A Project Report on Impact of Npa on Pro

8/19/2019 A Project Report on Impact of Npa on Pro

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A PROJECT REPORT

ON

“IMPACT OF NPA ON PROFITABILITY:EMPIRICAL STUDY OFPRIVATE SECTOR BANKS IN INDIA”

Submitted t

Marwadi Education Foundation’s Group of Institutions

I! "#$ti#% &u%&i%%me!t & t'e $e(ui$eme!t & t'e #)#$d & $ t'e de*$ee & M#+te$ & Bu+i!e++ Admi!i+t$#ti !

U!de$

Gujarat Technological UniversityU!de$ t'e *uid#!,e &

F#,u%t- .uide P$ &/ A!u"#m# D#0e

Submitted b-:

MANALI B1AVASRE!$ %me!t N /: 234356783663

RIDD1IBA C1UDASAMAE!$ %me!t N /: 234356783664

MBA Seme+te$ III #!d IV

Marwadi Education Foundation’s Group of InstitutionsMBA rogra!

Affiliated to Gujarat Technological UniversityAh!eda"ad


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#TU$E%T $E&'A(ATI)%

9e MANALI B1AVSAR AND (I$$*IBA &*U$A#AMA 'e$eb- de,%#$e

t'#t t'e $e" $t & $ , m"$e'e!+i0e "$ ;e,t e!tit%ed “Im"#,t & NP


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(EFA&E

T'e i!+tituti !#% b#!=i!* i+ # 0e$- )ide #$e# & m#!#*eme!t/ 9e '#0e t$ied t , 0e$

im"#,t & NPA ! P$ &it#bi%it- #$e# & 23 "$i0#te +e,t $ b#!= i! I!di# +

9e '#0e t$ied t &u%&i%% #%% t'e $e(ui$eme!t+ t "$e"#$e t'i+ $e" $t +u**e+ti !+ &$ m

t'e *uide , %%e#*ue+ et,/

It *i0e+ u+ imme!+e "%e#+u$e t "$e+e!t t'i+ "$ ;e,t $e" $t/ It i+ & *$e#t "" $tu!it-

& $ m#!#*eme!t +tude!t+ t #,(ui$e =! )%ed*e #b ut im"#,t & NPA ! "$i0#te

+e,t $ b#!=/


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A&,%)-'E$GEME%T

9e #$e t'#!=&u% t #%% t' +e )' +e ) $=+ ide#+ '#0e bee! u+e&u% i! )$iti!* t'i+$e" $t> )e )i+' t e?"$e++ m- +i!,e$e #""$e,i#ti !/

Fi$+t & #%% )e ) u%d %i=e t "#- m- *$#titude t u$ De#!$r+ &*I%%AM (E$$. #I( /

9e #%+ , !0e- m- *$#titude t A%U AMA $A/E )' 'e%"ed #!d *uided me i!

t'e "$e"#$#ti ! & t'e "$ ;e,t $e" $t #!d #%+ t'e t'e$ ,u%tie+ & MA(-A$I

E$U&ATI)% F)U%$ATI)% G()U )F I%#TITUTE+

DATE

P%#,e: RAJKOT


5/63

A(T01


6/63


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M#$*i!#% #!d +ub m#$*i!#% "e$#t $+ #$e +)e"t #)#- b- t'e+e , !0u%+i !+/ B#!=+

bei!* +e!+iti0e i!+tituti !+ e!t$e!,'ed dee"%- i! t$#diti !#% be%ie&+ #!d , !0e!ti !+

)e$e u!#b%e t #d;u+t t'em+e%0e+ t t'e ,'#!*e+/ T'e- +u&&e$ed e#+- 0i,tim+ t t'i+

u"'e#0#% i! t'e i!iti#% "'#+e/

C !+e(ue!t%- b#!=+ u!de$)e!t t'i+ t$#!+iti ! +-!d$ me #!d %#!*ui+'ed u!de$

di+t$e++ #!d b#!=i!* ,$i+e+ +u$,ed i! (ui,= +u,,e++i ! !e & %% )i!* t'e t'e$ i!

m#!- , u!t$ie+/ But )'e! t'e b#!=i!* i!du+t$- i! t'e *% b#% +"'e$e ,#me ut & t'i+

met#m $"' +i+ t $e #d;u+t t t'e !e) $de$ t'e- eme$*ed $e0it#%i ed #!d #+ m $e

0ib$#!t #!d $ bu+t u!it+/ De$e*u%#ti ! i! de0e% "ed ,#"it#%i+t , u!t$ie+ "#$ti,u%#$%- i!

Eu$ "e )it!e++ed # $em#$=#b%e i!! 0#ti0e *$ )t' i! t'e b#!=i!* i!du+t$- )'et'e$

me#+u$ed i! te$m+ & de" +it *$ )t' ,$edit *$ )t' *$ )t' i!te$medi#ti !i!+t$ume!t+ #+ )e%% #+ i! !et) $=/

Du$i!* #%% t'e+e -e#$+ t'e I!di#! B#!=i!* )' +e e!0i$ !me!t )#+ i!+u%#ted &$ m

t'e *% b#% , !te?t #!d )#+ de! mi!#ted b- St#te , !t$ %+ & di$e,ted ,$edit de%i0e$-

$e*u%#ted i!te$e+t $#te+ #!d i!0e+tme!t +t$u,tu$e did ! t "#$ti,i"#te i! t'i+ 0ib$#!t

b#!=i!* $e0 %uti !/ Su&&e$i!* t'e de#$t' & i!! 0#ti0e +"i$it #!d ,' =i!* u!de$ u!due

$e*ime!t#ti ! I!di#! b#!=i!* )#+ %#,=i!* b;e,ti0e #!d "$ude!ti#% +-+tem+ &

bu+i!e++ %e#di!* &$ m e#$%- +t#*!#ti ! t e0e!tu#% de*e!e$#ti ! #!d $edu,ed $

!e*#ti0e "$ &it#bi%it-/ C !ti!ued " %iti,#% i!te$&e$e!,e t'e #b+e!,e & , m"etiti ! #!d

t t#% %#,= & +,ie!ti&i, de,i+i ! m#=i!* %ed t , !+e(ue!,e+ ;u+t t'e "" +ite & )'#t

)#+ '#""e!i!* i! t'e )e+te$! , u!t$ie+/ Im"e$&e,t #,, u!ti!* +t#!d#$d+ #!d

"#(ue b#%#!,e +'eet+ +e$0ed #+ t %+ & $ 'idi!* t'e +' $t, mi!*+ #!d i%i!* t

$e0e#% t'e "$ *$e++i0e dete$i $#ti ! #!d +t$u,tu$#% )e#=!e++ & t'e , u!t$-@+ b#!=i!*

i!+tituti !+ t "ub%i, 0ie)/ T'i+ e!#b%ed t'e !#ti !#%i ed b#!=+ t , !ti!ue t &% u$i+'

i! # de,e"ti0e m#!i&e+t#ti ! #!d %+e *%itte$ t' u*' +t$#- +-m"t m+ & t'e b$e)i!*

#i%me!t )e$e di+,e$!#b%e 'e$e #!d t'e$e/

T'e * 0e$!me!t '#+ti%- i!t$ du,ed t'e &i$+t "'#+e & $e& $m+ i! t'e &i!#!,i#% #!d

b#!=i!* +e,t $+ #&te$ t'e e, ! mi, ,$i+i+ & 2882/ T'i+ )#+ #! e&& $t t (ui,=%-

$e+u$$e,t t'e 'e#%t' & t'e b#!=i!* +-+tem #!d b$id*e t'e *#" bet)ee! I!di#! #!d

*% b#% b#!=i!* de0e% "me!t/ I!di#! B#!=i!* i! "#$ti,u%#$ PSB + +udde!%- ) =e u"

t t'e $e#%itie+ & t'e +itu#ti ! #!d t ,e t'e bu$de! & t'e +u$&eit & t'ei$ ) e+/Simu%t#!e u+%- m#; $ $e0 %uti !#$- t$#!+iti !+ )e$e t#=i!* "%#,e i! t'e$ +e,t $+ &


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t'e e, ! m- ! #,, u!t t'e !* i!* e, ! mi, $e& $m+ i!te!ded t )#$d+ &$eei!* t'e

I!di#! e, ! m- &$ m * 0e$!me!t , !t$ %+ #!d %i!=i!* it t m#$=et d$i0e! & $,e+ & $ #

(ui,= i!te*$#ti ! )it' t'e *% b#% e, ! m-/ Im" $t $e+t$i,ti !+ )e$e *$#du#%%- &$eed/

T#$i&&+ )e$e b$ u*'t d )! #!d (u#!tit#ti0e , !t$ %+ )e$e $em 0ed/ T'e I!di#!

m#$=et )#+ "e!ed & $ &$ee , m"etiti ! t t'e *% b#% "%#-e$+/ T'e !e) e, ! mi,

" %i,- i! tu$! $e0 %uti !#%i+ed t'e e!0i$ !me!t & t'e I!di#! i!du+t$- #!d bu+i!e++

#!d "ut t'em t +imi%#$ "$ b%em+ & !e) mi?tu$e O& "" $tu!itie+ #!d ,'#%%e!*e+/ A+

# $e+u%t )e )it!e++ t d#- # +,e!#$i & b#!=i!* t$#de #!d i!du+t$- i! I!di# #%%

u!de$* i!* t'e , !0u%+i !+ & t t#% $e& $m#ti ! b#tt%i!* t =i,= && t'e de,#de!,e &

t'e "#+t #!d t *#i! # !e) +t$e!*t' #!d 0i* $ & $ e&&e,ti0e %i!=+ )it' t'e *% b#%

e, ! m-/ M#!- #$e +ti%% %#!*ui+'i!* u!#b%e t *et $e%e#+ed &$ m t'e %d +et u" )'i%e

# &e) "$ *$e++i0e , $" $#te #$e m#=i!* # !i,'e & $ t'em+e%0e+ i! t'e *% b#% , !te?t/

Du$i!* t'i+ de,#de t'e $e& $m+ '#0e , 0e$ed #%m +t e0e$- +e*me!t & t'e &i!#!,i#%

+e,t $/ I! "#$ti,u%#$ it i+ t'e b#!=i!* +e,t $ )'i,' e?"e$ie!,ed m#; $ $e& $m+/ T'e

$e& $m+ '#0e t#=e! t'e I!di#! b#!=i!* +e,t $ $ #)#- &$ m t'e d#-+ &

!#ti !#%i #ti !/ I!,$e#+e i! t'e !umbe$ & b#!=+ due t t'e e!t$- & !e) "$i0#te #!d

& $ei*! b#!=+> i!,$e#+e i! t'e t$#!+"#$e!,- & t'e b#!=+@ b#%#!,e +'eet+ t'$ u*' t'e

i!t$ du,ti ! & "$ude!ti#% ! $m+ #!d ! $m+ & di+,% +u$e> i!,$e#+e i! t'e $ %e & t'em#$=et & $,e+ due t t'e de$e*u%#ted i!te$e+t $#te+ t *et'e$ )it' $#"id

, m"ute$i #ti ! #!d #""%i,#ti ! & t'e be!e&it+ & i!& $m#ti ! te,'! % *- t b#!=i!*

"e$#ti !+ '#0e #%% +i*!i&i,#!t%- #&&e,ted t'e "e$#ti !#% e!0i$ !me!t & t'e I!di#!

b#!=i!* +e,t $/

I! t'e b#,=*$ u!d & t'e+e , m"%e? ,'#!*e+ )'e! t'e "$ b%em & NPA )#+

be%#ted%- $e, *!i ed & $ t'e &i$+t time #t it+ "e#= 0e% ,it- du$i!* 2883 8H t'e$e )#+

