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An Analysis of Non Performing Assets (NPA) on Punjab

National Bank

Dipak Jain1 and Susmita Sarma2

1Assistant Professor, North Eastern Regional Institute of Management

2Project Intern, North Eastern Regional Institute of Management

E–mail: [email protected]; [email protected]

ABSTRACT
The banking industry plays a very efficient role in the Indian economy. Handling and
measuring the quality of assets in banks is very important for the growth and
development of the banking sector. Nowadays it has been seen that the asset quality in
the banks, specially the public sector banks is deteriorating constantly and thus causing
stress to the banking sector. NPAs are the loans which are given by the Indian banks and
the financial institutions where interests remain overdue for a relatively long time. The
main aim and objective of this research is to analyze the sources and deployment of funds
of Punjab National Bank and to examine the trend of NPAs in Punjab National Bank with
the help of secondary data collected from the Annual Reports and the Financial
Statements of Punjab National Bank for the last five years.
KEYWORDS: Gross NPA, Net NPA, Net Profit

1. INTRODUCTION:
Punjab National Bank, also called as PNB, is an nationalized bank of India ,
headquartered at New Delhi, India. It was founded in May 1894 and is the second largest
government-owned bank in India. Punjab National Bank has commenced its operations
from April 12, 1895 from Lahore with an authorized capital of Rs. 2 lakhs and working
capital of Rs 20,000. PNB is covered under the ownership of the Ministry of
Finance, government of India. Punjab National Bank is an Indian multinational banking
organization and provides financial services to the country which is also a state-owned
sector based in New Delhi, India.
The bank is sufficiently capitalized having capital adequacy ratio of 14.14 percent at the
end of March 2020. PNB merged Oriental Bank of Commerce and United Bank of India
with itself effective from 1st April this year. With the merger, the bank now has about
more than 13,000 ATMs,11000 branches , one lakhs of employees and a business mix of
over Rs 18 lakhs crore. At the end of March 2020 total domestic business of PNB rises
to Rs 11.81 lakh crore.PNB is planning to raise some money by selling some of its
properties including its earlier headquarter building. The bank has decides to increase its
loan growth target to 6 per cent for the current fiscal policy due to the COVID-19 crisis.

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1.1 Non-Performing Assets:

A non performing asset (NPA) refers to a classification of loans or advance in which
principal amount is the due and interest for that is not being paid for a period of time. In
maximum cases, debt can be said as nonperforming when payments of loan has not been
paid for a period of 90 days.
When a loan is not being repaid by the borrower ,that loan can be classified as a non
performing asset .The asset which is not repaid by the borrower will no longer generate
income for the bank and becomes non performing.
The intellection of NPA has become common now a day in all over the world. The issue of
NPA has affected not only the banks but also the entire economy of the world. As an
outcome a great ranking of NPA in Indian Banks as well as the financial organizations is
not anything but a reflection of the state of robustness of business and trade. There is a
great influence on Banks profit scenario by the magnitude of Non Performing Assets. It is
now esteemed that the banks and financial institutions in India reflects the obstacle of
amplifying Non Performing Assets and the problem is becoming more and more
uncontrollable.

1.2 CLASSIFICATION OF ASSETS:

Based on the time period for which the asset has remained as Non performing or leased,
it can be classified into three categories:
a) Sub-standard Assets
NPA for a period not exceeding two years is called as sub standard asset. The term is on
effect from 31st March 2001. Sub-standard asset is one such term, which remains NPA
for a time period less than or equal to 18 months. In these types of cases, it is not enough
to get recovery of dues to banks in a whole amount if the current net worth of the
borrower/ guarantor or the current market value of the security charged. In a different
manner, these assets will have significant credit weaknesses that adventure the
liquidation of the debt and are formulated by the different possible chances that the
banks will face some loss, if inadequacies are not corrected.
b) Doubtful Assets
If the NPA exceeds the time period of two years it is called a doubtful asset. From 31 st
March 2001 the term doubtful asset is on effect with the criteria that it has remains as
NPA for a timing of more than 18 months. Doubtful assets have the inherent properties
of Sub standard assets with some of the additional characteristics that the weaknesses
contain the liquidation in full based on current facts, situations, values and conditions
that can be questionable and improbable on a higher basis.
c) Loss Assets
When the amount has not been written off fully but the loss has been assigned by the
bank, auditors or by the inspection of RBI then it is called loss assets. In different sense,
such types of assets are uncollectible.

