International Journal of Advanced Research in OF Management (IJARM), RESEARCH ISSN 0976 6324 INTERNATIONAL JOURNAL ADVANCED (Print), ISSN

N 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

IN MANAGEMENT (IJARM)

ISSN 0976 - 6324 (Print) ISSN 0976 - 6332 (Online) Volume 4, Issue 2, May - August 2013, pp. 11-23 IAEME: www.iaeme.com/ijarm.asp Journal Impact Factor (2013): 4.7271 (Calculated by GISI) www.jifactor.com

IJARM
IAEME

NON- PERFORMING ASSETS AND ITS IMPACT ON PERFORMANCE OF KARNATAKA STATE CO-OPERATIVE APEX LIMITED
S.POORNIMA M.COM, MBA, PGDBA, NET, Associate Professor, Jss College for Women, P. G. Center, Mysore

INTRODUCTION A strong banking sector is important for a flourishing economy. The failure of the banking sector may have an adverse impact on other sectors. The Indian banking system, which was operating in a closed economy, now faces the challenge of an open economy. The main business of a banking company is to receive deposits and lend money. Receiving deposit involves no risk, since it is the banker who owes a duty to repay the deposit, whenever it is demanded. On the other hand, lending always involves much risk because there is no certainty of repayment. A banker shall be very cautious in lending, because he is not lending money out of his own capital. A major portion of the money lent comes from the deposits received from the public. These deposits are mostly repayable on demand. Hence, while lending money, a banker should follow a very cautious policy. The risk involved in lending business makes it very important as it involves making prominent decisions. Therefore while sanctioning credit the banker should appraise the project reasonably or else it leads to the non-repayment of loans and advances. Most of the banks today in India are facing the default risk wherein some part of the profit is reserved for covering the nonperforming assets. The Non-Performing Assets (NPAs) of the Indian banking sector have been incessantly rising in the past six months. Historically, in 1997, NPAs were 15.8% of loans for the banking sector, which nosedived to 2.4% in 2008. This figure stands at 2.94% of loans in 2012. In absolute figures, NPAs have doubled from 2009 to 2012 and assets under reconstruction had trebled during the same period. Indias biggest lender, State Bank of India, is experiencing an NPA level of 4.99% of total loans. According to a recently published Credit Suisse Group AG report, 10 large industrial houses account for 13% of total assets financed by the Banking system, which means that bank lending is getting increasingly skewed. Further, of the total reconstructed assets, 8.24% belong to the large manufacturing sector, 3.99% are from the services sector while 1.45% are from the agricultural sector.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

Meaning of NPA Loan /lease that is not meeting its stated principal and interest payments. Banks usually classify as nonperforming assets any commercial loans which are more than 90 days overdue and any consumer loans which are more than 180 days overdue. More generally, and is not producing income. In India, an asset is classified as a Non-Performing Asset (NPA) if interest or instalments of principal due remain unpaid for more than 180 days. However, with effect from March 2004, default status would be given to a borrower if dues are not paid for 90 days. If any advance or credit facilities granted by a bank to a borrower become non-performing, then the bank will have to treat all the advances/credit facilities granted to that borrower as non-performing without having any regard to the fact that there may still exist certain advances/credit facilities having performing status. Definition of NPA A non-performing asset (NPA) was defined as a credit facility in respect of which the interest and or installment of principle has remained past due for a specific period of time. An amount due under any credit facility is treated as past due, when it has not been paid within 30 days from the due date. Due to improvement in the payment and settlement systems, recovery climate, up gradation of technology in the banking system, etc. it was decided to dispense with past due concept, with effect from March 31, 2001. Accordingly as from that date a non-performing asset (NPA) shall be an advance where: 1. Interest and or installment of principal remain over due for a period of more than 180 days in respect of a term loan. 2. The account remains out of order for a period of more than 180 days, in respect of an overdraft/cash credit. 3. The bill remains overdue for a period of more than 180 days in the case of bills purchased and discounted. 4. Interest and or installment or principal remains over due for harvest seasons but for a Period not exceeding two half years in the case of an advance granted for agricultural purpose. Definition given by the Narasimham Committee The Committee has defined Non-performing assets as an advance where as on the date of Balance e sheet: 1. In respect of terms loans, interest remains past due for s period of more than 90 days. 2. Overdrafts and cash credits accounts remain out of order for more than 90 days. 3. Bills purchased and discounted remain over due and unpaid for period of more than 90 Days. An amount is considered past due when it remains outstanding for 30 days and beyond the due date. RESEARCH METHODOLOGY Statement of the Problem The main motto of co-operative banks is to serve the weaker section of the people by providing loans and advances for the upliftment of the weaker section of the society now days the borrowers are not repaying the amount to the co-operative banks regularly as per the due dates; it is affecting the performance of the banks. As per the new banking regulation if

