Centre Code 71122

A
SYNOPSIS ON
A STUDY FINANCIAL PERFORMANCE ANALYSIS
With special reference to
SINDHUDURG DISTRICT CENTRAL CO-OPERATIVE BANK LTD.,
SINDHUDURGNAGARI

(a)

INTRODUCTION AND SIGNIFICANCE OF THE STUDY:

The study related to NPAS analysis in Sindhudurg District
Central Co-Operative Bank Ltd., Sindhudurgnagari. The NPAS
is report taken from the banking loan recovery and pending
installment taken place in accounting period of time. The
Narsinham recommends the NPAS concept. It designed analysis
of banking performance. There are following things are checked
1) Credit 2) Recovery and recovery policies and also all those
things, which will get information about performance of assets.

Probably banking is as old as human history. As soon as human

being started living together borrowing and lending began which
is essence of banking business. Before 2000 B.C. Babylon age
Egypt had banking business. In Babylon, temple were use an
banking business centers. In those days people used to keep their
valuable (gold, ornament etc.) with priest who was regarded as
representative of God.

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In Greece and Italy banking business was started by Jews. In

Greece, temples were the places of banking business and priests
were bankers. Priest used to accept deposits from the people
repayable on demand gave loan and advances to needy people.

In Rome also temple and churches were used as banking center.

They accepted deposits from people, paid interest on deposits,
and gave loan and advance to traders and manufacturers. In this
context Crowther rightly remarked that there are three ancestors
of modern bank viz. Goldsmith Moneylender and Traders.The
study is related to the NPAS of that Sindhudurg District Central
Co-operative Bank Ltd., Sindhudurgnagari. The help of the bank
is depend upon the financial parameters of the bank so it is
important to understand NPAS of any bank. The study will made
to analyze NPAS of Sindhudurg District Central Co-operative
Bank Ltd., Sindhudurgnagari Ltd., Sindhudurgnagari The
collected data will introducing the NPAS position of Sindhudurg
District Central Co-operative Bank Ltd., Sindhudurgnagari and
the data taken from the bank disclosed annual report. There for
The study of Non Performing Assets carried out with reference
to

Sindhudurg District Central Co-Operative Bank Ltd.,

Sindhudurgnagari.

PRN No. 2012-0170-0224-0526

Centre Code 71122

(b)

RATIONALE: The entire study will be concerned with SINDHUDURG

DISTRICT

CENTRAL

CO-OPERATIVE

BANK

LTD.,

SINDHUDURGNAGARI LTD, SINDHUDURGNAGARI. The

scope of study is limited to 5 years commencing from 2008-09 to
2012-13. The study will entirely based on data available in the
NPAS statement such as, substandard account, doubtful I,
doubtful II, doubtful III Accounts, loss account. The project is
going to cover the investigation useful findings and positive
suggestions, which would be useful to the financial decision
maker for how to reduce the NPAs. The NPAS statement is a
heart of the bank. It is also analytical tool in the hand of the
manager of the branch. It reveals the changes of credit and
recovery i.e. how much to give loan and how to collect or which
policies using for recovering the credit and reduce the NPAS in
the given period by making use of the projected NPAS. It is
useful for the planning of recovery and analyzing recovery ability
of organization and performance of the bank.

(c)

OBJECTIVES: 1.

To study NPAs of Sindhudurg District Central CoOperative Bank Ltd., Sindhudurgnagari

PRN No. 2012-0170-0224-0526

Centre Code 71122

2.

To study the year wise movement of NPAs position from

last five years in Sindhudurg District Central Co-Operative
Bank Ltd., Sindhudurgnagari

3.

To study the recovery policy of Sindhudurg District

Central Co-Operative Bank Ltd., Sindhudurgnagari.

4.

To study the various influencing factors of NPA position

5.

To study the necessary action taken by the bank on to

reduce the NPA position.

(d)

HYPOTHESIS: The present study assumes the following hypotheses:

i. NPAs of bank is constantly increasing year after year.
ii. The proper management of loan and recovery of loan leads to
generation of additional revenues.

(e)

RESEARCH METHODOLOGY: The topic under study was selected through the discussion with
the project guide and organizational guide in the company. The
information required for the concerned study has been collected
through primary data and secondary data.

PRN No. 2012-0170-0224-0526

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I)

Primary Data: The primary data will be collect through the interview technique.
A structured interview format has prepared and the interview
conducted with the following concerned authorities.
1.

Assistant General Manager

2.

Company Secretary

3.

Manager Development

4.

Recovery officer and clerks.

The discussion will held regarding topic under study i.e. NPAS,
Policy of Recovery & suit files and other general information
regarding the NPAS.
II)

Secondary Data: -

The secondary data are those, which have already been collected
through the statistical process for presenting the conceptual
background
1.

RBI circular

2.

Banks manual of instructions, and for collecting the

analytical data following sources are used.

3.

NPAS experts submitted by the bank to the RBI

4.

Performance statement of the bank

5.

NPAS statement

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Centre Code 71122

(f)

EXPECTED CONTRIBUTION: A. Trend Analysis

In this techniques Statistical formulas for tallying percentage of NPAS
in advance will use.
B. Graphical Representation
In the graphical representation for the year wise NPAS statement as
well as for suit file and pie diagram the sector wise NPAS statement.
C. Statistical Formula
Gross NPA
Percentage of Gross NPA =

X 100
Gross Advance
Net NPA

Percentage of Net NPA

X 100
Net Advance

(g)

LIMITATIONS OF THE STUDY: There were various constraints that were faced during the span of
the project which might have affected the outcome of the project
and thus have to be taken into consideration they are as follows
1. The time period taken for comparison of NPAS is limited
i.e. 2009-10 to 2013-14 only
2. The study is limited to Sindhudurgnagari branch of
Sindhudurg District Central Co-operative Bank Ltd.,
Sindhudurgnagari Ltd, only

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Centre Code 71122

(h)

CHAPTER SCHEME
Chapter 1.

Research Design and Methodology

Chapter 2.

Bank Profile

Chapter 3.

Theoretical Foundation

Chapter 4.

Data Analysis and Interpretation

Chapter 5.

Findings and Suggestions

Bibliography

Vaibhavi Vilas Naik

Project Student

Mr. Laxman P. Patil

Project Guide

(PRN No. 2012-0170-0224-0526)

PRN No. 2012-0170-0224-0526