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SI Category Parameter Provision Requirement

1 Substandard *Stayed as NPA for a timing of not *15% of the sum of the
Asset less than or equal to one year. *In net investment in The
such situations, the present net lease and the unrealized
worth of the borrower or guarantor portion of finance income
or market value of the security net of finance charge
charged is not sufficient to assure component. *Additional
regain of the bank‟s dues; *Likely to 10% for unsecured lease
sustain some loss if deficiencies are exposure i.e. total 25%
not corrected.
2 Doubtful *Remained in substandard *100% of the finance not
Asset category beyond 1 year; *Recovery secured by the realizable
- highly questionable and value of the leased asset.
improbable. *Additional provision on
the unrealised portion of
finance income net of
finance charge
component of the
secured portion as under
Period for which the
advance remained in
doubtful category and the
provision (%) Up to one
year is 25% provision,
One to three years 40%
provision, More than
three years 100%
3 Loss Asset *Asset considered uncollectible and To be written off or 100%
of little value but not written off of the sum of the net
wholly by the bank. *Continuance investment in the lease
as bankable assets although it may and the unrealised
have some salvage or recovery portion of finance income
value. net of finance charge
component.

II. REVIEW OF LITERATURE

Kavitha, N. (Jan 2012) emphasized on the assessment of nonperforming assets on its
profitability, magnitude and impact. The study observed that there is an increase in
advances over the period of the study. However, the decline in ratio of Non-performing
Assets indicates improvement in the assets quality of SBI groups, Nationalized Banks and
Private Sector Banks..
Ray, R. (2013) observed various reasons leading to Non- Performing Assets (NPA) and
ways of managing NPA in different types of Banks. Since NPA has been growing menace

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in banking, the study may help understanding this concept better and banks may adopt
remedial measures so as to maintain NPA at the minimum level. He concluded that the
occurrence of NPA affects the profitability and financial health of a Bank adversely.
Asha Singh (2013) examined 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.
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 realize 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.
Debasish Biswas (2014) talks 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.
Tiwari Chandan (2015) analyzed the causes of NPA in selected co-operative banks in
Pune. It studies the causes of NPA at the micro level for co-operative banks and brings
out the major causes responsible for assets turning into non-performing. He concluded
that identifying the causes of loans turning bad during several stages of disbursement of
credit facilities are therefore significant for a banker.
Singh, V. and Bahadur, R. (Mar 2016) discussed the status and trend of NPAs in Indian
Scheduled commercial banks, the factors contributing to NPAs, reasons for high impact
of NPAs on Scheduled commercial banks in India and recovery of NPAs through various
channels during the period of 14 years i.e. from 2000 to 2014. The result shows that
extent of NPA is comparatively very high in public sectors banks. Although various steps
have been taken by government to reduce the NPAs but still a lot needs to be done to curb
this problem. The NPAs level of Schedule commercial banks is still high as compared to
the foreign banks.

III.OBJECTIVES OF THE STUDY

1. To analyze the sources and deployment funds of Punjab National Bank.
2. To examine the trend of NPA in Punjab National Bank.

IV. SCOPE OF STUDY

This study is undertaken to measure the performance of NPA in Punjab National Bank.
The study will help to have a comprehensive examination of the NPA management of
Bank and also to suggest how NPA can be controlled so that it does not hamper the
Financial Position of the bank. Bank’s 5 years’ annual reports are verified for getting the
information for the study.

