OUR CHAIRMAN

Santosh Kumar Gangwar, minister of state (I C ) for textiles, is a very practical person and
equally capable. He is very sensitive & generous. He is a person who inspires confidence in
others & draws out the trust & best efforts of the team to complete the task well. He always
holds out a helping hand for the people in dire distress. He is humble, patient, determined & a
leader in true aspects.

Constituency : Bareilly
Party : Bharatiya Janata Party
Date of Birth : Monday, November 1, 1948
Birth Place : Chaudhary Mohalla, Bareilly (Uttar Pradesh)
State Name : Uttar Pradesh
Permanent Address: Bharat Sewa Trust Bhawan, Pilibhit Road, Prem Nagar,Bareilly- 243 122
(Uttar Pradesh)Tels:(0581) 2545555, 2577777(O) (0581) 2577020 (R)
Present Address : Delhi Residence Address: House No. 13, Sunehri Bagh Road, New Delhi-
110011Tels: (011) 23062135, 23062136
Email Id : santosh[dot]gangwar[dot]bareilly[at]gmail[dot]com
Education Qualifications : B.Sc., LL.B. Educated at Agra University and Rohilkhand
University, Bareilly (Uttar Pradesh)
Positions Held:
1989 onwards : Member, State Working Committee, Bharatiya Janata Party (B.J.P.),Uttar
Pradesh
1989 : Elected to 9th Lok Sabha
1990 : Member, Committee on Privileges Member, Consultative Committee, Ministry of
Commerce Member, Consultative Committee, Ministry of Transport and Tourism
1991 : Re-elected to 10th Lok Sabha (2nd term)
1991-96 : Whip, B.J.P. Parliamentary Party Member, Committee on the Welfare of
Scheduled Castes and Scheduled Tribes Member, Committee on Estimates : Member,
Committee on Government Assurances Member, , Consultative Committee, Ministry of
Civil Aviation and Tourism
1996 : Re-elected to 11th Lok Sabha (3rd term)
1996 :onwards General Secretary, B.J.P., Uttar Pradesh
1996-97 : Chairman, Committee on Agriculture
1998 : Re-elected to 12th Lok Sabha (4th term)
1998-99 : : Union Minister of State, Petroleum and Natural Gas with additional charge of
Parliamentary Affairs
 1999 : Re-elected to 13th Lok Sabha (5th term)
Special Invitee, General Purposes Committee, Lok Sabha
Oct.-Nov. 1999 : Union Minister of State, Science & Technology in addition, assisted
Minister of Parliamentary Affairs
22 Nov. 1999- 29 Jan. 2003 : : Union Minister of State, Petroleum and Natural Gas with
additional charge of Parliamentary Affairs
29 Jan. 2003-24 May 2003 : Union Minister of State, Petroleum and Natural Gas
24 May 2003- 8 Sept. 2003 : Union Minister of State, Parliamentary Affairs;Labour
8 Sept. 2003- May 2004 : Union Minister of State,Heavy Industries & Public Enterprises
and additional charge of Parliamentary Affairs
2004 : Re-elected to 14th Lok Sabha (6th term)
2004-2009: Chief Whip, Bharatiya Janata Party in Lok Sabha, Member, Committee on
Petroleum & Natural Gas, Member, Business Advisory Committee
5 Aug. 2007 : Member, Standing Committee on Defence, Member,Parliamentary Forum
on Water Conservation & Management
2010-2013: National Secretary, Bharatiya Janata Party
May, 2014 : Re-elected to 16th Lok Sabha (7th term)
27 May 2014 onwards : Union Minister of State (Independent Charge) Ministry of
Textile; Ministry of Parliamentary Affairs; and Ministry of Water Resources, River
Development and Ganga Rejuvenation
09 Nov. 2014 onwards : Union Minister of State (Independent Charge) Ministry of
Textile

Special Interest: Social Work:-He organizes 3 to 4 free operation camps through Bharat sewa
trust for cataract (motiabind) patients every year, in which more than thousands of people are
benefited.

Countries Visited: France, Japan, Malaysia, Romania, Russia, U.A.E. (Abu Dhabi), U.K. and
U.S.A.

Other Information: (i) Member, Court of the Aligarh Muslim University; (ii)
Member,Governing Body, Indian Council of Agricultural Research (I.C.A.R.)

Vice Chairman:
Shri Param Jeet Singh Oberoi
Board of Members:
Shri Ram Autar Khandelwal
Shri Ram Gopal Gangwar
Shri Ram Niwas Gupta
Dr. Pramod Saxena
Smt. Raj Kumari
Smt. Sarla Rani Rastogi
Shri Subodh Kumar Arya
Shri Banwari Lal
Shri Puttu Singh
Shri Manish Agarwal
Shri SC Gupta
Shri MK Maheshwari

C.E.O./Secretary:
Shri Sripal Kashyap

Organizational Setup:

Name of office Address Contact No.

Head office A-Block ,D.D.Puram ,Bareilly 9897866225
Branch office Address Contact No
Prem Nagar Macnair Road,Prem Nagar, Bareilly 9897866227
C.B.Ganj A-Block ,D.D.Puram ,Bareilly 9897866226
Civil Lines 87,Patel Chowk,Civil Lines ,Bareilly 9897866229
45,Shyam Ganj,Opp. Merchant
Shyam Ganj 9897866228
Association,Bareilly
Nawab Ganj Zila Panchayat Market,Nawab Ganj 9897866449
Kesar Plaza ,Budaun Road ,Subhash
Subhash Nagar 9897816566
Nagar,Bareilly
Baheri Block Campus,Baheri 9997018502
Meerganj 66,Guru Nanak Market,Meerganj 9997101622
Pilibhit 51,Jhankar Central Market,Pilibhit 9997101623
Shahjahanpur 214,Mohalla-Katia Tola,Shahjahanpur 9997101624

Urban Co-operative Bank Ltd. Bareilly offers various type of Loans in different Shemes.
Deatils are given below.