$e+u%t#!t ,'# + #!d , !&u+i !/ A+ t'e "$ b%em i! %#$*e m#*!itude e$u"ted +udde!%-

b#!=+ )e$e u!#b%e t #!#%- e #!d m#=e # $e#%i+ti, $ , m"%ete #++e++me!t & t'e

+u$m u!ti!* +itu#ti !/ It )#+ ! t $e#%i ed t'#t t'e $ t & t'e "$ b%em & NPA )#+

,e!te$ed e%+e)'e$e i! mu%ti"%e %#-e$+ #+ mu,' ut+ide t'e b#!=i!* +-+tem m $e

"#$ti,u%#$%- i! t'e t$#!+ie!t e, ! m- & t'e , u!t$- #+ )it'i!/ B#!=i!* i+ ! t #

, m"#$tme!t#%i ed #!d i+ %#ted +e,t $ de%i!=ed &$ m t'e $e+t & t'e e, ! m-/ A+

'#+ '#""e!ed e%+e)'e$e i! t'e ) $%d # di+t$e++ed !#ti !#% e, ! m- +'i&t+ # "#$t &

it+ !e*#ti0e $e+u%t+ t t'e b#!=i!* i!du+t$-/ I! +' $t b#!=+ #$e m#de u%tim#te%- t


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&i!#!,e t'e % ++e+ i!,u$$ed b- , !+titue!t i!du+t$ie+ #!d bu+i!e++e+/ T'e

u!"$e"#$ed !e++ #!d +t$u,tu$#% )e#=!e++ & u$ b#!=i!* +-+tem t #,t t t'e

eme$*i!* +,e!#$i #!d de $i+= it+e%& t t'e ,'#%%e!*e+ t'$ )! b- t'e !e) $de$ t$-i!*

t +)it,' 0e$ t *% b#%i #ti ! )e$e !%- #**$#0#ti!* t'e ,$i+i+/ P#$ti#% "e$,e"ti !+

#!d '#+t- ;ud*me!t+ %ed t # " %i,- & #d ' , i+m )'i,' ,'#$#,te$i ed t'e #""$ #,'

& t'e #ut' $itie+ du$i!* t'e %#+t t) de,#de+ t )#$d+ &i!di!* + %uti !+ t b#!=i!*

#i%me!t+ #!d di+m#!t%i!* $e, 0e$- im"edime!t+/ C !ti!u u+ , !,e$! )#+

e?"$e++ed/ Re"e#ted , $$e,ti !#% e&& $t+ )e$e e?e,uted but " +iti0e $e+u%t+ )e$e

e0#di!*/ T'e "$ b%em )#+ de&-i!* # + %uti !/

T'e t'$e#t & NPA )#+ bei!* +u$0e-ed #!d +umm#$i ed b- RBI #!d . 0e$!me!t &

I!di# &$ m # $em te "e$,e"ti ! % =i!* #t # bi$d@+ e-e 0ie) ! t'e b#!=i!* i!du+t$-#+ # )' %e de%i!=ed &$ m t'e $e+t & t'e e, ! m-/ RBI % =+ #t t'e b#!=i!* i!du+t$-@+

#0e$#*e ! # m#,$ b#+i+ , !+ %id#ti!* #!d t#bu%#ti!* t'e d#t# +ubmitted b-

di&&e$e!t i!+tituti !+/ It '#+ , %%e,ted e?te!+i0e +t#ti+ti,+ #b ut NPA i! di&&e$e!t

&i!#!,i#% +e,t $+ %i=e , mme$,i#% b#!=+ &i!#!,i#% i!+tituti !+ u$b#! , "e$#ti0e+

NBFC et,/ But +ti%% it i+ # di+t#!t 0ie) & !e ut+ide t'e +-+tem #!d ! t t'e &e%t 0ie)

& # +u&&e$i!* "#$ti,i"#!t/ I!di0idu#% b#!=+ i!'e$it di&&e$e!t ,u%tu$e+ #!d t'e- &i!#!,e

di0e$+e +e,t $+ & t'e e, ! m- t'#t d ! t " ++e++ ide!ti,#% #tt$ibute+/ T'e$e #$edi+ti!,t di0e$+itie+ #+ #m !* t'e 38 "ub%i, +e,t $ b#!=+ t'em+e%0e+ bet)ee!

di&&e$e!t *e *$#"'i,#% $e*i !+ #!d bet)ee! di&&e$e!t t-"e+ & ,u+t me$+ u+i!* b#!=

,$edit/ T'e$e #$e t'$ee )e#= !#ti !#%i ed b#!=+ t'#t '#0e bee! ide!ti&ied/ But t'e$e

#$e #%+ , $$e+" !di!*%- t) bette$ "e$& $mi!* b#!=+ %i=e C $" $#ti ! #!d OBC/

T'e$e #$e #%+ b#!=+ t'#t '#0e +u,,e++&u%%- , !t#i!ed NPA #!d b$ u*'t it t +i!*%e

di*it %i=e S-!di,#te .$ ++ NPA /4 #!d A!d'$# .$ ++ NPA 5/2H / T'e

+,e!#$i i+ ! t + +im"%e t be *e!e$#%i ed & $ t'e i!du+t$- #+ # )' %e t "$e+,$ibe #$e#d-m#de "#,=#*e & # , mm ! + %uti ! & $ #%% b#!=+ #!d & $ #%% time+/

Simi%#$%- NPA , !,e$!+ & i!di0idu#% B#!=+ +umm#$i ed #+ # )' %e #!d e?"$e++ed

#+ #! #0e$#*e & $ t'e e!ti$e b#!= ,#!! t , !0e- # de"e!d#b%e "i,tu$e/ It i+ bei!*

+t#ti+ti,#%%- +t#ted t'#t b#!= $ Y '#+ 23 *$ ++ NPA/ But i& )e % = d )! &u$t'e$

)it'i! t'#t B#!= t'e$e #$e # &e) " ,=et+ " ++e++i!* bu%= +e*me!t+ & NPA $#!*i!*

76 t 6 *$ ++ )'i,' +' u%d , !+e(ue!t%- , !0e- t'#t t'e$e +' u%d #%+ be

+e0e$#% t'e$ +e*me!t+ )it' H t 7 $ e0e! NIL NPA #0e$#*i!* t'e b#!=@+ )' %e


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"e$& $m#!,e t 23 / Mu,' ,$iti,i+m i+ m#de #b ut t'e b%i*#ti ! & N#ti !#%i ed

B#!=+ t e?te!d "$i $it- +e,t $ #d0#!,e+/ But b#!=+ '#0e !eit'e$ $ed bette$ i! ! !

"$i $it- +e,t $/ T'e , m"#$#ti0e "e$& $m#!,e u!de$ "$i $it- #!d ! ! "$i $it- i+ !%- #

di&&e$e!,e & de*$ee #!d ! t t'#t & =i!d/

T'e #++e++me!t & t'e mi? & , !t$ibuti!* ,t $+ i!,%ude+:

2/ 'um#! ,t $+ t' +e "e$t#i!i!* t t'e b#!=e$+ #!d t'e ,$edit ,u+t me$+

3/ e!0i$ !me!t#% imb#%#!,e+ i! t'e e, ! m- ! #,, u!t & )' %e+#%e ,'#!*e+

#!d #%+

H/ I!'e$ited "$ b%em+ & I!di#! b#!=i!* #!d i!du+t$-/

V#$i#b%e +=i%% e&&i,ie!,- #!d %e0e% i!te*$it- "$e0#i%i!* i! di&&e$e!t b$#!,'e+ #!d i!

di&&e$e!t b#!=+ #,, u!t+ & $ t'e +)ee"i!* di+"#$itie+ bet)ee! i!te$ b#!= #!d i!t$#

b#!= "e$& $m#!,e/ 9e m#- #dd t'#t )'i%e t'e , $e $ b#+e %e0e% NPA i! t'e i!du+t$-

i+ due t , mm ! , !t$ibut $- ,#u+e+ t'e i!te$ +e 0#$i#ti !+ #$e ! #,, u!t & t'e

+t$u,tu$#% #!d "e$#ti !#% di+"#$itie+/ T'e 'e#0- , !,e!t$#ted "$e0#%e!,e & NPA i+

de&i!ite%- due t 'um#! ,t $+ , !t$ibuti!* t t'e +#me/

N b#!= #""e#$+ t '#0e , !du,ted +tudie+ i!0 %0i!* # ,$ ++ +e,ti ! & it+ "e$#ti!*

&ie%d +t#&& i!,%udi!* t'e #udit #!d i!+"e,ti ! &u!,ti !#$ie+ & $ # ,#!did #!d

, m"$e'e!+i0e i!t$ +"e,ti ! b#+ed ! # +u$0e- & t'e 0#$i#b%e+ & NPA bu$de!

u!de$ di&&e$e!t ,#te* $ie+ & +e,t $#% ,$edit di&&e$e!t $e*i !+ #!d i! i!di0idu#%

B$#!,'e+ ,#te* $i ed #+ )it' 'i*' medium #!d % ) i!,ide!,e & NPA/ 9e d ! t'e#$ t'e 0 i,e & t'e "e$#ti!* "e$+ !!e% i! t'e+e b#!=+ ,#!did%- e?"$e++ed #!d

e?"%#i!i!* t'ei$ i%u$e+/ E? b#!=e$+ i/e/ t'e "$ &e++i !#% b#!=e$+ )' '#0e $eti$ed

&$ m +e$0i,e but " ++e++ # de"t' & i!+ide =! )%ed*e d ! t ut " u$ ,#!did%- t'ei$

0ie)+/ A&te$ t'$ee de,#de+ & !#ti !#%i ed b#!=i!* )e mu+t '#0e + me 'u!d$ed+ &

$eti$ed B#!= e?e,uti0e+ i! t'e , u!t$- )' ,#! b %d%- #!d i!de"e!de!t%- but

b;e,ti0e%- 0 i,e t'ei$ 0ie)+/ E0e$- !e i+ +#ti+&ied i! b%#mi!* t'e t'e$+/ B#!=

e?e,uti0e+ ' %d @)i%%&u% deu%te$+@ $e+" !+ib%e & $ #%% t'e "%#*ue/ I!du+t$- #!d

bu+i!e++ b%#me+ t'e * 0e$!me!t " %i,ie+/


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Im" $t#!t ,t $e0e#%i!* i!& $m#ti ! & $ e#,' NPA #,, u!t i+ t'e *#" "e$i d bet)ee!

t'e d#te )'e! t'e #d0#!,e )#+ $i*i!#%%- m#de #!d t'e d#te & it+ be, mi!* NPA/ I&

t'e *#" i+ % !* it i+ t'e ,#+e & # +u!+et i!du+t$-/ T'i!*+ )e$e #%% $i*'t e#$%ie$ but

e, ! mi, 0#$i#!,e i! t$#de ,-,%e+ $ m#$=et +e!time!t+ '#0e ,$e#ted t'e NPA/

C$edit ,u+t me$+ )' #$e i! NPA t d#- but & $ -e#$+ )e$e e#$%ie$ $#ted #+ * d

"e$& $me$+ #!d ,$edit) $t'- ,%ie!t+ $#!*i!* )it'i! t'e t " 76 $ 266/ Si*!i&i,#!t "#$t

& t'e NPA i+ ! #,, u!t & ,% ut b#!=i!* $ )i%%&u%%- *i0e! b#d % #!+/ I!!t m $t#%it-

i! ,$edit i+ + %e%- ! #,, u!t & 'um#! ,t $+ #!d #b+e!,e & 'um#! i!te*$it-/

C$edit t di&&e$e!t +e,t $+ *i0e! b- t'e PSB + i! ,t $e"$e+e!t+ di&&e$e!t "$ du,t+/

Ad0#!,e t )e#=e$ +e,ti !+ be% ) R+/37666G $e"$e+e!t+ t'e #,tu#% + ,i#% b#!=i!*/

NPA i! t'i+ +e,t $ & $m+ 4 TO 26 & t'e *$ ++ #m u!t/ Ad0#!,e t #*$i,u%tu$e SSI#!d bi* i!du+t$ie+ e#,' ,#%%+ & $ di&&e$e!t +t$#te*ie+ i! te$m+ &credit assessment,

credit delivery, project implementation, and post advance supervision / NPA i!

di&&e$e!t +e,t $ i+ ! t ,#u+ed b- t'e +#me $e+u%t#!t ,t $+/ C !t#i!i!* (u#!tum &

NPA i+ t'e$e& $e t be "$ *$#mmed b- # +e,t $ )i+e +t$#te*- i!0 %0i!* # $ %e & t'e

#,ti0e%- e!*#*ed "#$ti,i"#!t+ )' ,#! te%% )'e$e t'e b t "i!,'e+ i! e#,' ,#+e/

Bu+i!e++ #!d i!du+t$- '#+ e(u#% $e+" !+ibi%it- t #,,e"t #,, u!t#bi%it- & $

, !t#i!me!t & NPA/ M#!- & t'e "$e+e!t deu%te$+ )e$e !,e t$u+ted #!d 0#%ued,u+t me$+ & t'e b#!=+/ 9'- '#0e t'e- be, me u!$e%i#b%e ! ) $ '#0e t'e-