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V. RESEARCH METHODOLOGY:
Research methodology for the proposed research is -

• Type of Research: - The study is both analytical and descriptive in nature. It describes
the causes impact and management of NPA as well as analyzes about NPA in Punjab
National Bank. The study is largely analytical in the sense that it analyzes various financial
variables and comparison and relationship among them based on secondary data. It also
implements descriptive research methodology in order to determine the views of
bankers and customers to know their perception on the management of NPAs.
• Sample Size:
Though Non-Performing assets bind to all the types of bank but in this research we select
PNB bank which holds third highest capitalization in public sector banks.
• Sources of Data:-
The data is based on secondary data and collected from the annual report of Punjab
National Bank. The study has covered a period of five financial year from 2016-2017 to
2020-2021..
• Tools and Techniques: - The data has been analyzed by using tables, average(mean),
standard deviation, coefficient of variance and coefficient of correlation
• Hypothesis
H01: There is no relationship between Net Profit and Net NPA.
H11: There is a relationship between Net Profit and Net NPA.
• Reference Period: This study will cover a period of five financial year of Punjab National
Bank from 2016-2017 to 2020-2021.
• Limitations :
• The basis for identification of Non-performing assets is taken from the Reserve bank of
India publications.
• NPAs change with time. The study is done in the present environment and prevailing
situation.
• The study of data and its result is concerned with Punjab National bank only. It will not
represent the financial position and analysis of any other banks.
• Since the data is based on secondary data it will not reflect the direct relationship
between the customer and the bank.

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VI. SOURCES OF WORKING FUNDS

Table 1: Sources of Working Funds
Year Share Reserve Deposit Borrowing Working Tren
Capital and s Fund d on
Surplus work
ing
Fund

Rs % Rs % Rs % Rs % Rs % %
2016 425. 0.0 4142 5.8 621704 88.2 4076 5.7 704314 1 100
-17 59 6 1.39 8 .02 7 3.34 9 .34 0
0
2017 552. 0.0 4052 5.4 642226 86.3 6085 8.1 744151 1 105.6
-18 11 7 2.19 4 .19 0 0.75 7 .24 0 5
0
2018 920. 0.1 4386 5.7 676030 88.9 3932 5.1 760143 1 107.9
-19 81 2 6.32 7 .14 3 5.91 7 .18 0 2
0
2019 1347 0.1 6100 7.4 703846 86.2 5022 6.1 816429 1 115.9
-20 .51 6 9.97 7 .32 1 5.43 5 .23 0 1
0
2020 2095 0.1 8884 7.1 110633 89.2 4284 3.4 124011 1 176.0
-21 .54 6 1.77 6 2.47 1 0.31 5 0.09 0 7
0
Aver 0.1 6.3 87.7 5.7
age 14 44 84 46

INTERPRETATION:
Table 1 shows that share of share capital used in the table is increasing but the actual size
of the share capital in comparison to trend on working fund is also increasing from 2016-
2017 to 2020-2021 in ratio perspective. Reserves and surplus has gone up from 41421.31
crores to 88841.77 and the percentage also increases here in comparison to total working
funds. Similarly deposit increases from 621704.02 crores to 1106332.47 crores. The
percentage to total working funds initially decreases and later increases again. This is
because of increase of its working funds in middle and later on it increases. Borrowing
has shown two sides’ first increases and eventually decreases and later on it has
increased a bit and its percentage to total working funds shows fluctuation.

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VII. Deployment of Working Funds:

Table 2: Deployment of Working Funds
Yea Cash Investme Loan Fixed Other Total Tre
r balance nt And assets Assets assets nds
with RBI Advances on
Tot
al
ass
ets
Rs % Rs % Rs % Rs % Rs % Rs %
201 252 3. 1867 25. 4194 58. 627 0. 195 2. 7203 1 100
6- 10.0 49 25.4 92 93.1 23 3.25 87 07.0 70 30.55 0
201 0 4 5 6 0
7
201 287 3. 2003 26. 4337 56. 634 0. 299 3. 7688 1 106
7- 89.0 75 05.9 15 34.7 63 9.33 82 78.0 91 30.10 0 .31
201 3 8 2 7 0
8
201 321 4. 2021 26. 4582 59. 622 0. 330 4. 7749 1 107
8- 29.1 14 28.2 08 49.2 13 4.85 80 59.1 26 49.46 0 .58
201 3 2 0 5 0
9
201 383 4. 2404 28. 4718 56. 723 0. 351 4. 8306 1 115
9- 97.8 62 65.6 94 27.7 80 9.07 87 40.4 23 65.91 0 .31
202 5 4 2 5 0
0
202 439 3. 3929 31. 6742 53. 110 0. 710 5. 1260 1 175
0- 58.8 48 83.2 17 30.0 48 20.9 87 48.6 63 632.6 0 .00
202 3 5 8 0 8 2 0
1
Ave 3. 27. 56. 0. 4.
rag 89 65 85 84 14
e 6 2 4 6 6
(Source: NPA statement from Annual Report)