Housing Loan
Vehicle Loan
Personal Loan
Loan Against FD
Loan Against Property
Cash Credit Limit
Loan Against NSC/KVP/LIC Policies
Limit Against Property

Teacher Loan
 Interest Rates - Loans & Advances
Interest rate w.e.f. 01-07-2017
Scheme Particulars/Term/Amount Interest rate
1.Agriculture Loan Upto Rs. 3 lac 7.50%
Above Rs. 3 lac 9.85%
2.Commercial & SSI Loan (a).Below Rs. 5 lac 10.00%
(b).Rs.5 lac & Above Rs. 5 lac 9.75%
(c).Rs.5 lac & Above Rs. 5 lac As per CR
CR-1 9.10%
CR-2 9.15%
CR-3 9.25%
CR-4 10.10%
CR-5 10.20%
CR-6 10.50%
CR-7 11.00%
3.Transport Loan (a).LMV 10.00%
(b1).HMV 10.50%
(b2).HMV 8.80%
4.Consumer & Personal Loan 13.25%
5.Teacher/Salaried Loan 13.00%
6.Other Salaried Loan 13.25%
7.1 Housing Loan (Floating
(a).General 09.00%
Rate)Upto 25 Lacs
(b).Doctors/Government or PSU Employee 08.90%
(c).Lady Doctor/Government or Lady PSU
08.85%
Employee
7.2 Housing Loan (Floating
(a).General 09.20%
Rate)Above 25 Lacs
(b).Doctors/Government or PSU Employee 09.10%
(c).Lady Doctor/Government or Lady PSU
09.00%
Employee
7.3 House Repair & Renovation House Repair & Renovation 10.50%
8. Plot Purchase 13.00%
9(a) (i).Car Loan(New) General 09.50%
9(a) (ii).Car Loan(New)
09.40%
Doctor/Govt. or PSU Employee
(b).Car Loan(Old) with security 11.00%
(c).Car Loan(Old) without security 11.50%
(d).Two Wheeler Loan 10.50%
10.Loan Against Property 12.00%
 Term Loan & Cash Credit Limit(Upto Rs.
SME's Unit's 09.75%
4.99 Lakh)
Term Loan(Rs. 5 Lakh or Above ) 09.50% 09.50%
As per their credit Rating CR1 to CR3
Cash Credit Limit Minus 0.50% and CR4 to CR7 Minus
0.25%
11.Doctor Plus Loan
(a).WC/Euqipments/Furniture WC/Euqipments/Furniture 09.75%
(b).Nursing Home Const./Pur. Nursing Home Const./Pur. 09.50%
(c).Loan Ag. Property Loan Ag. Property 10.50%
12.Loan Against NSC/KVP/LIC etc. 12.00%
13 (a).Loan Against Own Fixed 1 % Above
Deposit
(b).Loan Against Third Party F.D. 2% Above Rate of Deposit
(c).For Staff At Par
14.Staff Loan Less than 2% of General Rate

General Information &Paper Required for Housing Loan

Purpose : Construction/Repair / Purchase/Plot Purchase

& Construction

1- Maximum Loan Amount :Upto 70 Lac & Upto 5.00 Lac

for repair
2- Rate of Interest : 10-10.50% & 11.50% for
repair
3- Maximum time period : 20 years & 10 years for
repair
4- Maximum Age : 60 Years & 65 Years for
repair

A. Requirements Before sanction of loan :-

1- 5 Passport size photographs.
2- Photo ID Proof (Voter ID/Passport/Pan Card/ Driving License).
3- Photo copy of proof of Residence (Land line telephone
bill/electricity bill
/Ceiling of gas connection/Ration card/Passport etc).
4- (i) - Form-16 with latest salary slip for Servicemen.

(ii) - 3 years ITR with computation sheet for others

(iii) - 3 years ITR with computation sheet + 3 years Balance sheets
with business proof for businessmen .
5- Statement of Bank account/Photo copy of Bank Pass Book having
entries of last six months.
6- Sale Deed / Registered Agreement for sale Purchase.
7- Photocopy of Registry with previous chain.
8- Estimate in case of construction / Repair.
9- Blue print of Map (approved from B.D.A. /Municipal Authority.)
10- Proof of advances in case of Purchase.
11- Two Guarantors Required
12- Saving Bank Account with our Bank

Paper required from guarantors :

(i)- 3 Passport size photographs.

(ii)- Photo copy of Identity (Photo ID Voter
card/Passport/DL/Pan card
etc.)& Address proof (Telephone bill/ Electricy bill/ Ration
card/
ceilling of gass connection etc.).
(iii)- Photo copy of Income / Net worth proof(Salary slip + Form
16/ITR).
(iv)- Account statement /Photocopy of Pass book.
B. After Sanction of loan at the time of disbursement :-

1- Revenue stamp-6.
2- 3 stamp papers for Rs. 100/- each in the Name of Borrowers.
3- 0.2% Min. 100/- Max. 10,000/- stamp for equitable mortgage of
property.
4- Affidavit on Bank Performa
5- Affidavit for deposit of sale deed.
6- Original title deed with previous chain.
7- Receipt in case of purchase.
8- Share money : 2.5% of loan amount
9- Charges as per Bank rule :-
(i) Processing fees : 0. 5% of Loan amount plus service tax 14% (max.
20,000/- + service tax)
(ii) NEC Fees :
(iii) Application fees : 20/-
(iv) Membership fees : 10/- (each borrower
(v) Nominal membership fees of both guarantors 2+2=4/-
10- Bills of construction.
The Bank has the following Deposit Schemes

Current Deposit
Saving Bank Deposit
Short Term Deposit
Recurring Deposit
Fixed Deposit
Re-investment Deposit
Pension Plan
Double Deposit Scheme

Interest Rate on Term Deposits w.e.f. 01-03-2017

Special rates for
Term of Deposit Normal Rate Senior Citizen/widows
& handicaped*
30 to 45 days 5.25% 5.75%
46 to 90 days 5.75% 6.25%
91 to 180 days 6.00% 6.50%
181 to 270 days 6.25% 6.75%
271 days to less than 1 year 6.50% 7.00%
1 year 7.05% 7.55%
Above 12 months to 3 years 7.00% 7.50%
Above 3 years or more 6.95% 7.45%
Above 3 years or more 6.95% 7.45%
*Senior citizen: 60 years and Above
For more details please visit in our Branch or call us

Ve h i c l e ( C a r ) L o a n S c h e m e

General Information
(A) Maximum repayment period-7 years or Age of
65 years (which ever less).
(B) Rate of Interest-10.95%.
 EMI o f R s . 1 L a c f o r 7 Ye a r s 1 7 0 4 / -
EMI o f R s . 1 L a c f o r 5 Ye a r s 2 1 6 7 / -
EMI o f R s . 1 L a c f o r 3 Ye a r s 3 2 6 7 / -
(C) Age - 6 5 Ye a r s

U n d e r n o t e d P a p e r R e q u i re d f o r C a r L o a n
All photocopy of Self attested

B e f o re s a n c t i o n o f l o a n : -
1- 5 Passport size photographs.
2- P h o t o c o p y o f p r o o f o f I d e n t i f i c a t i o n ( Vo t e r
ID/Passport/Driving License
/Pan Card/Bank Pass book).
3- Photo copy of proof of Residence (Land line
telephone bill/electricity bill /Ceiling of gas
connection/Ration card/Passport etc).
4- Photo copy of Driving License.
5- Photo copy of Pan Card.
6- Account statement last six months / photocopy
of passbook.
7- Latest salary slip + Form-16 or ITR for Three
Ye a r s with computation for businessmen
& others.
8- Quotation of vehicle to be purchased duly
signed by the applicant.
9- G u a r a n t o r s : Tw o G u a r a n t o r s r e q u i r e d
F ro m e a c h g u a r a n t o r s :

1- 3 Passport size photographs.

