Project Report on

-PERFORMING ASSETS AT THE BANGALORE

CITY CO-

BY

BASANTHI.R

(USN: 1NH14MBA17)

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfilments of the requirements for the award of the degree of

MASTERS OF BUSSINESS ADMINISTRATION

Under the guidance of

Internal Guide: External Guide:

Prof. Richa Pathak Mr. B. Gangadhara

Assistant Professor Deputy General Manager
Department of MBA BCCB Ltd.
NHCE, Bangalore Chamarajpet, Bangalore

Department of Master of Business Administration

New Horizon College of Engineering

Outer Ring Road, Marathalli, Bangalore-560103

 ACKNOWLEDGEMENT

I wish to pledge and reward my deep sense of gratitude for all those who have supported and encouraged me
to make this project come alive.

I am gratefully indebted to my Internal Faculty Guide Prof. Richa Pathak at New Horizon College of
Engineering, for encouraging me and for his constant support throughout the course of the project and
helping me complete it successfully.

A special note of gratitude goes to my External Guide Mr. B. Gangadhara, Deputy General Manager at
BCCB Ltd., Bangalore for providing me an opportunity to work in this corporate exposure and for his
support and guidance in this endeavour.

I would like to express my heartfelt gratitude to thank Dr. Manjunatha, Principal at NHCE for his valuable
suggestions and moral support throughout the course of my project.

I wish to thank Dr. Sheelan Mishra, HOD, Dept. of MBA, NHCE for helping me to work on my project. I
finally thank my family and friends for their constant support and guidance.

BASANTHI.R

(1NH14MBA17)
 CONTENTS

Serial No. Particulars Page No.

Executive Summary
1 Introduction
1.1 About the Internship 1
1.2 Topic chosen for the study 2
1.3 Need for the study 2
1.4 Objective of the study 2
1.5 Scope of the study 3
1.6 Research Methodology 3
1.7 Literature Review 3-7
1.8 Limitations of the study 7

2 Industry and Company Profile

2.1 Industry Profile 8-11
2.2 Company profile 11-13
2.2.1 Vision, Mission and Quality Policy 13-14
2.2.2 Products/Services profile 14-15
2.2.3 Areas of operation 15-16
2.2.4 Infrastructure facilities 16
2.2.5 Competitors Information 16
2.2.6 SWOT Analysis 17-18
2.2.7 Future Growth and Prospects 18
2.2.8 Financial Statements 19-20

3 Theoretical background of the study 21-29

4 Data analysis and Interpretation 30-52
5 Summary of Findings, Suggestions and Conclusion 53-55
Annexure
Bibliography
 LIST OF TABLES

Table No. Table Name Page No.

4.1 Table showing the Non-Performing Assets from 2011-15 30
4.2 Table showing the Percentage of Non-Performing Assets from 31
2011-15
4.3 Table showing the Total Advances of the bank from 2011-15 32
4.4 Table showing the comparative percentage of Gross Non- 33
Performing Assets of the bank with other banks from 2011-15
4.5 Table showing the comparative percentage of Net Non- 34
Performing Assets of the bank with other banks from 2011-15
4.6 Table showing the Gross Non-Performing Assets of the bank from 35
2011-15
4.7 Table showing the Net Non-Performing Assets against the Total 37
Advances of the bank from 2011-15
4.8 Table showing the Sub-standard Assets Ratio of the bank from 39
2011-15
4.9 Table showing the Doubtful Assets Ratio of the bank from 41
2011-15
4.10 Table showing the Provision Coverage Ratio of the bank from 43
2011-15
4.11 Table showing the Credit to Deposit Ratio of the bank from 45
2011-15
4.12 Table showing the Problem Assets Ratio of the bank from 47
2011-15
4.13 49
2011-15
4.14 Table showing the computed values of correlation variables x, y. 51-52
From 2011-15
 LIST OF GRAPHS

Table No. Table Name Page No.

4.1 Graph showing the Non-Performing Assets from 2011-15 30
4.2 Graph showing the Percentage of Non-Performing Assets from 31
2011-15
4.3 Graph showing the Total Advances of the bank from 2011-15 32
4.4 Graph showing the comparative percentage of Gross Non- 33
Performing Assets of the bank with other banks from 2011-15
4.5 Graph showing the comparative percentage of Net Non- 34
Performing Assets of the bank with other banks from 2011-15
4.6 Graph showing the Gross Non-Performing Assets of the bank 36
from 2011-15
4.7 Graph showing the Net Non-Performing Assets against the Total 38
Advances of the bank from 2011-15
4.8 Graph showing the Sub-standard Assets Ratio of the bank from 40
2011-15
4.9 Graph showing the Doubtful Assets Ratio of the bank from 42
2011-15
4.10 Graph showing the Provision Coverage Ratio of the bank from 44
2011-15
4.11 Graph showing the Credit to Deposit Ratio of the bank from 46
2011-15
4.12 Graph showing the Problem Assets Ratio of the bank from 48
2011-15
4.13 50
2011-15
 EXECUTIVE SUMMARY

Non-Performing Assets have turned to be a major stumbling block affecting the profitability of Indian banks.
Before 1992, banks did not disclose the bad debts sustained and provisions, made by them fearing that it may
have an adverse effect. Owing to the low level of profitability, bank owned funds had to be strengthened by
repeated infusion of additional capital by the government. The introduction of prudential norms by The

be a milestone measure in the financial sector reforms. These prudential norms relate to Income recognition.
Asset classification, provision for Bad and Doubtful debts and Capital adequacy.

An Exploratory study was adopted to achieve the objectives of the study, and the study was conducted in The
Bangalore City Co- -
the study was to analyse the Non-Performing Asset level in The Bangalore City Co-Operative Bank. However
the study was conducted with the following specific objectives:

1. To analyses the Non-Performing Assets level of BCCB Ltd.

2. To identify the nature of the problems associated with Non-Performing Assets.

3. To study the impact of Non-Performing Assets on the profitability of the firm.
4. To know what steps are being taken by BCCB Ltd. to reduce their Non-Performing Assets?
The major limitation of the study was the paucity of time. Even then, maximum care has been taken to arrive
at appropriate conclusion. The method adopted for collection of data was personal interview with bank
officials. It was also sourced from the secondary data. After collecting data from the respective sources,
analysis & interpretation of data has been made.

Based on the findings, logical conclusions are drawn and future suitable suggestions and recommendations
are bought out. The entire project is presented in the form of a report using chapter scheme in a logical
sequence from Introduction to Annexure & Bibliography.
 CHAPTER-1

INTRODUCTION
 -

It is important to have a solid banking sector for a booming economy. Lending business is one of the vital
roles played by banking sector. It is usually fortified since it has the result of money being transmitted from
the system to prolific drives, which is also a result for the development in the economy. As there is positivity
and negativity for everything, similar is with the advancing trade which transmits credit threat, which
ascends from the let-down of borrowers to accomplish their recommended requirements either through the
sequence of a contract or on an upcoming requirement. There is a contrary effect on other segments with the
failure of the banking sector. Non-Performing Assets replicates the performance of the banks. The Net-
worth of the banks is disturbed by the elevated level of NPA which advocates elevated prospect of a bulky
number of credit defaults and also corrodes the cost of the assets. The Non-Performing Asset progress
includes the requirement of provisions, which diminishes the complete revenues and value.
The concern of Non-Performing Assets has been debated all over the world at span for financial system.
Not only the banks but also the whole economy is distressed by the issue of Non-Performing Asset. As a
point, a great level of NPA in Indian banks is not anything but a replication of the state of wellbeing of
business and trade. This assignment contracts with accepting the idea of NPA, its degree and chief motives
for areas on fetching Non-Performing.

There is a direct impact on Banks profitability by the magnitude of Non-Performing Assets. As per the
guiding principle of The Reserve Bank of India lawfully are not legalized to manuscript revenue on such
accounts and on the similar moment banks are essential to mark provisions on such assets. RBI has directed
all Central Co-operative Banks as well as the State Co-operative Banks in the country to implement
prudential norms from the year conclusion 31-03-1997.Since 1997 these norms are been revised a several
times. It is now recognised that the banks and financial institutions in India express the problems of increase
of Non-Performing Assets and the problem is flattering more and more uncontrollable. In order to get the
condition under switch, several actions have been occupied i.e. announcing of Securitization and
Reconstruction of Financial Assets and Implementation of Security Interest Act, 2002 by Parliament, which
was a phase to removal of Non-Performing Assets in the Indian economy.

An asset is categorised as Non-Performing Asset if payments in the arrangement of standard and interest are
not compensated by the borrower for a time period of 180 days. Though, with result from March 2004, non-
payment status would be given to a borrower if dues are not paid for 90 days.

1
 -Performing Assets at The Bangalore
City Co-

Statement of the problem

Banking Institution provides financial assistance to business units that help in the growth of the country. In
present years the Non-Performing Assets, loans and advances given by the bank are not up to the yielding
expected returns. The Non-Performing A
to their Non-Performing Assets.

Hence, there is need to study the cause of such Non-Performing Assets and sound steps are taken by banking
institutions and the Government to cut down such Non-Performing Assets.

1.3 Need for the study

To investigate the performance of a bank Non-Performing Asset is a significant constraint as it result in

diminishing boundary and developed provisioning necessities for doubtful debts. The banking sector is
affected by Non-Performing Asset. It disturbs profitability as well as liquidity, in addition to it posing risk
on quality of asset and endurance of banks. The intention of the study is to evaluate the Non-Performing
Assets of The Bangalore City Co-Operative Bank and its influence on effectiveness and to see the link
amongst total advances, Net Profits, GROSS & NET NPA. The facts have been premeditated by using
coefficient and correlation and tables. The significant point to be renowned is that the deterioration of Non-
Performing Asset is crucial to progress productivity of banks.

Therefore, the proposed research will be an attempt towards examining the effectiveness of Non-Performing
Assets recovery measures.

