Presentation on

Net Profit & Net Non Performing

Assets of Top 5 Private banks

ICICI Bank
ICICI
Bankis
anIndianmultinationalbankingandfinancialservices
company headquartered inVadodara,Gujarat,India. As of 2014, it is the
second largest bank in India in terms of assets andmarketcapitalisation[. It
offers a wide range of banking products and financial services for corporate
andretailcustomersthrough a variety of delivery channels and specialised
subsidiaries in the areas ofinvestmentbanking,life,non-lifeinsurance,
venturecapitalandassetmanagement. The Bank has a network of 4,050
branchesand 12,964ATMsin India, and has a presence in 17 countries
includingIndia.[
ICICI Bank is one of theBig Four banksof India, along with
StateBankofIndia,PunjabNationalBankandBankofBaroda.

Keypeople

Mr. M. K. Sharma (Chairman)

Ms.Chanda Kochhar(MD &
CEO)

HDFC Bank
HDFC Bank Limitedis an Indian banking andfinancialservicescompany
headquartered inMumbai,Maharashtra. Incorporated in 1994, it is the fifth
largest bank in India as measured by assets.It is the largest private sector
bankin India bymarketcapitalizationas of February 2014. The bank was
promoted by theHousingDevelopmentFinanceCorporation, a premier
housing finance company (set up in 1977) of India.According to the
BrandTrustReport2014,HDFCwasranked32ndamongIndia'smosttrusted
brands.HDFC was ranked 45th on the list of top 50 Banks in the world in
termsoftheirmarketcapitalization.

Keypeople

Aditya Puri(MD)

Axis Bank
Axis Bank Limited(formerly UTI Bank) is the third largest private
sector bank in India. Although classified as a private sector bank, Axis
Bank's promoters (UTI,LICandGIC, which collectively held approx.
34% of the shares as at 31 December 2013), are all entities owned and
controlledbytheGovernmentofIndia.
The bank offers financial services to customer segments covering Large
and Mid-Sized Corporates, MSME,Agriculture and Retail Businesses. [1]
AxisBankhasitsregisteredofficeatAhmedabad.

Key people

(Chairman)
Shikha Sharma(MD & CEO)

Yes Bank
Yes Bank, is India's fifth largest private sector Bank, co-founded byRana
Kapoorin 2004 Yes Bank is the only Greenfield Bank licence awarded by
the RBI in the last two decades. Yes Bank is a Full Service Commercial
Bank, has steadily built a Corporate, Retail & SME Banking franchise,
Financial Markets, Investment Banking, Corporate Finance, Branch
Banking, Business and Transaction Banking, and Wealth Management
businesslinesacrossthecountry.

Key people

Rana Kapoor (Managing Director & CEO)

Kotak Mahindra Bank

Kotak Mahindra Bankis thefourthlargestIndian private sector bankby
market capitalization, headquartered in Mumbai, Maharashtra. The banks
registered office (headquarters) is located at 27BKC, Bandra Kurla
Complex,BandraEast,Mumbai,India.
In February 2003, Kotak Mahindra Finance Ltd, the group's flagship
company was given the licence to carry on banking business by the
ReserveBankofIndia(RBI). Kotak Mahindra Finance Ltd. is the first
companyintheIndianbankinghistorytoconverttoabank.
As on 30 September 2014, Kotak Mahindra Bank has over 641 branches
andover1,159ATMsspreadacross363locationsinthecountry.Thebank,
beforemergerwithINGVysyahadaround29,000employees.

Key people

Uday Kotak(Founder & Executive Vice

Chairman)

Performing Asset
An account does not disclose any
problems and carry more than
normal risk attached to the
business
All loan facilities which are regular !

Non Performing Assets

Non Performing Asset means a loan
or an account of borrower, which
has been classified by a bank or
financial
institution
as
substandard, doubtful or loss asset, in
accordance with the directions or
guidelines
relating
to
asset
classification issued by RBI.

Introduction
Earlier assets were declared as NPA
after completion of the period for the
payment of total amount of loan and
30 days grace.
In present scenario assets are
declared as NPA if none of the
installment is paid till 180 days i.e. six
months in respect of a term loan

Reasons behind rise in NPA

Lack of proper pre-enquiry by the bank for
sanctioning a loan to a customer.
Non performance of the business or the
purpose for which the customer has taken
the loan.
Willful defaulter.
Loans sanctioned for agriculture purposes.
Change in govt. policies leads to NPA.

