A STUDY ON NON PERFORMING ASSETS IN PUBLIC SECTOR BANKS

of Specialization in finance Submitted in partial fulfillment of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

By
SHOVIT SINGH (BBA 4539/06) Department of Management Birla Institute of Technology Noida Campus

BIRLA INSTITUTE OF TECHNOLOGY (Deemed University U/S of UGC Act, 1956) MESRA, RANCHI, JHARKHAND

DECLARATION CERTIFICATE
This is to certify that the work presented in the project entitled Non performing Assets in Public sector Banks in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration Birla Institute of Technology, Mesra, Ranchi is an authentic work carried out under my supervision and guidance. To the best of my knowledge, the content of this project does not form a basis for the award of any previous degree to anyone else.

Mr. Arun Mittal (Guides name & signature) Date: Department of Management Birla Institute of Technology Noida (U.P)

CERTIFICATE OF APPROVAL
The foregoing thesis entitled Non Performing Assets in public sector Banks is hereby approved as a creditable study of research topic and has been presented in satisfactory manner to warrant its acceptance as pre-requisite to the degree for which it has been submitted. It is understood that by its approval, the undersigned do not necessarily endorse any conclusion drawn or opinion expressed therein, but approve the project for the purpose for which it is submitted.

Co-ordinator- BBA

Academic Co-ordinator

Director BIT- Noida

ACKNOWLEDGEMENT
With great pleasure and deep sense of gratitude, I take this opportunity to express my sense of indebtedness to Mr Arun Mittal, faculty guide, for her invaluable guidance, painstaking effort and constant encouragement given at each and every step of my project work.
I am also equally grateful to other faculty members for their constant co-operation and encouragement throughout the project period. I wish to convey my heartfelt thanks to all my friends for their encouragement and moral support during the course of my project work. The inspiration behind successful completion of my project work is their endurance, everlasting strong support and endless prayers. Lastly I express my thanks to all those who help me directly or indirectly for the conduct of project work.

SHOVIT SINGH BBA/4539/06

Table of contents

Chapters Page no.

1.

Introduction 1.1 Rationale of the study 1.2 About the NPA 1.3 Classification of NPA 1.4 Guidelines for the classification of the NPA by RBI 1.5 Reason for an Accounting becoming NPA 1.6 Procedure for NPA identification & Settlement in India 1.7 Objectives of the study

1. 3. 4. 5. 7. 9. 16 31 32 36 37 39 42 45 48 51 55 64

2.
3. 4.

Review of Literature Research Methodology Data Analysis and Interpretation 4.1 Gross NPA Ratio 4.2 Net NPA Ratio 4.3 Provision Ratio 4.4 Problem Asset Ratio 4.5 Capital Adequacy Ratio

5.

Findings, Recommendations & conclusions 6. Limitations of the study Bibliography