212MTAMount Durham University Bachelor's Diploma in Technology
Cooperative bank
1. NPAs of co operative bank
Presented by Hardeep sharma
Roll no. 120425717
MBA- 3rd semester
2. Introduction:
NPAs are loans made by a bank or a finance company
on which repayments or interest payments are not
being made on time. This study focuses on the
problem of NPA, its reasons, effects.
3. PROFILE OF THE ORGANISATION
The Punjab State Cooperative Bank was established
on 31st August, 1949 at Shimla vide registration No.
720 has a principle financing institution of the
cooperative movement in Punjab.
In 1951 its Head Office was shifted to Jalandhar from
where it moved in 1963 to its present building at
Chandigarh. In the cooperative Banking structure, the
position of the Punjab State Cooperative Bank is
extremely important as the whole credit system
revolves around it.
5. Types of co-operative banks
Co-operative
banks
Rural co-op.
banks
Short term
co-op. banks
Long term
co-op. banks
Urban co-op.
banks
6. Rural co-
operative
banks
Short term co-
op. banks
State co-
op. banks
Central co-
op. banks
Primary
agricultur
e credit
societies
Long term co-
op. banks
State co-op.
agriculture and
rural
development
banks
Primary co-
op.
agriculture
and rural
development
banks
7. OBJECTIVE S OF THE BANK
To protect the rural section from greedy money lenders
To provide easy credit facilities to the farmers
To promote and develop cooperative societies in the state
To provide training and education facilities to farmers
Overall development of rural areas
8. Review of literature
Books:
MY Khan, Financial Services
LM Bhole, Indian Financial System
9. Objectives of study
To understand what is NPA.
To understand what are the reasons for the emergence of
the NPAs.
To understand the dimensions of NPA.
To study the position of NPA in co-op. bank.
To study the tools used for management of NPAs.
To evaluate the ratio of the bank with concerned to the
NPAs.
10. Research methodology
Research design : Exploratory research design
Source of data:
Secondary data : annual reports of the bank Internet ,
financial books and agricultural book.
15. Reasons of NPA
Unwillingness of customers
Ineffective recovery system
Natural calamities
Inflation
Problems in agriculture sector
Ineffective government policies
Inappropriate technology
Poor credit appraisal system
Inefficient staff
Willful default is not a criminal offence.
16. Effects of NPA
Reduces profitability.
Reduces the image of the bank.
Blockage of funds.
Reduces chances of growth.
17. Management of NPAs
Early recognition of the problem.
Identifying borrowers with genuine intent.
Settlement with customers.
Lok adalats.
18. Data analysis and interpretations
0
10
20
30
40
50
60
70
80
90
100
standard
assets
sub-standard
assets
Doubtful
assets
loss assets
98.69
0.6
0.62 0.08
Year Wise NPA at Cooperative Bank for 2009-10
24. Findings
Gross NPAs are increasing every year. This is not good
for bank.
Net NPA is increasing every year.
Standard assets are reducing every year.
Substandard asset ratio firstly increases then reduces.
Doubtful asset ratio is increasing every year.
Loss assets are increasing every year.
The position of the bank is not good with respect to its
financial assets.
Increase in inflation is a main reason behind NPAs.
25. Suggestions
Financial capacity of the borrower should be
evaluated.
Settlement procedure should be more strict and faster.
Innovative technology should be adopted.
Willful defaults should be made a criminal offence.
Proper training should be given to the staff.
26. Conclusion
Financial performance of the banks is not good due to
the problem of NPAs. So this problem should be
tackled as soon as possible. Otherwise our socio
economic objectives cannot be achieved.