T'e ,$edit " $t& %i & # !#ti !#%i ed b#!= #%+ i!,%ude+ # !umbe$ & % ) $i+= #!d

$i+= &$ee +e*me!t+ )'i,' ,#!! t ,$e#te NPA/ Sm#%% "e$+ !#% % #!+ #*#i!+t b#!=+@

)! de" +it+ #!d t'e$ t#!*ib%e #!d e#+i%- m#$=et#b%e +e,u$itie+ "%ed*ed t t'e

b#!= #!d 'e%d i! it+ ,u+t d- #$e & t'i+ ,#te* $-/ Su,' +m#%% % #!+ #$e u!i0e$+#%%-

*i0e! i! #%m +t #%% t'e b$#!,'e+ #!d 'e!,e t'e #**$e*#te , !+titute+ # +i*!i&i,#!t

&i*u$e/ T'e! t'e$e i+ & d ,$edit *i0e! t FCI & $ & d "$ ,u$eme!t #!d +imi%#$ ,$edit+

*i0e! t m#; $ "ub%i, Uti%itie+ #!d Pub%i, Se,t $ U!de$t#=i!*+ & t'e Ce!t$#%

. 0e$!me!t/ It i+ !%- t'e $e+idu#% &$#*me!t+ & B#!= ,$edit t'#t #$e e?" +ed t

,$edit i%u$e+ #!d $e#+ !+ & $ NPA ,#! be #+,e$t#i!ed b- +,$uti!i i!* t'i+ +e*me!t/

Se, !d%- NPA i+ ! t # di%emm# ,i!* e?,%u+i0e%- t'e B#!=e$+/ It i+ i! ,t #! #%%

"e$0#+i0e !#ti !#% +, u$*e +)#-i!* t'e e!ti$e I!di#! e, ! m-/ NPA i+ # + $e t'$ #t

& t'e I!di#! e, ! m- #+ # )' %e/ T'e b#!=+ #$e !%- t'e u%tim#te 0i,tim+ )'e$e %i&e,-,%e & t'e 0i$u+ i+ te$mi!#ted/


12/63

N ) ' ) d e+ t'e . 0e$!me!t +u&&e$ 9'#t #b ut t'e $e,u$$i!* % ++ & $e0e!ue b-

)#- & t#?e+ e?,i+e t t'e * 0e$!me!t ! #,, u!t & ,% +u$e & +e0e$#% %#='+ &

e$+t)'i%e 0ib$#!t i!du+t$i#% u!it+ #!d i!e&&i,ie!t u+#*e & , +t%- i!du+t$i#%

i!&$#+t$u,tu$e e$e,ted )it' , !+ide$#b%e i!0e+tme!t b- t'e !#ti ! A+ "e$ +t#ti+ti,+

, %%e,ted t'$ee -e#$+ b#,= t'e$e #$e 0e$ t) #!d '#%& mi%%i ! +m#%% i!du+t$i#% u!it+

$e"$e+e!ti!* 0e$ 86 "e$,e!t & t'e t t#% !umbe$ & i!du+t$i#% u!it+/ A m#; $it- & t'e

i!du+t$i#% ) $= & $,e &i!d+ em"% -me!t 'e$e #!d t'e +e,t $@+ , !t$ibuti ! t i!du+t$i#%

ut"ut i+ +ub+t#!ti#% #!d i+ e+tim#ted #t 0e$ H7 "e$,e!t )'i%e it+ +'#$e & e?" $t+ i+

#%+ 0#%ued t be #$ u!d 6 "e$,e!t/ Out & t'e 3/7 mi%%i ! #b ut 26 & t'e +m#%%

i!du+t$ie+ #$e $e" $ted t be +i,= i!0 %0i!* # b#!= ,$edit ut+t#!di!* #$ u!d R+/7666

t 5666 C$ $e+ #t t'#t "e$i d/ It m#- be e0e! m $e ! )/ T'e+e ,% +ed u!it+

$e"$e+e!t + me t' u+#!d+ & di+"%#,ed ) $=e$+ P$e0i u+%- e!; -i!* *#i!&u%

em"% -me!t/ E#,' ,% +ed u!it )'et'e$ %#$*e medium $ +m#%% ,,u"ie+ , +t%-

de0e% "ed i!du+t$i#% %#!d/ Se0e$#% item+ & m#,'i!e$- & $m +e,u$it- & $ t'e NPA

#,, u!t+ +' u%d eit'e$ be %-i!* id%e $ ;u!=i!* ut/ I! t'e$ ) $d+ %#$*e 0#%ue &

%#!d m#,'i!e$- #!d m !e- #$e % ,=ed u" i! i!du+t$i#% +i,=!e++/ T'e+e #$e t'e

#++et+ ,$e#ted t'#t '#0e tu$!ed u!"$ du,ti0e #!d t'e+e $e"$e+e!t t'e $e#% "'-+i,#%

NPA )'i,' i!di$e,t%- #$e $e&%e,ted i! t'e &i!#!,i#% +t#teme!t+ & !#ti !#%i ed b#!=+

#+ t'e u%tim#te &i!#!,ie$+ & t'e+e #++et+/ I! t'e &i!#% #!#%-+i+ it $e"$e+e!t+ i!+t#bi%it-

i! i!du+t$-/ NPA $e"$e+e!t+ t'e )e+ & t'e ,$edit $e,i"ie!t+ i! tu$! t$#!+&e$$ed #!d

"#$=ed )it' t'e b#!=+/

Re, *!i i!* NPA #+ # + $e t'$ #t & t'e I!di#! e, ! m- t'e &ie%d %e0e% "#$ti,i"#!t+

+' u%d &i$+t #dd$e++ t'em+e%0e+ t &i!d t'e + %uti !/ 9'- ! t $e"$e+e!t#ti0e+ &

i!du+t$ie+ #!d , mme$,e #!d t'#t & t'e I!di#! B#!=+@ A++ ,i#ti ! , me t *et'e$

#!d ,#!did%- #!#%- e #!d &i!d #! e0e$%#+ti!* + %uti ! 'e$#%di!* t'e $e#% +"i$it & de$e*u%#ti ! #!d de,e!t$#%i #ti ! & m#!#*eme!t i! b#!=i!* +e,t $ #!d #,,e"ti!*

+e%& di+,i"%i!e #!d +e%& $e%i#!,e 9'#t #$e t'e de&i,ie!,ie+ i! ,$edit de%i0e$- t'#t

%e#d+ t it+ mi+u+e #bu+e $ % ++ 1 ) t ,'e,= mi+u+e #!d #bu+e #t + u$,e 1 )

t de#% )it' e$$i!* C $" $#te I! +' $t t'e &u!,ti !#% +t#&& & t'e B#!= #% !* )it' t'e

$e"$e+e!t#ti0e+ & bu+i!e++ #!d i!du+t$- '#+ t #,,e"t # ,#!did i!t$ +"e,ti ! #!d

#$$i0e #t # , de & di+,i"%i!e i! #!- &i!#% + %uti !/ A!d "$e0e!ti0e #,ti ! t be

+u,,e++&u% +' u%d +t#$t &$ m t'e ,$edit $e,i"ie!t %e0e% #!d t'e! e?te!d t t'e b#!=e$+/

RBI #!d . 0e$!me!t & I!di# ,#! " +iti0e%- ,i%it#te t'e "$ ,e++ b- "$ 0idi!*


13/63

e!#b%i!* me#+u$e+/ D ! t t$- t +et $i*'t i!du+t$- #!d b#!=+ but 'e%" i!du+t$- #!d

b#!=+ t +et $i*'t t'em+e%0e+/ T'e !e) t % & de$e*u%#ted #""$ #,' '#+ t be

#,,e"ted i! + %0i!* NPA/

(EA#)%# F)( T*E E3I#TE%&E )F *UGE 'E/E' )F % A’# I% T*E I%$IA%

BA%,I%G #.#TEM 4IB#52

T'e $i*i! & t'e "$ b%em & bu$*e !i!* NPA + %ie+ i! t'e (u#%it- & m#!#*i!* ,$edit

$i+= b- t'e b#!=+ , !,e$!ed/ 9'#t i+ !eeded i+ '#0i!* #de(u#te "$e0e!ti0eme#+u$e+ i! "%#,e !#me%- &i?i!* "$e +#!,ti !i!* #""$#i+#% $e+" !+ibi%it- #!d '#0i!*

#! e&&e,ti0e " +t di+bu$+eme!t +u"e$0i+i !/ B#!=+ , !,e$!ed +' u%d , !ti!u u+%-

m !it $ % #!+ t ide!ti&- #,, u!t+ t'#t '#0e " te!ti#% t be, me ! ! "e$& $mi!*/

T +t#$t )it' "e$& $m#!,e i! te$m+ & "$ &it#bi%it- i+ # be!,'m#$= & $ #!- bu+i!e++

e!te$"$i+e i!,%udi!* t'e b#!=i!* i!du+t$-/ 1 )e0e$ i!,$e#+i!* NPA + '#0e # di$e,t

im"#,t ! b#!=+ "$ &it#bi%it- #+ %e*#%%- b#!=+ #$e ! t #%% )ed t b = i!, me !

+u,' #,, u!t+ #!d #t t'e +#me time b#!=+ #$e & $,ed t m#=e "$ 0i+i ! ! +u,'

#++et+ #+ "e$ t'e Re+e$0e B#!= & I!di# RBI *uide%i!e+/

A%+ )it' i!,$e#+i!* de" +it+ m#de b- t'e "ub%i, i! t'e b#!=i!* +-+tem t'e b#!=i!*

i!du+t$- ,#!! t #&& $d deu%t+ b- b $$ )e$+ +i!,e NPA + #&&e,t+ t'e $e"#-me!t

,#"#,it- & b#!=+/

Fu$t'e$ Re+e$0e B#!= & I!di# RBI +u,,e++&u%%- ,$e#te+ e?,e++ %i(uidit- i! t'e+-+tem t'$ u*' 0#$i u+ $#te ,ut+ #!d b#!=+ i% t uti%i e t'i+ be!e&it t it+ #d0#!t#*e

due t t'e &e#$ & bu$*e !i!* ! ! "e$& $mi!* #++et+/

#o!e of the other reasons % A’s were2

• A&te$ t'e !#ti !#%i #ti ! & b#!=+ +e,t $ )i+e #%% ,#ti ! & ,$edit

di+bu$+eme!t+ be,#me , m"u%+ $-/


14/63

• B#!=+ )e$e , m"e%%ed t *i0e ,$edit t e0e! t' +e +e,t $+ )'i,' )e$e ! t

, !+ide$ed t be 0e$- "$ &it#b%e =ee"i!* i! mi!d t'e &ede$#% " %i,-/

• Pe "%e i! t'e #*$i,u%tu$#% +e,t $ )e$e '#$d%- i!te$e+ted i! $etu$!i!* t'e % #!+

#+ t'e- )e$e , !&ide!t t'#t t'e % #!+ )it' t'e i!te$e+t ) u%d be )$itte! && b-

t'e +u,,e++i0e * 0e$!me!t+/

• T'e +m#%% +,#%e i!du+t$ie+ #%+ #0#i%ed ,$edit e0e! t' u*' t'e- )e$e ! t +u$e

& "e$& $mi!* t t'e e?te!t & $etu$!i!* t'e % #!+/

• B#!=+ )e$e #%+ ! t i! t'e " +iti ! t "$e++ e! u*' +e,u$itie+ t , 0e$ t'e

% #!+ i! ,#%%+ & timi!*+/

• E0e! i& t'e #++et+ )e$e "$ 0ided t'e- "$ 0ed t be +ub+t#!d#$d #++et+ #+ t'e

0#%ue+ t'#t , u%d be $e#%i ed )e$e 0e$- % )/

• F$ee di+t$ibuti ! d !e du$i!* “% #! m#i%+” , !*$e++ $e*ime #%+ , !t$ibuted

t t'e 'e#0- i!,$e#+e i! NPA +/

• T'e +%#,=!e++ i! e&& $t b- t'e b#!= #ut' $itie+ t , %%e,t $ $e, 0e$ % #!#d0#!,e+ i! time #%+ , !t$ibute+ t t'e i!,$e#+e i! NPA +/

