This document is a project report submitted by Ketan Dhameliya and Pankaj Kamaliya to fulfill requirements for an MBA degree. The report studies the impact of non-performing assets (NPAs) on profitability and liquidity in public sector banks in India. It includes an introduction, industry overview, research methodology, data analysis using statistical tools, and conclusions. Prof. Ranjani Srinivasan guided the project, which was submitted to the S. K. Patel Institute of Management & Computer Studies in Gandhinagar, India in March 2013.

1. A
Grand Project Report On
“A Study on Impact of NPA on Profitability and Liquidity In Public
Sector Banks”
A Project Report Submitted in Partion Fulfillment of award of MBA
Degree
Project Guide
Prof. Ranjani Srinivasan
Submitted By
Ketan Dhameliya (22)
Pankaj Kamaliya (40)
Submitted to
S. K. PATEL INSTITUTE OF MANAGEMENT & COMPUTER STUDIES
Gandhinagar, India
March-2013

2. Certificate
This is to certify that Mr. Ketan Dhameliya And Mr.Pankaj Kamaliya of MBA 2nd year
student of S. K. Patel Institute of Management and Computer Studies, Gandhinagar has
completed his comprehensive Project titled “A Study on Impact of NPA on Profitability and
Liquidity In Public Sector Banks” in the year 2011-2013 in partial fulfilment of kadi Sarva
Vishwavidyalaya requirements for the award of the title of Master of Business
Administration.
Dr.Bhavin Pandya
(Director)
Date:-
Prof. Ranjani Srinivasan
(Guide)

3. Declaration
We, hereby declare that the comprehensive Project titled, “A Study on Impact of NPA on
Profitability and Liquidity in Public Sector Banks” is original to the best of our
knowledge and has not been published elsewhere. This is for the purpose of partial fulfilment
of Kadi Sarva Vishwavidyalaya requirements for the award of the title of Master of Business
Administration, only.
Ketan Dhameliya:-
Pankaj Kamaliya:-

4. Acknowledgements
We express our sincere gratitude towards all those people who have helped us in the
preparation of this report. We are very much thankful to our external guide Prof. Ranjani
Srinivasan, who had guided us while preparation of this project.
We would like to thank Prof.sonu gupta (Head of Department) who guided us throughout
our report. Apart from them we also like to thank our director Dr.Bhavin Pandya (Director)
who gave us wonderful opportunity to work on this project. We also like to thank Prof.
Sandhya Harkawat (Grand project coordinator) who helped us to finish project on time.
Thus ending here we would like to thank the officials of S.K.Patel Institute of Management
who have supported us a lot in preparing this report.

5. Executive summary
This project comprises Objectives and Introduction of study of Banking Industries, NPA in
public sector private sector and foreign sector and other variable like priority sector non
priority sector and others
We also included introduction part of study we included, Industry overview, Types of NPAs,
Industry analysis, Research methodology which includes objectives of study, scope of study
sampling size and Data interpretation and analysis by using various charts.
We also used statistical tool that is
Descriptive test
Correlation analysis
Regression analysis
Jarque-Bera,
Kurtosis,
Skewness,
Pairwise Granger Causality Tests,
Johansen Cointegration Test, and
Ratio of NPA and Advances.
Finally we concluded with learning part. We got good knowledge about corporate and its
activities.