Asset Quality & Non-performing Assets of Commercial Banks
Asset Quality & Non-performing Assets of Commercial Banks

Author: J. U. Ahmed

Publisher: MD Pub Pvt Limited

Published: 2008-12-10

Total Pages: 0

ISBN-13: 9788175331464

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The liberalization of financial sector in India is exposing Indian commercial banks in a new economic environment that has characterized by increased competition and new regulatory requirements.The paradign shift of attitude of finacial institutions towards the short term financing has also changed the complexion of scheduled commerical bank.The growing competition and sluggish growth in economy coupled with poor credit deposit ratio, the large volume of non-performing assets in the balance sheet and lack of automation and professionalization in operation have been flaring up the banking situation in the economy.The level of non-performing loans is recognised as an indicator for assessing banks credit risk,asset quality and efficiency in allocation of resources to productive sectors.The committee on financial system has expressed concern over the erosion in the quality of assets of which non-performing advances constitutes the bulk.The fund lock up in NPAs is not available for productive use.The present book is an attempt to diagnose assest quality and level of non performing assets of commercial banks with refernce to backward region.

Non-performing Assets in Commercial Banks
Non-performing Assets in Commercial Banks

Author: Dr. Vibha Jain

Publisher:

Published: 2007

Total Pages: 362

ISBN-13:

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Contents Include : Introduction; Npa Concept And Prudential Norms; Trends Of Non-Performing Assets; Prevention Of Non-Performing Assets; Management Of Npas; Npa Management In Perspective; Annexure.

Effects of Bank Capital on Lending
Effects of Bank Capital on Lending

Author: Joseph M. Berrospide

Publisher: DIANE Publishing

Published: 2011-04

Total Pages: 50

ISBN-13: 1437939864

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The effect of bank capital on lending is a critical determinant of the linkage between financial conditions and real activity, and has received especial attention in the recent financial crisis. The authors use panel-regression techniques to study the lending of large bank holding companies (BHCs) and find small effects of capital on lending. They then consider the effect of capital ratios on lending using a variant of Lown and Morgan's VAR model, and again find modest effects of bank capital ratio changes on lending. The authors¿ estimated models are then used to understand recent developments in bank lending and, in particular, to consider the role of TARP-related capital injections in affecting these developments. Illus. A print on demand pub.

Modeling the NPA of a Large Indian Public Sector Bank as a Function of Total Assets
Modeling the NPA of a Large Indian Public Sector Bank as a Function of Total Assets

Author: Rajveer Rawlin

Publisher: GRIN Verlag

Published: 2011-12-14

Total Pages: 22

ISBN-13: 3656082839

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Scientific Study from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1, Dayananda Sagar College of Engineering (Department of Management Studies), course: Non Performing Assets, Banking, language: English, abstract: Non-performing assets (NPA) are the loans given by a bank or a financial institution where in the borrower defaults or delays interest and / principal payment. The management of NPAs therefore, is a very important part of credit management of banks and financial institutions in the Country. Currently NPA estimates in India are predominantly obtained from figures published by the Reserve Bank of India (RBI). However it would be helpful for banks and financial institutions to have an estimate of the NPA as soon as loan amounts are disbursed. This study attempted to develop a predictive model for the NPA% at both the gross and net level from the total assets of one of India’s largest public banks. A strong correlation was observed between gross and net NPA% and the total assets suggesting that estimates of gross and net NPA can be made from total assets. Linear and non linear models were fit to predict the NPA% from the total assets. A non linear model linking both Gross and net NPA to total assets provided the best curve fit and the least deviation from actual values. Thus by simply looking at the banks total assets an overall picture of the banks NPA level can be ascertained.

A Comparative Analysis of Non-Performing Assets (NPAs) of Selected Commercial Banks in India
A Comparative Analysis of Non-Performing Assets (NPAs) of Selected Commercial Banks in India

Author: Dr Samir

Publisher:

Published: 2015

Total Pages: 13

ISBN-13:

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With the introduction of international norms for income recognition, asset classification and provisioning in the banking sector, managing NPAs has emerged as one of the major challenges facing Indian banks. Banks today are judged not only on the basis of number of branches and volume of deposits but also on the basis of quality of assets. Non-performing assets constitute a major portfolio of the Banks portfolio and hence are an inevitable burden on the banking industry. NPAs adversely affect the profitability, liquidity and solvency of the banks. This paper analyses the position of NPAs in selected banks namely State Bank of India (SBI), Punjab National Bank (PNB) and Central Bank of India (CBI). It also highlights the policies pursued by the banks to tackle the NPAs and suggests a multi-pronged strategy for speedy recovery of NPAs in banking sector.

