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.

4. Organizational Structure

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.

11. Limitations of study
 Error is possible.
 Unable to get current data.

12. Classifications of
Assets
Assets
Performing
asset or
standard asset
Non-
performing
assets
Sub-standard
assets
Doubtful
assets
Loss assets

13. Non-performing assets
NPA is a loan made by a bank or a finance company
on which repayments or interest payments are not
being made on time.

14. Types of NPA
 Gross NPA
 Net NPA

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

19. 0
10
20
30
40
50
60
70
80
90
100
standard assets sub-standard
assets
Doubtful assets loss assets
97.86
1.28 0.7 0.15
Year Wise NPA at Cooperative Bank for 2010-11

20. 0
20
40
60
80
100
stanadard
assets
sub-standard
assets
Doubtful assets loss assets
97.36
1.14 1.043 0.44
Year Wise NPA at Cooperative Bank for 2011-12

21. 2009-10
2010-11
2011-12
1.31
2.14
2.64
Gross NPA Ratio (%)

22. 2009-10
2010-11
2011-12
0.6
1.04
1.21
Net NPA Ratio (%)

23. Year wise-Inflation Rate
Year
• 2004
• 2005
• 2006
• 2007
• 2008
• 2009
• 2010
• 2011
• 2012
• 2013
Inflation rate (%)
• 3.77
• 4.25
• 5.79
• 6.39
• 8.32
• 10.83
• 12.11
• 8.87
• 9.30
• 11.04

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.

27. THANK YOU