• L#,= & #,, u!t#bi%it- & t'e &&i,e$+ )' +#!,ti !ed t'e % #!+ %ed t # ,#+te

)' %e #""$ #,' b- t'e &&i,e$+ $e, 0e$i!* t'e % #!+/

• L #!+ +#!,ti !ed t u!de$ +e$0i,i!* ,#!did#te+ due t "$e++u$e &$ m t'e

mi!i+te$+ #!d t'e$ " %iti,i#!+ #%+ %ed t t'e ! ! $e, 0e$- & debt+/

• P $ ,$edit #""$#i+#% +-+tem %#,= & 0i+i ! )'i%e +#!,ti !i!* ,$edit %imit+/

• L#,= & "$ "e$ m !it $i!*/

• Re,=%e++ #d0#!,e+ t #,'ie0e t'e bud*et#$- t#$*et+/

• L#,= & +i!,e$e , $" $#te ,u%tu$e i!#de(u#te %e*#% "$ 0i+i !+ ! & $e,% +u$e

#!d b#!=$u"t,-/


15/63

• C'#!*e i! e, ! mi, " %i,ie+Ge!0i$ !me!t/

• L#,= & , $di!#ti ! bet)ee! b#!=+/

#o!e of the internal factors of the organi6ation leading to % A’s

are2

• Di0i+i ! & &u!d+ & $ e?"#!+i ! di0e$+i&i,#ti ! m de$!i #ti ! u!de$t#=i!*

!e) "$ ;e,t+ #!d & $ 'e%"i!* #++ ,i#te , !,e$!+ t'i+ i+ , u"%ed )it'

$e,e++i !#$- t$e!d+ #!d i%u$e t t#" &u!d+ i! t'e ,#"it#% #!d debt

m#$=et+/

• Bu+i!e++ i%u$e "$ du,t m#$=eti!* et,/ i!e&&i,ie!t m#!#*eme!t

+t$#i!ed %#b $ $e%#ti !+ i!#""$ "$i#te te,'! % *- te,'!i,#% "$ b%em+

"$ du,t b+ %e+,e!,e et,/

• Re,e++i ! +' $t#*e & i!"ut " )e$ +' $t#*e "$i,e e+,#%#ti ! #,,ide!t+

!#tu$#% ,#%#mitie+ be+ide+ e?te$!#%i #ti ! "$ b%em i! t'e$ , u!t$ie+

%e#di!* t ! ! "#-me!t & 0e$due/

• TimeG, +t 0e$$u! du$i!* t'e "$ ;e,t im"%eme!t#ti ! +t#*e/

• . 0e$!me!t " %i,ie+ %i=e ,'#!*e+ i! t'e e?,i+e dutie+ " %%uti ! , !t$ %

$de$+/

• 9i%%&u% deu%t +i"' !i!* && & &u!d+ &$#ud mi+#""$ "$i#ti !

"$ m te$+Gdi$e,t $+ di+"ute+ et,/

• De&i,ie!,ie+ ! t'e "#$t & t'e b#!=+ %i=e de%#- i! $e%e#+e & %imit+ #!d

de%#- i! $e%e#+e & "#-me!t+G+ub+idie+ b- t'e * 0e$!me!t/

)perational definitions2

NPA: A! #++et i+ ,%#++i&ied #+ ! ! "e$& $mi!* #++et NPA + i& due+ i! t'e & $m &

"$i!,i"#% #!d i!te$e+t #$e ! t "#id b- t'e b $$ )e$ & $ # "e$i d & 86 d#-+/

Standard Assets: Su,' #! #++et i+ ! t # ! ! "e$& $mi!* #++et/ I! t'e$ ) $d+ it,#$$ie+ ! t m $e t'#! ! $m#% $i+= #tt#,'ed t t'e bu+i!e++/


16/63

Sub-standard Assets: It i+ ,%#++i&ied #+ ! ! "e$& $mi!* #++et & $ # "e$i d ! te?,eedi!* 24 m !t'+

Doubtful Assets: A++et t'#t '#+ $em#i!ed NPA & $ # "e$i d e?,eedi!* 24 m !t'+ i+

# d ubt&u% #++et/

Loss Assets: 1e$e % ++ i+ ide!ti&ied b- t'e b#!=+ , !,e$!ed $ b- i!te$!#% #udit $+

$ b- e?te$!#% #udit $+ $ b- Re+e$0e B#!= I!di# RBI i!+"e,ti !

(BI GUI$E'I%E# )% I%&)ME (E&)G%ITI)% 4I%TE(E#T I%&)ME )% % A’s5

I!, me Re, *!iti !: I!, me &$ m N ! Pe$& $mi!* A++et+ +' u%d ! t $e, *!i e

! #,,$u#% b#+i+ but +' u%d be b =ed #+ i!, me !%- )'e! it i+ #,tu#%%- $e,ei0ed/

T'e$e& $e i!te$e+t +' u%d ! t be ,'#$*ed #!d t#=e! i!t i!, me #,, u!t ti%% t'e

#,, u!t be, me +t#!d#$d #++et/

♦ I!te$e+t ,'#$*ed t be +t ""ed

♦ P$ 0i+i ! t be m#de

)ver $ue2 A!- #m u!t due t t'e B#!= u!de$ #!- ,$edit ,i%it- i+ “O0e$ due” i& it i+

! t "#id ! t'e due d#te &i?ed b- t'e B#!=/

)ut of )rder2 A! #,, u!t +' u%d be t$e#ted #+ “ ut & $de$”

♦ I& t'e ut+t#!di!* b#%#!,e $em#i!+ , !ti!u u+%- i! e?,e++ & t'e +#!,ti !ed

%imitG d$#)i!* " )e$/

♦ I! ,#+e+ )'e$e t'e ut+t#!di!* b#%#!,e i! t'e "$i!,i"#% "e$#ti!* #,, u!t i+

%e++ t'#! t'e +#!,ti !ed %imitG d$#)i!* " )e$ but t'e$e #$e ! ,$edit+


17/63

continuously for 78 days #+ ! t'e d#te & B#!= + B#%#!,e S'eet $ 9'e$e

#$e ,$edit+ #$e ! t e! u*' t , 0e$ t'e i!te$e+t debited du$i!* t'e +#me

"e$i d/

A %on erfor!ing Asset shall "e an advance where2

Ter! 'oan2 I!te$e+t #!dG $ i!+t#%%me!t & "$i!,i"#% $em#i! “ 0e$ due” & $ # "e$i d &

!ore than 78 days+

&ash &redit9 )ver $raft2 I& t'e #,, u!t $em#i!+ out of order for a period !ore

than 78 days+

Bills2 O0e$due & $ # "e$i d & m $e t'#! 86 d#-+/

)ther accounts2 A!- #m u!t t be $e,ei0ed $em#i!+ 0e$due & $ # "e$i d & m $e

t'#! 86 d#-+/

#hort duration crops2 I& t'e i!+t#%%me!t & "$i!,i"#% $ i!te$e+t t'e$e ! $em#i!+

overdue for two crop seasons+

'ong duration crops2 I& i!+t#%%me!t & "$i!,i"#% $ i!te$e+t t'e$e ! $em#i!+ 0e$due

& $ O!e C$ " +e#+ !/

A! #,, u!t ) u%d be ,%#++i&ied #+ NPA !%- i& t'e i!te$e+t ,'#$*ed du$i!* #!-

(u#$te$ i+ ! t +e$0i,ed &u%%- )it'i! 86 d#-+ &$ m t'e e!d & t'e (u#$te$/

A##ET &'A##IFI&ATI)%

#tandard Assets2

I+ !e )'i,' d e+ ! t di+,% +e #!- "$ b%em #!d )'i,' d e+ ! t ,#$$- m $e t'#!

! $m#% $i+=+ #tt#,'ed t t'e bu+i!e++/

#u"standard Assets2

9'i,' '#+ $em#i!ed NPA for a period of less than or e:ual to 1; !onths+


18/63

$ou"tful Assets2

I& it '#+ $em#i!ed % A for a period e


19/63

G ()-T* > $ E/E') ME%T 4 E(&E%TAGE # *A(E 5

BANK PERCENTA.E

St#te B#!= & I!di# 24

Pu!;#b N#ti !#%B#!=

5

B#!= & B#$ d# 7

ICICI B#!= 7

B#!= & I!di# 7

C#!#$# B#!= 7

1DFC B#!=

IDBI B#!=

A?i+ B#!= H

Ce!t$#% B#!= & I!di#

H

Ot'e$+ 3

18% 6%5%

5%5%

5%3%3%4%4%

42%

Market share of leading bank State Bank of India Punjab National BankBank of Baroda ICICI BankBank of India Canara Bank

HD C Bank IDBI Bank!"i# Bank Central Bank of India

$t er#

FI.URE 2:


20/63

?#ource2 I&(A@ Tho!as -hite (eport on Indian Ban ing

E(F)(MA%&E )T*E( #TATI#TI&A' $ATA4BA'A%&E #*EET 9I%/E#TME%T E(&E%TAGE 5

BA%, F.11

SBI 3 /25

PNB 37/27

BOB 28/83

C#!#$# B#!= 3 /86

BOI 3 / 7

ICICI B#!= HH/27

1DFC B#!= 37/7

A?i+ B#!= 38/55


21/63

&'&&%

5'&&%

1&'&&%

15'&&%

2&'&&%

25'&&%

3&'&&%

35'&&%

FI.URE 3:

?# )U(&E : Annual reports@ press releases@ earning call transcripts and investor presentationspu"lished "y respective "an s

MAC)( BA%,# I% I%$IA


22/63

ABN AMRO B#!= Abu D'#bi C mme$,i#% B#!= A%%#'#b#d B#!=

A!d'$# B#!= Ame$i,#! E?"$e++ B#!= B#!= & I!di# B#!= & B#$ d# B#!= & Pu!;#bB#!= & R#;#+t'#! B#!= O& M#'#$#+t$#B#$,%#-+ B#!= B#$,%#-+ B#!= C#!#$# B#!=

Ce!t$#% B#!= & I!di# CITIBANK I!di#C $" $#ti ! B#!= Cit- U!i ! B#!=C +m + C O"e$#ti0e B#!=De!# B#!=De0e% "me!t C$edit B#!=D'#!%#=+'mi B#!= Ltd/ Deut+,'e B#!= DBS B#!=

E?" $t Im" $t B#!= & I!di# Fede$#% B#!=.% b#% T$u+t B#!= Limited .u#$di#! S#'#=#$# B#!= Ni-#mit#1DFC B#!= Ltd/ICICI B#!= 1SBC B#!= IDBI B#!= LimitedI!di#! B#!=I!di#! O0e$+e#+ B#!=

I!du+I!d B#!= LimitedJ#mmu #!d K#+'mi$ B#!= K#$!#t#=# B#!= K#$u$ V-+#-# B#!= K t#= M#'i!d$# B#!= Ott#"#%#m C "e$#ti0e U$b#! B#!= Ltd/O$ie!t#% B#!= & C mmme$,ePu!;#b N#ti !#% B#!= Re+e$0e B#!= & I!di#S#$#+)#t C "e$#ti0e B#!=