1.4 Objectives of the study

1. To study the concept of Non-Performing Assets and its main impact on Indian Banking Industry.
2. To study the various levels of NPAs with reference to Bangalore City Co-0operative Bank Ltd.,
3. To study the trend of
4. To study the relationship between loan disbursement and the level of NPA by using Correlation
Analysis.
5. To suggest various measures for the bank to reduce the level of NPA.
2
1.5 Scope of the study

The project entitled - was

carried out in Bangalore City Co-
undertaken to have a comprehensive examination of the NPA management of bank and also to suggest how
r the financial position of bank. annual
report are verified for getting the information for the study.

1.6 Research Methodology

Research Methodology

Data assembling is the procedure of gathering and calculating information on variables of interest, in a
recognised methodical approach that makes sure one to response specified research questions, and estimate
conclusions.

Sources of Data

1. Primary Data

The facts were collected over direct interview with chief manger and staff of the bank.

2. Secondary Data

Secondary data was composed from Journals, Text books, Internet, Banks annual report, Bank website,
Bank manuals and other relevant documents.

Type of Research

The study is both an Analytical and a Descriptive reading on the Management of NPA of Bangalore City
Co-operative Bank Ltd. The study is largely analytical in the sense that it analysis various financial
variables based on secondary data. It also implements descriptive research methodology in order to
determine the views of bankers to know their views on the management of NPAs.

1.7 Review of Literature

Chandan Chatterjee, Jeet Mukherjee and Dr. Ratan Das (2012)1focuses the issue of increasing non-
performing assets in banking segment chiefly in various mounting economy. This editorial effort to
3
emphasis primarily on the reasons and significances of NPAs, procedure vices of RBI, creativities of Indian
Government, scenario of NPA segment and bank group wise and lastly the remedial actions for NPAs in
India.

Priyanka Mohnani and Monal Deshmukh (2013)2made an effort to estimate the effective presentation of
the particular PSBs and Private bank in India and also analyse how efficient Public and Private sector banks
can manage NPA. The degree of NPA was moderately developed in public sectors banks associated to
private banks understudy but today, they have accomplished the quantity minor conclusion.

Srinivas K. T. (2013)3has given the motives for loans flattering NPA in the Indian Commercial Banks Area
and to stretch appropriate suggestions to overwhelm the problems. The clang of the banking segment may
have an adverse effect on further segments. A banker will be very suspicious in advancing, since banker out
of his capital is not lending money. A majority share of the money which is hired arises from the payments
established from the public and government segment. Currently NPA in the banking segment is dispute
subject since particularly in nationalized banks NPA is increasing year by year.

Shalini H. S. (2013)4analysed the consequence of diverse variables on the non-performing agriculturalists,

as the chief objective of the learning is to identify the problems challenged by the Indian farmers in giving
back the hired amounted with consistent sum of interest. The methods used for facts gathering are
Telephonic interview to gather adequate evidence and Chi square analysis test to know the effect on the non-
payment of interest with the variables.

Dr. D. Ganesan and R. Santhanakrishnan (2013)5has evaluated the Non-Performing Assets of SBI. The
financial position of the banks hangs on the regaining of advances or its level of Non-Performing Assets.
Generally condensed NPAs gives the impression that over the years the banks have supported their credit
appraisal procedures and progress in NPAs includes the requirement of requirements, which carry down the
complete productivity of the banks. The Indian Banking Area is fronting a severe issue of NPA. In public
sector banks the magnitude of NPA is comparatively high. The NPA need to be condensed and organised in
order to recover the effectiveness and productivity of the banks.

4
Asha Singh (2013)6examined that the Public Sector Banks are facing a problem on the growing level of
Non-Performing Assets. Repeatedly year by year the non-performing asset of the public sector banks has
stood increased. On the other side, the non-performing asset of private sector banks has been declining
repeatedly. Normally decline in NPAs displays that banks have supported their credit appraisal procedures
over the years and rise in NPAs displays the requirement of provisions that reduces the inclusive
productivity of banks. The Indian banking sector is fronting a grave issue of NPA. The degree of NPA is
moderately advanced in public sector banks that of in private sector banks. To recover the effectiveness and
productivity of banks the NPA requirement to be condensed and organised.

B. Selvarajan and Dr. G. Vadivalagan (2013)7has examined in India the extent of the issue of bad debts
taken extremely and certain stepladders has been occupied to resolve the issue of old NPAs in the
balance sheets of the banks. There seems to be no accord in the correct guidelines to be followed in
determining the issue. The issue of NPA is not restricted to lone Indian public sector banks, but then it
prevails in the complete banking business. The uppermost organisations of the banks were required by
legislators and administrators to toss good money later bad in the event of unprincipled debtors.

Dr. Sonia Narula and Monika Singla (2014)8attempt to evaluate the non-performing assets of Punjab
National Bank and its effect on viability and to realise the relation among total loans, Net Incomes, Gross
and Net NPA. The study customs the yearly report of Punjab National Bank, the vital opinion to be
renowned is that the waning of NPA is important to recover productivity of banks. The effect of NPA level
on PNB, resulting the assumption that there is an optimistic relationship amongst Net Profits and NPA of
PNB. It merely means that as incomes rises NPA also rises, as of the mishandling

Satpal (2014)9highlights the raising problems of non-performing assets and the growth in NPA has a direct
impact on profitability of banks. It includes the requirement of provisions, which diminishes the overall
incomes A is not lone disturbing the banks then also the total economy. The
level of NPAs in Indian banks is a replication of the state of wellbeing of the business and trade.

Debasish Biswas (2014)10talks about improving the effectiveness and productivity of the banks the NPA is
to be condensed and measured. Else it is hard for banking segment to hold in the market for longer period.
The analysis in detail is made on NPA of schedule commercial bank in India through past years.

5
Satpal (201411): has made an attempt to understand NPA and the issues challenged by the Indian banking
segment due to raising Non-performing assets. NPA which is not lone disturbing the banks but as well the
entire industry and trade. As a reason an attempt is made to know the issues donating to NPAs, causes for
great NPAs and their influence on Indian banking segment and the trend and magnitude of NPAs in selected
Indian banks.

Mayur Raoa and Ankita Patelb (2015)12: Considers the collective information of public, private and
foreign sector banks and attempts to match, analyse and understand the NPA management form the year
2009-2013. The findings reveal the proportion of Gross NPA to Gross Advances in growing for public
banks, ratio of Loss Advances to Gross Advances are higher in foreign banks, the estimated Gross NPA for
2014 is also extra in public banks as associated to private and foreign banks and from the ANOVA test, it is
concluded share of Gross NPA to Gross Advances for public sector, private sector and foreign banks does
not have important transformation between 2009 to 2013.

Tapashi Dasgupta and Dr. Subit Dutta (2015)13: has portrayed the picture of Gross and Net NPA in
Indian Banking Sector for the time frame 2004-05 to 2013-14 respectively and with simple statistical tools a
comparison is made between the Gross and Net NPA of private and public sector banks to find the
efficiency of each sector in dealing with Non-Performing Assets.

S. Poornima and M. Theivanayaki (2015)14: analyses the several portfolios of NPAs of Indian public
sector banks with distinct allusion to standard assets, sub-standard assets, doubtful assets and loss assets for
the period 2010-11 to 2014-15. The facts have been composed from the yearly reports of the individual
banks and CMIE database. It is perceived that the NPA level indicates an unreliable growth over the study
period and the banks must confirm that they give loans to credit worthy clients and desires to focus on the
zone of non-performing assets.

Deepak Tandon, Tanya Kapoor and Vanshika Sha (2015)15: helps to understand the trends of NPAs in
Indian banking segment and examine the sector wise influence of NPAs. It aims to analyse whether there is
any modification in NPA existence amongst various banks and tries to ascertain relationship between NPAs
and ROA. The findings revel that the NPA of public sector is highest and increased significantly whereas in
private sector the percentage growth has come down. It shows the negative relation between the NPAs and

6
profitability of the bank. Moreover, it reveals that for public sector banks, priority sector NPAs are not
significantly different from that of non-priority sector.

1.8 Limitations of the study

1. The data studied is concerning to one bank only.

2. The research time period was limited to 10 weeks only.
3. The study on Non-Performing Assets in The Bangalore City Co-Operative Bank Ltd. is limited to the
data of preceding three or four years only.

7
 CHAPTER-2

INDUSTRY AND COMPANY PROFILE

2.1 Industry Profile

History, Evolution & Growth of Banking in India

In India banking sector has an extravagant past for more than 200 years. The establishment of this business
can be drawn in 1809, the
Bank of Bombay in 1840 and the Bank of Madras in 1843.These were initially self-governing units and were
referred to as the function banks. Subsequently, these three banks were amalgamated and became known as
the Imperial Bank of India. After independence this bank was nationalized under the State Bank of India
Act of 1955 and became known as the State Bank of India. But the industry transformed radically, after the
nationalization of banks in 1969. As an outcome of this, the public sector banks activated experiencing
several optimistic fluctuations and successive progress. Then arrived, the liberalization and economic
reforms that permitted banks to discover new borrowing and lending. This provided the Indian Banking
scenario an outstanding renovation that endures to get enhanced with time. However, currently in spite of
the attack of foreign banks in the country nationalized banks endure to be the chief lenders in the country.

Establishment of Reserve Bank of India (1935)

The Reserve Bank of India was found on April 1, 1935 in accord with the necessities of the Reserve Bank of
India Act, 1934. The formation of this central bank of the country concluded the quasi-central banking part
of the Imperial Bank. The second ended to be bankers to the government of India and in its place converted
mediator of the Reserve Bank for the operation of government business at middle at which central banks
was not formed.

