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Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 Janakpuri, New Delhi New Janakpuri, Management & Technology Information of Institute Professor, Assistant VandanaJain* Delhi New Janakpuri, Management & Technology Information of Institute Professor, Associate Choudhary* Renu credit for need the is factors climate to income due uncertain the where sector agriculture in Even needs. financial their fulfill to banks on rely they so business the run to capital sufficient have not might entrepreneur every and funding appropriate without non economicpurposes.Anybusinesscannotoperate and economic various for funds economy channelizes it every since of backbone the is sector Banking Introduction Jain** Vandana Choudhary* Renu Sector Banks Assets (NPAs) andAdvances ofSelectedPublic A Study onRelationshipbetween Non-Performing Keywords: Banks. Sector Public selected ten of Advances Gross NPAsand Gross of trends the study to attempt an made have we paper this In and reduced be must NPAs controlled. the banks of profitability and efficiency the improve To them. with deal market value. Banks are making attempts to resolve such bad debts but no best way has been found to 31 on as crores 3,93,035 Rs. at stood banks sector public listed 24 NPAsof gross cumulative The loans. total of percent 5 at estimated are sector is NPAs of banking NPAsof gross magnitude The banks. sector The private in than origination. banks sectors public in loan higher comparatively of time the at precautions adequate all taking despite increasing continuously been over-lending.NPAshave of risk risks, the to risk some credit pure from range poses which however, credit, of Extension housing. and like personal sectors SME’s, different Industry,to agriculture, resources financial provide they as country the of development economic in additional responsibility of achieving the social government’s agenda. Banks play a very important role the carry also but intermediation financial of agents as act merely not banks economies, emerging In Abstract Banks, Bad loans. Bad Banks, Sector Public Banks, Commercial Scheduled Advances, Gross Assets, Non-Performing st December, 2015 which is nearly 1.5 times of their total their December, of times 1.5 nearly is which 2015 2010-11 to 2015-16. to 2010-11 from management NPAs India of in effectiveness banks and sector public of assets performing non- of movement in to trends the attempt evaluate an critically makes study this present In the deteriorate. context, may country the of financial health the them, reduce to taken not were appropriate steps if and today sector banking for entire concern the prime a is NPAs increased growing to The NPAs. leads it and non increases of also risk repayment the increases, sector such to advances of amount the As loans. of repayment non- to due bad go debt of on majority since burden sheet a balance bank’s creating is sector priority The to lending. lending sector priority under lower interest at of farmers rate to lend to attention is paying now government farmer’s, the of exploit rate and high interest charge landlords big Since arises. www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 oue7 su uyDcme 0625 July-December 2016 • Volume 7,Issue2 research The reports. RBI and reports bank’sannual respective from collected been have which data secondary on based is research The banks. sector the relationship between NPAs study and advances of to public attempted have we research present the In Research Methodology l l Objectives oftheStudy sample. a as taken have banks KOTAKMAHINDRA AXIS, YES, HDFC, ICICI, applied for computing the research data. For this study been has coefficient of Correlation (2010-2015). years five of period the covers study research The India. in banks sector private selected of NPAs Net & profit Net of trend the study to tries paper This (2016): Ramaratnam2 M.S. and S1 Basha Mahabub Variables.two the between correlation the identify to used is correlation of test The Banks. Sector Foreign and Private Public, of profit Net and NPA Net of relationship the about talks paper This Amit Kumar Srivastava and Akansh Srivastava (2016): channels. various through NPAs of recovery and India in high impact of NPAs on Scheduled commercial banks for reasons NPAs, to contributing factors the banks, commercial Scheduled Indian in NPAs of trend and status the NPAs, understand to attempt an made paper This (2016): Singh Bahadur Raj Vivek NPAs. of incidence on indicators role of various bank performance and macroeconomic research also explained the moderating and mediating This period. post-millennium the in management NPAs of effectiveness the of evaluation an facilitate thereby 2011-12; to 2000-01 period the during of nonperforming assets of public sector banks in India This study critically evaluates the trends in movement Siraj. K.K & Prof. (DR). P. Sudarsanan Pillai, (2014): Literature Review Advances of ten selected public sector banks. sector public selected ten of Advances Gross and NPAs Gross of trends the study To India. in Banks Commercial Scheduled of Advances Gross and NPAs Gross of trends the study To been written off completely.off written been not has but inspection RBI the or auditors external bank. This loss is identified by the bank a or internal or for assets loss becomes assets such then advances the form recoveredall is at payment no valueor little Loss Assets: improbable. facts, conditions and values – highly questionable and knowncurrently of basis the on – full, in liquidation or collection make weaknesses the that characteristic added the with sub-standard, as classified were that assets in inherent weaknesses the all has doubtful as classified loan A months. 