The document analyzes the performance of Kubera Bank's Lakshminagar branch and identifies issues like low priority sector lending, low growth, low profitability, and HR problems. It finds reasons for these issues such as low deposits, high NPAs, failure to attract customers. A business plan for 2020 outlines targets to increase deposits, advances, and CASA while decreasing NPA ratio. Recommendations are made to increase various types of lending, use legal recovery means, offer one-time settlements, optimize staff, and introduce other strategic initiatives.

1. Kubera Bank
Lakshminagar branch

2. Group Members
Brian Mathias
Bharath R Shetty
Divisha R Suvarna
Havish P D

3. OVERWIEW:
• Kubera Bank
• Est. 1997
• Private Sector Bank
• Semi-Urban, Medium Size Branch

4. PROBLEMS IDENTIFIED:
Low Priority Sector Advance
Low Growth
Low Profitability
HR Issues
Lack of Monitoring by Higher Authorities

5. Reasons for Low priority sector
advances
 Low priority sector lending need for stepping up
 Agriculture loans are low
 Not enough encouragement to SE
 Low level of MSME-MUDRA
 Lack of marketing efforts
 Low Financial education

6. Financial Growth Analysis in %
CAGR
Deposit Advance NPA Total Income
CAGR 0.91 3.99 7.53 -14.73
Here we have taken 2011 as base year for all other years
2011 2012 2013 2014 2015
Deposits 100 1.54 -3.08 3.08 4.62
Advances 100 5.41 16.22 18.92 21.62
NPA 100 18.75 21.88 31.25 43.75
Total Income 100 14.29 -11.61 -53.13 -54.91

7. 0
20
40
60
80
100
120
140
160
2011 2012 2013 2014 2015
Growth
Year
Financial Statement Anlysis
Deposits Advances NPA Total Income

8. Reasons for Low Growth
 Stagnant business
 Low deposits
 Low advances
 High NPA
 Failed to attract new customers
 Failure to retain exisisting clients
 Idle staff

9. Reasons For Low Profitability
 Low CASA 13%
 High cost deposit
 NPA 4.6%
 Poor credit take off
 High operating cost
 Low priority for recovery
 Low level of consumer and personal loans

10. HR ISSUES
 Over staff
 High wage bill
 Improper staff assessment
 Lack of training
 No reward and punishment
 Agency problem

11. LACK OF MONETORING BY HIGHER AUTHORITIES
 Lack of control-over branch
 Lack of accountability
 Indiscipline
 Low motivation
 Inadequate supervision by the controlling office

12. Business Plan 2020
Sl No. Indicators 2015 2016 2017 2018 2019 2020
1 Deposit (₹crores ) 68.00 76.16 85.30 95.54 107.00 119.84
CASA (₹crores ) 8.84 11.42 17.06 23.88 32.10 41.94
Term Deposit (₹crores ) 59.16 64.74 68.24 71.65 74.90 77.90
2 Advances (₹crores ) 45.00 50.85 57.46 64.93 73.37 82.91
Credit Deposit Ratio (%) 66.18 66.77 67.36 67.96 68.57 69.18
Priority Sector (₹crores ) 15.75 20.34 25.86 32.47 40.35 49.75
Other Advances (₹crores ) 29.25 30.51 31.60 32.47 33.02 33.16
3 NPA Ratio 4.60% 3.50% 3.00% 2.50% 2.00% 1.50%
Kubera Bank 2016-2020
PSA 5%
Deposit 12%
Advance 13%
CASA 5%
Expected Growth

13. Remedies framed for rescuing the branch:
• Increasing the CASA accounts
• Increasing priority sector lending
• Increasing of other advances-Non priority
• Increase retail lending-Salary loan, consumer loan,
Gold loan etc.

14. NPA Resolution
 Prior Notice
 Personal visit.
 Legal action
 Lok Adalat
 DRT

15. SARFAESI Act
 The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 allows banks and financial institutions to auction properties
(residential and commercial) when borrowers fail to repay their loans without
intervention of the court.
 It enables banks to reduce their non-performing assets (NPAs) by adopting measures
for recovery or reconstruction.
 This act is considered only for NPAs costing 1 Lakh and above and for non agriculture
purpose.

16. One time settlement offer
 Payment terms
 one lump sum
 25 % down payment and balance payment in within period of 45 days
 25 % down payment and balance payment in 12 monthly installments.

17. HR REMEDIES
 No of staffs to be reduced
 Reduction in staff cost
 Incentive for NPA recovery
 Job rotation
 Training and motivation for employee participation

18. Proposed staff strength
 Bank manager-1
 Assistant manager-2
 Field officer-1
 Single window operator-6
 Sub staff-2

19. OTHER STRATEGIES
• Introduction of biometric ATM’s
• Computerization
• Tie up with organization for maintaining salary account.
• Providing infrastructure loans.
• Educating society regarding cashless India.
• Trying to get more pension funds.
• Maintaining customer grievance redresses.
• Bancassurance.