S ut' I!di#! B#!= St#!d#$d C'#$te$ed B#!=

http://www.abnamroindia.com/http://www.adcbindia.com/http://www.allahabadbank.com/http://www.andhrabank.in/http://www.americanexpress.com/http://www.bankofindia.com/http://www.bankofbaroda.com/http://www.bop.com.pk/http://www.bankofrajasthan.com/http://www.bankofmaharashtra.in/http://www.barclays.com/http://www.bnpparibas.co.in/http://www.canbankindia.com/http://www.centralbankofindia.co.in/http://www.online.citibank.co.in/http://www.corpbank.com/http://www.cityunionbank.com/http://www.cosmosbank.com/http://www.denabank.com/http://www.dcbl.com/http://www.dhanbank.com/http://www.db.com/india/http://www.dbs.com/http://www.eximbankindia.com/http://www.federal-bank.com/http://www.globaltrustbank.com/http://www.guardianbank.org/http://www.hdfcbank.com/http://www.icicibank.com/http://www.hsbc.com/http://www.idbibank.com/http://www.indian-bank.com/http://www.iob.com/http://www.indusind.com/http://www.jkbank.net/http://karnatakabank.com/http://www.jkbankonline.com/http://www.jkbankonline.com/http://www.ottapalamurbanbank.com/http://www.obcindia.co.in/http://www.pnbindia.com/http://www.rbi.org.in/http://www.saraswatbank.com/http://www.southindianbank.com/http://www.standardchartered.com/in/http://www.adcbindia.com/http://www.allahabadbank.com/http://www.andhrabank.in/http://www.americanexpress.com/http://www.bankofindia.com/http://www.bankofbaroda.com/http://www.bop.com.pk/http://www.bankofrajasthan.com/http://www.bankofmaharashtra.in/http://www.barclays.com/http://www.bnpparibas.co.in/http://www.canbankindia.com/http://www.centralbankofindia.co.in/http://www.online.citibank.co.in/http://www.corpbank.com/http://www.cityunionbank.com/http://www.cosmosbank.com/http://www.denabank.com/http://www.dcbl.com/http://www.dhanbank.com/http://www.db.com/india/http://www.dbs.com/http://www.eximbankindia.com/http://www.federal-bank.com/http://www.globaltrustbank.com/http://www.guardianbank.org/http://www.hdfcbank.com/http://www.icicibank.com/http://www.hsbc.com/http://www.idbibank.com/http://www.indian-bank.com/http://www.iob.com/http://www.indusind.com/http://www.jkbank.net/http://karnatakabank.com/http://www.jkbankonline.com/http://www.jkbankonline.com/http://www.ottapalamurbanbank.com/http://www.obcindia.co.in/http://www.pnbindia.com/http://www.rbi.org.in/http://www.saraswatbank.com/http://www.southindianbank.com/http://www.standardchartered.com/in/http://www.abnamroindia.com/


23/63

St#te B#!= & Bi=#!e$ #!d J#i"u$ St#te B#!= & 1-de$#b#dSt#te B#!= & I!di#St#te B#!= & I!d $e St#te B#!= & M-+ $eSt#te B#!= & P#ti#%# St#te B#!= & T$#0#!, $eS-!di,#te B#!=Te?ti%e T$#de$+ C "e$#ti0e B#!=T'#!e J#!#t# S#'#=#$i B#!= T'e C#t' %i, S-$i#! B#!= LtdT#mi% N#du Me$,#!ti%e B#!=T'e U!ited 9e+te$! B#!= Ltd/UCO B#!= U!i ! B#!= & I!di# UBI UTI B#!= G A?i+ B#!=U!ited B#!=Vi;#-# B#!=Ye+ B#!= I!* V-+-# B#!=

()$U&T# ()FI'E

T'e b#!= @T'e Kumb#= !#m B#!= Limited@ #+ it )#+ t'e! ,#%%ed )#+ i!, $" $#ted

#+ # %imited , m"#!- ! H2+t O,t be$ 286 / T'e &i$+t Mem $#!dum & A++ ,i#ti !

http://www.sbbjbank.com/http://www.sbhyd.com/http://www.sbi.co.in/http://www.indorebank.org/http://www.mysorebank.com/http://www.sbp.co.in/http://www.sbtr.com/http://www.syndicatebank.com/http://www.ttcbank.com/http://www.thanejanata.co.in/http://www.casybank.com/http://www.casybank.com/http://www.uwbankindia.com/http://www.ucobank.com/home.htmhttp://www.unionbankofindia.com/http://www.utibank.com/http://www.unitedbankofindia.com/http://www.vijayabank.com/http://www.vysbank.com/http://www.vysbank.com/http://www.sbbjbank.com/http://www.sbhyd.com/http://www.sbi.co.in/http://www.indorebank.org/http://www.mysorebank.com/http://www.sbp.co.in/http://www.sbtr.com/http://www.syndicatebank.com/http://www.ttcbank.com/http://www.thanejanata.co.in/http://www.casybank.com/http://www.casybank.com/http://www.uwbankindia.com/http://www.ucobank.com/home.htmhttp://www.unionbankofindia.com/http://www.utibank.com/http://www.unitedbankofindia.com/http://www.vijayabank.com/http://www.vysbank.com/http://www.vysbank.com/


24/63

)#+ +i*!ed b- t)e!t- de0 ted #!d "$ mi!e!t ,iti e!+ & Kumb#= !#m i!,%udi!*

S#$0#+'$i R/ S#!t'#!#m I-e$ S/K$i+'!# I-e$ V/K$i+'!#+)#mi I-e!*#$ #!d

T/S/R#*'#0#,'#$i#$/ T/S/R#*'#0#,'#$i#$ )#+ t'e Fi$+t A*e!t & t'e B#!=/

/

4 http://www.cityunionbank.com/english/AboutUs.aspx )

It )#+ & u!ded i! 288 / It + 'e#d(u#$te$ i+ i! Mumb#i/ T'ei$ "$ m te$+ i!,%ude UTI

t'e %#$*e+t #!d be+t &i!#!,i#% i!+tituti ! i! , u!t$-/ T'ei$ , de #!d " %i,ie+ e!+u$e+i$ "$#,ti,e+ #!d &u%%- t$#!+"#$e!,-/

(http://www.axisbank.com/about-us/about-us.aspx )

T'e 1 u+i!* De0e% "me!t Fi!#!,e C $" $#ti ! Limited 1DFC )#+ #m !*+t t'e

&i$+t t $e,ei0e #! i! "$i!,i"%e #""$ 0#% &$ m t'e Re+e$0e B#!= & I!di# RBI t +et

u" # b#!= i! t'e "$i0#te +e,t $ #+ "#$t & RBI + %ibe$#%i+#ti ! & t'e I!di#! B#!=i!*

I!du+t$- i! 288 / T'e b#!= )#+ i!, $" $#ted i! Au*u+t 288 i! t'e !#me & 1DFCB#!= Limited )it' it+ $e*i+te$ed &&i,e i! Mumb#i I!di#/ 1DFC B#!= , mme!,ed

"e$#ti !+ #+ # S,'edu%ed C mme$,i#% B#!= i! J#!u#$- 2887/

(http://www.hdfcbank.com/aboutus/gene al/default.htm )

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25/63

I!du+I!d B#!= de$i0e+ it+ !#me #!d i!+"i$#ti ! &$ m t'e I!du+ V#%%e- ,i0i%i+#ti ! #

,u%tu$e de+,$ibed b- N#ti !#% .e *$#"'i, #+ @ !e & t'e *$e#te+t & t'e #!,ie!t

) $%d@ , mbi!i!* # +"i$it & i!! 0#ti ! )it' + u!d bu+i!e++ #!d t$#de "$#,ti,e+/

M$/ S$i,'#!d P/ 1i!du;# # %e#di!* N ! Re+ide!t I!di#! bu+i!e++m#! #!d 'e#d &

t'e 1i!du;# .$ u" , !,ei0ed t'e 0i+i ! & I!du+I!d B#!= t'e &i$+t & t'e !e)

*e!e$#ti ! "$i0#te b#!=+ i! I!di# #!d t'$ u*' , %%e,ti0e , !t$ibuti !+ &$ m t'e NRI

, mmu!it- t )#$d+ I!di#@+ e, ! mi, #!d + ,i#% de0e% "me!t b$ u*'t u$ B#!= i!t

bei!*/

(http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/ou -p ofile/index.html )

It )#+ & u!ded i! 2838 #!d it+ mi++i ! i+ T eme$*e #+ t'e m +t "$e&e$$ed b#!= i!

t'e , u!t$- i! te$m+ & b$#!d 0#%ue+ "$i!,i"%e+ )it' , $e , m"ete!,e i! & +te$i!*

,u+t me$ #+"i$#ti !+ t bui%d 'i*' (u#%it- #++et+ %e0e$#*i!* ! t'e +t$ !* #!d

0ib$#!t te,'! % *- "%#t& $m i! "u$+uit & e?,e%%e!,e #!d ,u+t me$ de%i*'t #!d t

be, me # m#; $ , !t$ibut $ t t'e +t#b%e e, ! mi, *$ )t' & t'e !#ti !/

(http://www.southindianbank.com/content/!iew"ontent#!l1.aspx$

#ink%d#!l2&' #ink%d#!l &*+ link%d&*+ )

http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/our-profile/index.htmlhttp://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67http://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/our-profile/index.htmlhttp://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67http://www.southindianbank.com/content/viewContentLvl1.aspx?LinkIdLvl2=5&LinkIdLvl3=67&linkId=67


26/63

At ,arnata a Ban )e u!de$+t#!d t'#t #%% ,u+t me$+ #$e di&&e$e!t i! u!i(ue )#-+

)'i,' i+ )'- $e*#$d%e++ & t'e +i e & - u$ bu+i!e++ $ - u$ #+"i$#ti !+ )e t$e#t

e0e$- !e #+ i!di0idu#% #!d +"e,i#%/ T'i+ me#!+ &&e$i!* - u ,' i,e+ ! t !%- i!

$e%#ti ! t u$ "$ du,t+ #!d +e$0i,e+ but #%+ i! t'e )#- - u i!te$#,t )it' u+/ 9e

u!de$+t#!d t'e ,'#!*e+ i! - u$ %i&e+t-%e $e, *!i e t'e+e ,'#!*e+ #!d +u"" $t - u

)it' # 'i*' +t#!d#$d & "$ &e++i !#%i+m #!d +e$0i,e/ A+ # "$emie$ b#!= )e '#0e de0e% "ed co!prehensive range of custo!i6ed

products > services suita"le for every ind of !ar et@ trade or perceived need

0 Business or ersonal+ T'e- i!,%ude b $$ )i!* ,i%itie+ de" +it+ "$ 0idi!*

"timum $etu$!+ ! +u$"%u+ &u!d+ $ 'e%"i!* )it' 0e$+e#+ t$#!+#,ti !+/

(http://www.ka natakabank.com/ktk/Aboutus.,sp )

IN. V-+-# B#!= Ltd i+ # "$emie$ "$i0#te +e,t $ b#!= )it' $et#i% "$i0#te #!d

)' %e+#%e b#!=i!* "%#t& $m+ t'#t +e$0e 0e$ t) mi%%i ! ,u+t me$+/ 9it' 46 -e#$+ &

'i+t $- i! I!di# #!d %e0e$#*i!* IN. + *% b#% &i!#!,i#% e?"e$ti+e t'e b#!= &&e$+ #

b$ #d $#!*e & i!! 0#ti0e #!d e+t#b%i+'ed "$ du,t+ #!d +e$0i,e+ #,$ ++ it+ 73b$#!,'e+/ T'e b#!= )'i,' '#+ ,% +e t 26 666 em"% -ee+ i+ #%+ %i+ted i! B mb#-

St ,= E?,'#!*e Limited #!d N#ti !#% St ,= E?,'#!*e & I!di# Limited/

(http://www.ing!ysyabank.com/pe sonal-banking/ing-!ysya/about-us/company-

o!e !iew.aspx )

http://www.karnatakabank.com/ktk/Aboutus.jsphttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspxhttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspxhttp://www.karnatakabank.com/ktk/Aboutus.jsphttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspxhttp://www.ingvysyabank.com/personal-banking/ing-vysya/about-us/company-overview.aspx


27/63

K t#= M#'i!d$# B#!= Ltd i+ # !e +t " +' " & $ #%% b#!=i!* !eed+/ T'e b#!= &&e$+

"e$+ !#% &i!#!,e + %uti !+ & e0e$- =i!d &$ m +#0i!*+ #,, u!t+ t ,$edit ,#$d+

di+t$ibuti ! & mutu#% &u!d+ t %i&e i!+u$#!,e "$ du,t+/ K t#= M#'i!d$# B#!= &&e$+

t$#!+#,ti ! b#!=i!* "e$#te+ %e!di!* 0e$ti,#%+ m#!#*e+ IPO+ #!d "$ 0ide+ ) $=i!*

,#"it#% % #!+/ K t#= '#+ !e & t'e %#$*e+t #!d m +t $e+"e,ted 9e#%t' M#!#*eme!t

te#m+ i! I!di# "$ 0idi!* t'e )ide+t $#!*e & + %uti !+ t 'i*' !et ) $t' i!di0idu#%+

e!t$e"$e!eu$+ bu+i!e++ mi%ie+ #!d em"% -ed "$ &e++i !#%+/

(http://aboutus.kotak.com/kotak-mahind a-g oup/ou -businesses.html )