INTERPRETATION:
The table 2 shows that share of cash balance with RBI increases from 25210.00 crore to
43958.83 crore. Investment also increases from 2016-17 to 2020-21 and its percentage
to total assets also increases. Share of fixed assets also increase from 2016-17 to 2020-
21. It stands 0.846 on an average during study period. The percentage of other assets is
increasing from 2.70 % to 5.63%. Thus it can be concluded that Punjab National Bank has
been managing its working funds very effectively.

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VIII. ANALYSIS OF GROSS NPA RATIO AND NET NPA RATIO:

Gross non-performing assets refer to the sum of all the loans that have been defaulted by
the borrowers within the provided period while net non-performing assets are the
amount that results after deducting provision for unpaid debts from gross NPA. Gross
non-performing assets lead to a bad effect on company goodwill and bad effects on the
equity value of the organization while net non-performing assets lead to low profitability
and liquidity in the company cash reserves.

Table 3: Gross NPA ratio and Net NPA ratio

Year Gross Gross Gross Net NPA Net Net NPA
NPA Advance NPA Advance Ratio
s Ratio s %
%
2016-17 55370.45 4419.03 12.53 32702.1 4187.20 7.81
1
2017-18 86620.05 4712.73 18.38 48684.2 4331.34 11.24
9
2018-19 78472.70 5062.75 15.50 30037.6 4578.91 6.56
6
2019-20 73478.76 5170.91 14.21 27218.8 4709.15 5.78
9
2020-21 104423.4 7395.42 14.12 38575.7 6732.23 5.73
2 0
Mean(Average 14.948 7.424
) (0.14948 (0.07424
) )
Standard 1.95 2.05
Deviation
Coefficient of 13.045 27.61
variances

INTERPRETATION:
It is observed from the table that Gross NPA ratio increases in 2017-18 and again
decreases and it becomes 14.12% in 2020-21. Though it has shown a increasing trend the
average of Gross NPA ratio is 14.948 %. Net NPA increases to 11.24 % in 2017-18 but
eventually decreases to 5.73% in 2020-21. The average Net NPA ratio is 7.424 %,
standard deviation is 1.95 and coefficient of variance of Net NPA ratio is 27.61%. Like
that Standard Deviation of Gross NPA ratio is 1.95, and coefficient of variance is 13.045
%.

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IX: Net Profit and Net NPA

Table 4: Net Profit and Net NPA
Year Net Profit Net NPA

2016-17 1325 33702.11

2017-18 -12282 48684.29

2018-19 -9975 30037.66

2019-20 336 27218.89

2020-21 2022 38575.70

Mean -3714.8 35443.73

INTERPRETATION:
It is observed from the table that correlation is -0.46. It means that there is a high degree
of negative correlation between net profit and net NPA. Thus null hypothesis is rejected
upto 2019-20. It means that while NPA is increasing The Net Profit is decreasing. It is a
weak position of bank. But in 2020-21 Net NPA is increasing and also the Net Profit is
increasing. There are two types of customers. Good customers one lead to increase in
profit by paying interest and principal amount timely while bad customers lead to
increase in NPA by not paying interest and installment amount timely. The main reason
of increasing NPA is the mismanagement of Bank. Initially Net Profit decreases, but later
on it increases upto 2020-21. But in the mean, Net profit decreases during the five year
and Net NPA increases so it accepts alternate hypothesis.
Net profit increases from 2018-19. The reason of this increasing is the low amount of
NPA. It leads to adverse effect on profitability of bank and bank is unable to give loans to
the new customers.