12 of period a for category sub-standard the in remained has it if doubtful Doubtful Assets: corrected. not are deficiencies if loss, some sustain will banks the that possibility distinct the by characterised are and debt the of liquidation the jeopardise that weaknesses credit defined well have will asset an Such months. 12 to equal or than less period a for NPAremained has which one, Sub Standard Assets: them. which they stand due and no amount is fromrealized for period of basis the on categories three into classified are They assets. performing non- called are assets the days, ninety than more for due falls their loans along with rate of interest. When payment of payment dishonour customers The customers. their from amount loan the recover to unable are Non Performing Assets: Conceptual Framework provisions, and which is still held in banks’ books of books banks’ in held still is which and provisions, made has bank for irrecoverable, considered is as on Balance Sheet date. Gross NPA is advance which assets that are classified as NPAs as per RBI guidelines Gross NPA: Types ofNPA market capitalization. market their of basis the on selected are Banks SectorPublic ten study,top this For data. research the computing for applied is coefficient Correlation Pearson Karl (2011-2016). years six of period the covers study Grossloan all NPAsof total sum the are When payment on loan received is of is received loan on payment When An asset would be classified as classified be would asset An A sub-standard asset would be would asset sub-standard A NPA arises when banks when arises NPA www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 Source: dbie.rbi.org.in Source: Table 1: Gross Advances and Gross NPAs of SCBs (Amount in Billion) in (Amount Table 1:Gross Advances andGross NPAs ofSCBs 26 Rs. 3,93,035 crores as on 31 at stood banks sector public listed 24 of NPAs gross loans. cumulative The total of percent 5 at estimated are sector banking of NPAs gross banks. The sector public of NPAs growing the is concern major the banking business in India. of Despite good third performance, two than more handle they because sector banking of heart the constitute banks sector Public Data Analysis andInterpretation Advances Gross / NPAsGross = Ratio NPAsGross ratio: following of help the with calculated be can It assets. loss and doubtful, sub-standard, as like made by Banks. It consists of all the loans nonstandard the assets of quality the reflects NPA Gross account 15 and increased to 73882 billion from 6809.58 from billion 73882 to increased and 15 been continuously increasing 2001-02 from to 2014- has advances gross that see can we 1, table the From follows: as are 2014-15 to 2001-02 from Banks Commercial Scheduled Indian of Advances Gross and NPAs Gross of trends The value. market total their of times 1.5 nearly is 041 38 0 230 4.3 3.8 3.2 2.5 2.9 2.4 2.3 3243.00 2.3 2.5 2641.95 1931.94 3.3 1370.96 5.2 979 7.2 846.98 8.8 73882.00 683.28 10.4 68757.48 563.09 59882.79 504.86 46655.44 510.97 2014-15 40120.79 593.73 2013-14 35449.65 648.12 2012-13 30382.54 687.17 2011-12 25078.85 708.61 2010-11 20125.1 2009-10 15513.78 Gross NPAs (Percentage) 2008-09 11526.82 2007-08 9020.26 Gross NPAs (Amount) 2006-07 7780.43 2005-06 6809.58 2004-05 Gross Advances 2003-04 2002-03 2001-02 Year st December, 2015 which crores. Rs.16,04,108.82 are 2016 in bank the of advances and loans and crores 4,77,097.28 Rs at stood bank the of investments current The crores. 1,59,875.57 Rs worth liabilities current and Rs.17,71,576.48 of assets Totalcurrent crores, Rs.1,44,274.44 of worth Net had group the 2016, March of As world. the across countries 34 in offices 186 another network, with over 20,000 plus branches in India and extensive an has group The banks. associate five and imperial bank of India. The SBI succeed group consists of to SBI parliament of act the by created was SBI and India of bank imperial of stake controlling the acquired RBI the 1955, In India. of Bank it amalgamated with two other banks to form Imperial when bank of Calcutta was established. Later in 1921 1806 in originated was It India. in bank commercial sector public largest the is India of bank State State ofIndia Bank increased from 2.3 in 2007-08 to 4.3 in 2014-15. in 4.3 to 2007-08 in 2.3 from increased billion in 2001-02. Similarly NPAs percentage has also and increased to 3243 billion in 2014-15 from 708.61 billion. Gross NPAs is also showing the upward trend IITM Journalof ManagementandIT www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.92 http://www.moneycontrol.com/financials/statebankindia/balance-sheetVI Source: oue7 su uyDcme 0627 July-December 2016 • Volume 7,Issue2 professionals.’ of teams skilled highly and dedicated business, by reinforced banking related trade facilitate to world the of centers business all in SWIFT through messages financial exchange to banks local and has arrangements with over 1500 various international SBI India’sicon. and financial supermarket financial large truly a Group SBI the making dealership, primary and trading security services, factoring cards, credit funds, mutual banking, merchant insurance, life include which services, of range wide provide and areas respective their in leaders market are ventures subsidiaries/joint banking non- SBI’s Table 2:Gross NPAs andGross Advances ofSBI 051 87. 30 430.212.59 7.46 15.70 20.52 1463700.42 14.65 crores)in (Amount 1300026.39 1209828.72 1045616.55 73.07 756,719.45 867,578.89 -7.92 20.35 29.02 98172.8 56.66 56725.34 2015-16 61605.35 2014-15 51189.39 2013-14 39676.46 2012-13 25,326.29 Gr 2011-12 2010-11 Years State BankofIndia oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 1:

Gross NPAs andGross of SBI Advances and reduces the ability of banks for lending more lending for banks of ability the reduces and funds of recycling on pressure put NPAs increased the as Advances; in increase percent to compared as We can also see that percent increase in NPAs is more to crores. 7,56,719.45 from crores increased 14,63,700.42 and 2015-16 to 2010-11 from Gross Advances has also been continuously increasing to 98,172.8 crores from 25,326.29 crores and similarly increased and 2014-15 year in except 2015-16 to 11 2010- from increasing continuously been has NPAs the strong positive correlation between the two. Gross Advances and Gross NPAs (R) Gross is 0.92, between which indicates relationship the shows 2 table The www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.89 http://www.moneycontrol.com/financials/punjabnationalbank/balance-sheetVI Source: 28 other facilitating and App Mobile via transfer fund allow will which (UPI)’, Interface UnifiedPayments ‘PNB introducing of process the in is bank The rewarding. and convenient pleasurable, more experience banking make to services and products digitized many launched bank era digitized new the In ATMs. 9669 and branches 6809 of network a with banks sector public largest the of one is It lacs. 2 Rs of capital authorized an with Lahore that commenced its operations on April 12, 1895 from bank Swadeshi India’sfirst is Bank National Punjab Punjab National Bank banks. the by granted Advances total the and thus results in lesser interest income which affects Table 3: 065883 1.4422. 8.35 8.95 13.13 5.09 21.34 412325.8 380534.4 (Amountincrores) 349269.13 308725.21 242,106.67 293774.76 117.24 36.10 40.21 54.43 55818.33 99.11 25694.86 18880.06 2016 13,465.79 2015 8719.62 2014 4,379.39 2013 Gr 2012 2011 Years Bank NationalPunjab