Even after the establishment of RBI the progress of economy & banks was precise deliberate and banks still
practiced periodical failure. Then in order to modernise the working and events of the 1100 commercial
banks existent then, the Government of India derived with March 1949, a distinct legislation, named the
Banking Companies Act, 1949. The Banking Act 1949 was a distinct legislation, valid entirely to the
banking businesses. This Act was further named again as the Banking Regulation Act for March 1966. The
Act assigned in the Reserve Bank of India the obligation involving to authorising of banks, subdivision
extension, and liquidity of their assets, management and approaches of working, amalgamation,
reconstruction and liquidation. Thus giving RBI authority along with accountability & kindling the first part
of banking transforming in India.

8
Banking in India

Banking in India invented in the earliest decade of 18th century with The Central Bank of India came into
survival in 1786. This was tracked by the Bank of Hindustan. Together these banks are now invalid. The
eldest bank is presence in India a
Calcutta in June 1806. A pair of eras later, foreign banks like Credit Lyonnais stated their Calcutta
operations in 1850s. The point of time, Calcutta was the utmost lively trading port, chiefly due to the trade
of the British Empire, and due to which banking activities grabbed its root there and flourished. The first
entirely owned Indian bank was the Allahabad Bank, which was established in 1865.

By 1900s, the market stretched with the establishment of banks such as the Punjab National Bank, in 1895
and the Bank of India, in 1906, both of which were originated under private possession. The Reserve Bank
of India took on the accountability of changeable the Indian banking sector from 1935. After Indian
Independence in 1947, The Reserve Bank was nationalised and given wider controls.

The major steps to regulate banking included:

1. In 1948, The Reserve Bank of India was nationalised and it turn out to be an organization owned by
the Government of India.
2. In 1949, The Banking Regulations Act was endorsed which sanctioned
regulate, control and examine
3. The Banking Regulation Act also provided that no new bank or division of an active bank may be
opened without a license from The Reserve Bank of India.

9
 Structure of Indian Banking System

Reserve Bank of India

Commercial Banks Regional Rural Banks Co-operative Banks

Public Sector Banks Pvt. Sector Banks State Co-operative

Banks

Indian Foreign Central Co-operative

Banks

State Bank Group Primary Credit Societies

Other Nationalised Banks

SBI Associate Banks

The India Banking system has been segregated into nationalised banks, private banks and specialised
banking institutions. The industry is extremely patchy with 30 banking to almost 50% of
deposits and 60% of advances of the nation. The RBI is the primary monitor body in the Indian Financial
sector. It is a centralised body that controls discrepancy and shortcoming in the structure. Industry
approximate indicates that out of 274 commercial banks functioning in the country, 223 banks and public
sector banks and 51 are in the private sector. These banks consist of 24 foreign banks that have begun their
10
operations. The particular banking institutions that contain Co-operatives, Rural banks, etc. form a branch
of the nationalised banks group.

2.2 Company Profile

The Bangalore City Co-Operative Bank Limited., a foremost Urban Co-Operative Bank in India was
established by Sri. K. Ramaswamaiah and other Co-operators during the foundation of the Co-Operative
association in our country, with chief objective are to encourage saving habit along with the public and to
free the associates from the private money lenders.

In the year 1905 bank began as a Credit Co-operative Society further changed into Urban Co-Operative
Bank on 1907. Primarily bank begin with 150 associates and organised share capital of Rs.2727/- and
mobilized deposit of Rs.2265/- from which advances of Rs.4036/- and disbursed dividend at 13% in the
established year. Currently it is the top Urban Co-operative Bank of the State of Karnataka.

The Bank has incorporated sound principals and it is functioning successfully and has completed more than
100 years of banking services. Since the bank was established it is continuously making profits and also in
visionary and transparent of board of
directors and dedicated staffs are responsible.

The Bank has been honoured as Best Urban Co-operative Bank of the State by the Maharaja of Mysore in
the years 1926, 1927 and 1928 and also by the Government of Karnataka in the years 2002, 2004, 2007-08
and 2011-12.

The Bangalore City Co-operative Bank Limited celebrated its Platinum Jubilee in 1977, Diamond Jubilee in
1967, Golden Jubilee in 1957 and Silver Jubilee in 1932.

Interest Rates on Deposits

Period of Deposits General Interest Senior Citizen

Rates Interest Rates
30 days and above upto 45 days 5.50% 6.00%
46 days and above upto 90 days 6.00% 6.50%
91 days and above upto 180 days 7.00% 7.50%
181 days and above upto 364 days 8.00% 8.50%
1 year and above 9.25% 9.75%

11
Loan Facilities

1. Immediate loans against Gold Jewels per gram Rs. 1800/- and upto 10.00 lakhs per member at
12.50% p.a.
2. Loan facility for Purchase of Vehicle at competitive interest rates.
3. Loan facility against mortgage of immovable property for purchases namely trade, business, factory,
education, house repairs etc. repayable in convenient monthly instalments.
4. Loan facility for purchase of site, construction of house, repayable convenient instalments.
5. Easy personal loans.

Loan Rate of Interest

Long term loan construction/purchase of house/site.

Upto Rs. 5,00,000=00 12.75%

Rs. 5,00,00 to 15,00,000 13.25%
Rs. 15,00,001 and above 14.25%

Long term loan

ODC
Upto Rs. 5,00,000 14.25% 13.25%
Rs. 5,00,001 to 15,00,00 15.25% 14.25%
Rs. 15,00,001 and above 15.50% 14.50%

Vehicle loan (Cost of vehicle 70%) 13.00%

Jewellery loan (Rs. 1600/- per gram Max. 15,00,000) 01.05.2015 12.50%

Surety loan 16.50%

Business loan 16.50%

LIC/NSC/IVP (70% on lien amount) 14.00%

12
Board of Directors

1. Sri Avalahalli Chandrappa R. (President)

2. Dr. Devaraj T. M (Vice President)
3. Sri N. Manjunatha (General Manager)
4. Sri B. Gangadhara (Deputy General Manager)
5. Sri Anjanappa
6. Sri K. Krishnappa
7. Sri B. R. Narayanappa
8. Sri Basavaraju
9. Sri N. Radhakrishna
10. Sri K.C. Chikkannaiah
11. Sri M. Munikrishnana
12. Sri K.P. Suresh
13. Sri C. Raghunath
14. Smt. G.S. Vijaya
15. Sri U.P. Puranik
16. Sri K. P. Meenakumari
17. Smt. Hanumadasaiah
18. Sri. K. Shivanna

2.2.1 Vision and Mission

1. The Bangalore Co-Operative Bank aims in fulfilling the society needs and personal aspirations. The
vision of the bank strives towards meeting the social needs of the people providing world-class
banking facility.
2. To provide healthy banking services to the customers.
3. To mobilize deposits, disburse loans prudently and invest surplus wisely with the involvement of our
committed, dedicated and hard work staff to achieve the best.
4. To Provide with various types of loan facilities to the members and subordinate members.
5. To cut down the cost of management through the voluntary services and thereby keep the cost of
credit as low as possible.
6. To commence the banking transactions of Co-operative bank as per the guidelines of RBI, Central
Government and State Government.

13
Goals

1. To be one of the best Co-operative Bank in the country.

2. To increase branch network to 25 branches in near future.
3. To implement Core Banking System to provide best banking services to the customers.

Quality Policy

1. To provide financial and technical assistance to the unemployed and also promote entrepreneurship.
2. To promote effective credit system to avoid risk and also careful and continuous supervision of the
operations of borrowing customers.
3. By keeping the cost of credit as low management can reduce the cost of honorary services of
customers.
4. By keeping the credit worthy in Co-operative Societies and Co-operative Banks, will enable them to
raise sufficient funds to finance and other Co-operative Enterprise.
5. As per the guidelines given by RBI, Central Government and State Government the Co-operative
Banks undertakes banking transaction.

2.2.2 Product and Services

The Bangalore City Co-Operative Bank Ltd. has various products and services.

The main operations of the bank (Customer Service)

1. Locker and Cheque clearing facility

2. Acceptance of fixed deposits accounts.
3. Withdraws and Cash Receipts.
4. Issuing Demand Draft and Local Pay Order.
5. Sanction and Distribution of loans.

The nomination facilities provided by the bank

1. Saving bank account

2. Current account

14
 3. Term Deposit account
4. Save Deposit account
5. Individual/Joint account

Important services rendered by the bank

1. Issue of travellers cheque

2. Purchase and sale of securities
3. Remittance of fund through mail and telegraphic transfer
4. Payment of Insurance premium and subscription on behalf of customers
5. Provides safe deposit lockers
6. Collection of interest on dividend on behalf of customer

2.2.3 Areas of Operation

The Bangalore City Co-operative Bank Ltd. has 18 major branches Bangalore and its head office located in
Chamrajpet.

1. Vijayanagar
2. Indiranagar
3. Shantinagar
4. Sanjaynagar
5. Kormangala
6. R.T.Nagar
7. H. R. B. R layout
8. Ramanagar Town
9. Kuvempunagar (Mysore)
10. Jayanagar 9th Block
11. Chamarajapet (west)
12. Mahalakshmipura
13. Padmanabhanagar
14. Avalahalli
15. Jnana Jyothinagar
16. Krishnarajapuram
15
 17. T. Dasarahalli
18. Hosur road, Electronic City

2.2.4 Infrastructure facilities

The BCCBL head office is located at Chamarajpet. It has 18 branches and all the branches has banking
facility with C-edge technology. This helps the customers to utilize the services of the bank in any of its
branches. All the branches are fully equipped and well-furnished for smooth functioning of banking
activities. Proper lighting, AC and drinking water facility is arranged and it also provides scholarship

2.2.5 Competitors Information

Commercial Banks are the major competitors of Urban Co-operative Banks. Commercial banks provides
various number of banking services. Since the Urban Co-operative Banks do not have network branches
and not able to meet all the banking services like issue of draft, issue of letter of credit, etc.

Therefore, the institutions like Government, public sector and Urban Co-operative Bank are facing
competition from commercial banks.