X. TREND PERCENTAGE OF NON-PERFORMING ASSET

Trend analysis is an excellent way to interpret the trend of NPA throughout the years.
Trend lines are an important tool in technical analysis for both trend identification and
confirmation.

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Table No: 5 - Trend Percentage of NPA

Year Current Year NPA Base Year NPA Trend Percentage
of NPA
2016-17 55370.45 55370.45 100
2017-18 86620.05 55370.45 156.43
2018-19 78472.70 55370.45 141.72
2019-20 73478.76 55370.45 132.70
2020-21 104423.42 55370.45 188.59

(Source: NPA statement from Annual Report)

INTERPRETATION-
Trend percentage is the ratio between current year NPA and Base year NPA. It increases
as the year passes. From the above table we can see that initially the Trend percentage
was 100 but later on it increases gradually. And in the last financial year 2020-21 the
Trend percentage has become 188.59.So we can conclude that as the year passes Trend
percentage of NPA also increases.

X. FINDINGS:
Findings of the Financial Year 2016-17
• In Mar, 2017, the issued capital has increased to 425.59 cr. Reserves and Surplus has
increases to 37670.53 Cr, Deposit was 621704.02 and Borrowing was 40763.34 cr. Here
in comparison to Mar, 2016 Deposit has increased and Borrowing has decreased so it is
a positive sign of performance of Punjab National Bank.
• In Mar, 2017, Cash Balances with Reserve Bank of India was 25210.00 Cr, Investment was
186725.44cr, Loan and Advances were 419493.15 Cr, and Total Assets were 720330.55
cr. Thus except cash balances with RBI the other three components had increased in
2017.
• In Mar 2017 ,the Gross NPA ratio was 13.00 and Net NPA ratio was 8.00.The Gross NPA
Ratio remains constant in the financial year 2017 but Net NPA has decreased so it was a
good financial performance for Punjab National Bank
• The Net Profit was 1324.00 Cr in March, 2017.In 2016, March Net Profit was -3974.40 Cr.
It shows good financial performance of the Bank.

Findings of the Financial Year 2017-18

• In March 2018, The issued capital has increased to 552.11 Cr . Reserves and Surplus has
decreased to 36838.37 Cr, Deposit was 642226.19 Cr and Borrowing was 60850.75 Cr.
Here in comparison to March ,2017 Deposit has increased and Borrowing has also
increased.

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• In Mar, 2018, Cash Balances with Reserve Bank of India was 28789.03 Cr, Investment was
200305.98 Cr, Loan and Advances were 433734.72 Cr, and Total Assets were 765830.10
cr. Hence we can say that the performance of Punjab National Bank was good during 2018
since asset quality has increased in that year.
• In March 2018, the Gross NPA ratio was 18.00 and Net NPA ratio was 11.00.The Gross
NPA Ratio increases in the financial year 2018 as well as Net NPA Ratio has also increased
so it was a poor financial performance for Punjab National Bank in the Financial Year
2017-18.
• The Net Profit was 1324.00 Cr in March, 2017. In 2018, March Net Profit was -12282 Cr.
It shows poor financial performance of the Bank.

Findings of the Financial Year 2018-19:

• In Mar, 2019, the issued capital has increased to 920.81 Cr. Reserves and Surplus has
increased to 40284.09 Cr, Deposit was 676030.14 Cr and Borrowing was 39325.91 Cr.
Here in comparison to March, 2018 Deposit has increased and Borrowing has decreased.
• In March, 2019, Cash Balances with Reserve Bank of India was 32129.13 Cr, Investment
was 202128.22 Cr, Loan and Advances were 458249.20 Cr, and Total Assets were
774949.46 cr. Hence we can say that the performance of Punjab National Bank was good
during 2019 since asset quality has increased in that year.
• In Mar 2019, the Gross NPA ratio was 16.00 and Net NPA ratio was 6.56.The Gross NPA
Ratio decreases in the financial year 2019 as well as Net NPA Ratio has also decreased so
it was a good financial performance for Punjab National Bank in the Financial Year 2018-
19.
• The Net Profit was -12282.00 Cr in March, 2018. In 2019, Mar Net Profit was -9975 Cr. It
shows good financial performance of the Bank.
• The issued capital has increased to 1347.51 Cr in March 2019. Reserves and Surplus has
increased to 56251.28 Cr, Deposit was 703846.32 Cr and Borrowing was 50225.43 Cr.
Here in comparison to March, 2019 Deposit has increased and Borrowing has also
increased.
• In Mar, 2020, Cash Balances with Reserve Bank of India was 38397.85 Cr, Investment was
240465.64 Cr, Loan and Advances were 471827.72 Cr, and Total Assets were 830665.91
cr. Hence we can say that the performance of Punjab National Bank was good during 2020
since asset quality has increased in that year.
• In Mar 2020, the Gross NPA ratio was 14.00 and Net NPA ratio was 5.78.The Gross NPA
Ratio decreases in the financial year 2020 as well as Net NPA Ratio has also decreased so
it was a good financial performance for Punjab National Bank in the Financial Year 2019-
20.
• The Net Profit was -9975.00 Cr in March, 2019. In March 2020 Net Profit was 336 Cr. It
shows good financial performance of the Bank.
• In March, 2021, the issued capital has increased to 2095.54 Cr. Reserves and Surplus has
increased to 81641.36 Cr, Deposit is 1106332.47 Cr and Borrowing is 42840.31 Cr. Here
in comparison to March, 2020 Deposit has increased and Borrowing has decreased.

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• In Mar, 2021, Cash Balances with Reserve Bank of India is 43958.83 Cr, Investment is
392983.25 Cr, Loan and Advances are 674230.08 Cr, and Total Assets are 1260632.62 cr.
Hence we can say that the performance of Punjab National Bank is good during 2021
since asset quality and investment has increased in the year.
• In Mar 2021 ,the Gross NPA ratio is 14.00 and Net NPA ratio is 5.73.The Gross NPA Ratio
becomes constant in the financial year 2021 as well as Net NPA Ratio has also decreased
so it is a good financial performance for Punjab National Bank in the Financial Year 2020-
21.
• The Net Profit was 336.00 Cr in March, 2020. In March 2021 Net Profit was 2022 Cr. It
shows good financial performance of the Bank.

XI: SUGGESTIONS:
• Bank should provide proper awareness and training programs to avail the
products and facilities provided by them. The training program should cover rural areas
to urban areas to educate the people about various products and to give knowledge about
the benefit and future prospects of that product. Loans, insurance and various term
policies and savings should go in a proper way when the knowledge of these facilities
should be placed in the mind of the common people.
• Terms and Conditions are also a important factor about which people should be
aware of. Without awareness about these conditions a bank cannot get profits in the long
run.
• Bank should conduct Loan Recovery campaign to let people know their
installments and about the time period.
• The average Gross NPA Ratio of 5 financial years is 14.948 and the average Net
NPA Ratio of 5 financial years is 7.424. So it is quite high. It is therefore recommended for
the bank to reduce its Gross NPA, Net NPA in order to meet its requirements.
• The Punjab national Bank should control its provision towards NPA by taking
some precautions for the recovery of the loans.
• Bank should have proper choice of borrowers and should keep proper
administration which is favour to the borrowers.
• Bank should highlight the potential NPAs under special category.
• Bank need to take precautions regarding the credit assessment’s and should take
measures in pre and post sanction of the loans to avoid slippages and standard assets of
NPA. Recognition of NPA in starting stage is very important and certain steps have to be
taken up to recover the loans and to minimize the amount of NPA.
• Bank should audit regularly so that it can ensure the fringe which don’t slip to the
NPA category. Punjab National Bank has to look after before issuing any advance to the
customers or proposal has to be thoroughly examined.

