CHAPTER-2

Objectives and Methodology

SIGNIFICANCE OF THE STUDY

This is a limited study which takes into consideration the responses of 100 people. This data
can be exported to take in the trends across the industry. The significance for the industry lies
in studying these trends that emerge from the study. It is a rapidly changing and evolving
sector. People are only beginning to wake up to its vast possibilities. A study like this can
attempt to guide the future of the industry based on current trends.

OBJECTIVES OF THE STUDY

To understand what is Non-Performing Assets and what are the underlying reasons for
the emergence of the NPAs.
To understand the criteria for identification of Non-Performing assets in banks.
To know what steps are being taken by the Indian banking sector to reduce the NPAs

Sources of data:
Primary Data:
The primary data is collected by a questionnaire consisting certain questions which are close
ended. The objective behind using a questionnaire as a primary data is to ascertain the
perceptions and views of respondents about the Non-Performing assets.. The survey was
conducted on 100 people.

Secondary Data:
1
2
3
4
5
6

Internet ,
Books
Journals ,
Newspaper,
Annual report,
Database available in the library,

Tools and Techniques:

As no study could be successfully completed without proper tools and techniques, same with
my project. For the better presentation and right explanation I used tools of statistics and
computer very frequently. And I am very thankful to all those tools for helping me a lot.
Basic tools which I used for project from statistics are- Bar Charts
- Pie charts
- Tables
Bar charts and pie charts are really useful tools for every research to show the result in a well
clear, ease and simple way. Because I used bar charts and pie charts in project for showing
data in a systematic way, so it need not necessary for any observer to read all the theoretical
detail, simple on seeing the charts anybody could know that what is being said.
Technological Tools
MS-Excel
MS-Word
Above application software of Microsoft helped me a lot in making project more interactive
and productive.
Microsoft-Excel had a great role in my project, it created for me a situation of you sit and
get. I provided it simply all the detail of data and in return it given me all the relevant
information..

SAMPLING METHODOLOGY

Sampling Unit:
The respondent who were asked to fill out questionnaires are the sampling units. These
comprise of employees of MNC, Govt. Employees, and Self Employed etc.
Sample size:
The sample size was restricted to only 100, which comprised of mainly peoples from
different regions of HYDERABAD due to time constraints.

Sampling Area:
The area of the research was Hyderabad.

Limitation of Study
It was critical for me to gather the financial data of every bank of the public and private
sector banks so the evaluation of the performance of the banks are not possible.
Since my study is based on the primary and secondary data, the practical operations as related
to the NPAs are adopted by the banks are not learned
Since the Indian banking sector is so wide so it was no possible for me to cover all the banks
of the Indian Banking sector