2- Photo copy of Identity & Address proof (As 2&7above).
3- Photo copy of Income / Net worth proof (Salary slip + form
16/ ITR last 3 years).
4- Account statement last six months /Photocopy of pass book.
At the time Disbursement of loan :-

1- Min. 6 post dated cheques.

2- Processing fee 0.5% of loan amount plus service tax
12.36% .
3- 3 stamp papers for Rs. 100/- each in Borrowers name.
4- N o t a r i z e d a ff i d a v i t .
5- Revenue stamp-5.
6- form 34 (2 copy).
7- 2 . 5 % s h a r e m o n e y o f l o a n a m o u n t i n t h e n a m e o f b o r r o w e r.
8- S.B. A/C in our bank.
9- Other Misc. Exp. 34/-

Personal Loan Scheme

Purpose :

To m e e t p e r s o n a l / f a m i l y e x p e n s e s l i k e
marriage/education/family functions .
For purchase of consumer durables.
To m e e t e x p e n d i t u r e o n m e d i c a l t r e a t m e n t o f s e l f a n d / o r
dependent at Hospitals/Nursing Homes registered with local
Govt. bodies.

Eligibility:

1. Permanent and regular employee in Centre/State Govt. Deptt.

and other institutions like Universities, Schools/College,
PSUs, reputed hospitals, and well established corporate.
2. Minimum 3 years of service, including service with the
p r e v i o u s e m p l o y e r ( s ) , i f a n y.
3. The net monthly salary should not be less then Rs 6,000/-.

Relaxation in Eligibility :

Minimum net monthly salary of Rs. 5000/- subject to fulfillment

of the following conditions
1. Where the employer is maintaining the salary accounts of its
employees with the branch and monthly installment is
recovered from the salary account for adjustment of loan.
OR
2. Where there is specific agreement / tie up arrangement made
between employer and the Bank for repayment of loan
installments from salary of the employee.

Amount of Loan :

U p t o 1 2 m o n t h s n e t t a k e h o m e s a l a r y, s u b j e c t t o m a x i m u m o f
Rs.3.00 Lac

N a t u re o f F a c i l i t y :

Te r m L o a n

Margin :
Nil

P ro c e s s F e e :
0.50% of loan amount with minimum of Rs. 250/- plus service tax

Documentation charges :
Nil

Security :
( a ) C h a rg e o v e r t a n g i b l e a s s e t s , i f c r e a t e d o u t o f l o a n .
( b ) Tw o p e r s o n a l g u a r a n t e e p r e f e r a b l y o f f e l l o w e m p l o y e e ,
subject to the
condition that one employee will not stand as guarantor in
more than
two accounts.

Repayment :
60 EMI (subject to remaining period of service)
Loan against Property

M O RTA G E L O A N ( L O A N A G A I N S T P R O P E RT Y )

U r b a n C o - o p e r a t i v e B a n k L t d . B a re i l l y

L o a n A g a i n s t P ro p e r t y

General Information Regarding Loan

1- Period of Loan : 1 0 Ye a r s
2- R a t e o f I n t e re s t : 14%
3- Saving bank account with urban co cooperative bank.
4- C u r re n t a c c o u n t w i t h U r b a n C o o p e r a t i v e B a n k L t d .
B a re i l l y.
U n d e r N o t e d P a p e r s R e q u i re d f o r L o a n A g a i n s t P ro p e r t y

A. B e f o re s a n c t i o n o f l o a n : -
1- Passport size photographs-5.
2- P r o o f o f P h o t o I D ( P h o t o c o p y o f Vo t e r I D / P a s s p o r t / P a n
Card/Driving License etc).
3- A d d r e s s p r o o f ( Te l e p h o n e b i l l / E l e c t r i c i t y b i l l / R a t i o n c a r d /
ceiling
of gas connection etc.).
4- (i) - Form-16 with latest salary slip for Servicemen.

(ii) - 3 years ITR with computation sheet for others

(iii) - 3 years ITR with computation sheet + 3 years
Balance sheets
with business proof for businessmen .
5- Pan card
6- Statement of Bank account/photo copy of Bank Pass Book
having
entries of last six months.
7- Photocopy of Registry with previous chain.
8- Tw o G u a r a n t o r s R e q u i r e d

P a p e r re q u i re d f ro m g u a r a n t o r s :

(i)- 3 Passport size photographs.

(ii)- P h o t o c o p y o f I d e n t i t y ( P h o t o I D Vo t e r
card/Passport/DL/Pan card
e t c . ) & A d d r e s s p r o o f ( Te l e p h o n e b i l l / E l e c t r i c i t y b i l l /
Ration
card/ ceiling of gas connection etc.).
(iii)- Photo copy of Income / Net worth proof(salary slip +
Form
1 6 / I T R L a s t 3 Ye a r s ) .
(iv) Account Statement /Photo copy of Pass Book.

B. After Sanction of loan at the time of disbursement :-

1- Revenue stamp-4.
2- 3 stamp papers for Rs. 100/- each in the Name of
Borrowers.
3- 0.2% Min. Rs.100/- stamps for equitable mortgage of
p r o p e r t y.
4- Original title deed with previous chain.
5- A ff i d a v i t B a n k P e r f o r m a
6- A ff i d a v i t f o r d e p o s i t s a l e d e e d f o r l o a n .
7- Share money : 2.5% of loan amount
8- Va l u a t i o n o f P r o p e r t y f r o m B a n k , s a p p r o v e d v a l u e r.
Charges:-
(i) Processing fees : 0. 5% of Loan amount max. Rs.20,000/
+service tax (ii) NEC Fees : Rs. 800/-
(iii) Application fees : Rs. 20/-
(iv) Membership fees : Rs. 10/-
(v) Nominal membership fees of both guarantors Rs. 2+2=4/-
( v i ) Va l u a t i o n C h a rg e s : @ 0 . 1 2 5 % t o 0 . 5 % ( i . e . R s . 2 5 0 / - t o
Rs.5000/-)

U r b a n C o o p e r a t i v e B a n k L t d . B a re i l l y
F o r m a l i t i e s / P a p e r R e q u i re d f o r
C a s h C re d i t l i m i t / L o a n t o R e g i s t e re d / U n re g i s t e re d
 P ro p r i e t o r s h i p / P a r t n e r s h i p F i r m , P v t . L t d . C o m p a n y o r L t d .
Company