Non-Performing Assets In Banks
Non-Performing Assets In Banks

Author: Korada Jayaditya Sarma

Publisher:

Published: 2012-02

Total Pages: 84

ISBN-13: 9783848409501

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This Book discusses the concept of non-performing assets, the evaluation of credit risk, its significance, the quantification and monitoring of credit risk, and the study of action plan to mitigate the non-performing assets. The term NPA is explained and classified into various sub categories. Then the discussion is followed by key topics like asset classification, internal system for classification of assets as NPA, originating factors for the NPAs, Vehicles for NPA recovery, restructuring/ rescheduling of loans, and impact of NPAs. We will also throw a light on the Basel Recommendations and their efficacy in mitigating the credit risk. We will touch upon issues like estimation of capital requirements, segmentation of retail portfolios, etc. during our journey. In the final stage we delve upon the analytical part relating to the trends in the performance indicators of SBI, their correlations and the impact of NPAs on the performance of bank. From our study we find that there has been an improvement in the credit quality of the portfolios and also a rise in the advances. This is a good phenomenon; it can be attributed to the restructuring policy of Reserve Bank of India.

Determinants of Profitability of Listed Commercial Banks in India
Determinants of Profitability of Listed Commercial Banks in India

Author: Rajveer Rawlin

Publisher: GRIN Verlag

Published: 2019-12-09

Total Pages: 256

ISBN-13: 3346078485

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Doctoral Thesis / Dissertation from the year 2019 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1, Bharathiar University, language: English, abstract: This study seeks to understand the impact of a series of key internal determinants of the profitability of listed commercial banks in India. Following are the research questions raised in this regard: Are there differences in key performance measures of private and public sector banks? Does the size of the bank affect bank profitability? Does the bank’s lending activity and income generation capability affect its profitability? Does the productivity of the bank impact its profitability? Does the bank’s asset quality and capital adequacy affect its profitability? Can bank profitability be forecasted from determinants? The banking industry in India is diverse in nature. There are more than sixty listed commercial banks in India. These include banks in the public and private sector and the banks are of varying size and profitability levels. As noted early, the Indian banking system is faced with severe asset quality issues. The banking system has been flooded with non-performing assets which have significantly eroded the bank margins. Recent adverse developments in the banking sector such as lending scams and questionable advances to troubled segments of the economy have dominated the financial press. While this being so, this research is aimed at examining the contributing factors of profitability in banks. Key measures of bank profitability include the return of assets, return on equity and net interest margin. There are several possible drivers of bank profitability. These include asset quality, capital adequacy, liquidity, productivity and income. While several studies till date have looked at key determinants of bank profitability, very few studies have compared the effect of key determinants for a larger cross section of banks that represent the banking sector in India as a whole. Hence an attempt has been made in this study to know the key drivers of profitability of the banking sector. The study also looks at the similarities or the differences of the influence of selected determinants on profitability measures across the sample of banks selected for research. This study also compares the key drivers of bank profitability for public and private sector banks and an attempt is made to develop models to forecast bank profitability from key determinants.

Commercial Banks in India
Commercial Banks in India

Author: Benson Kunjukunju

Publisher:

Published: 2008-01-01

Total Pages: 342

ISBN-13: 9788177081503

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Banking sector in India has undergone remarkable changes since the nationalisation of 14 major commercial banks in 1969. The geographical and functional coverage of banks has surged at a rate that is unprecedented in the world. Nationalisation of commercial banks in 1969 and 1980 was a mixed blessing. Reforms have brought about considerable improvements as reflected in various parameters relating to capital adequacy, asset quality, profitability and operational efficiency. Unfortunately, commercial banks continue to face the problem of non-performing assets (NPAs). The present volume deals with various aspects related to the development of commercial banks in India, with particular focus on post-liberalisation (1991 onwards) developments.

Banking System in India
Banking System in India

Author: S. M. Jawed Akhtar

Publisher:

Published: 2011

Total Pages: 0

ISBN-13: 9788177082838

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Prior to economic reforms initiated in early 1990s, the banking sector in India suffered from lack of competition, low capital base, inefficiency, and high intermediation costs. The banking industry - dominated by the public sector - was subject to a high degree of financial repression, characterized by administered interest rates and allocated credit. Reforms in India's commercial banking sector had two distinct phases. The first phase of reforms focused mainly on enabling and strengthening measures. The second phase of reforms placed greater emphasis on structural measures and improvement in standards of disclosure and levels of transparency in order to align India's standards with international best practices. Reforms have brought about considerable improvements, as reflected in various parameters relating to capital adequacy, asset quality, profitability, and operational efficiency. Although commercial banks still face the problem of overhang of non-performing assets, high spread, and low profitability in comparison with banks in other emerging market economies, India's reforms - which are examined in this book - have been successful in enhancing the performance of commercial banks in terms of both stability and efficiency parameters.