This document is a study on NPA (non-performing asset) management of Paisafund Shetaki Sahakari Bank Ltd. in Hupari, India. It finds that the bank's gross advances and net advances have increased annually from 2016 to 2020. However, the bank also saw highest gross NPA and net NPA in 2020. The study suggests the bank arrange programs to educate customers on maintaining good credit scores and identify borrowers with genuine intent to prevent future NPAs. In conclusion, it finds that while the bank maintains its NPA level below 1%, further preventing accounts from turning into NPAs could help the bank increase profits.

1. Name :Chougule Maheshwari Madan
Seat Number:11189
Guide Name:Dr.R.P.Shinde
“A STUDY ON NPA MANAGEMENT OF COOPERATIVE BANK
WITH SPECIAL REFERENCE TO
“SHRI. PAISAFUND SHETAKI SAHAKARI BANK
LTD.HUPARI”

2. INTRODUCTION
 The topic of the study is related with the Non-Performing Assets
(NPAs) in ‘Shri. Paisafund Shetaki Sahakari Bank Ltd. Hupari.’
Banks plays an important role in the economic development of a
country. Banks are growth driver and the banking business is
exposed to various risks such as credit risk, liquidity risk, market
risk, operational risk and management risk. The sound financial
position of bank depends upon the recovery of loans and its level
of non-performing assets (NPAs). Reduced NPA generally gives
the impression that banks have strengthened their credit
appraisal process over the years and growth in NPA which bring
down the overall profitability of banks. To improve the efficiency
and profitability of banks the NPA needs to be reduced and
controlled. In this paper an effort has been made to evaluate
NPA of the Paisafund Shetaki Sahakari Bank Ltd. Hupari

3. OBJECTIVES OF THE STUDY
The study is addressed to the following objectives:
 To study the trend of NPA.
 To determine the factors affecting NPA.
 To find out the effectiveness of recovery
mechanism adopted by bank for NPA.
 To establish relationship between NPAs and
profitability of bank

4. RESEARCH METHODOLOGY
I have adopted the following procedure in
completing my report study.
 Research Problem
 Research design : Descriptive Research
 Determining the data sources :Secondary Data
 Analyzing the data
 Interpretation
 Preparing research report

5. COMPANY PROFILE
 Name : Shri. Paisafund Shetaki Sahakari Bank
Ltd. Hupari
 Address :A/P. Hupari,Tal-Hatkanangle,Dist.-
Kolhapur
 Phone : (0230)2450022, 2450058
 Fax : 0230-2450016
 Email ID : hopaisafund@gmail.com
 Establishment : 24th January 1950
 Reg. No. : 18310
 Area of operations : Hupari and nearer villages
 Head Office : Hupari
 Chairman : Shri. Annaso B. Bhoje
 Vice Chairman : Shri. Shamrao A. Gaikwad
 No. Of Branches : 05

6. FINDINGS
After analyzing all the data following are the findings drawn-
 Bank’s Gross Advances are increasing year on year. (Table 4.3)
 Bank has made its most provision in the year 2016 i.e.459.767Lakh. (Table 4.4 )
 Bank’s Net Advances are increasing from the year 2016 to 2020 (Table 4.5)
 Bank has the highest Gross NPA(1102.088Lakh) as well as Net
NPA(894.434Lakh) in the year 2020 (Table 4.6) and (Table 4.7)
 High NPA Ratio indicates the high Quantity of risky Assets in the banks for which
no provision are made. Bank has maintained their NPA level with less than 1%
every year. (Table 4.9)
 High gross NPA ratio indicates the low credit portfolio of bank and vice-versa.
The year 2016 has higher gross NPA ratio of 0.23.(Table 4.11)

7.  The Provision Ratio indicates the degree of safety measures adopted by the banks. It
has direct bearing on the profitability, dividend and safety of shareholders fund. If
the provision ratio is less, it indicates that the banks has made under
provision. Highest provision ratio of bank is showed in the year 2016 of 49%
and Lowest Provision Ratio of the bank is showed in the year 2020 of 18%.
(Table 4.13)
 Bank have taken various measures to reduce NPA also convert sub-
standard, doubtful and loss assets in to the standard, sub-standard and
doubtful asset. The rise in sub-standard ratio has major proportion indicates
that there is a high scope of up gradation or improvement in NPA recovery in
initial stage because it will be very easy to recover the loan as minimum
duration of default. (Table 4.14)
 Bank has made 100% provision on both Doubtful Assets 2(D2) and Doubtful
Assets 3 (D3) and 30% on Doubtful Assets 1(D1). (Table 4.16)
 Bank has a different Agricultural loan department and fertilizers department.
The bank treat these departments like a branch of bank.
 Agricultural loan department prepare its different NPA summary statements.
 There are different categories in the bank under which bank provides the
loan and advances to their customers. All the categories are related to
agriculture and silver/gold loans and small businesses. Because the
operation area of bank includes these businesses the most.

8. SUGGESTIONS
 The bank should arrange programs for its members
and customer about how to maintain their credit
score, because if they get the information about
(CIBIL) and they may start repaying on time to
maintain their CIBIL score, which is helpful for bank to
maintain its NPA level.
 Bank should be concentrating on the income level of
clients, investments avenues with steady returns and
comparatively minimal risk should be proposed.
 Bank should try to identify their borrowers with
genuine intent. It is a big challenge for bank but it can
prevent NPAs. This can be done through arranging
‘special investigation’ of financial or business
transaction of a borrower.

9.  Banks should have the well-defined policies in respect of
their loan portfolio & those policies should be
communicated to the staff at the service points clearly.
 All loan accounts are to be reviewed at periodical
intervals & they should be renewed in time wherever
required.
 Borrowers are to be contacted at periodical intervals &
the managers should be in position to ascertain the
financial position of the borrowers at each stage.
 By strengthening security & improving activity level, non
performing accounts can turn the corner.
 Ethical business will lead to reduced non-performing
assets to a great extent.

10. CONCLUSION
 The incidence of non- performing assets (NPAs) are
affecting the performance of credit institutions both
financially and psychologically. The non-performing
assets have become a major cause of concern.
Imbibing the credit management skills has become all
the more important for improving the bottom line of
the banking sector.
 In the whole research it was found that bank is very
aware about maintaining their NPA level. Bank’s
sound financial position and ongoing expansion of its
branches shows the sound management system of
the bank. Bank is successful on maintaining its NPA
less than 1%. If bank tries more to prevent accounts
from turning into NPAs then it can make more profits.