Slide 1: A STUDY ON
NON PERFORMING ASSETS
STATE BANK OF INDIA AT VISAKHAPATNAM Slide 2: INTRODUCTION
Non Performing Asset means a loan or an account of borrower, which has been classified by a bank or financial institution as sub-standard, doubtful or loss asset, in accordance with the directions or guidelines relating to asset classification issued by RBI.
NPAs are of three types.
Loss assets Slide 3: COMPANY PROFILE
The state bank of India was established on 1st
july1955 at Mumbai.
It has 14 local head offices ,57 zonal offices and
more than 16,000 branches all over the India.
It has more then 12,000 ATM’s.
There are 8 subsidiaries.
The bank had a total strength of 2,05,896
employees. Slide 4: NEED OF THE STUDY
Identify the extent of impact of NPA’s on
performance of the branches of SBI in the
Identify the pre-details of the borrowers before
sanctioning the loans. Slide 5: OBJECTIVES OF THE STUDY
To study the past trends of NPA.
To evaluate NPA level in different branches.
To know the reasons for NPA’s.
To learn the preventive measures .
To understand the impact of NPA’s on the operations
To know what are the steps taken by Indian
bank sector to reduce the NPA’s Slide 6: RESEARCH METHODOLOGY
Discussion with the branch managers.
Discussion with the borrowers.
Data is collected from printed materials.
Websites related to the banking sector.
News papers ,magazines. Slide 7: LIMITATIONS OF THE STUDY
The study was entirely based on the information
provided by the branches of SBI from their records.
The branches are not providing sufficient information
about the NPA’s.
It is observed that the NPA’s ratio is less compare to
There is no increase in NPA’s so there should be no
effect of reduction of provisions from the profitability
It is found that SBI requires less provisioning
requirements for the recovery of NPA’s. Slide 8: SUGGESTIONS
There should be a proper pre-enquiry by the
bank before sanctioning a loan to customer.
The special accounts should be made of the
clients where monthly loans concentration
reports should be made. Slide 9: CONCLUSION
NPA is one of the biggest problem that the public
sector banks are facing today.
NPA’s are the loss assets for the banks.
The high NPA ratio indicates the high quantity of
risky assets in the bank. Slide 10: Thank you….