List of competitors are as follows:

1. Apex Bank
2. State Bank of India
3. Canara Bank
4. State Bank of Mysore
5. Andhra Bank
6. Syndicate Bank
7. Karnataka Bank
8. ICICI Bank
9. Kotak Bank
10. D.F.C Bank

16
2.2.6 SWOT Analysis

SWOT analysis is a premeditated arrangement which are used to evaluate Strength, Weaknesses,
Opportunities and Threats. This recognizes the internal and exterior factors that are favourable and
unfavourable to accomplish the corporation finale objectives.

Strengths

1. As BCCB is an oldest Co-operative Bank in India there is a faith and trust in the minds of the
customers.
2. For all the deposits the bank provides with the nomination facility.
3. The financial position of the bank is excellent as there is very strong financial credibility.
4. As compared to other banks the interest on deposits is high.
5.
6. On pay order, demand draft and bank draft there is lower commission rates.
7. In all the branches of BCCB the interest rates on jewellery loan is reasonably lower.

Weaknesses

1. The areas of operations of BCCB is narrow and limited.

2. The bank is not using the modern technology as commercial banks.
3. There is no specialised and professional management.
4. As compared to commercial banks there is no ATM services.

Opportunities

1. The BCCB have to introduce with the mobile banking services.

2. Mutual funds and Insurance services have to be presented.
3. On technological advancement the bank can make considerable investment.
4. Starting with the deposits and loan scheme with attractive rates of interest to the customers.

Threats

1. BCCB has a competition with the Commercial banks, regional banks and nationalized banks.
2. Many variations has been observed in the financial sector.
17
 3. The development of the capital market and occurrence of mutual funds is posing a threat to the
deposit accretion with the bank.
4. Due to increased competition on both liability and assets products the burden on limitations is
affecting the productivity.

2.2.7 Future Prospects and Growth

1. By setting up its branches all over the Karnataka the bank wants to increase its operations.
2. ATM service facilities to be installed in all the areas.
3. Planning to start with core and internet banking.
4. To increase the deposits of the bank.
5. Planning to start with the added services such as home banking, networking services, Insurance
services etc.
6. To reduce Non-Performing Assets to 0%.
7. Start with foreign exchange business.
8. By implementing the latest services, the bank will improve customer services.

18
2.2.8 Financial Statement

Particulars 2011 2012 2013

Capital and Liabilities
Share Capital 28,71,12,907 35,01,79,102 43,16,59,372
Reserves and Surplus 54,26,10,059 63,16,96,731 71,44,23,016
Profit and Loss Account 7,95,66,289 10,34,96,564 11,09,28,872
Deposits 5,97,62,10,335 736,09,92,441 975,96,47,835
Interest payable on deposits 4,51,09,375 5,25,74,318 6,39,39,024
Suspense Account 30,27,361 58,17,016 19,39,811
Other Liabilities 21,66,40,368 26,54,98,271 33,68,28,381
Branch Account 2,24,28,95,752 3,10,80,42,967 4,27,84,50,723
Total 9,54,92,34,218 11,87,82,97,320 15,69,78,17,034

Assets
Furniture and Fixtures 1,28,68,259 1,32,04,352 2,87,59,609
Vehicle Cost 6,48,329 5,04,255 23,66,495
Computer Cost 20,81,668 9,68,164 67,49,867
Building Cost 2,01,72,212 1,99,54,905 1,97,43,031
Generator Cost 10,17,846 8,36,094 6,54,342
Branch Account 2,42,94,64,817 3,10,74,57,983 4,27,85,54,136
Cash in hand 3,35,90,290 3,58,56,934 5,60,01,034
Cash at bank 17,50,07,943 20,98,59,934 26,53,83,552
Investment 2,29,13,05,825 2,99,84,93,046 3,82,97,12,243
Loans and Advances 4,44,12,12,211 5,26,50,17,038 6,92,55,27,605
Other Assets 17,18,64,798 22,61,45,150 28,43,65,118
Total 9,75,92,34,219 11,87,82,97,320 15,69,78,17,034

19
 2014 2015
Particulars

Capital and Liabilities

50,99,43,272 58,65,28,122
Share Capital
81,06,78,281 97,90,67,911
Reserves and Surplus
13,40,91,368 19,90,52,23,324
Profit and Loss Account
11,44,27,34,762 12,80,16,16,010
Deposits
6,45,93,818 6,14,14,809
Interest payable on deposits
2,33,73,582 1,46,73,386
Suspense Account
43,14,32,033 50,10,70,758
Other Liabilities
4,91,23,62,599 4,96,08,52,327
Branch Account
18,31,92,09,761 20,06,17,27,021
Total

Assets
3,44,25,248 3,46,29,910
Furniture and Fixtures
17,20,844 10,75,193
Vehicle Cost
49,24,878 38,30,477
Computer Cost
3,07,50,954 3,05,49,541
Building Cost
7,41,439 8,00,237
Generator Cost
4,89,58,61,865 4,32,11,07,213
Branch Account
4,60,78,963 4,88,59,938
Cash in hand
35,27,92,966 51,74,78,249
Cash at bank
4,19,25,02,243 4,97,17,04,743
Investment
8,42,76,11,387 8,95,56,98,152
Loans and Advances
33,17,98,971 53,53,96,256
Other Assets
18,31,92,09,761 20,06,17,27,021
Total

20
 CHAPTER-3

THEORETICAL BACKGROUND OF THE STUDY

3.1 Introduction to Non-Performing Assets

Banks provide Loans and Advances to borrowers, in return for the payment of principal and interest in
future. In this process banks are bared to various types of risks including credit risk arising from Non-
Performing of the Loans and Advances and defaults from borrowers. On the balance sheet of the banks,
loans given to customers are recorded as assets. When the customers who take out loans, stop assembly their
payments cause the biggest risk to the banks which affects the value of the loan assets decline. The
unavoidable burden of the banking industry is Non-Performing Assets and the financial strength of the
banks is acutely affected by Non-Performing Assets. Hence it is very imperative to have a control and
administration of the Non-Performing Assets. The threat on the productivity of the banks is Non-
Performing Assets because in order to encounter the cost of funding these unremunerated assets, the banks
has to make provisions.

Meaning of Non-Performing Assets

Non-Performing Asset is an asset of the bank that does not yield any income to the bank.

The loans made to clients are registered as asset clients who borrow
loans stop making their payments, arises a biggest threat to the bank, which cause the value of the loan
assets to decline. The assets of the banks are treated as Non-Performing when they are not repaired for some
time. Most loans allow customers a certain grace period, once the payment exceeds ninety days the loan is
termed as Non-Performing.

Definition of Non-Performing Assets

risk of default. Once the

borrower fails to make payment of interest or principal for 90days the loan is considered to be Non-
Performing Asset.

As Non-Performing Assets depend on interest payments for income, they are the problem for the financial
institutions. Hence, it is not fetching income to the moneylender in the form of principal and interest
payments.

21
Types of Non-Performing Assets

1. Gross Non-Performing Assets: The assets that are called as Non-Performing are the sum of all loans
as per RBI guiding principle as on Balance Sheet date. Gross Non-Performing Asset imitates the
excellence of the loans approved by the banks. It comprises of all the Non-Standard Assets like the
Sub-Standard assets, Doubtful assets and Loss assets.

Gross Non-Performing Assets Ratio = Gross Non-Performing Assets/Gross Advances.

2. Net Non-Performing Assets: The Non-Performing Assets in which the bank has subtracted the
provision are Net Non-Performing Assets. The real hindrance of the banks is shown by Net Non-
Performing Assets. The Balance Sheet of Indian Banks contain huge amount of Non-Performing
Assets, the time consumed in method of regaining and write-off of the loans is high and the Balance
Sheet of Indian Banks encompass huge amount of Non-Performing Assets. Various provision is to be
made in contradiction of Non-Performing Assets according to the guidelines of Central Bank.

Net Non-Performing Assets = Gross NPAs Provisions/Gross Advances Provisions.

Objectives of Non-Performing Asset Management

1. The amount of provision requirements is to be reduced.

2. Increase the Assets Performing.
3. To decrease quantum of The Non-Performing Assets.

Norms for Identification of Non-Performing Assets

1. For an account of more than 90 days, the account rests

credit (OD/CC).
2. In case of bill purchased of discounted the bill remains unpaid for a period of 90 days.
3. In esteem of a term loan the interest and repayment of principal remain overdue for period of more
than 90 days.
4. In case of an advance approved for agricultural purposes (Priority Sector Lending) interest or
principal remain outstanding for 2 yield seasons for a period not above two and half years.

22
Narasimhan Committee

The government of India set up a 9 committee under the chairman of Shir. M. Narasimhan,
appointed by The RBI, scrutinise the structure and working of the present financial system of India and also
recommend financial improvements. On December 17, 1991 the article of the committee was listed in the
parliament.

The core committee recommendations are:

1. A phase attainment of 8% capital sufficiency ratio.

2. A phase decrease of statutory liquidity ratio.
3. Sensible guiding principle governing the operational of financial institutions.
4. Accurate arrangement of assets and transparency of banks and financial institutions.

Recommendations

The Narasimhan Committee recommends that, in banks on the basis of the strength of the loans assets and
the record of observance to recompense of instalments and interest on due dates the loans and advances
should be categorised in to performing and non-performing. The committee also suggested that based on the
classification, the banks should make provisions for all NPA of such assets based on the age of default in
payments, security cover available etc. With regards to introduction of norms the RBI accepted the
recommendations of the committee for earnings recognition and asset categorising and provisioning and also
instructed the banks to apply the same method beginning April 1, 1992.

1. The committee suggested that the banks should function on the basis of financial sovereignty and
operational flexibility.
2.
3. These norms are applicable to all he Urban Co-Operative Banks from 1st of April 1992.

Classification of Assets, for the purpose of making provisions for Bad and Doubtful
Loans and Advances by the Bank

1. Standard Assets: A standard asset produces regular revenue and payments as and when they drop
due. These assets transmit a common threat and are not NPA. As a reason, there is no dissimilar
provisions requisite for Standard Assets.