Ye+ B#!= i+ # "$i0#te b#!= i! I!di#/ It )#+ & u!ded b- A+' = K#"u$ #!d R#!#

K#" $ )it' t'e du ' %di!* # , %%e,ti0e &i!#!,i#% +t#=e & 3 /25 / M$/A+' = K#"u$

)#+ =i%%ed i! # te$$ $i+t #tt#,= i! 3664 i! Mumb#i/

*ead:uarters 2 Mumb#i i!di#

&E) 2 R#!# K#" $

(https://www.google.co.in/ &yes bank )

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28/63

D'#!%#?mi B#!= Ltd/ )#+ i!, $" $#ted i! 283 #t T'$i++u$ Ke$#%# b- # *$ u" &

#mbiti u+ #!d e!te$"$i+i!* e!t$e"$e!eu$+/O0e$ t'e 45 -e#$+ t'#t & %% )ed

D'#!%#?mi B#!= )it' it+ $i,' 'e$it#*e '#+ e#$!ed t'e t$u+t #!d * d)i%% & ,%ie!t+/ It

i+ due t u$ +t$ !* be%ie& i! t'e !eed t +ee= i!! 0#ti ! de%i0e$ be+t +e$0i,e #!d

dem !+t$#te $e+" !+ibi%it- t'#t )e '#0e *$ )! &$ m +t$e!*t' t +t$e!*t'/ Be it i! t'e

!umbe$ & ,u+t me$+ t'e +,#%e & bu+i!e++ t'e b$e#dt' & u$ "$ du,t &&e$i!*+ t'e

b#!=i!* e?"e$ie!,e )e &&e$ $ t'e t$u+t t'#t "e "%e i!0e+t i! u+/ 9it' m $e

t'#! 5 6 t u,' " i!t+ #,$ ++ I!di# #t - u$ +e$0i,e> u$ & ,u+ '#+ #%)#-+ bee! !

,u+t mi i!* +e$0i,e+ #!d "e$+ !#%i i!* $e%#ti !+/

(http://www.dhanbank.com/aboutus/about0us.aspx )

ICICI B#!= i+ I!di#@+ %#$*e+t "$i0#te +e,t $ b#!= )it' t t#% #++et+ & R+/ 7 H5 /87

bi%%i ! US 88 bi%%i ! #t M#$,' H2 362H #!d "$ &it #&te$ t#? R+/ 4H/37 bi%%i ! US

2 7HH mi%%i ! & $ t'e -e#$ e!ded M#$,' H2 362H/ T'e B#!= '#+ # !et) $= & H 738

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I!di#/

(http://www.icicibank.com/aboutus/about-us.html )

http://www.dhanbank.com/aboutus/about_us.aspxhttp://www.icicibank.com/aboutus/about-us.htmlhttp://www.dhanbank.com/aboutus/about_us.aspxhttp://www.icicibank.com/aboutus/about-us.html


29/63

T'e L#=+'mi Vi%#+ B#!= Limited LVB )#+ & u!ded ei*'t de,#de+ #* i! 2835 b-

+e0e! "e "%e & K#$u$ u!de$ t'e %e#de$+'i" & S'$i V/S/N/ R#m#%i!*# C'etti#$

m#i!%- t ,#te$ t t'e &i!#!,i#% !eed+ & 0#$ied ,u+t me$ +e*me!t+/ T'e b#!= )#+

i!, $" $#ted ! N 0embe$ 6H 2835 u!de$ t'e I!di#! C m"#!ie+ A,t 282H #!d

bt#i!ed t'e ,e$ti&i,#te t , mme!,e bu+i!e++ ! N 0embe$ 26 2835 T'e B#!=

bt#i!ed it+ %i,e!+e &$ m RBI i! Ju!e 2874 #!d i! Au*u+t 2874 it be,#me #

S,'edu%ed C mme$,i#% B#!=/

(http://www.l!bank.com/aboutus.aspx )

()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87

Interest #pread 00 + ; + D + H

Adjusted &ash Margin4 5 2 /6 27/ 4 25/8H 27/2H%et rofit Margin 2H/6 2 / 27/ 3 2H/8(eturn on 'ong Ter! Fund4 5 22 /88 23H/48 26 /H6 267/

(eturn on %et -orth4 5 28/53 33/7 32/H5 24/76

Adjusted (eturn on %et -orth4 5 28/53 33/7 32/H 24/ H

(eturn on Assets E


30/63

()FITABI'IT. (ATI) )F A3I# BA%, ()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87

Interest #pread 00 00 00 D+7J

Adjusted &ash Margin4 5 25/H8 25/ 3 24/74 2 /5H%et rofit Margin 27/H7 27/ 2 /23 25/26(eturn on 'ong Ter! Fund4 5 7/ 3 44/4 3/37 55/H

(eturn on %et -orth4 5 27/5 24/78 2 /4H 27/5

Adjusted (eturn on %et -orth4 5 27/5 24/78 2 /4H 27/58

(eturn on Assets E


31/63

(http://www.moneycont ol.com/financials/hdfcbank/ atios/ 3451 )

()FITABI'IT. (ATI) )F I%$U#'A%$ BA%,()FITABI'IT. Mar’1D Mar’1;

Mar’11 Mar’18 Mar’87

(http://www.moneycont ol.com/financials/indusindbank/ atios/%% )

()FITABI'IT. (ATI) )F #)UT* I%$IA% BA%, ()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87

Interest #pread /5 7/H3 5/62 5/H7Adjusted &ashMargin4 5

22/H5 22/H3 23/66 22/ 5

%et rofit Margin 26/7H 26/73 22/26 26/58(eturn on 'ong Ter! Fund4 5 232/ 2 277/84 23H/83 224/4

(eturn on %et -orth4 5 25/ 3 28/43 2 /37 27/8HAdjusted (eturn on %et -orth4 5 25/ 3 28/ 4 2 /H2 27/8H

(eturn on Assets E


32/63

()FITABI'IT. (ATI) ,A(%ATA,A BA%,


Interest #pread + +;8 D+1 J+

Adjusted &ash Margin4 5 /46 4/5 /8 23/46%et rofit Margin /37 /46 /6 22/83(eturn on 'ong Ter! Fund4 5 263/25 43/6H 26H/87 228/32

(eturn on %et -orth4 5 8/ 4/ 3 8/22 2 /62

Adjusted (eturn on %et -orth4 5 8/H7 4/H8 8/26 2 /62(eturn on Assets E


33/63

()FITABI'IT. (ATI) )F ,)TA, MA*I%$(A BA%,


Interest #pread +11

Adjusted &ash Margin4 5 25/33 25/ 8 24/ H 2 / 5%et rofit Margin 2 / 4 27/27 25/ 5 27/3H(eturn on 'ong Ter! Fund4 5 3/6 55/38 4/37 4/ 2

(eturn on %et -orth4 5 2 / 6 2H/57 23/6H 23/H7

Adjusted (eturn on %et -orth4 5 2 / 6 2H/57 23/6H 23/ 3

(eturn on Assets E


34/63

()FITABI'IT. (ATI) )F $*A%'A3MI BA%,


Interest #pread 00 +;8 +8D D+;

Adjusted &ash Margin4 5 3/H5 7/ 6 H/8H 7/3%et rofit Margin 6/24 /75 3/ 8 H/ H(eturn on 'ong Ter! Fund4 5 2 2/77 2 2/H5 46/75 87/4H

(eturn on %et -orth4 5 6/H7 27/4 H/64 7/38

Adjusted (eturn on %et -orth4 5 6/H7 25/63 H/63 7/2H

(eturn on Assets E


35/63

(http://www.moneycont ol.com/financials/icicibank/ atios/%"%52 )

)FITABI'IT. (ATI) )F 'A3MI /I'A# BA%, ()FITABI'IT. Mar’1D Mar’1; Mar’11 Mar Mar’87

Interest #pread 00 +D1 +7 J+D

Adjusted &ash Margin4 5 7/8 /4H 26/24 /%et rofit Margin /5 5/ 2 4/ 8 H/6(eturn on 'ong Ter! Fund4 5 2 H/8 2 /83 262/76 8 /2

(eturn on %et -orth4 5 8/63 23/2 23/ 7 /2

Adjusted (eturn on %et -orth4 5 8/63 23/2 23/ /2H

(eturn on Assets E


36/63

'iterature review

A $e0ie) & %ite$#tu$e ! "$ &it#bi%it- #!d "e$& $m#!,e & I!di#! b#!=+ '#+

t'$ )! #m"%e %i*'t ! b#!=+@ +t#tu+ i! t'e "$e+e!t e, ! mi, +,e!#$i / N#$#!*

et #% 3622 C'#ud'$- 3623 #!d U""#% et #% 3623 #!d m#!- t'e$+ '#0e

e?#mi!ed I!di#! b#!=i!* +-+tem i! te$m+ & t'ei$ "e$& $m#!,e #!d

"$ &it#bi%it- 'e & u!d t'#t + me b#!=+ #,'ie0ed e?,e%%e!t "e$& $m#!,e )it'

$e*#$d t i!de? & i!te$e+t e#$!ed t t t#% #++et+ $#ti /A!d m#de #! #!#%-+i+

& t'e "e$& $m#!,e & +e%e,ted "ub%i, #!d "$i0#te b#!=+ i! I!di# ! t'e b#+i+

& "#$#mete$+ $e, mme!ded i! t'e CAMEL M de%/ Re+e#$,'e$+ '#0e t#=e!


37/63

0#$i u+ "#$#mete$+ t e0#%u#te b#!=+@ "e$& $m#!,e +u,' #+ bu+i!e++ "e$

em"% -ee "$ &it "e$ em"% -ee t t#% de" +it+ t t#% #d0#!,e+ t t#%

i!0e+tme!t t t#% #++et+ t t#% i!, me t t#% e?"e!ditu$e #!d !et "$ &it+/#%+

e?#mi!ed ,e$t#i! =e- "#$#mete$+ t e0#%u#te t'e "e$& $m#!,e & t'e I!di#!

b#!=+ du$i!* t'e *% b#% &i!#!,i#% tu$m i%/

Lite$#tu$e ! , mmu!it- b#!= "e$& $m#!,e e+"e,i#%%- $e%#ted t e&&i,ie!,-

#!d b#!= St$#te*- , !ti!ue+ t e?"#!d/ T'e & %% )i!* di+,u++i ! +umm#$i e+

+ me $e+e#$,' i! t'i+ #$e# 0e$ t'e "#+t de,#de/ 9#%% 2847 e?#mi!ed +m#%%

#!d medium +i ed b#!=+ &$ m t'e e#$%- 28 6 + u!ti% de$e*u%#ti ! ,,u$$ed i!

t'e e#$%- 2846 +/ 1e & u!d t'#t "$ &it#b%e b#!=+ '#d % )e$ i!te$e+t #!d ! !

i!te$e+t e?"e!+e t'#! %e++ "$ &it#b%e b#!=+/ I! #dditi ! t'e m $e "$ &it#b%e

b#!=+ '#d % )e$ , +t & &u!d+ *$e#te$ u+e & t$#!+#,ti !+ de" +it+ m $e

m#$=et#b%e +e,u$itie+ #!d 'i*'e$ ,#"it#% %e0e%+/

A $e0ie) & %ite$#tu$e +tudie+ t'e $e%#ti !+'i" bet)ee! t'e b#!=i!* i!du+t$-

#!d +e%e,ted "$i0#te b#!=+ i! #dditi ! t t'i+ it #%+ +tud- t'e "e$& $m#!,e &

% #!+ !et "$ &it #!d NPA/ L#+t de,#de '#+ )it!e++ed m#!- ,'#!*e+ i! t'e

b#!=i!* i!du+t$-/ I! t'i+ "#"e$ )e #$e t$-i!* t t'$ ) %i*'t ! t'e e&&e,t & t'e

% #!+ #!d #d0#!,e+ ! t'e I!di#! E, ! m-/ B#!=+ m#i!%- m#=e "$ &it &$ m

t'e di&&e$e!,e & i!te$e+t $e,ei0ed #!d % #!+ "#id/ N )#d#-+ b#!=+ #$e

"e$& $mi!* t'e !umbe$ & &u!,ti !+ i! #dditi ! t it+ t) m#i! &u!,ti ! %e!di!*

#!d #,,e"ti!* de" +it+/ B#!=+ *$#!t % #!+ i! $de$ t +#ti+&- t'e *$ )i!*

,$edit !eed+ & t'e di&&e$e!t +e,ti !+ & t'e + ,iet- but +i!,e t'e "$i0#te b#!=+

#$e "$ &it m#=i!* $*#!i #ti ! t'u+ t'e- '#0e "$ &it m#=i!* dime!+i ! #dded

t t'e #d0#!,e+ *$#!ted b- t'em/ I! t'i+ "#"e$ )e '#0e & ,u+ed ! t'e

m 0eme!t & NPA L #!+ #!d Net P$ &it & t'e "$i0#te b#!=i!* i!du+t$- b-

#!#%- i!* t'e d#t# &$ m t'e -e#$ 366 t 3622/ 9'e$e0e$ t'e d#t# & $ t'e

-e#$+ t t'e -e#$ 366 , u%d be t#=e! '#0e bee! t#=e! & $ #!#%-+i+/

T'i+ "#"e$ "$ 0ide+ # ,$iti,#% $e0ie) & t'e t'e $eti,#% #!d em"i$i,#% b#+i+ & & u$ ,e!t$#% #$e#+ & &i!#!,i#% $#ti #!#%-+i+/ T'e $e+e#$,' #$e#+ $e0ie)ed #$e


