Final Semester Mba Banking Project Headlines

A STUDY ON

NON-PERFORMING ASSET AT THE BANGALORE CITY CO-OPERATIVE BANK LTD. BANGALORE A project report submitted in partial fulfillment of the requirements for Masters of Business Administration Of Sikkim Manipal University, INDIA

Submitted By

NAGARATHNA . S

Guided By Mr. Lokesh T.C

Sikkim Manipal University Health Medical & Technological Sciences Distance Education Wing

MANIPAL - 576104

SIKKIM MANIPAL UNIVERSITY HEALTH, MEDICAL & TECHNOLOGICAL SCIENCES MANIPAL

CERTIFICATE This is to certify that the project work entitled

STUDY ON NON-PERFORMING ASSET AT THE BANGALORE CITY CO-OPERATIVE BANK LTD. BANGALORE is the bonafide record of work done by NAGARATHNA . S in partial fulfillment of the requirements for the award of the degree of

Master OF Business Administration during the academic year 2012 Name of the candidate: Nagarathna.S Register Number: 521023258 Study Center: 02772 Signature of the Co-ordinator

DECLARATION I hereby declare that the project report entitled

STUDY ON NON-PERFORMING ASSET AT THE BANGALORE CITY CO-OPERATIVE BANK LTD. BANGALORE

Submitted in partial fulfillment of the requirements for the degree of

Masters of Business Administration

To Sikkim – Manipal University, India, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes.

Place:Bangalore Date: 5th June 2012

Nagarathna.S Reg.No. ; 521023258

Learning Centre Certificate This is to certify that the project report entitled

STUDY ON NON-PERFORMING ASSET AT THE BANGALORE CITY CO-OPERATIVE BANK LTD. BANGALORE

Submitted in partial fulfillment of the requirements for the degree of

Masters of Business Administration Sikkim – Manipal university of Health, Medical and Technological Sciences

Nagarathna .S Has worked under my supervision and guidance and that of this report has been submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes and that the work has not been published in any journal or Magazine.

(Reg. No ) 521023258

Certified

ACKNOWLEDGEMENT

I express my deep sense of gratitude to N.MANJUNATHA General Manger, Bangalore, for permitting me to carry out this project work in their esteemed organization.

I take great pleasure in thanking my Internal Project guide, Mr. Lokesh T.C, for his valuable guidance, advice, encouragement and constructive suggestions thought this project.

I take this opportunity to thank my beloved parents and my entire family who have given me all the necessary financial and moral support during the course of this project.

I would want to extend my profound sense of gratitude to everyone who has helped me during the course of this project. I especially grateful to my respondents who have provided me the essential and valuable information needed for the successful completion of this project.

NAGARATHNA .S

CONTENTS CHAPTER – 1: INTRODUCTION OF THE TOPIC



Chapter Scheme

1



Introduction about banking industry

5



Co-operative Banks

13



Evolution of Co-operative Banks

17



Definition and Features of Co-operative Bank

19



Structure of Co-operative Bank

20



Introduction to Non-Performing Assets

25



RBI

Prudential

recommendations

Norms of

the

on

the

Narasimham

Committee in the year 1992-93

32



Impact of Non-Performing Assets

34



General causes of Non- Performing Assets

35



Measures to tackle Non-Performing Assets

36



Introduction to Securitization Act 2002

40

CHAPTER – 2: DESIGN OF THE STUDY



Title of the Study

43



Statement of the Problem

44



Needs & Importance of the study

44



Objectives of the study

45



Scope of the Study

45



Methodology of the study

46



Tools for the collection of data

46



Limitations of the study

47



Reference Period

47

CHAPTER – 3: BANK PROFILE



History of The BCCBL

48



Trade mark of the Bank

49



Goals & Objectives

50



Vision Statement

52



Organization chart of the Bank

53



Branches

54



Awards and Competitors Information

55



Bank Administrative Committee

56

CHAPTER – 4: ANALYSIS & INTERPRETATION



Reasons for NPAs in the bank



Measures for the recovery of NPAs adopted by the bank



Analysis and interpretation of the Study

62

63

63 - 101

LIST OF TABLES SL. No 4.1

Table Title Classification of NPA

Page No. 65

4.2

Gross NPA Ratio

68

4.3

Net NPA Ratio

70

4.4

Problem Asset Ratio

72

4.5

Provision Ratio

74

4.6

Sub- Standard Assets Ratio

76

4.7

Doubtful Assets Ratio

78

4.8

Percentage of total NPA to total Advances

81

4.9 4.10 4.11

Percentage of Total NPA in Long term loans to total advances given in Long Term Loan Percentage of Total NPA in Short term loans to advances given in Short Term Loans

83 85 87

4.12

Percentage of NPA in other loans to total advances given in other loans Percentage change in NPA to total advances

4.13

Percentage change in NPA in Long term loans

91

4.14

Percentage change in NPA in short term loans

93

4.15

Percentage change in NPA in other loans

94

4.16

Comparison of NPA to advances in Short term loans and total advances Comparison of NPA to advances in Short term loans and Total advances Comparison of NPA to advances in other loans and total advances

97

4.17 4.18

89

99 101

LIST OF GRAPHS SL. No

Table Title

Page No.

4.10

Classification of NPA

66

4.11

Gross NPA Ratio

67

4.12

Net NPA Ratio

71

4.13

Problem Asset Ratio

73

4.14

Provision Ratio

75

4.15

Sub- Standard Assets Ratio

76

4.16

Doubtful Assets Ratio

77

4.17

Percentage of total NPA to total Advances

82

4.18 4.10 4.11

Percentage of Total NPA in Long term loans to total advances given in Long Term Loan Percentage of Total NPA in Short term loans to advances given in Short Term Loans

84 86 88

4.12

Percentage of NPA in other loans to total advances given in other loans Percentage change in NPA to total advances

4.13

Percentage change in NPA in Long term loans

92

4.14

Percentage change in NPA in short term loans

94

4.15

Percentage change in NPA in other loans

95

4.16

Comparison of NPA to advances in Short term loans and total advances Comparison of NPA to advances in Short term loans and Total advances Comparison of NPA to advances in other loans and total advances

98

4.17 4.18

90

100 102

CHAPTER – 6: SUMMARY OF FINDINGS



Summary of findings

104

CHAPTER – 7: SUGGESTIONS



Suggestions

107

CHAPTER – 7: CONCLUSION



Conclusions

110

CHAPTER – 8: ANEXURE



Annexure

112

CHAPTER – 9: BIBLIOGRAPHY



Bibliography

115