8/12/2019 project report of sbm http://slidepdf.com/reader/full/project-report-of-sbm 1/15 ”A STUDY ON NON PERFORMING ASSETS IN STATE BANK OF MYSORE” Project Guide: Mrs. Neena Prasad Asst. Professor DSCE DOMS Extern! Guide Mr. Dinesh Ubar Branch manager SBM By: Abhijna.P eg No. !DSO"MBA#$
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Stte/ent o% (ro0!e/: 2he ban( ,i** a*,ays face the rob*em of NPA
beca-se of oor reco+ery of ad+ances granted by theban( and se+era* other reasons *i(e adoting a oorreco+ery strategies so ,hen the *oan is not reco+eredfrom the ban( effecti+e*y and efficient*y that ba*ance
amo-nt ,i** become the NPA to the ban( it may createsome h-ge rob*em to the ban(5s net rofit.
2he st-dy com*ete*y deends on the )econdr&dt.
2he secondary data co**ected from 6 SBM5s ann-a* reorts. B/5s Ann-a* reorts. SBM5s 7-arter*y b-**etins. SBM5s ,ebsite.
2here is a negati+e corre*ation e9ists bet,een gross NPA of a
ban( ,ith oerating rofit at a #.#! *e+e* significance. So !is acceted% ,hich states there is a significant re*ationshibet,een gross NPA of a ban( to its oerating rofit.
HYPOTHESIS H0: There is no significant relationship between gross NPA of a bank to its
operating profit.
H1: There is a significant relationship between gross NPA of a bank to its
operating profit.
** Correlation is significant at the 0.01 level (2-tailed).
/t is not ossib*e to e*iminate tota**y the NPAs in the ban(ingb-siness b-t can on*y be minimi3ed. /t is a*,ays ,ise itfo**o, the roer o*icy araisa*% s-er+ision and fo**o,-of ad+ances to a+oid NPAs.
2he ban(s sho-*d not on*y ta(e stes for red-cing resentNPAs% b-t necessary reca-tion sho-*d a*so be ta(en toa+oid f-t-re NPAs.
B-t in the case of SBM it is one of the good sign that the
amo-nt of NPA is decreased from *ast financia* year and itsho-*d be mo+e *i(e this in f-t-re.