Gross NPAs andGross Advances ofPunjab National Bank Graph 2: oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss

Gross NPAs andGross ofPunjab Advances National Bank proportion as the increase in advances. The average The advances. in increase the as proportion same the in necessarily not but years the over increase NPAs also increase. Gross NPA also increased Advances as that means which correlation positive strong show NPAs Gross and advances Gross The period. this during grown has credit micro especially sector private to extended credit and exposurelimit its increased has bank showsthat This 2016 which is due to increased asset base of the bank. in crores 4,12,325 Rs to 2011 in crores 2,42,106.67 from years the over increasing continuously been has PNB of NPAs the that see can we 3, table the From transfer. cash and POS alternate an as app mobile via transactions IITM Journalof ManagementandIT www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.72 http://www.moneycontrol.com/financials/canarabank/balance-sheetVI Source: oue7 su uyDcme 0629 July-December 2016 • Volume 7,Issue2 E- hi-tech 172 up set Bank The India. across spread ATMs 9153 more and branches 5784 of network a had bank the 2015, November of As etc. Moscow kong Hong Dubai, Africa, South Shanghai, Doha, bank has overseas operations in countries like London, 1969. in Thenationalized and in 1906 in established banks oldest the of one was It Bangalore. Ammembal Subba Rao having its headquarters in Shri by founded bank owned state a is bank Canara study.under period the during percent 10 approximately is advances in increase Table 4: 063678 4.2341.2-1.61 9.62 24.32 4.17 (Amountincrores) 10.04 324714.82 330035.51 301067.48 242176.62 211268.29 232489.82 142.62 72.25 20.93 55.27 31637.83 30.51 13039.96 7,570.21 2016 6,260.16 2015 4,031.75 2014 3,089.21 2013 Gr 2012 2011 Years Bank Canara

Gross NPAs andGross Advances ofCanara Bank oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 3:

Gross NPAs andGross Advances ofCanara Bank highest percentage growth in year 2014 from 4.17 in 4.17 from 2014 year growthpercentagein highest recording years the over continuously increasing been have bank Canara of advances Gross The crores. Rs.26,158.54 at worth Net and crores 538268.08 Rs at stood bank the of assets total the 2016 March on IOS. As Windows& facility was introduced on mobile platforms - Android, information related banking and passbook electronic an – e-Infobook’ ‘Canara WebsiteAccess. Corporate Tradingand TerminalOnline Terminal, Banking Deposit Kiosk, Self Printing Passbook Kiosk, Internet Cash Deposit Kiosk with voice guided ATM,system, Cheque like facilities with branches select in lounges www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.58 http://www.moneycontrol.com/financials/BankofBaroda/balance-sheetVI Source: 30 many periods of economic crises including The Great survived the banks strongest the of one is It lacs. 10 of capital up paid with 1897 of act companies under Gaekwad Sayajirao Maharaja by 1908 in founded Bank of Baroda is an International public sector bank Bank ofBaroda two. the between correlation positive strong shows which increase in 2016. The coefficient of correlation is 0.72 rose from2011to2016recording highestpercentage increase in advances was negative. NPAs continuously 2013 to 24.32 in 2014. Only in year 2016 percentage Table 5: 064510 4.8337.8-10.35 7.82 20.97 14.20 25.67 crores)in (Amount 383770.18 428065.14 397005.81 328185.76 228676.36 287377.29 149.18 36.93 48.77 78.79 40521.04 41.63 16261.45 11875.9 2016 7982.58 2015 4464.75 3152.5 2014 2013 Gr 2012 2011 Years Bank ofBaroda

Gross NPAs andGross ofBank Advances ofBaroda oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 4:

Gross NPAs andGross ofBankBaroda Advances advances have gradually increased over the years but years the over increased gradually have advances The NPAs. Gross and advances Gross between correlation positive moderate shows Baroda of Bank crores. 40,198.98 Rs at worth Net and crores. 671376.47 Rs at stood bank the of assets total the 2016 March on As loans. of disbursal speedy for factories Loan factories/SME Loan Retail and Branches Gen-Next branches, NRI specialized setting include initiatives latest Its that makesitafirstchoiceformillionsofconsumers. approach centric consumer the is strength main Its leadership. prudent and honest its to due Depression IITM Journalof ManagementandIT www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 .R=0.72 http://www.moneycontrol.com/financials/centralbank/balance-sheetVI Source: oue7 su uyDcme 0631 July-December 2016 • Volume 7,Issue2 scale small agriculture, promote to aims bank The opportunity. business into threat every transformed and challenges many faced it which in years 104 of history Pochkhanawala.Sorabji long a has bank The Sirby 1911 in founded was It era. British the during established Indians by managed and owned wholly bank commercial Indian first the is Bank Central Central Bank NPAs.of that as intensity the same time advances did not increase with the same in2011to40521.042016.At from 3152.5crores manifold multiplied has NPAs 2016. in 149.18 of to rise throughout showing highest percentage increase NPAscontinued gross but 2016 in decline a showed Table 6: 062719.7100.9-4.49 6.30 3.13 16.56 180009.59 (Amountincrores) 13.71 188477.53 177315.17 129,725.41 171935.84 91.37 147512.85 3.24 36.00 16.27 22721 203.80 11,873.00 11,500.00 2016 8,456.00 2015 7,273.00 2394 2014 2013 Gr 2012 2011 Years Bank Central

Gross NPAs andGross ofCentralBank Advances oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 5:

Gross NPAs andGross Advances ofCentral Bank to 22,721 in 2016 which is more than 10 times. 10 Thethan more is which 2016 in 22,721 to 2011 in crores 2,394 from gradually NPAsincreased years. subsequent in NPAs Gross high posed bank advances and Gross NPAs (R=0.72) is positive. Central The above table shows the relationship between Gross crores. 14,921.79 Rs at worth Net and crores 3,02,173.76 Rs at stood etc. HDFC LIC, IDBI, ICICI, as such its clients of corporate list the by judged be can bank this on trust centers. Thevarious at offices Satellite 29 with along huge network of 4741 branches, 4 a Extension counters has bank sector public This them. for schemes of variety designing by employment self and industries

As on March 2016 the total assets of the bank the of assets total the 2016 March on As www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.82 http://www.moneycontrol.com/financials/IDBIbank/balance-sheetVI Source: 32 in works bank The 2016. 31, March on as crore Rs.4,81,613 of business total and crore Rs.3,74,342 of size sheet balance aggregate an had bank The function. institution financial earlier its to addition 40 years of operations. Presently it works as a bank in after bank into transformed and institution financial Development Bank of India Industrial Act, 1964 as under development constituted was bank IDBI IDBI Bank 2015. in percent 4.49 to percent 6.3 from 2016 in growth percentage declining a showed advances the however 2016; in 180009.59 to 2011 in 129,725.41 from phenomenal also is loans extending in growth Table 7: 062,7.79.0259.53.61 0.70 5.41 8.71 (Amountincrores) 14.94 215893.45 208376.87 197686 196306.45 157,098.07 180572.3 96.10 27.36 54.42 41.72 24,875.07 63.44 12,684.97 9,960.16 2016 6,449.98 2015 4,551.37 2014 2,784.73 2013 Gr 2012 2011 Years Bank IDBI

Gross NPAs andGross Advances ofIDBIBank oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 6:

Gross NPAs and Gross Advances of IDBIBank all the periods under study.under periods the all 2011 to 2012 which is 14.94% that is highest among percentage increase in Advances is witnessed from year Maximum study. under period the throughout continuously increased also Advances Gross 2015. to compared as 2016 year in doubled almost NPAs (R=0.82).From the above table it is positive evident that is Gross bank IDBI of NPAs Gross and advances Gross between relationship shows table above The 2011. January1, on GiltsLtd IDBI and FinanceLtd into effect on October 03, 2006 and with IDBI Home WesternUnioncame Bankwith merger Its business. Fund Mutual and banking Investment Market, Capital like businesses sector financial associated IITM Journalof ManagementandIT www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.75 http://www.moneycontrol.com/financials/Syndicatebank/balance-sheetVI Source: oue7 su uyDcme 0633 July-December 2016 • Volume 7,Issue2 of preferential allotment of equity shares at issue price way by 2015 March in crore Rs.460 infused India of Government branches. The its all in (CBS) Solution among public sector banks in launching Core Banking Andhra Pragati Grameena Bank. The bankispioneer Prathama Bank, Vikas Grameena Bankare and bank the under RRBs The 31.03.2015. on as branches 1348 with crore Rs.42,101 of business global provides that RRBs 3 sponsoring is bank business of 461,192 crore as on 31 global has It Karnataka. Manipal, in headquarters its with Rs.8000 of capital up paid with 1925 in Firmly rooted in Indiarural this bank was established Table 8: 061,3.6147 0384 -0.67 16.56 17.85 19.37 15.77 (Amountincrores) 201368.49 202719.82 173912.41 147569.02 106781.92 123620.18 114.71 39.71 54.81 -6.42 13,832.16 22.46 6,442.38 4,611.13 2016 2,978.50 2015 3,182.70 2014 2598.97 2013 Gr 2012 2011 Years Bank Syndicate

Gross NPAs andGross Advances ofSyndicateBank oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 7:

Gross NPAs andGross Advances ofSyndicateBank st March 2015. The clients. its to lending in pessimist became bank shows but decrease in advances is -0.67 percent although nominal the terms percentage In year. previous to compared as Advances in decrease witnessed bank the period time same the During percent. 114.71 to amounts that 2016 to 2015 from highest is growth NPAs NPAs growth in subsequent years. In percentage high terms shown has Bank Syndicate (R=0.75). positive GrossNPAsGrossis and bank Syndicateadvances of between relationship shows table above The crores. 11,465.62 Rs at Networth and crores 306,355.10 Rs at stood bank the of assets share.per total 122.75 the Rs. AsonMarch2016, of www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.73 http://www.moneycontrol.com/financials/unionbank/balance-sheetVI Source: Gross advances and Gross NPAs of Syndicate bank Syndicate of NPAs Gross and advances Gross between relationship positive shows table above The crores. 402114.66 Rs. at stood 2016, March on Bank of assets total The China. and Shanghai UAE, Dhabi, Abu in offices opening by 2007 in operations Union1999. international its began Bank in Bank Sikkim acquired and 1929 in Bank State the end of March 2015. Union bank merged in Miraj years. Bank hastotalbusinessofRs.5,79,627crore at 96 of span life entire its during profit uninterrupted shown has and inception its since operations its in successful is bank The India. pan branches 4200 than more has It Mumbai. in headquarters having Table 9: 34 11 on established was Unionbank Union Bank 062,7.98.9275 4.58 11.59 10.09 16.99 (Amountincrores) 267354 17.81 255654.57 229104.43 208102.19 150,986.08 85.49 177,882.08 408.28 -59.39 15.85 24,170.89 50.43 13,030.87 2,563.74 2016 6,313.83 2015 5,449.86 2014 3,622.82 2013 Gr 2012 2011 Years UnionBank

Gross NPAs andGross Advances ofUnion Bank oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 8:

th Gross NPAs andGross ofUnion Advances Bank November1919 in 2016 that amounts to 4.58 percent. 4.58 to amounts that 2016 in seen is growth percentage NPA.least in The increase phenomenal shown has year 2015. This in highest is increase NPAs The 2014. in growth negative shown NPAshave that see can we table Fromthe (R=0.75). has diversified banking activities with two subsidiaries branches. bank its The all in BankingSolution(CBS) Core provides bank The crores. Rs.711.38 at Profit Net and crores 3,10,918 Rs. at stood 2016 march country.the 31 on as bank the of business total The 20,140 employees working in 2565 branches all across of comprises and bank The . 1907 in headquartered in established was that company Indian bank is an Indian state owned financial services Indian Bank Union Bank Union IITM Journalof ManagementandIT st www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R= 0.91 R= http://www.moneycontrol.com/financials/indianbank/balance-sheetVI Source: oue7 su uyDcme 0635 July-December 2016 • Volume 7,Issue2 Rs.50 of capital up paid with Mumbai in headquarters Bank of India is commercial bank founded in 1906 with Bank ofIndia 2016. in crores 354.00 Rs.267, to 2012 in crores 249.91 Rs.75, terms, however in absolute terms advances increased frompercentage in 2012 since continuously declined hand years and again increased in 2016. Advances on the other subsequent in continuously declined 2012, in growth highest recorded NPAs that see can we table, the From Gross advances and Gross NPAs of between Union bank relationship (R=0.91). positive a shows table above The Ltd. Housing Indbank Ltd., Services Banking Merchant Indbank namely Table 10: 068870 56 2090 2.53 2.99 15.68 16.96 20.03 (Amountincrores) 129049.08 125863.55 122208.99 105642.55 75,249.91 55.67 90323.6 24.29 27.95 92.65 8,827.04 150.00 5,670.44 4,562.20 2016 3,565.48 2015 1,850.78 740.31 2014 2013 Gr 2012 2011 Years Bank Indian

Gross NPAs andGross ofIndian Bank Advances oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 9:

Gross NPAs andGross ofIndian Advances Bank New York. As on March 2016, the total assets of the of assets total the 2016, March on As York.New Tokyo, Singapore, Hong Kong, London, Jersey, Paris and viz., centers financial and banking JointVenture, key at 1 andRepresentative Subsidiaries,Offices 5 5 including offices 60 with – continents 5 over spread countries abroad. Presently Bank has overseas presence in 22 foreign venture joint 1 and Subsidiaries 5 and offices branches/ 60 are There Offices. Zonal 54 through controlled are branches These branches. specialized including territories union Indiastates/ overin all spread branches evaluating/rating its credit portfolio. The Bank has 4963 for 1982, in System Code Health the of introduction the pioneered bank The Telecommunications). Financial Bank Inter Worldwide for (Society SWIFT of member founder a is BOI employees. 50 and lakhs www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 R=0.59 http://www.moneycontrol.com/financials/indianbank/balance-sheetVI Source: 36 study,the From banks. sector public for particularly and sector banking Indian for worry big a are NPAs Conclusion study under period the among highest was which 49,879.12 is 2016 in terms absolute in is witnessed in 2014 that is 28.12 percent. Gross NPAs growth advances Highest percent. 124.75 with 2016 in highest are terms percentage in NPAs (R=0.59). India of Bank of NPAs Gross and advances Gross The above table shows a positive relationship between crores. 32,317.22 Rs at worth Net and crores 6,09,913.93 Rs at stood bank Table 11: 064,7.2147 5189 -10.66 8.44 28.12 16.29 16.77 crores)in (Amount 359188.95 402025.54 370733.54 289367.5 213096.18 248833.34 124.75 86.99 35.41 48.72 49,879.12 22.50 22,193.24 11,868.60 2016 8,765.25 2015 5,893.97 2014 4,811.55 2013 Gr 2012 2011 Years Bank ofIndia

Gross NPAs andGross ofIndia Advances ofBank oss NPAs % increase in NPAs Gross Advances % increase in Advances in increase % Advances Gross %increase inNPAs NPAs oss Graph 10:

Gross NPAs andGross Advances ofBankIndia . Public Sector banks should give immediate attention immediate give should banks PublicSector key reason of growing NPAs. This study suggests that a also is corruption and frauds loan default, Willful projects. such for needed skills appraising specialized of lack of because projections aggressive and cost inflated with project the of acceptance is reason Another reason. the of one is banks in monitoring loan and appraisal risk credit Poor mechanisms. bigger issue is extreme credit inefficiency and recovery Theproblem. the of part a it’sonly still obligations, sector Social is PSBs NPAsin growing of reasons the NPAs andGross Advances ispositive. Though oneof Gross the between relationship the that evident is it IITM Journalof ManagementandIT www.IndianJournals.com Members Copy, Not for Commercial Sale