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

the borrower not paid the principle and interest amount within 90 days it is to be considered as Non Performing Assets. The research gaps and relevant questions which strike the mind during observation of various studies on non- performing assets that, what are the reasons for the assets becoming non- Performing assets and what is its impact on performance of Karnataka State cooperative Apex Limited. Hence there arises a need to address the aforesaid questions. Objectives of the Study The objectives of the study are to, 1) Understand the concept of Non-performing assets (NPA) of Apex bank 2) Study the general reasons for assets to become Non-performing assets. 3) Study the impact of Non-performing assets on Apex bank Ltd. 4) Study the measures taken by Apex bank to reduce Non-performing assets. 5) Offer suggestions based on findings of the study in Apex Bank. Scope of the Study The present study of Non-performing assets is confined and restricted to the boundary of Karnataka State Co-operative Apex bank Ltd. And data will be analyzed as provided by Apex bank Ltd. Data Collection: The data collected from the study is divided as Primary data: The primary data will be obtained through interaction with the officers of the Karnataka State Co-operative Apex bank Ltd, documents and records of Apex Bank about the reasons becoming Non- performing. Secondary data: secondary data will be collected from Annual reports and audited reports of Apex bank, financial magazines, Journals, text books and websites, RBI/ IBA bulletins etc. Tools of Data Analysis: The data collected from the primary and secondary sources relating to NPAs has been analyzed and tabulated and drawn the appropriate tables. Interpretations were made based on tables. The collected data were classified and tabulated and analyzed with some of the statistical tools used as per the requirement of the study like Graphical representation and Ratio analysis Limitations of the Study: 1) The study is based on the data given by the officials and reports of the bank. 2) The study is based only on NPA section of the bank. 3) The solutions are not applicable to every bank. 4) Due to time constraint depth analysis could not be made. DATA ANALYSIS AND INTERPRETATION 1. Sub-standard assets The following table shows the percentage change in sub-standard assets to Gross NPA at KSCAB Ltd. Sub-standard assets Sub-standard assets (%) = *100 Gross NPA

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

TABLE NO. 1 Sl.No Year Sub-Standard Sub Assets Gross NPA (Rs In lakhs) Sub-Standard Standard Assets (In %)

1 2 3 4 5

2007-08 2008-09 2009-10 2010-2011 2011-2012

9074.82 6438.28 3823.42 9670.49 16057.5

20895.3 19202 14808.1 17512.4 26437.3

43.43 33.52 25.81 55.22 60.73

Analysis The above table depicts that, there was noticeably diminishing sub-standard sub standard assets from 2007 -08 to 2009-10, 10, whereas in 2010 -11 11 it raised to 55.22%. Again it amplified further to 60.73% in 2011-12. Graph showing percentage change in sub-standard sub assets to Gross NPA given at KSCAB Ltd. GRAPH NO.1

SUB-STANDARD ASSETS
80 60 40 20 0 43.43 33.52 25.81 55.52 60.73

2007-082008-09 2007 2009-10

2010-11

2011-12

SUB-STANDARD ASSETS

Interpretation The above graph reveals the sub sub-standard standard assets in percentage wise. We can observe that, in 2007-08 08 sub standard assets was 43.43%, progressively it was decreased in 2008 2008-09 with percentage of 33.52 , with good recovery policy of co-operative co operative bank, 2009 2009-10 substandard assets condensed to 25.81%. But bank unable to continue the recovery policy in efficient manner with result of that we can view that sub standard assets increased to 55.52% and 60.73% in 2011-12 12 and 2012-13 2012 respectively.