23
 2. Sub-Standard Assets: Sub-Standard Assets are loans and advances which are called as non-
performing for 12 months.
3. Doubtful Assets: Doubtful assets are those assets which are measured as non-performing for more
than 12 months.
4. Loss Assets: Assets on which loss has been recognised by the internal/external auditor of the bank or
RBI, but the amount is not written-off entirely or partially. Loss assets cannot be recovered back.
5. Doubtful Assets: The assets which are not classified as loss assets by the management and loans
which have remained Non-Performing for a period beyond 2 years or chosen by RBI as the
internal/external auditor.

Causes for Rising Non-Performing Assets

Reasons for Non-Performing assets can be categorized into two broad classifications

1. External Factors
2. Internal Factors

External Factors

1. Legal Factors: There are no immediate measures for the action against defaulters. As a result, to
obtain a legal solutions lot of time is taken which causes the value of the asset to be eroded and
inflationary measures also leave their mark. A huge factor that contributes to the increase in the NPA
level are the procedure of debt regaining, legal procedures, legal requirements on for enclosure and
insolvency.
2. Political Pressures: In order to fulfil government programmes which also contributes to NPAs, the
political pressures finances same people for same activities. As to meet their annual expenditure
targets the government on occurrence exhales banks and there is no effort for the government to help
the banks for recovers the same.
3. General Economic Conditions: The state of economy is also related to the incident of NPA. Lack of
timely decisions making in government agencies, lack of sufficient infrastructure are the factors which
are affecting the profitability and capability of sick units. Hence, majority of sick units turns into NPA
accounts.
4. Changes in Government Policies: There is a great competition between foreign products and locally
produced products due to liberalization and free entry of foreign. As a reason local companies are

24
 affected by foreign
companies and the companies will not be in a position to repay the loan to banks as result it gives rise
to NPA.

Internal Factors

1. Inefficient Management: When there is improper management and incorrect selection of project
activities the NPA are shown. There is a high possibility of the account to NPA when the project is
technically not feasible and economically non-viable.
2. Deficiency like delay in release sanctioned limits in banks: For the sanction and disbursement of
loans slow and organisational methods, result in either time or cost over runs or diversion of firms,
working capital funds causes liquidity problems. Hence, it results in NPA.
3. Delay in the part of borrowers: Delay in disbursement of loans resulting in compliance with terms
and conditions of sanction and borrowers in some cases delay in bringing margin money to finance
projects. The banks have little control under sponsored programmes where directed lending advances
to priority sector. Project implements or delay in implementation causes during time/cost overrun.
4. Diversion of funds by borrowers: The aspects of the wilful defaulter are closely related to the issue of
NPA which is the diversion of funds by promoters/borrowers i.e., having greatest control by diverting
money to group companies.

Effect of Non-Performing Assets on the operations of the banks

1. Profitability: Non-Performing Assets that hold of money in Bad debts, which arisen due to incorrect
selection of clients. Because of the money getting clogged the profitability of bank declines.
Additional effect of decline in productivity is low ROI (Return on Investment), which disturb the
current earning of the bank.
2. Liquidity: The amount of money is clogged, diminished profit lead to absence of enough cash in hand,
which leads to borrowing money for short period of time, which lead to added cost to the company
3. Involvement of Management: Time and effort of management is added secondary cost which bank
has to tolerate due to NPA. Time and effort of management is handling and handling NPA would have
distracted to some productive activities, which would have given good returns.
4. Credit Loss: There is a problem in the NPA which is really unfavourably disturb the goodwill of bank
and their market share would automatically decrease and also disturbs the market credit.

25
Measures to Tackle the Non-Performing Asset:

1. One Time Settlement Scheme: One Time Settlement Scheme launched in May 1999 and July 2000.
Government of India along with RBI are announcing one-time settlement scheme to reduce the
absolute amount of NPA. When the borrowers find it difficult to pay their dues from various reasons,
they have the preference to repay their debts to banks which is very much helpful to the borrowers and
lending institutions.
2. Technical Write off: When the recovery is not at all possible in those accounts under any
circumstances banks decide writing off small loans which have become bad under any circumstances
on account of the fact that the borrower has no means to repay the loan and there may be huge losses in
respect of the properties. This is for the sole purpose of serving such NP accounts.
3. Recovery Camps: The regaining camps will be effective in case an early payment notice is assisted on
the borrowers mentioning the date recovery camps. Since this is also quick process of deciding claims,
banks are advised to cover the camps by state.
4. Comprise Proposals: Where normal recovery is not possible and where borrowers experience certain
genuine difficulties, banks adopt comprise routes. Such a proposal can be taken up considering the
history of the borrower account, security available, net worth of the borrower, time value of offer made
etc.
5. Debt recovery tribunals: In case where the loan amount is Rs.10 lakhs and above with the objectives
of facilitating the banks and financial institutions for speedy recovery of payments the debt recovery
tribunal act was passed by Indian Parliament in 1993.
6. Lok Adalats: Lok Adalats is been established for the recovery of payments in accounts deteriorating in
the doubtful and loss group with outstanding balance up to Rs.5 lakhs, by way of conciliation
settlement. It is a legal forum for expeditious settlement of loan dues on consensus arrived between the
bank and the borrowers mediated by the Lok Adalat.
7. Securitisation Act: The Securitisation and Reconstruction of Financial Assets and Implementation of
Security Interest Act, 2002 (SARFAESI) aims to empower banks as secured creditors to yield control,
manage and sell securities with no interference of court/tribunal. However, loan with balance below
Rs.1 lakh unsecured loans and loans against collateral of agricultural land are exempted from the
purview of the act.

26
Importance of the recovery of Non-Performing Assets

1. Increases the trust of shareholders of the bank and increase the income of bank.
2. Decrease in provisioning requirements.
3. By recovery reduce the level of prevailing Non-Performing Asset.

RBI Guidelines for reducing Non-Performing Assets

Certain important guidelines issued by RBI in order to protect banks and financial institutions.

1. Timeless and Adequate of response: As long as there is delay in response, there is a greater harm
to the account and the asset.
2. Early Recognition of the problems: At the beginning stage the financial institutions do not identify
their Non-Performing Assets. Therefore, the banks at first should recognize their Non-Performing
Assets and take proper steps at the early stage.
3. Government Relief: Closer monitoring is needed to work in the direction of cutting time log.
4. Write off: To clear the Balance Sheet, write offs in small Non-Performing Asset doubtful account.
5. Management effectiveness: In order to take important decisions regarding the Non-Performing
Assets management should be vigorous and adaptive. Organisation effectiveness in managing
corporate condition is very significant factor that influence borrowings.
6. Banks and financial institutions must ensure that suitable loan contracts

7. Recovery management policy: Documents of local recovery policy of banks, detailing there-in-
alias banks approach
a. Tackling fuzzy asset
b. Identification of problem loan etc.

Measures to control Non-Performing Assets

1. Preventive Measures:
The significant relevant factors of great level of Non-Performing Assets inside the banks dimness in
credit appraisal system, no of operative observing and administration of credit account, non-
appearance of credit evidence which is shared among the banks.
The complete evidence about unit, industry, its financial stake, management etc. have to be collected
for the appropriate assessment of the loan application which may help in finding the unviable
projects at the first instance.
27
 In order to have complete evidence about the industry and its forecasts in upcoming the industrial
cell should be established at the bank level.
The distinct observing department should be set up in big divisions for periodic reviews of account,
comparative risk analysis and agreement of terms and conditions of approval for inspecting the
progress of the project or the business.
To help the banks funds and cut the insolvency risk, it should be fortified with newest credit risk
management and in order to avoid risk banks should develop credit derivatives markets.

2. Curative measures:
The banks should take stepladder to regain the amount from assets, which have previously fallen
into Non-Performing Assets group instead on making efforts to stop the fresh addition of Non-
Performing Assets.
The interruption affected due to denial by defendants to receive the command, and due to
modification in address too is one of the main factor accounting for stay in arranging of
application by Debt Recovery Tribunals.
For the quick reclamation of the assets from Non-Performing Assets category the Narasimhan
Committee has suggested the establishment of Debt Recovery Tribunals. The bill on recovery of
debt due to banks and Financial Institutions Act 1993 was established on the basis of
recommendations 22 Debt Recovery Tribunals.
To make its implementation effective, the Act has several boundaries which must be isolated.
The Central Government has appointed added presiding officers for immediate removal of
recovery cases for amending the Debt Recovery Tribunals.
The government should assist the recovery in case of government sponsored schemes. In
reducing the Non-Performing Assets, it may be renowned that suggestions enumerated will go a
long way which will help the banks in improving the productivity of the banks, progress the
quality of assets.

3.7 Measures for the recovery of Non-Performing Assets adopted by The Bangalore
City Co-Operative Bank Ltd

1. The file is referred to legal department for arbitration if the branches are not able to recover the loan
amount.
2. The legal department will initiate all the steps to recover the amount finally Execution Petition will
be filed.

28
3. The sale officers are appointed from Co-Operative departments for handling the Execution Petition.
The sale officer will send the recovery force to identify the defaulter and his property as soon as the
file is received. After the identification, Form No.6 will be issued attaching the property for sale
and to pay the amount within 10 days.
4. Then Form No.8 & 9 will be fixed showing one month time if the party does not settle the amount
within 10 days.
5. In spite of issuing Form No. 8 & 9, if the party do not give productive response than a published

6. The locality people and others are invited to participate in inspecting the mortgage property before
three days of option.
7. Later the auction will be conducted of the property among the bidders and then it will be confirmed
to the higher bidder.

29
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

Year wise categorization of the Non-Performing Assets at the Bangalore City Co-Operative Bank Ltd.