A . B e f o re S a n c t i o n o f L o a n

1 - C u r r e n t A / C s t a t e m e n t l a s t 1 Ye a r.
2 - 4 P a s s p o r t s i z e p h o t o o f e v e r y P r o p r i e t o r.
3 - P h o t o c o p y o f I d e n t i t y ( P h o t o I D Vo t e r c a r d / P a s s p o r t / D L / P a n
card
e t c . ) & A d d r e s s p r o o f ( Te l e p h o n e b i l l / E l e c t r i c i t y b i l l / R a t i o n
card/
ceiling of gas connection etc.).Proof of each Proprietor or
firm.
4- Registration copy of any type & any where is applicable.
5- Pan Card (Proprietors & Firms)
6- In case of Company/Pvt. Ltd./Ltd. Company ( Memorandum of
Article
& Association, Bye laws, Resolution, Certificate of
incorporation, NEC
f r o m d i ff e r e n t d e p a r t m e n t s w h e r e v e r i t i s r e q u i r e d s p e c i a l l y i n
case of
petrol-pump etc.
7- Balance-sheet of last 3 years, Provisional B/S of running year
as well
a s P r o j e c t e d B / S o f n e x t c o m i n g y e a r.
8- ITR for 3 years(Proprietor/partner & Firm) & Sale tax /
Income tax
judgment
9- Partner ship deed.
1 0 - Tw o G u a r a n t o r s R e q u i r e d

P a p e r re q u i re d f ro m g u a r a n t o r s :
(i)- 2 Passport size photographs.
(ii)- Photo copy of Identity (Photo ID Vo t e r
card/Passport/DL/Pan
c a r d e t c . ) & A d d r e s s p r o o f ( Te l e p h o n e b i l l / E l e c t r i c y
bill/ Ration
card/ ceilling of gass connection etc.).
(iii)- Photo copy of Income / Net worth proof (ITR last three
years).
(iv)- Account statement last six month.

B. After Sanction of loan at the time of disbursement :-

1- Revenue stamp-5
2- 3 stamps of Rs. 100/- each + 0.2% stamp of limit amount (
Min.
Rs. 100/- Max. Rs. 10,000/- ) in the Name of Firms.
3- N o t a r i z e d A ff i d a v i t o f 3 p a g e s .
4- O r i g i n a l Ti t l e d e e d w i t h p r e v i o u s c h a i n .
5- Share money : 2.5% of loan/limit amount.
6- Current stock position.
7- Hypothecation of Stock.
8- Insurance cover
9- F o r m o f P v t . L t d . / L t . C o m p a n y ( To c r e a t e c h a rg e i n
ROC).
10- C o m m o n s e a l o f c o m p a n y.
11 - Signature wherever are required with
firm,s stamp/without stamp.
Charges:- Processing Fees
(i) NEC Fees : Rs. 800/-
( i i ) Va l u a t i o n f e e s : 0 . 1 2 5 % t o 0 . 5 0 % o f l i m i t a m o u n t / Va l u e o f
property (Min Rs.250/- Max Rs. 5000/-)
(iii) Application fees : Rs. 20/-
(iv) Membership fees : Rs. 10/-
(v) Nominal membership fees of both guarantors Rs.2+2=4/-
 U r b a n C o o p e r a t i v e B a n k L t d . B a re i l l y
Te a c h e r s / E m p l o y e e s L o a n

A- General Information Regarding Loan:-

1- Employers Certificate being in Service.

2- Maximum Loan Amount : 5 Lac
3- Maximum Period of Repayment : 5 Ye a r s / P e r i o d of
Retirement
(which ever less).
4- Rate of Interest : 14%

U n d e r n o t e d P a p e r R e q u i r e d f o r Te a c h e r s L o a n

B . B e f o re S a n c t i o n o f L o a n

1- 3 Passport size photographs.

2- P r o o f o f P h o t o I d e n t i f i c a t i o n ( Vo t e r
ID/DrivingLicense/Passport/
Pan Card).
3- Proof of residence (Land line Bill telephone/Electric
Bill/Passport/
Ceiling of gas connection etc.)
4- Form-16 with latest salary slip or ITR for 3 years with
computation .
5- Pan Card
6- Statement of Bank account/photocopy of Bank Pass Book
having
entries of last six months.
7- Tw o g u a r a n t o r s R e q u i r e d ( W h o i s s a l a r y d r o w n t h r o u g h
Branch)

P a p e r re q u i re d f ro m g u a r a n t o r s :
 (i)- 2 Passport size photographs.
(ii)- Photo copy of Identity (Photo ID Vo t e r
card/Passport/DL/Pan card etc.) & Address proof
( Te l e p h o n e b i l l / E l e c t r i c y b i l l / R a t i o n c a r d / ceilling of
gass connection etc.).
(iii)- Photo copy of Income / Net worth proof (Salary slip +
Form-16/
ITR last 3 years).
(iv) A c c o u n t s t a t e m e n t / P a s s B o o k P h o t o c o p y.

B. After Sanction of loan at the time of disbursement :-

1- Revenue stamp-3.
2- 2 stamp papers for Rs. 100/- each in the Name of
Borrowers.
3- N o t a r i z e d A ff i d a v i t
4- Share money : 5.0% of loan amount
5- (i) Processing fees : 0. 5% of Loan amount max. Rs.
2,500/-
+ service tax
(iii) Application fees : Rs. 20/-
(iv) Membership fees : Rs. 10/-
(v) Nominal membership fees of both guarantors 2+2= 4/-

SERVICES OFFERED :

1) BRANCHES WORKING 365 DAYS

2) ACCOUNT HOLDERS AND SHARE HOLDERS ARE PROVIDED FREE
ACCIDENTAL INSURANCE COVER UPTO 1,00,000/-
3) DISABLED AND WIDOWS ARE ALSO ELIGIBLE FOR EXTRA
INTEREST ON THEIR DEPOSITS
4) LOCKERS FACILITY AVAILABLE AT ALL BRANCHES AT CHEAPER
RATES
5) ALL TYPES OF LOAN & ADVANCES FACILITY AVAILABLE AT ALL
BRANCHES
6) SPECIAL SCHEMES OF DEPOSIT ARE ALSO AVIALABLE .
7) FACILITY TO OPEN BASIC BANKING ACCOUNT
8) ATM FACILITY
9) SMS ALERT
10) NEFT/RTGS FACILITY
11) E-COMM.(ONLINE)PAYMENT FACILITY
 OBJECTIVSS OF THE PROJECT

The main objective of behind this project is to analysis the actual

position of NPA deeply

To know about the NPA classification and provisioning

requirement for non-performing asset:

To calculate the total non-performing asset and compare with other

banks and on the basis to decide the growth rate of different bank.

The main object is know about the proper system of bank for
reducing non-performing asset or for conversion of non-performing
asset.

To know the various and strategies for non-performing asset for the
bank.