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

2. Doubtful Assets The following table shows the percentage change in doubtful assets to gross NPA. doubtful assets Doubtful assets (%) = Gross NPA TABLE NO -2 SL.NO 1 2 3 4 5 ANALYSIS The above table exhibits that the doubtful assets increased noticeably from 2007-08, 2007 2008-09 and 2009-10 10 with percentage of 53.95%, 64.36%, and 71.91% respectively. Because of good management recovery policy, doubtful assets decreased in 2010-11 2010 11 and 20011 20011-12 with 42.70% and 35.83% respectively respectively. Graph showing percentage change in doubtful assets to gross NPA. GRAPH NO 2 Year 2007-08 2008-09 2009-10 2010-11 2011-12 Doubtful Assets 11273.7 12358.9 10648.2 7478.44 9474.95 Gross NPA 20895.3 19202 14808.1 17512.4 26437.3 (Rs. In lakhs) Doubtful Assets (In %) 53.95 64.36 71.91 42.7 35.83 *100

DOUBTFUL ASSETS
80.00% 60.00% 40.00% 20.00% 0.00% 2007-08 2008-09 2008 2009-10 2010-11 2011-12 53.95% 64.36% 71.91% 42.70% 35.83%

DOUBTFUL ASSETS

Interpretation The above graph shows that doubtful assets are increasing noticeably from 2007 2007-08, 2008-09 and 2009-10 10 with 53.95%, 64.36%, and 71.91% respectively. And bank took appropriate measures to reduce doubtful assets; as a result we can also see t that doubtful assets are decreased to 42.70% in 2010-11 2010 and 35.83% in 2011-12.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

3. LOSS OF ASSETS The following table shows the percentage change in loss assets to gross NPA. loss assets Loss assets (%) = Gross NPA TABLE NO -3 Loss Gross NPA Assets 546.77 404.82 336.52 363.47 904.88 20895.3 19202 14808.1 17512.4 26437.3 * 100

SL.NO

Year

1 2 3 4 5

2007-08 2007 2008-09 2008 2009-10 2009 2010-11 2010 2011-12 2011

Loss Assets (In %) 2.61 2.1 2.27 2.07 3.42

Analysis The above table reveals that the loss assets of Apex bank was decreasing considerably from 2007-08 08 with percentage of 2.61, 2008-09 2008 with 2.10%, 2009-10 10 with 2.27% and 2010 201011 with 2.07% but the loss of assets was increased in 2011-12 2011 12 with percentage of 3.42%, because bank management fail to take appropriate decisions at a right time to reduce the loss of assets. Graph shows the percentage change in loss assets to gross NPA GRAPH NO.3

LOSS ASSETS
4.00% 2.00% 0.00% 2.61% 2.10% 2.27% 2.07% 3.42%

2007-08 2007 2008-09 2009-10 2010-11 2011-12 LOSS ASSETS

Interpretation The above graph reveals the loss assets to Apex bank. In 2007-08 2007 08 the loss assets of apex bank was 2.61%. In 2008 2008-09 it decreased to 2.10% and in 2009-10 10 it increased marginally to 2.27% because bank fails to take proper decisions at right time. time. In order reduce the loss of assets the bank have taken appropriate decision i.e. bank adopted SARFAESI act to reduce the loss in assets as a result it is reduced to 2.07% in 2010-11 2010 11 But the decisions taken by Bank did not serve the purpose in 2011-12 2011 because of which loss of assets increased to 3.42%.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

4. RATIO OF GROSS NPA TO TATAL ADVANCES The table shows the percentage change in Gross NPA to total advances at the KSCAB Limited Gross NPA Gross NPA Ratio (%) = *100 Total advances TABLE NO. 4 Gross NPA Total Advances

SL.NO

Year

Gross NPA (In %) 7.44 5.49 4.7 4.31 4.91

1 2 3 4 5

2007-08 08 2008-09 09 2009-10 10 2010-11 11 2011-12 12

20895.3 19202 14808.1 17512.4 26437.3

280484 349255 314628 406284 538151

Analysis The above table reveals the gross NPA of Apex bank. Gross NPA reduced step by step from 7.44% in 2007-08 08 to 4.31% in 2010 2010-11 11 progressively, but slightly increased to 4.91% in 2011-12 Graph shows the percentage change in Gross NPA to total advances at the KSCAB ltd.., GRAPH NO.4

Gross NPA in total advances

8.00% 6.00% 4.00% 2.00% 0.00% 2007-08 08 2008-09 2009-10 2010-11 2011-12 7.44% 5.49% 4.70% 4.31% 4.91%

Gross NPA

Interpretation 2007-08 to 2011The above graph reveals the total gross NPA in total advances from 2007 12. The total gross NPA gradually reduced because of good credit appraisal policy. In 2007 200708 the gross NPA was 7.44% over its total advances. In 2008-09 it reduced educed to 5.49%, in 2009-10 it further reduced to 4.70% and in 2010-11 2010 11 it got further reduced to 4.31% but in 2011-12 12 it increased marginally to 4.91% over its total advances.

