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 ...view middle of the document...
COMPARISION OF GROSS NPA’S OF TWO BANKS.
The above graph indicates the quality of Credit portfolio of the banks. High gross NPA indicates the low Credit portfolio of bank and vice-versa. 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...