To learn about how to solve the problem of non-performing asset.

 LIMITATION

o The bank I have chosen is totally on rural or agricultural bases, so

the bank cannot provide some English literature for helping me
in project.

o It is on rural basis, and other banks, which are comparing and with
it are not only rural basis so comparison will not made properly.

o This bank is on basis of rural or agricultural part so it will not

accept the system of urban banks.

o The amount of loans and advances are also limited so it is obvious

that the non-performing of this bank will les than the other
comparatives banks.

o Non performing asset cannot be totally converted into performing

asset but only these are some solutions for reducing it.
 METHODOLOGY OF THE PROJECT

This project is prepared on Non-Performing Assets. The

methodology used in this project is as follows.

First of all I have the basis studied the basic concept of NPA.
After the introduction, the asset classification is described and the
provisioning norms for it by NAARD are shown.
All the above matters according to narsimha committee is shown.
Then according to NPA statement the NPA analysis is done on the
basis of previous years financial data.
Comparative statement on the basis of various ratios is done.
At, last the recovery part is shown & various reasons, strategies,
warning signals, recovery procedure and steps for reducing NPA
are included.
 INTRODUCTION OF NON PERFORMANCE ASSET

WHAT IS NPA?
A non performing asset is defined generally as a credit facility in
respect of which interest or installment of principal is in areas for two
quarters or more, however, in respect of agriculture advances if interest
has not been paid during the last two harvest seasons ( covering two half
years) after it has become a past due (i.e. days beyond the due date). Such
advances should be treated as NPA. It is important to note that the
overdue installment only as per the guidelines of RBI on prudential
norms.

Standard assets
Standard assets is one which does not disclosed and problem and
which does not carry more than normal risk attached to business. Thus an
assets, which is not NPA, may be treated as standard or Good assets. Such
account holders/customers pay interest in cash regularly on prescribed
dates and repay the amount of installment of loan on the due dates or
before the grace period if granted.

Sub-standard asset
A non-performing asset may be classified as sub-standard asset
when the asset had remained overdue for a period not exceeding three
years. An asset where the terms and conditions of the loans regarding
payment of interest and repayment of principals have been renegotiated
or rescheduled should be classified as substandard for the last two years
of satisfactory performance. Performance can be judged from the
recovery of interest and repayment of installment of principal of loan
credit facility.

Double Asset
A non-performing asset may be classified as doubtful asset when
the asset had remained overdue for a continuous period exceeding three
years.

Loan asset
Loss asset are those where loss was identified by the bank
auditor/RBI/NABARD inspections but the amount has not been written
off wholly or partially. An asset which is considered unrealizable and/or
of such little value that its continuance as a doubtful asset is not
worthwhile, should be considered as loss asset.

Past Due
A credit facility is treated as past due when it remains outstanding
for days beyond the due date. In agriculture crop loans due dated are
fixed in accordance with harvesting seasons different types of copies I.e.
kharif Corp., cash crop rabicrop etc. In investment term loan due dates or
fixed after some grace period depending the returns to be derived from in
investment.
 GUIDELINES ON PRUDENTIAL NORMS INCOME
RECOGNITION, ASSET CLASSIFICATION AND
PROVISIONING NORMS

INCOME RECOGNITION NORMS TO CO-OPERATIVE BANKS

The prudential norms for income recognition should be

based on record of recovery and therefore SCBs/CCBs should not take
unrealized income to profit and loss accounts. However in the case of
certain states where the state co-op act provides for taking such
unrealized interest to income head in the P & L A/C. it is necessary for
those SCBs to make full provisioning for equivalent amount by
charging to P & L A/C. In other words, the SCBs which are charging
for interest to all overdue loans and if such interest remains unrealized
the same may be taken to income account provided matching provision
is fully made for the same by charging to P & L A/C. Accured interest
taken to income account in the previous year should also be provided
in full in case the same becomes overdue.

Fee, commission and other income may be treated as the

income only when the account is classified as standard; Besides, a
matching provision should be created to the extent such items were
treated as income in the previous year but not realized in the
subsequent year.

Fee and commission earned by banks as a result of

renegotiation or scheduling of outstanding debts should be recognized
 on an accrual basis over the period of time covering the renegotiated
of credit.
Even in the case of credit facilities backed by
Government guarantee, over due interest can be taken to P & L A/C.
only in case of matching provision is made.

The bills purchased should be treated as overdue if the

same remain unpaid. Interest may be charged to such bills and the
same may be P & L A/C provided matching provision is made.
NORMS FOR TREATING LOANS/ADVANCES ETC., AS NPA
(OVERDUE) FOR THE PURPOSE OF ASSET CLASSIFICATION

Definition of Non-performing asset (NPA)

A credit facility is treated as past due when it remains outstanding
for Days beyond the due date, A non-performing asset (NPA) is defined
generally as a credit facility in respect of which interest or installment of
principal is in arrears for quarters or more.

Treatment of Agricultural Advances

In respect of advances granted for agricultural purposes where
interest payment is on a half yearly basis, In other words, if interest has
not been paid during the last two seasons of harvest(covering two half
years) after it has become past due when such an advance should be
treated as NPA.

Treatment of Advances for a Allied Agricultural

Activities As Well As the Non-Farm Sector
Credit facility granted for other allied agricultural activities as well
as for non-farm sector activities should be treated as NPA, if amount of
installments of principal and/or interest remain outstanding for a period of
30 days beyond two quarters from the due date.
 Term Loans (All Types)
Loans in respect of which interest or installments of principal
amount remained as overdue for two quarters as on balance sheet date
may be treated as NPA.

Project/Housing Loans, Etc.

In respect of project (industry and plantation, etc.) where
moratorium is given for payment, loans become due only after
moratorium or gestation period is over i.e. such a loan becomes overdue
if installment is not paid on due date. Similarly, in case of housing loans
or similar advances granted to staff members where interest is payable
after recovery of principal, such loans should be classified as overdue
(NPA) when there is a default in repayment of principal on due date of
payment and overdue criteria will be the basis for classification of asset.

TREATEMENT OF DIFFERENT FACILITIES TO BORROWER

AS OVERDUE (NPA)

Short term agricultural advances are granted by SCBs to PACS for

the purpose of leading. In respect of advances as well as advances for
other purpose, if any, granted under lending system, only that particular
facility which become irregular should be treated as overdue (NPA) and
not all other facilities granted to a borrower, all such loans should be
become overdue (NPA) even if one loan a/c becomes overdue (NPA).
 NORMS FOR ASSET CLASSIFICATION

CRITERIA FOR CLASSIFICATION OF ASSET

Classification of agricultural and non-agricultural loans is required

to be done into four categories, on the basis of age overdue, as under.