Effects of NPA on banks & FI

Restriction on flow of cash done by
bank due to the provisions of fund
made against NPA.
Drain of profit.
Bad effect on goodwill.
Bad effect on equity value.

Factors Impacting Rise In NPAs

External factors :
Ineffective legal framework & weak
recovery tribunals .
Lack of demand / economic
recession or slowdown
Change in Govt. policies
Wilful defaults by customers
Alleged political interferences

Factors Impacting Rise In NPAs

Internal factors :
Defective Lending process
Inappropriate / non use of
technology like MIS ,
Computerization
Improper SWOT analysis
Inadequate credit appraisal system
Managerial deficiencies
Absence of regular industrial visits
& monitoring
Deficiencies in re-loaning process
Alleged corruption
Inadequate networking & linkages

TYPES OF NPA
Gross NPA :
Gross NPAs are the sum total of all
loan assets that are classified as
NPAs as per RBI guidelines as on
Balance Sheet date. Gross NPA
reflects the quality of the loans
made by banks. It consists of all the
non standard assets like as substandard, doubtful, and loss assets.
Gross NPAs Gross NPAs
Gross Advances

Net NPA:
Net NPAs are those type of NPAs in
which the bank has deducted the
provision regarding NPAs. Net NPA shows
the actual burden of banks.

Net NPAs Gross = __NPAs

Provisions__
Gross Advances Provisions

ICICI Bank

Mar '15
Net Profit
Gross NPA
Net NPA

Mar '14

Mar '13

Mar '12

Mar '11

11,175.35
15,094.69

9,810.48
10,505.84

8,325.47
9,607.75

6,465.26 5,151.38
9,475.33 10,034.26

6,255.53

3,297.96

2,230.56

1,860.84

2,407.36

HDFC Bank

Mar '15 Mar '14 Mar '13 Mar '12

Net
10,215.92 8,478.40 6,726.28 5,167.07
Profit
Gross NPA 3,438.38 2,989.28 2,334.64 1,999.39
Net NPA
896.28 820.03 468.95 352.33

Mar '11
3,926.39
1,694.34
296.41

Axis Bank

Mar '15 Mar '14

Net
Profit

Mar '13 Mar '12

Mar '11

7,357.82 6,217.67 5,179.43 4,242.21 3,388.49

Gross NPA 3,438.38 2,989.28 2,334.64 1,999.39 1,694.34

Net NPA

896.28

820.03

468.95

352.33

296.41

Yes Bank

Mar '15
Net Profit
Gross NPA
Net NPA

2,005.36
313.40
87.72

Mar '14

Mar '13 Mar '12 Mar '11

1,617.78 1,300.68
174.93
94.32
26.07
6.99

976.99
83.86
17.46

727.13
80.52
9.15

Net Profit as per the latest Profit

& Loss Account available.

Company Name
ICICI Bank

Last Price

Change

% Change

Net Profit
(Rs. cr)

290.00

3.85

1.35

11,175.35

1,099.75

14.75

1.36

10,215.92

Axis Bank

504.85

6.20

1.24

7,357.82

Yes Bank

773.10

14.10

1.86

2,005.36

Kotak Mahindra

659.10

6.55

1.00

1,865.98

HDFC Bank

Kotak Mahindra Bank

Mar '15 Mar '14 Mar '13

Mar '12 Mar '11

Net Profit 1,865.98 1,502.52 1,360.72

Gross NPA 1,237.23 1,059.44 758.11
Net NPA
609.08 573.56 311.41

1,085.05 818.18
614.19 603.49
237.38 211.16

NET NON PERFORMING

ASSETS

ICICI
Bank
Mar
'15
Mar
'14

1.61
0.97

HDFC
Bank
0.20
0.30

Axis
Bank
0.44

Yes
Bank
0.12

Kotak
Bank
0.92

0.40

0.05

1.08

0.32

0.01

0.64

Mar
'13

0.77

0.20

Mar
'12

0.73

0.20

0.25

Mar

1.11

0.20

0.26

0.05
0.03

0.61
0.72