Type of Research
• This project “ANALYSIS OF NON PERFORMING ASSETS IN BANKS” is considered as an exploratory research. Exploratory research is basically a secondary research that started with a search for articles, research papers and books that explained the basics of the topic.
• In this project I have used secondary data by studying various articles, magazines, research papers and books that explain the basis of the topic.
• I have visited a bank where I had an informal discussion with the employees and I was provided with the relevant information by him.
• Further, the Internet allowed for research methods that were more interactive in nature. This helped me to save the time and efforts to collect the data.
• I visited RBI site…show more content… In the above graph IDBI Bank and Axis Bank show a decline in Gross NPA over the 2 years of time but IDBI Bank (Public Sector Bank) has greater Gross NPA as compared to Axis Bank (Private Sector Bank). Hence IDBI Bank has low credit portfolio as compared to Axis Bank.
COMPARISION OF NET NPA'S OF TWO BANKS.
High Net NPA indicates the high quantity of risky assets in the Banks for which noprovision are made.. In the above graph IDBI Bank and Axis Bank show a decline in Net NPA over the 2 years of time but IDBI Bank (Public Sector Bank) has greater Net NPA as compared to Axis Bank (Private Sector Bank). Hence IDBI Bank has high quality of risky asset .
• The reduction in loan installment to 90 days may raise the NPA levels in the short run.
• Private Banks have more efficient management of NPAs as compared to Public sectors as gross NPAs of Public sectors Banks are 51537 and whereas private sector Banks are 5771.17. Thus
• IDBI bank has higher Gross NPA than Axis Bank as gross NPAs of IDBI in 2010 is 2784.73 and in 2011 is 2129.38 whereas gross NPA of Axis Bank in 2010 is 2393.42 and in 2011 is 2275.3.
• Net NPAs of IDBI in 2010 is 1677.91 and in 2011 is 1589.2 whereas Net NPA of Axis Bank in 2010 is 704.13 and in 2011 is 678.70. This shows IDBI bank has higher Net NPA then Axis Bank which means IDBI Bank has high quantity of risky assets for which noprovision are made.