we provide, we provide the flexibility of dating the cheques for the 10 month. In case you have an CENTRAL BANk saving account you can also go in for the facility of Auto Debit. PDC bounces: IN the case of a bound cheque or delayed payment, Charge and outstanding dues will be charged as per the prevalling company policy. You can replace old PDCS with new ones within 5-7 working days. Pre-EMI Intrest In the case of part disbursement ofthe loan, monthly interest is payble only on the disbursed amount. This interest is called pre- EMI intresest (PEMI) and is payble monthly till the final disbursement is made, after which the EMIs would commerce.
2. CAR LOANS Loan amount The minimu loan amount for taking a new car loan is rs. 1,00,000. The Maximum loan amount will depend upon the price of the car, model variant, profile of the customer, etc. Documentation At CENTRAL BANK car loans, offer of the most convenient, flexible & quick car loan of the click mouse. Keeping Your convenience in mind, we ask you for Minimal mandatory documents for the sanctioning of your car loan. Income proof Salaried individuals Latest Salary Slip and 2 years From 16/ Income tax returns.
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3. PERSONAL LOANS CENTRAL BANK personal loan: Loan up to Rs. 10nlakhs. No security/ Guarantor required. Faster processing. Minimum Documentation. Attractive rates of interest. Flexible repayment option of 12-48 months.
4.
The loan depends on applicants requirement Funding can be to extent of 100% of the chasis values: body funding can only be extend on special requirement.
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investigation. Research methodology is a way of systematically solve the problem. It also includes the type of data required and the type of method of
data analysis and interpretation to be used. The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods the change management. Some
important factor in research methodology include validity of research data. Formulating of research question along with sampling weather probable or non probable is followed by measurement that includes surveys. This is
followed by research design, which may be either experimental or quasi experimental. 4.2 PROBLEM DEFINATION:The researcher has studied the NPA management strategies and practise, various measures for controlling NPA in the bank, and process of NPA management in bank with care of that not getting affected to profitability of bank. 4.3 OBJECTIVES OF THE STUDY To identify significant strategy for NPA management. To study the past trends of NPA. To calculate the rate of NPA in banking. To analyze financial performance of banks at different level of NPAs
4.4 REASERCH DESIGN:Exploratory research design is use when researcher is unfamiliar with the problem. It is design to analyses inside the stu Sample Unit The researcher has selected CENTRAL BANK OF INDIA
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RESEARCH DESIGN
COLLECTION OF DATA
ANALYSIS OF DATA
INTERPRITATION OF DATA
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4.9 SCOPE OF THE STUDY: The study is laid on macro level and to find the impact of NPAs in CENTRAL BANK. It also analysis the efficiency of recovery measures undertaken by CENTRAK BANK. Keeping in view the important CENTRAL BANK in rural development of economic significant of CENTRAL bank operates in the economy of the country in bank. In this study it covers how NPAs level will affect the profit of the bank. It shows reason of the bank. It shows reason of NPAs and Preventive Measures. It gives the opportunity to studying the
various kind of loan and its having eligibility and how to sanction it.
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5.1) Total NPAs for the year 2011, 2012, and 2013:
Table: 5.1 Year 2010-11 2011-12 2012-13 Amount 847.29 4556.77 4987.55 Graph 5.1
(Rs.In Lakhs)
(Source: Secondary Data) Analysis of Data: The graph shows the total amount of defaulter of the Central bank of India during past three years. The amount of default has decrease as the years have passed over. There has been a drastic increase from year 2011-2013. Interpretation: From the above analyze data it is interpreted that bank NPA in the year 2010-11 was 847.29, and then drastic increase in the NPA in the year 2011-12 was reached at 4556.77 and in the year 4987.55.
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NPA ratio=
4987.55 178748.79
= 0.0280
NPA ratio =
= 4556.77 6443.11
= 0.707
NPA ratio=
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NPA ratio
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2010-11 2011-12 2012-13 0.108 0.028 0.707
(Source: Secondary Data) Analysis of Data: The graph shows NPA ratio in the last three years, and the more ratio was for 201112. Interpretation: From the above analyze data it is interpreted that bank NPA ratio in the year 201011 was 0.108, and then drastic increase in the NPA in the year 2011-12 was reached at 2011-12 and in the year 0.028.
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= 8456.18 172321.94
*100
= 4.91%
Year-2011-12 Gross NPA = 7273.46 Gross Adv. = 147718.08 Gross NPA = Gross NPA *100 Gross Adv
= 7273.46 147718.08
*100
= 4.92% Year-2010-11 Gross NPA = 2394.53 Gross Adv. = 129840.57 Gross NPA = Gross NPA *100 Gross Adv
= 2394.53 129840.57
*100
= 1.84%
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Graph No. 5.3: Gross NPA ratio during 2010-11, 2011-12, 2012-13
(Source: Secondary Data) Analysis of Data: The graph shows Gross NPA ratio in the last three years, and the more ratio was for 2011-12. Interpretation: From the above analyze data it is interpreted that bank gross NPA ratio in the year 2010-11 was 4.91, and then increase in the NPA in the year 2011-12 was 4.92 2011-12 and in the year 1.84.