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

5. NPA IN AGRICULTURE SECTOR The percentage change in NPA in Agriculture sector to total advances in Agriculture sector at KSCAB Ltd is given in the following table TABLE NO 5 SL.NO Year NPA (Rs in lakhs) 5117.88 4765.47 0 0 0 Total advance (Rs in lakhs) 209012 272614 226798 269925 380227 NPA (in %) 2.44 1.74 0 0 0

1 2 3 4 5

2007-08 2008-09 2009-10 2010-11 2011-12

Analysis The percentage of NPA to total advance in Agriculture sector is showing as increasing trend only during the financial year 2007 2007-08 and 2008-09 09 and there is no NPA in the financial year 2009-10, 2010-11 11 and 2011-2012. 2011 It was completely recovered by the bank and it is noticed that all farmers who took the advances, paid very promptly to the bank within due date. The above results reveal the effort has been taken to control NPA in agriculture sector advances. GRAPH NO 5 NPA IN AGRICULTURE SECTOR
3 2 1 0 2007-08 2008-09 NPA (in %) 2009-10 2010-11 2011-12 2010-11 0 2011-12 12 0

2007-08 NPA (in %) 2.44

2008-09 1.74

2009-10 0

Interpretation The above chart reveals the NPA in agriculture sector to total advances from 2007 2007-08 to 2011-12. 12. The NPA control in agriculture is good, it reduced year by year. The specific findings of the study are that, the bank took proper measure to to monitor NPA in agriculture sector.

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

6. NPA IN SUGAR SECTOR The percentage change in NPA in sugar sector to total advance given in sugar sector at KSCAB ltd. TABLE NO: 6 NPA (Rs in Total advance lakhs) (Rs in lakhs)

SL.NO

Year

NPA (in %)

1 2 3 4 5

2007-08 08 2008-09 09 2009-10 10 2010-11 11 2011-12 12

12711.8 11501 10755.5 7511.39 7392.35

19627.1 18693.5 20039.5 23489.1 21936.8

64.76 61.52 53.67 31.97 33.09

Analysis The percentage of NPA to total advance in Sugar sector is shows increasing trend in the financial years 2007-08, 08, 2008-09 2008 and 2009-10. 10. But slightly decreased during the years 2010-11 and 2011-12. 12. The above results reveal the efforts taken to control NPA in Sugar sector advances were more effective in the first three years. The percentage change ge in NPA in sugar sector to total advance given in sugar sector at KSCAB ltd is represented in the following graph. GRAPH NO 6

NPA IN SUGAR SECTOR

80 60 40 20 0 64.76 61.52 53.67 31.97 33.09 NPA (in %) 2010-11 2011-12 2010-11 31.97 2011-12 33.09

2007-08 2008 2008-09 2009-10

2007 2007-08 NPA (in %) 64.76

2008-09 61.52

2009-10 53.67

Interpretation The above graph reveals decreasing trend in NPA in Sugar sector to total advances from 2007-08 to 2010-11 11 and marginal increase in 2011-12. 2011 12. However, the NPA in Sugar sector shows that is more than 30% of the total credit given, it indicates dangerous signal. Hence the bank has to take proper measure to monitor NPA in Sugar sector in time.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

7. NPA PA IN OTHER SECTORS The percentage change in NPA in other sector (other than Agriculture and sugar) to total advance given by KSCAB ltd. TABLE NO 7 NPA (Rs in Total lakhs) advance (Rs in lakhs) 3065.61 2935.5 3847.08 10001 19044.9 51844.1 57946.8 67790.8 112869 135684

SL.NO

Year

NPA (in %) 5.91 5.06 5.67 8.86 14.03

1 2 3 4 5

2007-08 08 2008-09 09 2009-10 10 2010-11 11 2011-12 12

Analysis The percentage of the total NPA in other sector to total credit given shows the decreasing trend during the financial year 2007 2007-08, 2008-09 09 and thereafter ,it shows increasing trend during the years 2009-10, 2009 2010-11 and 2011-12. The percentage change in NPA in other sector to total advances advances given in other sector at KSCAB ltd GRAPH NO - 7 NPA IN OTHER SECTOR
16 14 12 10 8 6 4 2 0 2007 2007-08 NPA (in %) 5.91 2008-09 5.06 2009-10 5.67 2010-11 8.86 2011-12 14.03

Interpretation The above graph reveals the NPA in other sector to total advances is decreasing from 2007-08 to 2008-09. 09. And thereafter, there is step increase in the following four years indicates unsafe/ dangerous signal. Hence bank has to take proper measure to monitor NPA in other sector.

