Non Performing Assets Analysis
CHAPTER - 6
PA – NPA ANALYSIS AND INTERPRETATION OF DATA OF SELECTED UCBS TEKAN TOGETHER
6.1 6.2 6.3 6.4 6.5 Introduction Concept Of NPA And Its Importance In Banking Sector Common - Size Analysis Of The Selected UCBs Common – Size Analysis Of PA And NPAs Of The Selected UCBs Taken Together Ratio Analysis Of The Selected UCBs Taken Together 6.5.1 6.5.2 6.5.3 6.5.4 6.5.5 6.5.6 6.5.7 6.5.8 6.5.9 6.6 Gross NPA ratio Net NPA ratio Problem Assets ratio Depositors‟ Safety ratio Share Holders Risk ratio Provisions ratio Sub – standard Assets ratio Doubtful Assets ratio Loss Assets ratio 153 134 131 131 132 132
General Causes Of Non Performing Assets
130
CHAPTER - 6
PA – NPA ANALYSIS AND INTERPRETATION OF DATA OF SELECTED UCBS TEKAN TOGETHER
6.1 INTRODUCTION:
In today‟s world of healthy competition where all business units and industries are trying to survive in the market, the banking sector too can not be aloof from competition in market. As liberalization and globalization has opened door for free entry in any business, the co-operative sector of banking has to face competition from not only nationalized or commercial banks but also from private financial instructions and foreign banks. Two or three decades back, profit had a back seat and came as an end product. They never consciously planned their business of banking from the profit point of view. But today profit is a sign of vitality and success in a competitive scenario. It ensures survival and growth and can eventually become the only parameter for performance evaluation. Profit depends upon NPA provisions. Hence, for a banker, NPA has become very significant. In this chapter an attempt has been made to find out the importance of PA and NPA in banking sector and to measure the level of NPA of banking sector using accounting techniques of NPA analysis and statistical tools along with graphs and charts. 6.2 CONCEPT OF NPA AND ITS IMPORTANCE IN BANKING SECTOR: Guidelines issued by Reserve Bank of
PA – NPA ANALYSIS AND INTERPRETATION OF DATA OF SELECTED UCBS TEKAN TOGETHER
6.1 6.2 6.3 6.4 6.5 Introduction Concept Of NPA And Its Importance In Banking Sector Common - Size Analysis Of The Selected UCBs Common – Size Analysis Of PA And NPAs Of The Selected UCBs Taken Together Ratio Analysis Of The Selected UCBs Taken Together 6.5.1 6.5.2 6.5.3 6.5.4 6.5.5 6.5.6 6.5.7 6.5.8 6.5.9 6.6 Gross NPA ratio Net NPA ratio Problem Assets ratio Depositors‟ Safety ratio Share Holders Risk ratio Provisions ratio Sub – standard Assets ratio Doubtful Assets ratio Loss Assets ratio 153 134 131 131 132 132
General Causes Of Non Performing Assets
130
CHAPTER - 6
PA – NPA ANALYSIS AND INTERPRETATION OF DATA OF SELECTED UCBS TEKAN TOGETHER
6.1 INTRODUCTION:
In today‟s world of healthy competition where all business units and industries are trying to survive in the market, the banking sector too can not be aloof from competition in market. As liberalization and globalization has opened door for free entry in any business, the co-operative sector of banking has to face competition from not only nationalized or commercial banks but also from private financial instructions and foreign banks. Two or three decades back, profit had a back seat and came as an end product. They never consciously planned their business of banking from the profit point of view. But today profit is a sign of vitality and success in a competitive scenario. It ensures survival and growth and can eventually become the only parameter for performance evaluation. Profit depends upon NPA provisions. Hence, for a banker, NPA has become very significant. In this chapter an attempt has been made to find out the importance of PA and NPA in banking sector and to measure the level of NPA of banking sector using accounting techniques of NPA analysis and statistical tools along with graphs and charts. 6.2 CONCEPT OF NPA AND ITS IMPORTANCE IN BANKING SECTOR: Guidelines issued by Reserve Bank of