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Graph 5.4
250000
200000
147718.08 129840.57
100000
79378.55
50000
Deposits
Advances
(Source: Secondary data) Analysis of Data: This graph shows that total loan and advances in the last three years, mostly loan advance for the year is 2012-13. Interpretation: From the above analyze data it is to be interpreted that in the year 2012-13 the maximum deposits and advances was granted by bank, in the year the advances was 172321.94 & deposits was 226219.07. Other two years having less deposits and advances
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38.6
14.67
(Source: Secondary data) Analysis of Data: This graph shows that for the year 2009-10 maximum loan were being granted as the personal loan. The minimum being granted for two wheeler loan, the home loan is near to personal loan and higher than car loan & commercial vehicle loan. Interpretation: From the above analyze data it is to be interpreted that in the year 2009-10 the maximum loan was granted by bank for personal loan about Rs. 478.56 lakhs and minimum for two wheeler loan about Rs. 14.67 lakhs. .
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Graph: 5.6
(Source: Secondary data) Analysis of Data: This graph shows that for the year 2010-11 maximum loan were being granted as the personal loan. The minimum being granted for commercial vehicle loan, the home loan is near to personal loan and higher than two wheeler loan & car loan. Interpretation: From the above analyze data it is to be interpreted that in the year 2010-11 the maximum loan was granted by bank for personal loan about Rs. 306.75 lakhs and minimum for commercial vehicle loan about Rs. 54.9 lakhs.
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Graph: 5.7
(Source: Secondary data) Analysis of Data: This graph shows that for the year 2011-12 maximum loan were being granted as the home loan. The minimum being granted for commercial vehicle loan, the personal loan is near to home loan and much greater than two wheeler loan & car loan. Interpretation: From the above analyze data it is to be interpreted that in the year 2011-12 the maximum loan was granted by bank for home loan about Rs. 647.45 lakhs and minimum for commercial
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Graph: 5.8
(Source: Secondary data) Analysis of Data: This graph shows that for the year 2012-13 maximum loan were being granted as the home loan. The minimum being granted for personal loan and two wheeler loan, the car loan is near to home loan loan and much greater than commercial vehicle loan. Interpretation: From the above analyze data it is to be interpreted that in the year 2012-13 the maximum loan was granted by bank for home loan about Rs. 448.56 lakhs and minimum for two wheeler loan about Rs. 19.1 lakhs.
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Sr. No. 1 2 3 4
(Source: Secondary data) Analysis of Data: This graph shows the amount of home loan sanction in the last four years and it shows that most home loan sanction in the year 2011-12. Interpretation: From the above analyze data it is to be interpreted that maximum 6157.48 loan sanction in 2011-12, then secondly 5018.56 in the year 2012-13, in the year 2009-10 it was 2071.65 and in the 2010-11 it was 1667.43.
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Sr. No. 1 2 3 4
(Source: Secondary data) Analysis of Data: This graph shows the amount of car loan sanction in the last four years and it shows that most car loan sanctions in the year 2012-13. Interpretation: From the above analyze data it is to be interpreted that maximum 1851.39 in the year 2012-13, 1265.12 in the 2011-12, 1051.98 in the 2010-11 and 470.83 in the 2009-10.
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Sr. No. 1 2 3 4
603.98
(Source: Secondary data) Analysis of Data: This graph shows the amount of Personal loan sanction in the last four years and it shows that most personal loan sanctions in the year 2009-10. Interpretation: From the above analyze data it is to be interpreted that maximum 4780.56 in the year 2009-10, 2180.91 in the 2011-12, 3117.75 in the 2010-11 and 603.98 in the 2012-13.
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Sr. No. 1 2 3 4
(Source: Secondary data) Analysis of Data: This graph shows the amount of commercial loan sanction in the last four years and it shows that most commercial loan sanctions in the year 2012-13. Interpretation: From the above analyze data it is to be interpreted that maximum 1137.67 in the year 2012-13, 679.83 in the 2011-12, 540.09 in the 2010-11 and 381.73 in the 2009-10.
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Sr. No. 1 2 3 4
1500
1000
798
(Source: Secondary data) Analysis of Data: This graph shows the amount of Two-wheeler loan sanction in the last four years and it shows that most Two-wheeler loan sanctions in the year 2011-12. Interpretation: From the above analyze data it is to be interpreted that maximum 2280.07 in the year 2011-12, 798 in the 2010-11, 138.96 in the 2009-10 and 201.15 in the 2012-13.
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BIBLIOGRAPHY
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