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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

FINDINGS, SUGGESTION AND CONCLUSIONS FINDINGS Following are the findings of the study on Karnataka State Co-operative Apex Bank Ltd. 1. The Non-performing Assets of the bank stood at Rs. 26437.29 lakhs as on 31-03-2012 as against Rs.17512.50 lakhs as on 31-03-2011. As on 31-03-2012 NPA is 4.91%. 2. In respect of agriculture loans, the percentage of recovery as on 31-03-2012 was 100%. For the corresponding period of the previous year also recovery percentage stood at 100%. 3. The total advance given to sugar sector is very less compared to agriculture sector. But total NPA in sugar sector is very high compared to agriculture sector. Advances given to the sugar sector in which more than 30% has become NPA. 4. Based on the observation in 2007-08 Sub standard asset was 43.43%, progressively it was decreased in 2008-09 with percentage of 33.52, with good recovery policy of cooperative bank, 2009-10 Sub standard assets condensed to 25.81%. 5. The percentage of total NPA in other sector has continuously increasing trend during the year 2009-2011, and as on 31-03-2012 it was increased at 3.54%. 6. The specific findings from the study are that, there is still a need to have controlling devices to monitor NPA system in the Karnataka State Co-operative Apex Bank Ltd. SUGGESTIONS To control the Nonperforming assets in Karnataka State Co-operative Apex Bank Limited, some remedial measures are suggested as follows: 1. There must be an effective and regular follow-up with the customers and need to watch is there any diversion of funds. This process can be taken up at regular intervals. 2. A number of personal visits after sanction and disbursal of credit and close monitoring of the operations of the accounts of borrowed units. 3. Between the Bankers borrower a healthy relationship should be developed. Many instances reported that the banks uses force in recovery of loans, which is unethical. 4. Managers in charge of non-performing assets should have dynamism and seal in their work. 5. Frequent discussions with the staff in the branch and taking their suggestions for recovery of NPAs make them feel responsible. 6. Assisting the borrowers in developing his/her entrepreneurial skill will not only establish a good relation between the borrowers but also help the bankers to keep a track of their funds. 7. RBI need to take necessary actions against defaulters like, publishing names of defaulters in News papers, broad-casting media, which is helpful to other banks and financial institutions. 8. Create awareness among the customers and staff about the effect of Non performing assets on the performance of the banks and ultimate on the customers. 9. The bank has to take care of recovery management in sugar and other sector. 10. The bank should avoid the wrong selection of borrowers. The staff must be additionally trained to assess the borrower efficiency by proper credit appraisal. 11. Quality of advances can be improved by using the tools and techniques of credit appraisal and applying the same effectively. 12. Establish special task force for the recovery of dues, which have fallen under the category of Non performing assets.
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International Journal of Advanced Research in Management (IJARM), ISSN 0976 6324 (Print), ISSN 0976 6332 (Online), Volume 4, Issue 2, May - August 2013 IAEME