38/63

t'e &u!,ti !#% & $m & t'e &i!#!,i#% $#ti + di+t$ibuti !#% ,'#$#,te$i+ti,+ &

&i!#!,i#% $#ti + ,%#++i&i,#ti ! & &i!#!,i#% $#ti + #!d t'e e+tim#ti ! & t'e

i!te$!#% $#te & $etu$! &$ m &i!#!,i#% +t#teme!t+/ It i+ b+e$0ed t'#t it i+ t-"i,#%

& &i!#!,i#% $#ti #!#%-+i+ $e+e#$,' t'#t t'e$e #$e +e0e$#% u!e?"e,ted%- di+ti!,t

%i!e+ )it' $e+e#$,' t$#diti !+ & t'ei$ )!/ A , mm ! &e#tu$e & #%% t'e #$e#+

& &i!#!,i#% $#ti #!#%-+i+ $e+e#$,' +eem+ t be t'#t )'i%e +i*!i&i,#!t

$e*u%#$itie+ ,#! be b+e$0ed t'e- #$e ! t !e,e++#$i%- +t#b%e #,$ ++ t'e

di&&e$e!t $#ti + i!du+t$ie+ #!d time "e$i d+/ T'i+ %e#0e+ mu,' +"#,e & $ t'e

de0e% "me!t & # m $e $ bu+t t'e $eti,#% b#+i+ #!d & $ &u$t'e$ em"i$i,#%

$e+e#$,'/

The first objective of this study was to determine and evaluate the effects of

bank-specific factors; Capital adequacy, Asset quality, liquidity, operational

cost efficiency and income diversification on the profitability of commercial

banks in Kenya The second objective was to determine and evaluate the

effects of market structure factors; forei!n ownership and market

concentration, on the profitability of commercial banks in Kenya This study

adopted an e"planatory approach by usin! panel data research desi!n tofulfill the above objectives Annual financial statements of #$ Kenyan

commercial banks from %&&% to %&&$ were obtained from the C'K and

'ankin! (urvey %&&) The data was analy*ed usin! multiple linear

re!ressions method The analysis showed that all the bank specific factors

had a statistically si!nificant impact on profitability, while none of the market

factors had a si!nificant impact 'ased on the findin!s the study recommends

policies that would encoura!e revenue diversification, reduce operational

costs, minimi*e credit risk and encoura!e banks to minimi*e their liquidity

holdin!s +urther research on factors influencin! the liquidity of commercials

banks in the country could add value to the profitability of banks and

academic literature

A $e0ie) & t'e %ite$#tu$e b$i!*+ t t'e & $e i!+i*'t+ i!t t'e dete$mi!#!t+ &

NPL #,$ ++ , u!t$ie+/ A , !+ide$ed 0ie) i+ t'#t b#!=+ %e!di!* " %i,- , u%d


39/63

'#0e ,$u,i#% i!&%ue!,e ! ! !"e$& $mi!* % #!+ Redd- 366 / 1e ,$iti,#%%-

e?#mi!ed 0#$i u+ i++ue+ "e$t#i!i!* t te$m+ & ,$edit & I!di#! b#!=+/ I! t'i+

, !te?t it )#+ 0ie)ed t'#t Qt'e e%eme!t & " )e$ '#+ ! be#$i!* ! t'e i%%e*#%

#,ti0it-/ A deu%t i+ ! t e!ti$e%- #! i$$#ti !#% de,i+i !/ R#t'e$ # deu%te$ t#=e+

i!t #,, u!t "$ b#bi%i+ti, #++e++me!t & 0#$i u+ , +t+ #!d be!e&it+ & 'i+

de,i+i ! Fu$t'e$m $e i! t'e , !te?t & NPA+ ! #,, u!t & "$i $it- +e,t $

%e!di!* it )#+ " i!ted ut t'#t t'e +t#ti+ti,+ m#- $ m#- ! t , !&i$m t'i+/

T'e$e m#- be !%- # m#$*i!#% di&&e$e!,e i! t'e NPA+ & b#!=+ %e!di!* t

"$i $it- +e,t $ #!d t'e b#!= + %e!di!* t "$i0#te , $" $#te +e,t $/ A*#i!+t t'i+

b#,=*$ u!d t'e +tud- +u**e+t+ t'#t *i0e! t'e de&i,ie!,ie+ i! t'e+e #$e#+ it i+

im"e$#ti0e t'#t b#!=+ !eed t be *uided b- i$!e++ b#+ed ! e, ! mi, #!d

&i!#!,i#% de,i+i !+ $#t'e$ t'#! +-+tem & , !0e!ti !+ i& $e& $m '#+ t +e$0e

t'e me#!i!*&u% "u$" +e/ E?"e$ie!,e +' )+ t'#t " %i,ie+ & %ibe$#%i #ti !

de$e*u%#ti ! #!d e!#b%i!* e!0i$ !me!t & , m& $t#b%e %i(uidit- #t #

$e#+ !#b%e "$i,e d ! t #ut m#ti,#%%- t$#!+%#te t'em+e%0e+ i!t e!'#!,ed

,$edit &% )/

A review of literature study the performance of public, private and forei!n

banks in ndia in terms of rofitability in the post reform era The study is

based on balanced panel data of annual financial statements of banks in ndia

for the period .)))-%&.% The results show that Capital stren!th, interest

payment, / A, si*e ne!atively affect profitability and are statistically

si!nificant 0iquidity risk has positive and si!nificant relationship with

profitability Amon! macro-economic variables, 12 and inflation have

positive relation with 34A ublic ownership is ne!atively associated with

bank profitability and forei!n ownership is positively associated with 34A

Munya!"onera E6ra Francis 4;8185

T'i+ +e,ti ! e?"% $e+ t'e em"i$i,#% %ite$#tu$e #!d t'e 0#$i u+ met' d+ u+ed i!

+tud-i!* , mme$,i#% b#!= + "$ &it#bi%it-/ I! t'e $- dete$mi!#!t+ #$e

,#te* $i ed i!t t'$ee i!di,#t $+: b#!= +"e,i&i, i!du+t$- +"e,i&i, #!dm#,$ e, ! mi,/ B#!= +"e,i&i, i!di,#t $+ i!,%ude: *$ )t' i! b#!= #++et+


40/63

,#"it#% #de(u#,- "e$#ti !#% e&&i,ie!,- #!d %i(uidit-/ T'e , mm ! me#+u$e

& $ i!du+t$- +"e,i&i, $e"$e+e!t#ti0e u+ed i! t'e 0#$i u+ +tudie+ i+ b#!=

, !,e!t$#ti !/ 9'i%e ! t'e t'e$ '#!d t'e =e- m#,$ e, ! mi, 0#$i#b%e+

i!,%ude: *$ )t' i! .DP .DP "e$ ,#"it# i!&%#ti ! e?"e,t#ti ! i!te$e+t $#te #!d

it+ +"$e#d/ T'e em"i$i,#% e0ide!,e "$ 0ide+ t'e 0#$i u+ met' d+ em"% -ed i!

+tud-i!* b#!= "$ &it#bi%it- u+i!* t'e+e dete$mi!#!t+/ Mu,' & t'e em"i$i,#%

%ite$#tu$e #*$ee+ t'#t b#!= %e0e% #+ )e%% #!d m#,$ e, ! mi, ,t $+ %#$*e%-

i!&%ue!,e b#!= "$ &it#bi%it-/ T'e$e i+ ' )e0e$ %imited e0ide!,e t'#t i!du+t$-

+"e,i&i, ,t $+ '#0e #!- i!&%ue!,e ! b#!= "$ &it#bi%it-/ It i+ #*#i!+t t'i+

b#,=*$ u!d t'#t t'e +tud- uti%i ed !%- b#!= %e0e% #!d m#,$ e, ! mi, ,t $+

t e+tim#te "$ &it#bi%it-/

BA&,G()U%$ )F T*E #TU$.


41/63

• T'i+ +tud- )i%% 'e%" t #!#%- e t'e $e,e!t ! $m+ & NPA/

• T'i+ +tud- 'e%"+ t #!#%- e ' ) NPA C#u+i!* P$ b%em+ t B#!=i!* Se,t $

#!d )'#t mi*'t be t'e + %uti ! t 0e$, me &$ m t'i+ "$ b%em #!d #%+ it+

im"#,t ! P$ &it#bi%it- & Ne) P$ &it B#!=+/

()B'EM #TATEME%T )F #TU$.

P$ &it#bi%it- i+ , !+ide$ed #+ # be!,'m#$= & $ e0#%u#ti!* "e$& $m#!,e & #!-

bu+i!e++ e!te$"$i+e i!,%udi!* t'e b#!=i!* i!du+t$-/ 1 )e0e$ i!,$e#+i!* N !Pe$& $mi!* A++et+ '#0e # di$e,t im"#,t ! "$ &it#bi%it- & b#!=+ #!d &i!#!,i#%

i!+tituti !+/ Le*#%%- +"e#=i!* b#!=+ #!d &i!#!,i#% i!+tituti !+ #$e ! t #%% )ed t b =

i!, me ! +u,' #,, u!t #!d #t t'e +#me time+ t'e- #$e & $,ed t m#=e "$ 0i+i ! !

+u,' #++et+/ S T'i+ "$ ;e,t i+ u!de$t#=e! t ! ) im"#,t & NPA ! P$ &it#bi%it- &

P$i0#te Se,t $ B#!=+/

)BCE&TI/E# )F T*E #TU$.

T #!#%- e t'e "e$& $m#!,e , m"#$i+ ! & Ne) P$i0#te B#!=+ N !

"e$& $mi!* #++et & $ "#+t 7 -e#$+/

T #!#%- e t'e im"#,t & NPA ! "$ &it#bi%it-/

(E#EA(&* MET*)$)')G.


42/63

(E#EA(&* $E#IG% 2

Re+e#$,' De+i*! & u$ $e" $t i+ De+,$i"ti0e #!d

A!#%-ti,#% Re+e#$,'/

#)U(&E# )F $ATA :

9e '#0e u+ed #econdary data + u$,e i! t'i+ $e" $t/

$ATA &)''E&TI)% MET*)$2 Ou$ d#t# , %%e,ti ! met' d i! t'i+ $e" $t i+

Jud*me!t S#m"%i!*

) U'ATI)%#2

T'e$e #$e 23 "$i0#te +e,t $ b#!=+ #!#%- ed b- u+/

$ATA &)''E&TI)% I%#T(UME%T#2

I!+t$ume!t+ & d#t# , %%e,ti !+ #$e//

2 . *%e/, m

3 )))/$bi . $*/i!