Table 4.1 showing the Total Non-Performing Assets 2011-15

(Rs. In Lakhs)

Particulars Amount Amount Amount Amount Amount

2011 2012 2013 2014 2015

Sub-standard Assets 2608.21 2,229.43 3,385.95 4,358.57 4,826.05

Doubtful Assets 568.48 542.48 573.53 707.38 1,134.24

Loss Assets 0 0 0 0 0

Total NPA 3176.69 2,771.91 3,959.47 5,065.95 5,960.29

Graph 4.1 showing the Total Non-Performing Assets from 2011-2015

Total Non-Performing Assets

7000

6000

5000

4000

3000

2000

1000

0
2011 2012 2013 2014 2015
Amount Amount Amount Amount Amount

Interpretation: The Bangalore City Co-operative Bank has more of standard assets than that of doubtful
assets and loss assets from, which depicts that the bank has loyal borrowers who pay back the credit availed
by them on time. As compared to 2012, 2013 and 2014 there is a constant raise in its standard, sub-standard
and doubtful assets in 2015.

30
Table 4.2 showing the Percentage of Non-Performing Assets from 2011-2015

(Rs. In Lakhs)

Particulars Percentage Percentage Percentage Percentage Percentage

2011 2012 2013 2014 2015

Standard Assets 92.85% 94.79% 94.35% 93.98% 93.34%

Sub-standard Assets 5.87% 4.18% 4.84% 5.17% 5.39%

Doubtful Assets 1.28% 1.03% 0.81 0.83% 1.27%

Loss Assets 0% 0% 0% 0% 0%

Total 100% 100% 100% 100% 100%

Graph 4.2 showing the Percentage of Non-Performing Assets from 2011-2015

Percentage of Non-Performing Assets

100.00%

80.00%

60.00%

40.00% Total
Loss Assets
20.00% Doubtful Assets
Sub-standard Assets
0.00%
2011 2012 2013 2014 2015

Sub-standard Assets Doubtful Assets Loss Assets Total

Interpretation: The bank has been proficient in maintaining its doubtful assets and loss assets at least,
although the NPA of the bank has rising from 2011 to 2015. Thus, in order to recover its NPA, the bank has
to maintain rigorous norms which aid in maintaining the default status at a negative level.

31
Table 4.3 showing the Total Advances of the bank from 2011-2015

(Rs. In Lakhs)

Particulars 2011 2012 2013 2014 2015

Total NPA 3,176.07 2,771.91 3,959.47 5065.95 5,960.25

Standard Assets 41,235.43 50,438.80 66,148.88 79,210.16 83,596.73

Total Advances 44,411.5 53,211.71 70,108.36 84,276.11 89,556.98

Graph 4.3 showing the Total Advances of the bank from 2011-2015

Total Advances

90,000.00
80,000.00
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
0.00
2011 2012 2013 2014 2015

Interpretation: The above graph directs an increase in Total Advances of the bank consistently from 2011
to 2015. The Total Advances of the bank in the year 2011 was 44,411.5, in 2012 it was 53,211.71, in 2013
it was 70,108.36, and in 2014 it has increased to 84,276.11 and further to 89,556.98 in 2015. The increase in
the Total Advances of the bank is not a good sign as -Performing
Assets from 2011 to 2015, which leads to increase in the provision made against that of the Non-Performing
Assets of the bank. Hence, necessary steps have to be taken by The Bangalore City Co-operative Bank Ltd.
to reduce its Total Advances to bring down the provisions which is to be made against the Non-Performing
Assets.

32
Comparative Ratio of Gross Non-Performing Assets and Net Non-Performing Assets
with other banks

Table 4.4 showing the comparative percentage of Gross NPA of the bank with other banks from 2011-
2105

(Rs. In Lakhs)

Particulars 2011 2012 2013 2014 2015

Karnataka State Apex Co-operative Bank 3.87% 3.27% 2.51% 2.92% 3.15%

Visveshwarya Co-operative Bank 1.54% 1.73% 2.57% 2.49% 2.98%

The Bangalore City Co-operative Bank 7.15% 5.20% 5.64% 6.01% 6.66%

Graph 4.4 showing the comparative Gross NPA and percentage of Gross NPA of the bank from 2011-
2015

Gross Non-Performing Assets

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%
Karnataka State Apex Co- Visveshwarya Co-operative Bank The Bangalore City Co-operative
operative Bank Bank

2011 2012 2013 2014 2015

Interpretation: The above graph indicates the comparative percentage of Gross NPA of Bangalore City C-
operative Bank with that of other banks. The BCCB has maximum Gross NPA value as compared to that of
other banks which is 6.66%, whereas of the Karnataka State Apex Co-operative Bank is 3.15% and 2.98%
of Visveshwarya Co-operative Bank in the year 2015 respectively. Therefore, the ratio of The Bangalore
City Co-operative Bank Ltd. is more in the year 2015 as compared to that of other two banks.

33
Table 4.5 showing the comparative percentage of Net Non-Performing Assets of the bank with other
banks from 2011-2015

(Rs. In Lakhs)

Particulars 2011 2012 2013 2014 2015

Karnataka State Apex Co-operative Bank 2.45% 2.11% 1.51% 1.91% 2.34%

Visveshwarya Co-operative Bank 1.89% 1.46% 2.18% 1.98% 2.45%

The Bangalore City Co-operative Bank 1.89% 0.26% 1.61% 2.60% 2.71%

Graph 4.5 showing the comparative percentage of Net Non-Performing Assets of the bank from 2011-
2015

Net Non-Performing Assets

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
Karnataka State Apex Co- Visveshwarya Co-operative BankThe Bangalore City Co-operative
operative Bank Bank

2011 2012 2013 2014 2015

Interpretation: The above graph indicates the comparative percentage of Net NPA of Bangalore City C-
operative Bank with that of other banks. The BCCB has maximum Net NPA value as compared to that of
other banks which is 2.71%, whereas of the Karnataka State Apex Co-operative Bank is 2.34% and 2.45%
of Visveshwarya Co-operative Bank in the year 2015 respectively. The Net NPA of The Bangalore City Co-
operative Bank Ltd. is not approving related to previous years. Therefore, the bank has to take remedial
actions to lessen its Net NPA percentage.

34
Gross Non-Performing Assets Ratio: It is the sum of the total assets which are classified as the
NPA by the bank at the end of every year. Gross NPA is the ratio of Gross NPA to Gross Advances.

Table 4.6 showing the Gross Non-Performing Assets Ratio of the bank from 2011-2105

Gross NPA
Gross NPA Ratio *100
Gros Advances

(Rs in Lakhs)

Year Gross NPA Gross Advances Gross NPA Ratio

2011 3,176.07 44,412.12 7.15%

2012 2,771.91 53,211.71 5.20%

2013 3,959.48 70,108.36 5.64%

2014 5,065.95 84,276.11 6.01%

2015 5960.29 89,556.98 6.66%

35
Graph 4.6 showing the Gross Non-Performing Assets Ratio of the bank from 2011-2105

Gross Non-Performing Assets Ratio

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%
2011 2012 2013 2014 2015

Interpretation: Gross Non-Performing Assets Ratio.

High Gross Non-Performing Ratio means that the bank has liberal credit appraisal policy and low Gross
Non-Performing Ratio denotes inflexible credit appraisal policy of the bank. The Gross Non-Performing
Assets Ration in the year 2011 was 7.15%, in the year 212 it was decreased to 5.20%, in 2013 it was 5.64%
and in 2014 it was increased to 6.01% and further to 6.66% in 2015. However, the above chart shows that
-Performing Assets Ratio has been increasing continuously which is not good for the
bank and the bank has to mend its credit appraisal policies, to bring down the Gross Non-Performing Assets
Ratio.

36
Net Non-Performing Assets Ratio: The Net NPA to loans ratio is used as a measure of the overall

Table 4.7 showing the Net Non-Performing Assets against the Total Advances of the bank from 2011-
2015

Net NPA
Net NPA Ratio *100
Total Loan

(Rs in Lakhs)

Year Net NPA Net Advances Net NPA Ratio

2011 794.16 42,029.58 1.89%

2012 130.28 50,149.16 0.28%

2013 1,072.05 66,529.73 1.16%

2014 2,115.88 84,276.11 2.60%

2015 2,325.49 89,556.98 2.71%

37
Graph 4.7 showing the Net Non-Performing Assets against the Total Advances of the bank from 2011-
2015

Net Non-Performing Assets Ratio

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
2011 2012 2013 2014 2015

Interpretation: The above graph depicts the Non-Performing Assets Ratio against the Total Advances
granted by The Bangalore City Co-operative Bank Ltd. The Net Non-Performing Assets Ratio in the year
2011 was 1.89%, in the year 2012 it was decreased to 0.25%, in the year 2013 it was again increased to
1.61%, and it was against increased to 2.60% in 2014 and further increase to 2.71% in 2015. Hence,
Correctives measures are to be taken by the bank to reduce the Net Non-Performing Assets Ratio against
that of its Total Advances so that the profitability of the bank increases which leads to the decrease in the
Non-Performing Assets.

38
Sub-standard Assets Ratio: Sub-standard Assets Ratio is the ratio of total Sub-standard assets to
Gross NPA.

Table 4.8 showing the Sub-Standard Assets Ratio of the bank from 2011-2015

Total Sub staNdar Asset

Sub staNdar Assets Ratio *100
Gross NPA

(Rs in Lakhs)

Year Sub-Standard Gross NPA Sub-Standard

Assets Assets Ratio

2011 2,608.21 3176.07 81.12%

2102 2,143.40 2,771.91 77.32%

2013 3,224.06 3,959.48 81.42%

2014 4,358.57 5,065.95 86.03%

2015 4,826.05 5,960.29 80.97%

39
Graph 4.8 showing the Sub-Standard Assets Ratio of the bank from 2011-2015

Sub-standard Assets Ratio

88.00%

86.00%

84.00%

82.00%

80.00%

78.00%

76.00%

74.00%

72.00%
2011 2012 2013 2014 2015

Interpretation: Sub-standard Assets Ratio indicates the percentage of Sub-standard Assets in the Gross
NPA of the bank. Maximum rate of Sub-standard Assets indicates the chance of revival of assets to be
maximum.

