MAJOR PROJECT REPORT

ON
STUDY ON NPA ANALYSIS IN PNB BANK
Submitted in partial fulfillment of the requirements of the award of
degree
Of
Bachelor of Commerce (BBI)
Of
Tilak College of Science And Commerce
Vashi Navi Mumbai 705
Session 2016-17

Under guidance of

Submitted by

Prof. Rahul Kamble

Rohit Patel
Roll no-72037

DECLARATION

I, the undersigned, hereby declare that the project report entitled Study of NPA Analysis in
PNB Bank submitted by me is in partial fulfillment of the requirement for the award of
degree of Bachelor of Commerce (BBI) under the guidance of Prof. Rahul Kamble , is my
original work and the conclusion drawn therein are based on the material collected by
myself.
The Report submitted is my own work and has not been duplicated from any other source. I
shall be responsible for any unpleasure moment/ situation.

Place :
Date :

( Rohit.H.Patel )

CERTIFICATE

This is to certify that Ms/Mr. Rohit Harji Patel is a bonafide student of Bachelor of
Commerce (Banking and Insurance) Tilak College of Science And Commerce Vashi, has
successfully completed the project work as prescribed by the University of Mumbai in the
partial fulfillment of the requirement of Bachelor of Commerce (BBI) Program for the
academic year 2016-2017.
The Project Work titled as Study of NPA Analysis in PNB Bank.

Project guide

H.O.D

(Mr. Rhaul Kamble )

( Mrs. Abha Maheshwari )

ACKNOWLEDGEMENTS

A successful project is the result of team work and co-ordinates that includes not only the
group of developers who put forth the ideas, logic and efforts but also those who guide them.
So, at the completion of the project, I feel obliged to extent my gratitude towards all those
who made valuable contribution throughout my training period.

In addition, I wish to convey deep sense of gratitude towards Prof. Abha Maheshwari , at any
time I needed.

At the end just as significantly, I would like to express my silence thank to,
Prof. Rahul Kamble , and all the other staff member who have provided me excellent
knowledge and support throughout my Graduation.

I am very much thankful to my parents, brother/sister and friends for their continuous
support.

Executive Summary

Strong banking system of India helped a lot to survive in slowdowns and economic
meltdowns. As India is a developing nation it needs more resources and infrastructure to
speed up its growth in all sectors.
Banking sector is an emerging sector now a days, providing lot of jobs, helping in
development by accepting deposits, extending credits, and also offering various other
important financial services.
While making lot of profits, the accumulation of huge non-performing assets on the other
hand in banks has assumed great importance. The depth of the problem of bad debts was first
realized only in early 1990s. The magnitude of NPAs in banks and financial institutions is
over Rs.1, 50,000crore.
While gross NPA reflects the quality of the loans made by banks, net NPA shows the actual
burden of banks. Now it is increasingly evident that the major defaulters are the big
borrowers coming from the non-priority sector. The banks and financial institutions have to
take the initiative to reduce NPAs in a time bound strategic approach.
Public sector banks figure prominently in the debate not only because they dominate the
banking industries, but also since they have much larger NPAs compared with the private
sector banks. This raises a concern in the industry and academia because it is generally felt
that NPAs reduce the profitability of a bank, weaken its financial health and erode its
solvency.
For the recovery of NPAs a broad framework has evolved for the management of NPAs under
which several options are provided for debt recovery and restructuring. Banks and FIs have
the freedom to design and implement their own policies for recovery and write-off
incorporating compromise and negotiated settlements.

INDEX
Sr.NO.

Contents

Page No.

Introduction

1. History

2. Objective of study

3. Research Methodology

4. Limitations

Literature Review

About Industry

11

Company Specifics

22

Non-Performing Asset

32

Data Analysis & Interpretation

49

7
8
9

Finding, Recommendations and

conclusion
Bibliography
Annexure

69
75
76