13. The bank should fully understand the borrowers financial position before issuing loans. 14. The manager must take actions of recovery of loans and advances within a specified time frame with rational decisions. CONCLUSION Finally we can conclude that the Apex bank can avoid sanctioning loans to the non creditworthy borrowers by adopting certain measures. They are careful appraisal of the project which involves checking the economic capability of the project. Apex banker must consider the homecoming on investment on a proposed project. If the calculated return is sufficiently higher than the credit amount he can sanction the loan. Secondly, banker can constantly monitor the borrower in order to ensure that the amount sanctioned is utilized properly for the purpose to which it has been sanctioned. This involves the post sanction inspection by the Apex bank. Thirdly, the banker should get both the formal and informal reports about the goodwill of the customer. If he had already proven as a defaulter then there is no question of sanctioning loan to him. Fourthly, the banker also has to educate the borrowers regarding the effects and consequences of defaulting. By considering all the above factors the banker can reduce the non-performing assets in a bank. . The use of technology like Core Banking Solutions in Apex bank should make more reachable to all borrowers. At last the problem of NPAs has been a major issue for the banking industry. The RBI which is the apex body for controlling level of non-performing assets have been giving guidelines and getting norms for the banks in order to control the incidents of faults. Reduction of NPAs in banking sector should be treated as national priority item to make the Indian Banking system more strong, vibrant and geared to meet the challenges of globalization REFERENCES 1. Aggarwal, S., & Mittal, P. (2012). Non-Performing Asset: Comparative Position of Public and Private Sector Banks in India, International Journal of Business and Management Tomorrow, Vol.2 (1). Boudriga, A., Taktak, NB., & Jellouli, S. (2009). Bank specific business and institutional environment determinants of nonperforming loans: Evidence from MENA countries, ERF 16th Annual Conference on Shocks, Vulnerability and Therapy, November 2009. Chaudhary, S., & Singh, S. (2012). Impact of Reforms on the Asset Quality in Indian Banking, International Journal of Multidisciplinary Research Vol.2(1).13-31. Chhimpa, J. (2002), Incremental NPA: Stem that Inflow, Vinimaya, 23(3): 18-21. Collins, NJ., & Wanjau, K. (2011). The Effects of Interest Rate Spread on the Level of Non-Performing Assets: A Case of Commercial Banks in Kenya, International Journal of Business and Public Management Vol. 1(1). Dash, MK., & Kabra, G. (2010). The Determinants of Non-Performing Assets in Indian Commercial Banks: an Econometric Study, Middle Eastern Finance and Economics, Issue 7 (2010). Espinoza, R., & Prasad, A. (2010). Non Performing Loans in the GCC Banking System and their Macro Economic Effects, IMF Working Paper series, WP/10/224.
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Fainstein, G. (2011). The Comparative Analysis of Credit Risk Determinants - In the Banking Sector of the Baltic States, Review of Economics & Finance, March 2011. Heid, F., & Kruger, U. (2011). Do Capital buffers mitigate volatility of bank lending?A simulation study, Discussion Paper Series 2 Banking and Financial Studies N0 03/2011 Jigar J. Soni, 2009. A Project on Comparative Analysis on Non Performing Assets of Private and Public Sector Banks, IBM Ahemadabad. Karunakar, M., Vasuki, K., & Saravanan, S. (2008). Are non - Performing Assets Gloomy or Greedy from Indian Perspective?, Research Journal of Social Sciences, 3: 412, 2008 Lending and Its Implications for Monetary Policy, OECD Economics Department Working Paper No. 107. Management and resolution of NPAs legal and regulatory regime, [Online] Available at: http:// www. mbaknol. com [Accessed 20thDec 2011] Misra, B.M., & Dhal, S. (2011). Pro-cyclical Management of Banks Non-Performing Loans by the Indian Public Sector Banks, Ms. Kanika Goyal, 2010. Empirical Study of Non Performing Assets Management of Indian Public Sector Banks, APJRBM Volume 1, Issue 1, October 2010. Narasimham, M.S. & Thampy, A. (2002), Activity Based Costing in Banking Service: A Case Study of a Large Indian Private Sector Bank, Prajnan, 31(2): 95-110. Pal Ved & Malik N.S. (2007), A Multivariate Analysis of the financial characteristics of Commercial Banks in India. The Icfai Journal of Bank Management .VI (3). Panta, R., (2007). Challenges in Banking: A Nepalese Diaspora, Socio-Economic Development Panorama, Vol. 1(2), 9 -22 Prof. G. V. Bhavani Prasad; D. Veena (2011), NPAS in indian banking sector- trends and issues,Volume 1, Issue 9. Reserve Bank of India, Report on Trend and Progress of banking in India, Various issues, Bombay, India. Reserve Bank of India (2010), Trend and Progress of Banking in India Sethi, J., & Bhatia, N. (2007). Elements of Banking and Insurance, 2nd Edition, Prentice Hall India Publications Tracey, M., & Leon, H. (2011). The Impact of Non-performing Loans on Loan growth, IMF working Paper. Vashist, A. K. (2004), Commercial Banking in the Globalized Environment, Political Journal of India, 13(2): 1-10. Yadav, M.S. (2011), Impact of Non Performing Assets on Profitability and Productivity of Public Sector Banks in India, AFBE Journal, Vol.4, No. 1 R.Shenbagavalli, S.Senthilkumar and Dr.T.Ramachandran, A Strategy to Manage the NPAs of Public Sector Banks, International Journal of Management (IJM), Volume 4, Issue 3, 2013, pp. 1 - 7, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

BOOKS Prof. H.R. Appannaiah, Dr .P.N. Reddy, Vijayendra .S (2010) Law and practice of banking, Himalaya publishing House. Jagroop Singh (2011). Law and practice of Banking, Kalyani Publishers. WEBSITES http://www.karnatakaapex.com http://www.ebsco.com

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