Factors Affecting the Npa in Psb

Simply, the banks perform financial intermediation with the deposits of the customers/ business and then lending out that money to earn profits. The banking system concern, it plays a vital role in any country economy by encouraging investment activities as well as money savings. Moreover, online baking, providing debit and credit cards, ATM facilities, providing safe custody of valuable items and lockers are some of the facilities provided by banks to make their relationship with the customers more effective and efficient.

First, an overview of the Twentieth Century American Banking System. Banking regulations are implanted to strengthen the banking sector and to eliminate bank panics. For example, the creation of the Federal Reserve System in 1913 was largely a response to lessons learned in the Panic of 1907. Industry regulation and structure, risk management viz. moral hazard, adverse selection.

The government seems to be preparing the ground for the merger of Public Sector Banks (PSBs). After asking small banks to coordinate with large ones on key areas, it has now merged 19 Regional Rural Banks (RRBs) into eight entities, despite reservations by the Reserve Bank of India (RBI). It plans to merge more rural banks by the end of this financial year. RBI has expressed its displeasure at the move, saying the finance ministry didn't keep it in the loop while going ahead with the mergers. The ministry, however, argued it followed the Regional Rural Banks Act, which didn't mandate consultation with the Central Bank on such mergers. In the second round of consolidation of RRBs, the government has, for the first time, merged RRBs under different sponsor banks. The number of RRBs has been reduced to 71, as against 82 at the end of the last financial year. The government plans to reduce this number to 64 by March-end and to 48

This Act provided an immediate instrument for UK banks to be transported into public ownership and then - if there is one - to make a further transfer to a buyer in situations where it is necessary to maintain stability in the UK financial system . This was also a good response because by using this act it allowed The Treasury to nationalize Northern Rock and parts of Bradford & Bingley . Nationalization safeguarded the bank’s future, which was crucial for the country’s financial well-being, this is great because it could be monitored closely by the government on behalf of the taxpayer - preventing the banks from making the same detrimental mistakes . However, this act was replaced by the Banking Act 2009 that made provision for the nationalization of banks, it amended the law on bank insolvency and administration. This shows the that the Banking Act 2008 is an inadequate response because it was in need of reformation due to nationalization not being successful in the hands of the public, rather only a short term solution. Furthermore, it can be argued that politicians are not the right people to run the banks. They do not have the commercial abilities essential to run such important and challenging financial institutions. If experienced veterans of the banking industry were unsuccessful in evading the pitfalls recently, inexperienced government personnel are very unlikely to succeed. It can be said that the financial, and in

Indusland Bank established in April 1994 derives its name from Indus Valley Civilisation. The bank is first among its new generation private sector bank that obtained a license in the year 1994 to drive the process of economic reforms in the post liberalisation era in India. Conceptualised by Srichand P. Hinduja, the Indusland Bank was born from his vision to use collective contributions from the worldwide as non-residents Indian (NRI) community towards social and economic development of the country.

There is no economic justification for retaining an asset with negative financial performance when the option of returning the assets is available. That way, NPDC can concentrate resources on the assets giving above-average rate of return. This is age-old investment wisdom especially in the capital intensive E & P business.

India’s banking industry is largely fragmented with more than half of the commercial banks being state-run entities. It has seen one of the biggest mergers of all time in the recent past with Kotak Mahindra taking over ING Vysya. While the Indian banking sector is still facing tough times, Kotak Mahindra’s merger with ING Vysya will help the former to expand their presence across India.

The non-performing loans ratio (NPL) of SDB was firstly examined, with reference to exhibit 10, to determine the overall asset quality. SDB’s NPL is 11.6% which is higher than other banks, excluding BoCom at 16.7%. This NPL value is also greater than the industrial average of 7.3% by 1.59 times. This establishes that the assets owned by SDB has generally a lower quality compared to its industrial peers. This NPL ratio reported is not completely accurate as the NPL is calculated from book values, which are completely at the disposition of the bank. It is highly likely that the current NPL is lower than the real NPL, as the bank has an incentive to manipulate the data so that it would attract investors, and boost current stakeholder’s confidence.

The stability of the Financial System largely depends on the strength and resilience of the Banking System. Indian Banks which suffered from negative capital adequacy, negative earnings and high NPAs in the Seventies and eighties are now on a robust footing thanks to the reforms brought about by the Narasimham Committee I and II and on account of the strong resolve of the Govt. and the Reserve Bank of India. It is a matter of pride that the Indian Banks have now become fully Basel II Compliant, and that they

None of these considered second generation reforms and their impact. Therefore there is a need of comprehensive assessment of the impact of financial sector reforms (especially 2nd phase of reforms i.e. 2002) on banking efficiency. It is to investigate weather efficiency of banking in Pakistan improves or not. For this purpose we used data from 1990 to 2006 for 20 domestic commercial banks. 3

Banking Industry is the chief indicator of the growth of any country’s economy. India with its huge populations presents a huge scope for banking industry. State Bank of India is a public sector unit and enjoys the market leader position. HDFC is catching up on the back of its exquisite growth in last decade. And with the relaxation of government control, private players are in a much better position to compete. But both the banks have their own problems

Table 4.3 shows the trend of non-performing loans ratio by the bank in general for

The recent guidelines on New Bank Licenses by RBI have opened the doors for the entry of third set of private banks into the 73 trillion banking sector. Taking a look at the non-financial players like Aditya Birla Nuvo Ltd, Reliance Capital Ltd, L&T Finance Holdings Ltd, and Bajaj Finserv Ltd.which having a past record of sound credentials and integrity along with being financially sound have run the competition. Not only that, with a successful track record of 10 years, one would normally hope of improved productivity of the banking sector, which has been seen stagnating over the last few years and this gives a new opportunity for new

In India, however there is a mixed banking system, prior to July 1969, all the commercial banks-73 scheduled and 26 non-scheduled banks, except the state bank of India and its subsidiaries-were under the control of private sector. On July 19, 1969, however, 14 major commercial banks with deposits of over 50 Corers were nationalized. In April 1980, another six commercial banks of high standing were taken over by the government.

Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to