Good/standard Assets
Good asset is one which can not disclose any problem and which
does not carry more than normal risk attached to business. Thus, in
general, all the current loans, ST agricultural and non-agricultural loan
which have not become NPA may be treated as standard asset.

Sub-standard Assets
A non-performing may be classified as sub-standard on the
following basis of criteria.

1) An Asset which has remained overdue for a period not

exceeding
3 years in respect of both agricultural and non agricultural loan
should be treated as sub standard.

2) In case of all types of loans, where installments are overdue

for a
Period not exceeding 3 years, the entire outstanding in term
loan should be treated as sub standard.
 3) An asset, where the terms and condition of the loans regarding
payment of interest and repayment of principal have been
renegotiated rescheduled after commencement of production,
should be classified as substandard and should remain so in
such category for at least two years of satisfactory performance
under the renegotiated terms In other words, the classification
of asset should be upgraded merely as a result of rescheduling
unless there is satisfactory compliance of the above condition.

Doubtful Asset
A non performing asset may be classified as doubtful on the basis
of following criteria.

1) An Asset which has remained overdue for a period exceeding 3

years in respect of both agricultural and nonagricultural loans
should be treated as doubtful asset.
2) In case of all type of loans, where installments are overdue for
more than 3 years, the entire outstanding in terms of loans
should be treated as doubtful

Loss Asset
Loss asset are those where loss is identified by the bank inspectors
but amount has not been written off wholly or party. In other words an
asset which is considered un realizable or such little value of its
continuance as a doubtful asset is not worthwhile, should be treated as a
loss asset such loss asset will include overdue loans in which cases-
1) Decreases of executions petitions have been time barred or
documents are loss or no other legal proof is available to claim
the debt.
2) Where the members and their sureties are declared insolvent or
have died leaving no tangible assets.
3) Where the members are left the area of operation of the society
leaving no properly and their securities have also no means to
pay the dues.
4) Where the loans is fictitious or when gross utilization is notified
5) An amount which can not be recovered in case of liquidated
societies.
PROVISIONING NORMS ON THE BASIS OF ASSET
CLASSIFICATION

1) Provisioning is necessary considering the value of security charges

to the banks over a period of time. Therefore, after the assets of SCBs
are classified in to various categories necessary provision has to be
made for the same. The details of provisioning requirements in the
respects of various categories of assets are mention below.

2) The following aspects, however, may be kept in view while

making provisions.

A. Agricultural Loans As Secured

All agricultural loans may be treated as fully secured as the
same are disbursed against charge on land as provided in the
respective state co-operative societies rules.

B. Treatment to P.F. and gratuity Amount

Liability towards PF and gratuity should be estimated on
actuarial basis and fully provided for.

C. Loans exempted from provisioning

Advances against term deposit NCSs eligible for surrender,
life policies are exempted from provisioning. Therefore, the above
account may not be classified as NPA.
D. Loans against gold/Govt. securities
Advances against gold, government securities are exempted
from provisioning requirements.

E. Depreciation in investment-accounting procedure.

The investment portfolio of the bank would normally consist
of approved securities and other shares, debentures and bonds of
co-operative and other institution. Investment in the approved
securities should be bifurcated into permanent and current
investments. Permanent investment are those, which banks intend
to hold till maturity and current investment are those, which bank
intend to deal in, that buy and sell 0 day-to-day basis. Bank should
keep not more than 50% of their investment in permanent category.
While the depreciation in respect of permanent investment is not
likely to affect their realizable value of maturity, depreciation need
not be provided for investments in the permanent category.
Investment in the current category should be carried at lower of
cost value or market value, on a consistent basis. Depreciations in
the current investments, if any, therefore be fully provided for.
Banks following a more prudent method of valuation (e.g. all the
investments marked to market) should continue to do so and there
should not be any slip back in their case.

Investment should be shown in the balance sheet net of

depreciation. It is however, open to bank to show the book value of
investment, the depreciation against and net amount of investments
separately.

As regard valuation of securities other than approved

securities they should be valued at lower of cost price or market
values. Investments in the shares of co-op. institutions, however,
may be valued at carrying cost price.
 GENERAL GUIDELINES TO PRUDENTIAL NORMS

1. With a view to preparing the profit and loss a/c. and balance sheet,
reflecting banks actual financial health, a proper system for recognition
of income, classification of asset and provisioning on a prudential basis is
necessary. The prudential norms for recovery rather than on any
subjective consideration. Likewise, the classification of norms, regarding
provisions should be made on the basis of classifications of assets into
four different categories. In this connection, we advise that such
prudential norms have already been made applicable to SCBs with
suitable modification has been decided that these prudential norms should
be adopted by SCBs on prudential norms for income recognition, asset
classification and provisioning on the basis of classification of asset are
given in the Annexure enclosed. These guidelines may please be studied
carefully and arrangement made for their implication.

2. Year of Implementation
Banks are advised to implement the instructions from the
accounting year 1996-97. Each branch should undertake competent
officials from the internal inspection departments should verify the
exercise of classifications of assets, making provisions and the same. The
bank should also get the classification, verified by auditors and a
certification to this effect obtain
from the Auditors. The balance sheet for the year ending 31.03.97 should
reflect the financial position of the bank as arrived at on the basis of
instructions now issued to banks. After the exercise is completed banks
are advised to prepare a comprehensive note indicating the banks
position in the light of instructions contained in the circular and put it up
loss a/c and balance sheet as required under sec. 29 of B.R. act, (AACS)
and instructions issued from time to time on the subject.

3. Provisioning Requirement - Phasing

In order to give some time to co-operative banks to adjust
themselves to the new system, phasing of provision is suggested as
indicated below;

a) First Year
100% in respect of loss assets and less than 30% of the
provisioning needed in respect of sub-standard and doubtful assets.

b) Second Year

The balance provisioning needed in respect of the above

categories of assets together with current provision needed in
respect of assets classified in the second year. In other words, all
the doubtful and sub-standard assets have to be provided fully from
second year onwards in addition to 100% for loss assets.

The requirements of state co-operative societies Acts and or

Rules made there under or other statutory attachment may continue
to be followed if they are more stringent than the guidelines now
prescribed by us.
A copy of this latter is being sent to the RCS of your state
Territory for his information with request to advised the statutory
Auditors of SCBs to look into compliance of the guidelines at the
time of their audit.
 INCOME RECOGNITION

Till march 1992, some commercial banks have been accounting

interest income on accrual basis i.e. total interest accrued were being
accounted as interest income irrespective of its actual collection. Based
on the recommendation of Mr. narsimhan committee, RBI has now issued
a directive that the policy of income recognition should be objective and
it should be based on the record, of recovery rather than on any subjective
consideration.