XII: CONCLUSION:-
The Government has made an attempt to provide a skeleton through framework of code
and expects the judiciary to infuse flesh and blood in the skeleton to energize the code.
IBC (Insolvency and Bankruptcy Code) aims at early identification of financial failure and

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maximizing the asset value of insolvent firms. The code also has provisions to address
cross border insolvency through bilateral agreements and reciprocal arrangements with
other countries. The present study confines on study of Non Performing Assets with
special reference to Punjab National Bank for the last five financial years from 2016-17
to 2020-21.It was analyzed with respect to its sources , deployment funds ,Gross NPA ,Net
NPA and its trend percentage ,Profitability ratios and its impacts etc. The issue regarding
Non Performing Assets has become a major factor for banking sector. The Reserve Bank
of India has given the guidelines and norms to Punjab National Bank to regulate the
decline of NPA because it destroys the financial position of the bank. The customers and
public would not keep trust on the banks any more if the banks have higher rates of NPAs.
The study also reveals that there is a negative correlation between Net Profit and NPA of
Punjab National Bank. This is because mismanagement and wrong choice of customers.
So, NPA should be handled and managed in such a manner that it should not affect the
financial position of the bank as well as public image of the Bank.

REFERENCES:
BOOKS:
1. Pathak, V. Bharati. (2013). Indian Financial System. Pearson Publication.
2. Gupta, Ambuj. (2010).Non Performing Assets in Indian Banks : Issue, perspectives and
future directions. LAP Lambert Academy Publication.
3. Kothari, C.R.(2009).Research methodology methods and techniques. Second edition,
New age International Publication.

ARTICLES FROM JOURNALS:

1. Kavitha, N. (Jan.2012). The impact of assets on the profitability of Indian scheduled
commercial banks: empirical evidence. International Journal of Research in
Commerce and Management, Vol. 3, Issue 1, ISSN: 0976-2183.
2. Ray, Ratikant. (2013). Management of NPA in banks: A comparative study of
commercial and co-operative banks with reference to selected banks in Pune. ASM‟s
International E-Journal of Ongoing Research in Management and IT, INCON 13 FIN
047, ISSN: 2320-0065.
3. 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.
4. Dr Sonia Narula and Monika Singla (2014): Empirical Study on Non Performing
Assets’ of banks , International Journal of Advance Research in Computer Science and
Management Studies, Volume 2, Issue 1 January 2014.
5. Debasish Biswas , A Study of Non Performing Assets of Scheduled Commercial Banks
in India. Journal of Research in Commercial and Management, ISSN: 2277 1166,
Volume 3 , Issue 12 December 2014.

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6. Tiwari Chandan. (2015). A study on the causes of non-performing assets in selected

co-operative banks in Pune. International Journal of Advance Research, Vol. 3, Issue
6, ISSN 2320-5407.
7. Singh Vivek and Bahadur Raj (2016). A study of non-performing assets of commercial
banks and its recovery in India. Annual Research Journal of SCMS Pune.

REPORTS:
1. Annual reports of Punjab National Bank for the last five years.
2. Press Release by Punjab National Bank for five financial years.
3. Analyst ppt of Punjab National Bank for last five financial years.

WEBSITES:
1. https://www.pnbindia.in/downloadprocess.aspx?fid=lwS2UC0Bvme58fKJBnQ9ew=
=#:~:text=CAPITAL%20ADEQUACY%20RATIO,%25%20as%20at%20September'21
2. https://www.moneycontrol.com/financials/punjabnationalbank/ratiosVI/pnb05
3. https://www.ceicdata.com/en/india/nationalised-banks-selected-financial-ratios-
punjab-national-bank/punjab-national-bank-financial-ratio-capital-adequacy-ratio-
tier-ii
4. https://www.statista.com/statistics/1070980/india-punjab-national-bank-credit-
to-deposit-ratio/
5. https://www.financialexpress.com/industry/banking-finance/punjab-national-
bank-plans-to-hit-capital-market-in-q4/1998658/
6. https://m.economictimes.com/industry/banking/finance/pnbs-capital-adequacy-
falls-below-regulatory-requirement-due-to-nirav-scam/articleshow/64573303.cms
7. http://www.bankingawareness.com

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