NON-PERFORMING ASSET ANALYSIS INTERNSHIP PRESENTATION-FINANCIAL SECTOR,INCLUDING SURVEY ANALYSIS, PRIORITY SECTOR LENDING,AGRICULTURAL FOCUS,INTERNSHIP WORK PRESENTATION USEFUL MODEL

1. FINANCIAL ACTIVITIES AND NPA
OF CO-OPERATIVE BANK LTD.
UNDER THE NORMS OF PRIORITY
SECTOR LENDING
PRESENTED BY
NAMITHA SUDHAKARAN
SCHOOL OF MANAGEMENT
SOM-NIT WARANGAL
A Study On HSC BANK LTD-HEAD OFFICE

2. HS-CO-OPERATIVEBANK
• Established on 1913.
• Mission –over all economic development of rural people.
• Wide range of customer base.
• Variety of schemes to meet the customer expectation.
• Distribution of pension, welfare activities.
• 4 Braches under Hosdurg head office.

3. AIM & OUTLINE OF WORK
• Study about bank and day to day activities.
• Analyzing financial data to know the financial position of
bank- worked with internal audit department.
• NPA Data & analysis- worked with audit team and
employees.
• Period of data analysis 2012-2017 .
• Study about priority sector lending.
• Loan activities, procedure-worked with loan department
employees.
• Survey with customers to validate the key points and why
they prefer HSC bank .

4. LOAN AND PRIORITY SECTOR
LENDING
• Lending only to members to meet the needs .
• Short Term ,Medium Term ,Long Term.
• Loan work flow model.
• Interest rate ranging from 9-15%,depends on category.
• Why HSC bank for loan? - Ease of getting loan.

5. • 8 sectors under priority sector-PSLC
• HSC bank mainly focus on agricultural priority sector.
* Farm Credit
* Agricultural Infrastructure
* Ancillary Activities

6. NPA ANALYSIS
• Non performing asset-no repayment for period of 90 days.
• Asset classification
• NPA ratio
 Gross NPA -agricultural sector
 Over all gross NPA
 Net NPA
• RBI guidelines of NPA analysis for cooperative banks
 Gross NPAs should be less than 7%
 Net NPAs should not be more than 3%
• NPA Recovery method-Lok adalat, compromise settlement

7. NPA DATA HSC BANK
Sl
no
YEAR GROSS NPA
AGRICULTURAL
SECTOR
OVER ALL GROSS
NPA
NET NPA
1
2012-2013 4.53 % 3.5% .704%
2 2013-2014 4.314% 3.41% .654%
3 2014-2015 4.39% 4.10% .782%
4 2015-2016 5.4% 5.28% .998%
5 2016-2017 6.5% 6.1% 1.47%

8. NPA GRAPH & FINDING
0
1
2
3
4
5
6
7
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
GROSS NPA AGRCLTR
GROSS NPA TTL
NET NPA

10. SURVEY AND FINDINGS
62.4%
12.8%
24.8%
number of respondents
agriculture
and related
government
sector
private sector
39.6%
43.4%
17%
number of respondents
transaction
and related
loan
deposit and
others
SOURCE OF INCOME OF CUSTOMERS PURPOSE OF VISIT TO BANK

11. 60.45
%
39.6%
number of respondents
yes
no
65.80%
%
34.10%
numebr of respondents
repayment
started
not started
RESPONDENTS HAVING LOAN IN THE BANK RESPONDENTS STARTED REPAYMENT

12. 70.86%
29.24
Loan under agricultural
sector
under
agricultural
sector
not under
agricultural
sector
55.27%
44.7%
Difficulty in payment
difficulty in
repayment
repaying
correctly

13. 17.4%
82.6%
Awareness about PSL
aware of
priority
sector
unaware of
priority
sector
90.6%
.8% 1.4%
Reason for preference
ease of
procedure of
loan and
others
ease of
access in
locality
others

14. 80.6%
19.4% YES
NO
25.2%
47.8%
27%
YES
NO
NOT AWARE
OF THAT
Necessity of ATM service Online banking necessity

15. FINDINGS
• Bank performing well, financial status is good.
• Most of the Customers are from agricultural sector.
• Most of the loans belonging to agricultural sector.
• NPA ratios are not exceeding RBI limit as of now.
• NPA increasing every year.
• Loan growth is good.
• Customer base is increasing every year.
.

16. FINDINGS
• Loan procedure is very easy .
• Inspection and valuation is not so strong.
• Customers are waiting for the written off or relaxation from
government.
• Most written of loans are agricultural sector.
• Bank Lagging behind digitalization-still manual process.
• Loan growth is increasing every year.
• Slow communication of new schemes.

17. MAY I SUGGEST ?
• Core banking solutions or total branch automation (TBA)-
increase the speed , reduce error.( BEACON PRO TBA)
• Verification and Inspection of loan procedure can be make
strong.
• Bank try to ensure that customers are utilizing the loan for
given purpose only.
• Try to reduce NPA.
• Ensure the repayment from debtors.
• 80% customers need an ATM in the bank, try to provide that.
• Ensure steps to make the customer to know about the
schemes.

18. REFERENCES
• audit manual of cooperative banks Retrieved from ,
http://www.cooperation.kerala.gov.in
RBI rules of NPA, RBI Rules for priority sector lending,
details of priority sector lending, Details of banking activities
Retrieved from,
• https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?
Id=10122.
• https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=4
328.
• https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=10981
&Mode=0.