It has been suggested that the income from the non performing
asset (NPA) cannot be recognized on accrual basis unless the same is
actually received.
For the purpose of this prudential accounting, past due status have
been defined as follows;

PAST DUE STATUS

Any amount, which remains outstanding for 30 days beyond the date will
be reckoned as past due whereas an asset become NPA, when it ceases
to generate income for bank.

NPA is defined as a credit facility in respect of which the interest

has remained unpaid for a period of four quarters during the year ending
31st march, 1993, three quarterly during the year ending 31 st march, 1994,
and two quarters during the year ending 31 st march, 1995, and onwards.
This shows that from 31st march, 1995, onwards, interest pending
collection for more than 2 quarters prior to the date of the balance sheet
should not be accounted as income. This is applicable to term loans, cash
credits, overdrafts and other types of advances also.

In respect of advance granted for agricultural purposes, where

interest payment is on half yearly basis synchronizing with harvest, then
the bank should adopt agricultural seasons after past due then such
advance will become NPA.

In respect of cash credits and over drafts, in addition to the above

norms, the account should be treated as out of order if the out standing
balance remains continuously in excess of the sanctioned limits drawing
power. In cases, where the outstanding balance is within the sanctioned
limit/drawing power, but there are no credits continuously for six months
as on the date of balance sheet or credit are not enough to cover the
interest debited during the same period, this accounts should be treated as
out of order.

REMARKS ON CO-OPERATIVE BANKS

In the light of the prescription illustrated above, it is of urgent necessary

that the co-operative banks also implement this prudential norms
either into or with modification in a planned and phased manner. This
prescription has also been implemented for the urban co-operative
banks. The following critical points may come up in the course of the
implementation of the above prudential norms.
As per the existing accounting system in the co-operative banks, the
interest income is sanctioned on accrual basis. But a corresponding
provision as overdue reserves is being made for the overdue interest in
respect of-

I. Interest accrued on loans and demanded during the period for which it
remains unrealized as on the date of the balance sheet.

II. Interest realize by debiting un-renewed cash credits and overdrafts.

But as per prudential norms prescribed by RBI for commercial

banks, a provision should be made for the interest accrued on the non
performing assets. It indicates that no such provision is required to be
made for the interest accrued on the asset till it becomes NPA. Whereas,
the system now being followed by the co-operative banks, regarding
income recognition ensures that interest overdue on irrespective of period
of overdue is not included as income. Hence the existing income
recognition norm of co-operative banks is more stringent than those
prescribed by RBI for commercial banks.

To illustrate the interest accrued and due on a particular accounts as

on 31st December. 1992 can be treated as income, even thought it is not
realized as on 31st march 1993, as per the norms prescribed by the RBI
for commercial banks. But in case of co-op. banks, even the interest
accrued and due for payment on 31 st march 1993, if not realized then it
will not be treated as income for the purpose of profit as on 31 st march
1993.

SYSTEM OF REVERSAL OF UNREALISED INTEREST

As per the state co-operative society Act and by Low of the co-
operative banks, at last 40% of the profit each year is to be appropriated
to statutory Reserve Fund and Agriculture Credit Stabilization fund at the
rate of 25% and 15% respectively. the remaining amount of profit is also
appropriated as per by low provisions. But there is no system of carrying
over the profit or part of here is required to be made, then there may not
be sufficient profit left in that year to carry out such reversal.
 TRANSPARENCY IN ACCOUNTS & PROVISIONING
REQUIREMENTS AND ITS LIKELY IMPACT ON RURAL
CREDIT

Government of India set-up a committee on financial system which

is known as narsimhan committee to examine all aspects relating to the
structure, organization, functions, procedure of the financial system of
our country including banking and non banking organizations.

On consequent upon the nationalization of commercial co-

operative banks, exhibits true picture and become transparent. Here it is
humbly tried to examine and to study such recommendation on income
recognition, asset classification and provisioning on P & L a/c. and its
likely impact on rural credit provided by co-operative bank as well as
commercial bank.

1) INCOME RECOGNITION

The committee was of the view that the banks in India should
follow the international practice of treating an account as non-performing
asset (NPA) when interest is overdue for at least two quarters. No income
should be recognized on such accounts. Having accepted this
recommendation, the RBI has already issued guidelines to all scheduled
commercial banks indicating that an amount under any credit facility to
be treated as past due when it has remind outstanding for 10days
beyond the due date. Further, a NPA should be defined as a credit facility
I respect of which interest has reminded unpaid for period of our quarters
during the year ending March 1933, three quarters during the year ending
31st March 1994 & two quarters during the year ending 31st March 1995
and onwards. N case of agricultural loans the account will be treated as
NPA if interest has not been paid during the last two seasons of harvest
after it has become past due.

2) The bank should not charge and take to income account interest on all
NPAs. The RBI instructions indicate that the interest accrued and credited
to income account only during 1991-92 with respect to NPAs should be
reversed or provided for on the current accounting period i.e. 1992-93 if
uncollected.

3) For applying these norms credit facilities with outstanding balance of

Rs.25000/- and above alone need e considered. Credit facilities backed by
government guarantees though past due should not be treated as NPA.

(4) As in the case of income reorganization, the provisioning norms will

apply only for such credit facilities with an outstanding balance of
Rs.25000/- and above, however, in respect of amounts below Rs.25000/-
aggregate provision to the extent of 2.5% of the total outstanding should
be made as prudential norms. Incase of advances guaranteed by ECGC
provision should be made only for the balance in excess of the amount
guaranteed by this corporations. The banks also been allowed to face half
of their provision requirements during the year 1992-93 to the subsequent
year.
(5) Transparency in accounts

The committee also felt that the banks balance should follow the
recommendation of the International Accountant Standards (IAS).
Committee with regard to transparency and disclosures.

(6) Income recognition

The income recognition norms, prior to the fresh guidelines issued

by the RBI, were not aligned to the international norms as recommitted
by the committee. The earlier guidelines required scheduled commercial
banks not to recognize income in respect of degree, suit field and identify
bad doubtful accounts. The application of these norms allowed a major of
subjective ness compare to the objective assessment on income
reorganization to be followed under the IAS norms. It has been
understood that most of the scheduled commercial bank to which the
norms where apply had indicated that the recognition of income as per the
prudential nouns would put them into losses, leading to the revision of the
norms by the RBI in December 1992. the separate treatment of
agriculture accounts for classifying them as NPA being co related to
harvest seasons is appropriate logical.

(7) As per the provisions of sections 29 and 31 of the BR act 1949 the co
operatives are require to take the total interest accrued to the profit and
loss account and make full provisions for the interests not realized.
However the provisions actually made may not be adequate in many
cases. since the BR act does not cover all the co-operatives, 1949 some of
them follow a system of taking only the realize interest to the profit and
loss account. If any notice in this regard are followed up for rectification.

(8) Provisioning requirements.