H M !e-, !t$ %/, m

B#%#!,e +'eet+


43/63

$ATA A%A'.#I#A%$

I%TE( (ETATI)%


44/63

To analy6e the perfor!ance of rivate Ban s on %on perfor!ing

asset for last past J years


45/63

&IT. U%I)% BA%,

.EA( %ET % A ?MI''I)%3668 52226326 H853622 4 33623 7 6362H 85

2&&) 2&1& 2&11 2&12 2&13&

1&&&

2&&&

3&&&

4&&&

5&&&

6&&&*&&&

6111

3)6*

4842

54&)64

NET NPA [RS.in million]

N+, NP! -.S'in/illion0

INTERPRETATION:

Ab 0e t'i+ ,'#$t )e ,#! +#- t'#t &$ m -e#$ 3668 t 362H t'e #m u!t & NPA '#+

bei!* de,$e#+ed/ S It i+ * d & $ # b#!=/ A!d #%+ " +iti0e Im"#,t ! "$ &it#bi%it-/

A3I# BA%,


46/63

.EA( %ET % A ?MI''I)%3668 H3 2H3626 28663622 26H73623 35362H 6 2

2&&) 2&1& 2&11 2&12 2&13&

5&&&

1&&&&

15&&&

2&&&&

25&&&3&&&&

35&&&

4&&&&

45&&&

32*13

41)&& 41&35

4*26 *&41



I%TE( (ETATI)%2


bei!* de,$e#+ed/ S it i+ " +iti0e Im"#,t ! "$ &it#bi%it- & b#!=/

*$F& BA%,

.EA( %ET % A ?MI''I)%3668 53 536326 H8367


47/63

3622 385 23623 H73H362H 586

2&&) 2&1& 2&11 2&12 2&13&

1&&&&

2&&&&

3&&&&

4&&&&

5&&&&

6&&&&

*&&&&62*62

3)2&5

2)641

3523 46)&



I%TE( (ETATI)%2


bei!* de,$e#+ed/ T'e $e#+ ! & de,$e#+i!* NPA & b#!= )e ,#! +#- t'#t

P$ "e$ "$e e!(ui$- & b#!= & $ +#!,ti !i!* # % #! t # ,u+t me$/

I%$U#'A%$ BA%,

.EA( %ET % A ?MI''I)%3668 2 82H6326 2624H3622 83623 8362H 2H54


48/63

2&&) 2&1& 2&11 2&12 2&13&

2&&&

4&&&6&&&8&&&

1&&&&12&&&14&&&16&&&18&&&2&&&&

1*)13

1&183

*282

)4* 1368



I%TE( (ETATI)%2

Ab 0e t'i+ ,'#$t )e ,#! +#- t'#t &$ m -e#$ 3668 t 3623 t'e #m u!t & NPA '#+

bei!* de,$e#+ed/A!d i! 362H NPA #m u! '#+ bei!* i!,$e#+ed/1e$e ! t'i+ t#b%e t'e

$e#+ ! & i!,$eme!t & NPA i+ !e & t'e )i%%&u% deu%te$ m#- be +#id/

#)UT* I%$IA% BA%,

.EA( %ET % A ?MI''I)%3668 2H H26326 25273622 56633623 57362H 3 87


49/63

2&&) 2&1& 2&11 2&12 2&13&

2&&&

4&&&

6&&&

8&&&

1&&&&

12&&&

14&&&

16&&&

13431

615* 6&&2

*65

24)5



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e 'i*'e+t NPA #m u!t i+ ! -e#$ 3622/#!d %e++

#m u!t i+ ! 3623/T'e #m u!t & NPA i+ * i!* t &%u,tu#te/

,A(%ATA,A BA%,

.EA( %ET % A ?MI''I)%3668 225266326 244523622 346H3623 H73362H H 4


50/63

2&&) 2&1& 2&11 2&12 2&13&

5&&&

1&&&&

15&&&

2&&&&

25&&&

3&&&&

1161&

18861

28&34

4352 3**8



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t &$ m -e#$ 3668 t 3622 '#+ bei!* i!,$e#+ed NPA/

A!d te! NPA '#+ bei!* +t#$ted t de,$e#+e ! -e#$ 3623 #!d 362H/Be,#u+e &

I!,$e#+i!* i! I!te$e+t $#te i! % #! )'i,' '#+ t#=e! b- b $$ )e$ it ,#! be # $e#+ ! t

i!,$e#+e NPA i! -e#$ 3668 t 3623/

I%G /.A#.A BA%,

.EA( %ET % A ?MI''I)%3668 367876326 3324H3622 82 83623 737362H 82


51/63

2&&) 2&1& 2&11 2&12 2&13&

5&&&

1&&&&

15&&&

2&&&&

25&&&

2&5)522183

)1*)

525 )1



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e %e++ #m u!t & NPA i+ ! -e#$ 362H i+ 82

Mi%%i !/

,)TA, MA*I%$(A BA%,

.EA( %ET % A ?MI''I)%3668 H8546326 H56373622 322253623 3H362H H22


52/63

2&&) 2&1& 2&11 2&12 2&13&

5&&&

1&&&&

15&&&

2&&&&

25&&&

3&&&&

35&&&

4&&&&

45&&&

3)68436&25

21116

23*4 3114



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e %e++ #m u!t & NPA i+ ! -e#$ 3623 #!d t'e

'i*'e+t #m u!t & NPA i+ ! -e#$ 3668/

.E# BA%,

.EA( %ET % A ?MI''I)%3668 2256326 23883622 8273623 2 7362H 6


53/63

2&&) 2&1& 2&11 2&12 2&13&

5&&

1&&&

15&&

2&&&

25&&

3&&&

35&&

4&&&

45&&4116

12)))15

1*5 *&



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e $e#+ ! & %e++ #m u!t & NPA ! 362H -e#$ i+

e&&i,ie!t m#!#*eme!t & b#!= $e*#$di!* it+ " %i,- & % #! #%+ /

$*A%'A3MI BA%,

.EA( %ET % A ?MI''I)%3668 3433626 283622 7463623 746362H 3526


54/63

2&&) 2&1& 2&11 2&12 2&13&

5&&

1&&&

15&&

2&&&

25&&

3&&&

35&&

4&&&

45&&

2824

41)4

26**

58&

261&



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e %e++ #m u!t+ & NPA ! -e#$ 3622 #!d 3623

#$e +#me #!d t'e 'i*'e+t ) u%d be ! 3626 -e#$/

I&I&I BA%,

.EA( %ET % A ?MI''I)%3668 77H86326 H4 2223622 3 6 H53623 24564362H 33H65


55/63

2&&) 2&1& 2&11 2&12 2&13&

5&&&&1&&&&&15&&&&2&&&&&25&&&&3&&&&&35&&&&4&&&&&45&&&&5&&&&&

4553)4

384111

24&436

186&8 223&6



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t t'e 'i*'e+t #m u!t & NPA ! -e#$ 3668/T'e

$e#+ ! be'i!d t'#t )e ,#! +#- t'#t it m#- be $e,e++i ! i! E, ! m- #%+ #!d #+ )e%%

#+ "$i,e $i,e/

'A3MI /I'A# BA%,

.EA( %ET % A ?MI''I)%3668 5 476326 37 43622 3443623 2 2362H 34H4


56/63

2&&) 2&1& 2&11 2&12 2&13&

5&&&

1&&&&

15&&&

2&&&&

25&&&

3&&&&

6485

25**8

*288

1**1 2838



I%TE( (ETATI)%2

Ab 0e t'i+ t#b%e )e ,#! +#- t'#t %e++ #m u!t ! NPA i+ ! 3623 #!d t'e 'i*'e+t

#m u!t i+ ! -e#$ 3626/

To analy6e the i!pact of % A

on profita"ility+


57/63

T'e " 0#%ue & $ e#,' te$m te+t+ t'e !u%% '-" t'e+i+ t'#t t'e , e&&i,ie!t i+ e(u#% te$ ! e&&e,t / A % ) " 0#%ue 6/67 i!di,#te+ t'#t - u ,#! $e;e,t t'e !u%%

'-" t'e+i+/ I! t'e$ ) $d+ # "$edi,t $ t'#t '#+ # % ) " 0#%ue i+ %i=e%- t be #me#!i!*&u% #dditi ! t - u$ m de% be,#u+e ,'#!*e+ i! t'e "$edi,t $@+ 0#%ue #$e$e%#ted t ,'#!*e+ i! t'e $e+" !+e 0#$i#b%e/

C !0e$+e%- # %#$*e$ i!+i*!i&i,#!t " 0#%ue +u**e+t+ t'#t ,'#!*e+ i! t'e "$edi,t $ #$e! t #++ ,i#ted )it' ,'#!*e+ i! t'e $e+" !+e/

1+ Interest spread

Coefficie

nts

Standard

Error t Stat P-

value


58/63

I!te$,e"t 3H 4 /54

24636/H2

2/H3664

6/283667

I!t+"$e#d 27 2/523 368/8

6/H HH6

6/ 26342

I!te$"$et#ti !:

I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & I!te$e+t +"$e#d i+ ! t+i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/ 26342/ 1 )e0e$ t'e " 0#%ue & $ I!te$e+tS"$e#d 6/ 26342 i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e% & 6/67 )'i,' i!di,#te+t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/

; + Adjusted cash !argin

Coefficie

ntsStandard

Error t Stat P-

value

I!te$,e"t23 5/H2

78H62H2/ 82

56/ 2 6

746/546H

78 Ad; C#+'m#$*i!

2HH7/5H84H

33 4/ 4624

6/78 628

6/77 468

I!te$"$et#ti !:


59/63

I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Ad;u+ted C#+'m#$*i! i+ ! t +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/77 468 / 1 )e0e$ t'e "0#%ue & $ Ad;u+ted C#+' m#$*i! 6/77 468 i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e%

& 6/67 )'i,' i!di,#te+ t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/

D+ %et profit !argin

Coefficie

ntsStandard

Error t Stat P-

value

I!te$,e"t 24 68/8535853/ 8

4626/543 8

446/ 8

73Net "&tm#$*i!

85 /H 852

336 /7266H8

6/ H5487

6/55H4H

I!te$"$et#ti !:


60/63

I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Net "$ &it m#$*i! i+! t +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/55H4 H/ 1 )e0e$ t'e " 0#%ue & $ Net"$ &it m#$*i! 6/55H4 H i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e% & 6/67 )'i,'i!di,#te+ t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/

+ (eturn on long ter! fund

Coefficie

ntsStandard

Error t Stat P-

valueI!te$,e"t 2H 635/4

H3H4H/55828

/3H2H75

4/H E67

Ret !%/t/& 22H2/7 2

H37/65 47H

H/ 468 6/666875


61/63

I!te$"$et#ti !:

I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Retu$! ! % !* te$m&u!d i+ +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/666875/ 1 )e0e$ t'e " 0#%ue & $ Retu$! ! % !* te$m &u!d 6/666875 i+ %e++ t'#! t'e , mm ! #%"'# %e0e% & 6/67)'i,' i!di,#te+ t'#t it i+ +t#ti+ti,#%%- +i*!i&i,#!t/

J+ (eturn on net worth

Coefficie

ntsStandard

Error t Stat P-

value

I!te$,e"t5 H74/2H

H3 3 /3H

3683/563

3H6/622

33

Ret !!et ) $t'

3523/567

25 7/ 72 4

2/7786 6/233


62/63

I!te$"$et#ti !:

I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Retu$! ! !et ) $t'i+ ! t +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/23 3/ 1 )e0e$ t'e " 0#%ue & $Retu$! ! !et ) $t' 6/23 3 i+ *$e#te$ t'#! t'e , mm ! #%"'# %e0e% & 6/67 )'i,'i!di,#te+ t'#t it i+ ! t +t#ti+ti,#%%- +i*!i&i,#!t/

+ (eturn on assets revaluation

CoefficientsStandar d Error t Stat P-value

I!te$,e"t 5455/7 HH7 2H8 6/35 6/ 8272 6/53 83


63/63

Ret !#++et+$e0#%u#ti ! 287/ 4 H5

77/ 5H5

H/73 H8

6/6664H5

I!te$"$et#ti !:

I! t'e ut"ut #b 0e )e ,#! +ee t'#t t'e "$edi,t $ 0#$i#b%e+ & Retu$! ! #++et+$e0#%u#ti ! i+ +i*!i&i,#!t be,#u+e & t'ei$ " 0#%ue+ #$e 6/6664H5/ 1 )e0e$ t'e "0#%ue & $ Retu$! ! #++et+ $e0#%u#ti ! 6/6664H5 i+ %e++ t'#! t'e , mm ! #%"'#%e0e% & 6/67 )'i,' i!di,#te+ t'#t it i+ +t#ti+ti,#%%- +i*!i&i,#!t/

A Project Report on Impact of Npa on Pro

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