The Sub-standard assets ratio of Bangalore City Co-operative Bank was 81.12% in 2011 which was
decreased to 77.32% and it was further increased to 81.42% and 86.63% in 2013 and 2014 respectively and
in the year 2015 it was again reduced to 80.97% which is a negative sign for the bank demonstrating a
reduced amount of recovery of its Stub-standard assets as compared to that of last two years.

40
Doubtful Assets Ratio: It is the ratio total doubtful assets to Gross Non-Performing Assets of the bank.
It indicates that the assets under this category are difficult to recover when compared to that of the Standard
and Sub-standard assets.

Table 4.9 showing the Doubtful Assets Ratio of the bank from 2011-2015

Total Doubtful Assets

Doubtful Assets Ratio *100
Gross NPA

(Rs in Lakhs)

Year Total Doubtful Gross NPA Doubtful Assets

Assets Ratio

2011 568.48 3,176.07 17.89%

2102 542.48 2,685.88 20.19%

2013 573.53 3,959.48 15.10%

2014 707.38 5,065.95 13.96%

2015 1,134.24 5,960.29 19.02%

41
Graph 4.9 showing the Doubtful Assets Ratio of the bank from 2011-2015

Doubtful Assets Ratio

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2011 2012 2103 2104 2015

Interpretation: The above graph represents the percentage of Doubtful Assets Ratio of The Bangalore City
Co-operative Bank Ltd.

Higher Doubtful Assets depicts that the bank should obtain essential actions on the recovery mechanisms to
reduce the level of doubtful assets ratio. The doubtful assets ratio in the year 2011 was 17.79%, in the year
2012 it was raised to 20.19% and then it constantly reduced from 15.10% in 2013 to 13.96% in 2014 and
further increased to 19.02% in 2015, which depicts that the recovery mechanism of the bank are not to a
great extent effectual .

42
Provision Coverage Ratio: In analysing the assets quality of the bank the key relationship is between
the cumulative provision balances of the bank as on a particular date to gross Non-Performing Assets. It is a
measure that indicates the extent to which the bank has provided against the troubled part of its loan
portfolio. A high ratio suggests that additional provisions to be made by the bank in the up-coming years
would be relatively low (if at a faster clip the Gross Non-Performing Assets do not rise).

Table 4.10 showing the Provision Coverage Ratio of the bank from 2011-2015

PRovisions
PRovision CoverageRatio *100
Gross NPA

(Rs in Lakhs)

Year Provisions Gross NPA Provision Coverage Ratio

2011 2,382.54 3176.07 75.00%

2012 2,758.27 2,771.91 99.50%

2013 2,993.08 3,959.48 75.59%

2014 3,269.99 5,065.95 64.54%

2015 3,976.42 5,960.29 66.71%

43
Graph 4.10 showing the Provision Coverage Ratio of the bank from 2011-2015

Provision Coverage Ratio

120.00%

100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
2011 2012 2013 2104 2105

Interpretation: The Provision Coverage Ratio of The Bangalore City Co-Operative Bank Ltd., in the year
2011 was 75.00%, in the year 2012 it was increased to 99.50% and then it has constantly reduced to 75.59%
in 2013, 64.54% in 2014 and 66.71% in 2015 which explains that the bank has good recovery mechanisms
which has resulted in reduction in the provisions.

44
Credit to Deposit Ratio: Credit to deposit ratio indicates how much of the advances lent by the bank
are done through deposits. It is the proportion of loan assets created from the deposits received by the bank.
Higher the ratio, higher is the loan asset created from deposits. Deposits would be in the form of current and
saving account as well as term deposits. The outcome of this ratio reflects the ability of the bank to make
optimal use of the available resources.

Table 4.11 showing the Credit to Deposit Ratio of the bank from 2011-2015

Loan
Creidt Deposit Ratio * 100
Deposits

(Rs in Lakhs)

Year Total Loan/Credit Deposit Credit to Deposit Ratio

2011 44,412.12 59,762.10 74.31%

2012 52,650.12 73,609.92 71.52%

2013 69,255.25 97,596.48 70.96%

2014 84,276.11 1,14,427.34 73.65%

2015 89,556.98 1,28,016.16 69.95%

45
Graph 4.11 showing the Credit to Deposit Ratio of the bank from 2011-2015

Credit to Deposit Ratio

75.00%

74.00%

73.00%

72.00%

71.00%

70.00%

69.00%

68.00%

67.00%
2011 2012 2013 2014 2015

Interpretation: The deposits of the bank against the loans granted to its borrowers have been slightly
fluctuated from 2011 to 2014 and have decreased in the year 2015 i.e. in the year 2011 it was 74.31%, in the
year 2012 it was increased to 71.52%, in the year 2013 it was decreased to 70.96% and the year 2014 again
it was increased to 73.65% and further it was decreased to 69.95% in 2015. Hence, we can conclude that
The Bangalore City Co-operative Bank Ltd. in 2015 has been reduced to 69.95% as that of 2011 to 2014
against that of its deposits.

46
Problem Assets Ratio: Problem Assets Ratio also known as the Gross Non-Performing Assets to Total
Assets Ratio. This shows the percentage of risk on the total assets of the bank. High Problem Assets Ratio
means high risk.

Table 4.12 showing the Problem Assets Ratio from 2011-2015

Gross NPA
PRoblem Assets Ratio *100
Total Assets

(Rs in Lakhs)

Year Gross NPA Total Assets Problem Assets Ratio

2011 3176.07 97,592.34 3.25%

2012 2,771.91 1,18,782.97 2.33%

2013 3,959.48 1,56,978.17 2.52%

2014 5,065.95 1,83,192.09 2.76%

2015 5,960.29 2,06,172.70 2.89%

47
Graph 4.12 showing the Problem Assets Ratio from 2011-2015

Problem Assets Ratio

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
2011 2012 2013 2014 2015

Interpretation: The above graphs indicates the Problem Assets Ratio of The Bangalore City Co-operative
Bank Ltd., in the year 2011it was 3.25% and has been reduced to 2.33% in 2012 and again has constantly
increased to an extent of 2.52% in 2013, 2.76% in 2014 and 2.89% in 2015 respectively. High Problem
Assets Ratio specifies high risk on liquidity. The bank has been fruitful in maintaining positive Problem
Assets Ratio which is virtuous for the bank as it signifies the level of liquidity risk to be low in the bank.

48
 It is the ratio of Net-Performing Assets to that of the Total Capital and
Reserves of the bank.

-2015

Net NPA
Shareholder Risk Ratio *100
Total Capital & REserves

(Rs in Lakhs)

Year Net NPA Total Capital & Reserves

2011 794.16 5,426.10 14.63%

2012 130.28 6,316.96 2.06%

2013 1,072.05 7,144.23 15.00%

2014 2,115.88 8,097.18 26.10%

2015 2325.49 9,768.17 23.80%

49
 -2015

Share Holders' Risk Ratio

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2011 2012 2013 2014 2015

Interpretation: This Ratio shows the degree of risk with the

Holders Risk Ratio indicates higher risk faced by the investors on their investments.

year 2012 it was reduced to 2.06% and in the year 2013 and 2014 it was again increased to 15.00% and
26.10% respectively which leads to a down-size in the investors trust in the bank and on the other hand the
provision made by the bank towards its NPA will reduce the profitability of the bank and further it was

that of 2013 and 2014.

50
Testing of Hypothesis

H0: There is no relationship between Net Advances and Net Profits.

H1: There is a significant relationship between Net Advances and Net Profit.

Net Advances X

Net Profit Y

n( xy) ( x)( y)
r
[n x2 ( x)2] [n y2 ( y )2]

Table 4.14 showing the computer values of correlation variables x, y from 2011-15

Year X Y X2 Y2 XY

2011 42,029.58 7,956.62 1,76,64,85,595 6,33,07,801.83 33,44,13,396.8

2012 51,059.4 1,034.96 2,60,70,62,328 1,07,71,142.20 5,28,44,436.62

2013 66,529.73 1,109.28 4,42,62,04,973 12,30,502.11 7,38,00,098.89

2014 84,276.11 1,340.91 7,10,24,62,717 17,98,039.62 10,90,50,900.29

2015 89,556.98 1,326.88 8,02,04,52,667 17,60,610.53 11,88,31,365.6

Total 3,33,451.8 12,768.65 23,92,26,68,280 6,91,68,096.29 68,89,40,198.2

r = 0.24

Interpretation: The Correlation(r). Obtained from the analysis of the data is r = 0.24 indicating positive
correlation. In this case, it indicates that the Net profits of the bank fluctuates positively with the decrease or
increase in the Net Advances of The Bangalore City Co-operative Bank Ltd.

51
H0: There is no relationship between Net NPA and Net Profits.

H1: There is a significant relationship between Net NPA and Net Profits.

Net NPA X

Net Profit Y

Table 4.15 showing the computed values of correlation variables x, y from 2011-15

Year X Y X2 Y2 XY

2011 794.16 7,956.62 6,30,690.10 6,33,07,801.83 63,18,829.33

2012 130.3 1,034.96 16,978.09 1,07,71,142.20 1,34,855.28

2013 1,072 1,109.28 11,40,184 12,30,502.11 11,89,148.16

2014 2,115.88 1,340.91 44,76,948.17 17,98,039.62 28,37,204.65

2015 2,325.49 1,326.88 54,07,903.74 17,60,610.53 30,85,646.17

Total 6437.83 12,768.65 1,16,73,004.1 6,91,68,096.29 1,35,65,683.59

r = 0.25

Interpretation: The Correlation(r), obtained from the analysis is r = 0.25. The above calculation depicts
the correlation obtained between the Net NPA and the Net profits of the bank to be positive. Hence, it is
concluded that the Net profits fluctuates positively with the decrease or increase in the Net NPA of The
Bangalore City Co-operative Bank Ltd.