Downloaded From IP - 115.254.44.5 on dated 24-Apr-2019 oue7 su uyDcme 0637 July-December 2016 • Volume 7,Issue2 http://www.moneycontrol.com/financials/bankofindia/balance-sheet/BOI from Retrieved 27. http://www.bankofindia.co.in/english/history3.aspx from Retrieved 26. http://www.moneycontrol.com/financials/indianbank/balance-sheet/IB04 from Retrieved 25. http://www.indianbank.in/profile.php from Retrieved 24. http://www.moneycontrol.com/financials/unionbankindia/balance-sheet/UBI01 from Retrieved 23. http://www.unionbankofindia.co.in/about_us.aspx from Retrieved 22. http://www.moneycontrol.com/financials/syndicatebank/balance-sheet/SB9 from Retrieved 21. https://www.syndicatebank.in/english/aboutus.aspx from Retrieved 20. http://www.moneycontrol.com/financials/idbibank/balance-sheetVI/IDB05#IDB05 from Retrieved 19. http://www.idbi.com/idbi-bank-profile.asp from Retrieved 18. http://www.moneycontrol.com/financials/centralbankindia/balance-sheet/CBO01 from Retrieved 17. https://www.centralbankofindia.co.in/English/profile.aspx from Retrieved 16. http://www.moneycontrol.com/financials/bankofbaroda/balance-sheet/BOB from Retrieved 15. http://www.bankofbaroda.co.in/aboutus.asp from Retrieved 14. http://www.moneycontrol.com/financials/canarabank/balance-sheet/CB06 from Retrieved 13. http://www.canarabank.com/english/scripts/aboutus.aspx from Retrieved 12. http://www.moneycontrol.com/financials/punjabnationalbank/balance-sheet/PNB05 from Retrieved 11. https://www.pnbindia.in/profile.html from Retrieved 10. http://www.moneycontrol.com/financials/statebankindia/balance-sheetVI/SBI#SBI from Retrieved 9. https://www.sbi.co.in/portal/web/about-us from Retrieved 8. http://economictimes.indiatimes.com/state-bank-of-india/balancesheet/companyid- from Retrieved 7. https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=449&Mode=0 from Retrieved 6. Retrieved from http://economictimes.indiatimes.com/industry/banking/finance/banking/at-rs-4-lakh-crore- 5. Vivek Raj Bahadur Singh (2016), “A Study of Non-Performing Assets of Commercial Banks and it’s recovery 4. P.Prof.Sector(DR). & public K “Aof K. Performing(2014), Nonassets Siraj. on Pillai Study Sudarsanan 3. Assets Non-Performing on Study Comparative “A (2016), Ramaratnam2 M.S. and S1 Basha Mahabub 2. Indian in Role its’ & Assets Performing “Non (2016), Srivastava Akansh and Srivastava Kumar Amit 1. References credit the assessing for norms and procedure efficient more a follow should Banks risk. credit of problem the avoid completely not if minimize, to 11984.cms bad-loans-exceed-market-value-of-psu-banks/articleshow/51078318.cms Vol.2016 Pune, March SCMS, 4, of Journal Research India”, Annual in and Science of University Technology,Travancore”,Cochin http://shodhganga.inflibnet.ac.in/handle/10603/70262 of Bank State to reference special with India in Banks 1, Issue 4, Vol.2016 January Studies, Multidisciplinary of Journal Asian India”, in Banks Private Selected of (NPAs) Faculty_Column/FC1576/fc1576.html http://www.indianmba.com/ Banks)”, Sector Foreign & Private Public, of Study (A Perspective for post disbursement of loans. of disbursement post for system monitoring continuous a follow also should and worthiness credit appraisal of the borrower. They