This document is a project report on non-performing assets (NPAs) in Indian commercial banks. The primary objectives are to study the challenges faced by public and private sector banks with NPAs and analyze the NPA position of selected banks. Secondary objectives are to understand what NPAs are, their underlying causes, and their impacts on bank operations. The report finds that NPAs are increasing yearly for all commercial banks due to rising loan amounts. It provides data on the gross NPAs and percentages for various public sector banks in 2013-14, with one bank having the highest gross NPAs and another having the highest NPA percentage. The report recommends actions like securitization, improved staff training, and motivating delinquent customers to reduce

1. PROJECT REPORT ON
A STUDY OF NON PERFORMING ASSETS IN INDIAN COMMERCIAL BANKS
AT
PRESENTED BY
RAVI JAISWAL
(13/154)
(2013-2015)
UNDER THE GUIDENCE
OF
Asso. Prof. G.KRISHNA

2. OBJECTIVES OF THE STUDY
Primary objective:
 To Study the challenges faced by public and private sector banks with NPA’s in India.
 To analyze the NPA position of selected public and private sector banks in India.
Secondary objectives:
 To understand what is Non-Performing Assets and what are the underlying reasons for
the emergence of the NPAs.
 To understand the impacts of NPAs on the operations of the Public and Private Sector Banks.
 To know what steps are being taken by the Indian banking sector to reduce the NPAs?

3. FINDING
Findings from the study can be classified into two parts. In first part the findings were made with reference to the data
recorded from Asset department and in the second part the general reasons for non performing of assets were
highlighted.
 It is found that the bank is efficient in achieving the budgeted target and mobilizing the funds from customers.
 It is found that the amount of loan outstanding is gradually increasing year after, it shows that bank is inefficient in
proper appraisals and control system.
 NPA’s Increasing year by year of all commercial banks in India because of their increases in Advances.
 Nonperforming asset is one which does not generated income for the bank. In other words, an advance account
which ceases to yield income is a non- performing asset.

4. NPA of all banks shows that the growth in their losses by NON-
PERFORMING ASSETS has been increased.
• 1st rank- Vijaya Bank
(Gross NPA=198600 lakhs which
is 2.41 % gross NPA’s Of Gross
Advances)
• 20th rank- United bank of India
with 10.47% of Gross NPA’s
• 19th rank- Central bank of India
with 6.27%. Gross NPA’s
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
Public Sector bank 2013-14
As on march 31,2014 Gross NPA's As on march 31,2014 Gross Advances
As on march 31,2014 G.NPA's % As on march 31,2014 Rank
Gross NPA’s for the year 2013-14
INTERPRITATION

5. RECOMMENDATIONS
 Securitization is another way which transforms non performing assets to performing. So the bank shall go for
securitization of assets.
 Bank employees need to give more attention on the activities of the NPA’s and slow recovery of overdue loans.
 If the customer intentionally tries to become NPA then take serious or legal action. If they do this the other NPA’s
account which are slow in payment will be recovered fast.
 Bank should properly evaluate all loan applications and analyze project feasibility. Bank staff should be properly trained
in this regard.
 Try to deal softy with NPA customer and motivate them to repay the loan.

6. Thank You ! ! !