52
 CHAPTER-5

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 Summary of findings

1. The total NPA of bank stood at Rs. 5,960.25 lakhs in 2015 as against that of Rs. 5065.95 lakhs in
2014 and in the year 2013, 2012 and 2011 it was 3,959.47 lakhs, 2,771.91 lakhs and 3,176.07
respectively. This depicts an increase in the total Non-Performing Assets of the bank.
2. The Total Advances of the bank in the year 2011 was Rs. 44,411.5 lakhs which has now increased to
Rs. 89,556.98 lakhs in the year 2015. This indicates that the bank should have effectual control
measures on its sanction policies.
3. The comparison with that of Karnataka State Apex Co-operative Bank and Visveshwarya Co-
operative Bank the Bangalore City Co-operative Bank Ltd has the maximum percentage of Gross
NPA Ratio of 6.66%. The Net NPA Ratio of the Bangalore City Co-operative Bank Ltd is also
slightly higher in percentage as compared to that of other banks. The bank has Net NPA Ratio of
2.71%.
4. The Gross NPA Ratio of the bank in the year 2015 has been increased to 6.66% as compared to that
of previous four years. The Net NPA Ratio is also increasing continuously with 2.71% in 2015 as
compared to the previous four year from 2011 to 2014 which indicates slow hoist in the loans. As the
Sub-Standard is also in the rising trend there is a possibility of lofty recovery.
5. s
that the bank is progressing recovering the loans well from the borrowers and has also been balancing
well between the over provision and under provision.
6. The Credit to Deposit Ratio in the year 2011 was 74.31% when compared to that of 69.95% in 2015
which shows that th

53
5.2 Suggestions

1. The Gross NPA Ratio of The Bangalore City Co-operative Bank Ltd. is 6.66%. It is therefore
recommended for the bank to reduce its Gross NPA in order to meet its requirements.
2. The Net NPA Ratio of The Bangalore City Co-operative Bank Ltd. is 2.71% which is a good signal
for the bank and it is recommended to decrease the same in future.
3. The Credit to Deposit Ratio of the bank is to be reduced so as to rais
optimal utilisation of the available resources.
4.
investors have to make enhanced analysis for their investment portfolio and there by select the most
appropriate area of investment where in there is low risk and high returns.
5. The loans/advances which are approved by the bank are in a rising trend. As a result, it is suggested
for the bank to trim down the loans and to get better the quality of the loans approved.
6. The Reserve Bank of India has made it comprehensible to all the Co-operative banks that they ought
to computerize data management and trace keeping as early as possible and start entire periodic
regulatory reporting of NPA without prevailing manually.
7. A core banking solutions can add value by aggregating data across the organisation and its touch
points, making it easily accessible to the banks to gain single and combined view of each customer.

54
5.3 Conclusion

The present study confines on study of nonperforming assets with special reference to Bangalore city
cooperative Ltd. it was analysed for last five financial years with respect to loans and advances, standard
assets, substandard assets to understand the trend of loans of advances with non-performing assets.

The study reveals that there is a linear growth in loans and advances and at the same way there is an increase
Therefore, reduction of NPA leads to
growth of bank for the benefit of their members.

55
 BIBLOGRAPHY

Books

1. Banking Management in India (Swain Rabindra Kumar)

2. Practical Approach to Non-Performing Asset Management (R. C. Kohli)
3. Research on Non-Performing Asset Management (Vandana Joshi)
4. Managing Non-Performing Asset in Banks (S. N. Bidani)

Reference of review of literature

1. Chandan Chatterjee, Jeet Mukhejee and Dr. Ratan Das, Management study of Non-Performing
Assets a current scenario, International Journal of Social Science and Interdisciplinary Research, ISSN:
2277 3630, Volume 1, Issue November 2012.
2. Priyanka Mohnani and Monal Deshmukh, A study on Non-Performing Assets on selected public
and private sector banks, International Journal of Science and Research, ISSN: 2319 7064, Volume 2,
Issue 4 April 2013.
3. Srinivas. K. T, A study on Non-Performing Assets of commercial banks in India, International
monthly referred Journal of Research on Management and Technology, ISSN: 2320 0073, Volume 2,
Issue December 2013.
4. Shalini. H. S, A study on causes and remedies for Non-Performing Assets in Indian public sector
banks with special reference to agricultural development branch, International Journal of Business and
Management Invention, ISSN: 2319 8028, Volume 2, Issue 1 January 2013.
5. Dr. D. Ganesan and R. Santhana Krishnana, A study on Non-Performing Assets of State Bank of
India, Asia Pacific Journal of Research, Volume 1, Issue October 2013.
6. Asha Singh, Performance of Non-Performing Assets in Indian commercial banks, International Journal
of Marketing, Financial services and Management Research, ISSN: 2277 3622, Volume 2, Issue
September 2013.
7. B. Selvarajan and Dr. G. Vadivalagan, A study on Management of Non-Performing Assets in
priority sector reference to Indian Bank and public sector banks, Global Journal of Management and
Business Research, Volume 13, Issue January 2013.
8. Dr. Sonia Narula and Monika Singla, Empirical study on Non-
International Journal of Advance Research in Computer Science and Management studies, Volume 2,
Issue 1 January 2014.
9. Satpal, A comparative study of Non-Performing Assets in public and private sector banks in the new
age of technology, International Journal of Current Engineering and Technology, Volume 4, Issue
August 2014.
10. Debasish Biswas, A study on Non-Performing Assets of Schedule commercial banks in India, Journal
of Research in Commercial and Management, ISSN: 2277 1166, Volume 3, Issue 12 December 2014.
11. Satpal, A comparative study of Non-Performing Assets in public and private sector banks in the new
age of Technology, International Journal of Current Engineering and Technology, Volume 4, Issue
August 2014.
12. Mayur Rao and Ankita Patelb, A study on Non-Performing Asset management with reference to
public sector banks, private sector banks and foreign sector banks in India, Journal of Management and
Science, ISSN: 2249 1260, Volume 5, Issue March 2015.
13. Tapashi Dasgupta and Dr. Subi Dutta, A comparative analysis between public and private sector
banks, Research Journal of Commerce and Behavioural Science, ISSN: 2551 1547, volume 4, Issue
September 2015.
14. S. Poornima and M. Theivanayaki, A study on the Portfolio of Non-Performing Assets in Indian
public sector banks, International Journal of Applied Research, ISSN: 655 657, Volume 1, Issue
January 2015.
15. Deepak Tandon, Tanya Kapoor and Vanshika Sha, An analysis of Non-Performing Assets in the
Indian Banking Sector, International Journal of Business Economics and Management Research, ISSN:
2249 8826, Volume 5, Issue 12 December 2015.

Webliography

1. http://www.bccbl.co.in
2. http://www.rbidocs.rbi.org.in
3. http://www.banknetindia.com
4. http://www.bankingawareness.com
 ANNEXURE

Balance Sheet of The Bangalore City Co-operative Bank Ltd., Bangalore

Particulars 2011 2012 2013

Capital and Liabilities
Share Capital 28,71,12,907 35,01,79,102 43,16,59,372
Reserves and Surplus 54,26,10,059 63,16,96,731 71,44,23,016
Profit and Loss Account 7,95,66,289 10,34,96,564 11,09,28,872
Deposits 5,97,62,10,335 736,09,92,441 975,96,47,835
Interest payable on deposits 4,51,09,375 5,25,74,318 6,39,39,024
Suspense Account 30,27,361 58,17,016 19,39,811
Other Liabilities 21,66,40,368 26,54,98,271 33,68,28,381
Branch Account 2,24,28,95,752 3,10,80,42,967 4,27,84,50,723
Total 9,54,92,34,218 11,87,82,97,320 15,69,78,17,034

Assets
Furniture and Fixtures 1,28,68,259 1,32,04,352 2,87,59,609
Vehicle Cost 6,48,329 5,04,255 23,66,495
Computer Cost 20,81,668 9,68,164 67,49,867
Building Cost 2,01,72,212 1,99,54,905 1,97,43,031
Generator Cost 10,17,846 8,36,094 6,54,342
Branch Account 2,42,94,64,817 3,10,74,57,983 4,27,85,54,136
Cash in hand 3,35,90,290 3,58,56,934 5,60,01,034
Cash at bank 17,50,07,943 20,98,59,934 26,53,83,552
Investment 2,29,13,05,825 2,99,84,93,046 3,82,97,12,243
Loans and Advances 4,44,12,12,211 5,26,50,17,038 6,92,55,27,605
Other Assets 17,18,64,798 22,61,45,150 28,43,65,118
Total 9,75,92,34,219 11,87,82,97,320 15,69,78,17,034
 2014 2015
Particulars

Capital and Liabilities

50,99,43,272 58,65,28,122
Share Capital
81,06,78,281 97,90,67,911
Reserves and Surplus
13,40,91,368 19,90,52,23,324
Profit and Loss Account
11,44,27,34,762 12,80,16,16,010
Deposits
6,45,93,818 6,14,14,809
Interest payable on deposits
2,33,73,582 1,46,73,386
Suspense Account
43,14,32,033 50,10,70,758
Other Liabilities
4,91,23,62,599 4,96,08,52,327
Branch Account
18,31,92,09,761 20,06,17,27,021
Total

Assets
3,44,25,248 3,46,29,910
Furniture and Fixtures
17,20,844 10,75,193
Vehicle Cost
49,24,878 38,30,477
Computer Cost
3,07,50,954 3,05,49,541
Building Cost
7,41,439 8,00,237
Generator Cost
4,89,58,61,865 4,32,11,07,213
Branch Account
4,60,78,963 4,88,59,938
Cash in hand
35,27,92,966 51,74,78,249
Cash at bank
4,19,25,02,243 4,97,17,04,743
Investment
8,42,76,11,387 8,95,56,98,152
Loans and Advances
33,17,98,971 53,53,96,256
Other Assets
18,31,92,09,761 20,06,17,27,021
Total