The need for an objective definition to identify non-performing

assets has been felt since as the Health Code Classification applicable
leaves much to the discretion of the individual banks. The classification
into four bored groups, as suggested by the committee, is likely to
minimize the subjective element. Extent of provision to be made in
respect of the assets will now depend upon their classification into four
groups with specific time dimensions. It is understood that the proposal to
provide tax incentives to induce to make adequate provisions against loan
losses is under consideration.

(9) Transparency in accounts

Under the provision of the B.R. Act 1949 the RBI has already
introduce a new format for reporting the annual accounts which, among
others, in corporate number of schedules for reporting item wise brake
up. The schedule commercial bank s have reported there annual accounts
for the final year 1991-1992 as per the new format. However it has been
felt that the co-operatives may continue to report their annual accounts in
the existing formats since the requisite data needed for the monitoring
and analysis is already available them.
 COMPARATIVE FINANCIAL STATEMENT

As the name indicates we simply compare the changes, which have

taken place in the various items of financial statements, in percentage
terms. The increase and the decrease in various items of assets and
liability and similarly the changes in the figures of profit and loss account
indicate the effects of a business being conducted during certain period.

BAREILLY URBAN CO-OPERATIVECO-OPERATIVE BANK

PARTICULARS 2011-2012 2013-2014 2015-2016

Standard Asset 33431.85 43597.49 37206.50
Sub-standard 785.39 794.95 793.48
Asset
Doubtful Asset 1003.63 1352.32 1145.38
Loss Asset 241.11 263.58 288.98
Total Provision 646.01 747.65 846.47
Outside Liability 99845.70 110574.59 113999.72
Capital & Surplus 6934.53 7559.43 8233.94
Interest Earned 2106.91 2313.40 1932.33
Interest Paid 236.24 234.37 215.58
Total Assets 113357.09 126855.34 128395.66

PRIME URBAN CO-OPERATIVECO-OPERATIVE BANK

PARTICULARS 2012-2013 2014-2015 2015-2016
Standard Asset 4722.50 6020.56 7375.84
Sub-standard 138.01 210.85 290.65
Asset
Doubtful Asset 58.38 80.34 110.69
Loss Asset ---- ---- ----
Total Provision 21.28 18.78 14.24
Outside Liability 8324.59 9981.50 13434.87
Capital & Surplus 851.97 1215.84 1688.79
Interest Earned 1028.03 1442.27 1784.13
Interest Paid 517.04 754.09 859.77
Total Assets 9488 14932 23608

CHAPTER: 8: RATIO ANALYSIS

A ratio can be worked out to between two variables having either

cause and effect relationship or connected with other in some other
manner. These two variables can be selected either from balance sheet
and another from profit and loss account.

Ratio are expressed in mathematical terms, like percentage or the

number of time of or in numbers. Some ratio are better expressed when
worked out in percentage like the gross or operating profit to sales. But
certain ratios appear to be more effective when expressed in number of
times like the stocks turnover.

The following ratios are found out for ratio analysis as well as
comparative statement analysis.

Gross NPA Ratio

Net NPA Ratio
Problem Asset Ratio
Depositors Safety Ratio
Shareholders Risk Ratio
Provisions Ratio
Interest Spread Ration
Sub-standard Asset Ration
Doubtful Asset Ration
Loss Asset Ratio

RATIO ANALYSIS

1. GROSS NPA RATIO

 Gross NPA is sum of all the loan assets that are classified as NPA
as per the RBI guidelines as on the balance sheet data. Gross NPA ratio is
the ratio of gross NPA to gross advantages of the bank. When it is to be
expressed in percentage, it is known as gross NPA percentage.

Gross NPA Ratio = Gross NPAs x 100

Gross advances

2011-2012 2013-2014 2015-2016

BANK
5.65% 5.23% 5.75%
BAREILLY
DIST.
5.16% 4.16% 3.99%
PRIME

Interpretation:

Above table and chart indicates the quality of credit portfolio of the
banks. High gross NPA ration indicates low quality credit portfolio of the
bank and vice-versa. We can see from the above two banks gross NPA
ratio that is Urban co-operative bank has stable at 5 to 6% and prime bank
ratio has increasing from the last 3 year. It indicates that the quality of
credit portfolio of Bareilly Urban co-operativeBank is lower.
2. NET NPA RATIO :

The net NPA percentage is the ration of NPA to net advances,

whereas the net NPA can be simply worked out as the gross NPA minus

provisions held for NPA account, and net advances can be simply worked

out as the gross advances minus provisions held for the NPA account.

Net NPA Ratio = Net NPA x 100

Net Advances

Net NPA Ratio = Net NPA - provisions x 100

Gross advances - provisions

2011-2012 2013-2014 2015-2016

BANK
3.58% 3.67% 4%
BAREILLY
DIST.
4.99% 4.33% 3.57%
PRIME

Interpretation:
 Above table and charts indicates the degree of risk in the portfolio
of the bank. High NPA ratio indicates high quantity of the risky assets in
the bank for which no provision was made. Above table of two banks are
indicates that the net NPA ration of the Bareilly Urban co-operativebank
was higher than prime bank. It saws that Bareilly Urban co-operativebank
consist of risky assets on which no provision has been made. It will
become dangerous in the long-term solvency.
3. PROBLEM ASSET RATIO:
It is the ratio of gross NPA to total assets of the bank.

Problem asset Ratio = Gross NPAs x 100

Total asset

2011-2012 2013-2014 2015-2016

BANK
1.74% 1.90% 1.8%
BAREILLY
DIST.
1.70% 1.95% 2.07%
PRIME

Interpretation:
It has been direct bearing on return of assets as well as liquidity
risk management of the bank. High problem assets ratio means high
liquid. Above table shows that Bareilly Urban co-operativebank becomes
successful in achieving lower problem asset ratio whereas prime bank
have comparatively higher ratio indicates.
4. DEPOSITORS SAFETY RATIO :

It is also known as standard asset to total outside liquidity ratio.

Here standard asset means total standard loans assets and investments.
Outside liquidities are total liquidities minus capital and reserves.

Depositors safety Ratio = Total Standard Asset x 100

Total Outside liability

2011-2012 2013-2014 2015-2016

BANK
33.22% 39.43% 33.48%
BAREILLY
DIST.
54.90% 60.32% 56.73%
PRIME

Interpretation:
It indicates the degree of safety of depositors money. The above
table of two bank saws the ratio of depositors safety ratio is lower than
compare to prime bank in each year. Bareilly Urban co-operativeBank
should improve in order to win the confidence of depositors.
5. SHAREHOLDERS RISK RATIO :
It is the ratio of NET NPA to total of capital and reserve of the
bank.
Shareholders Risk Ratio = Net NPAs x 100
Total Capital & Surplus

2011-2012 2013-2014 2015-2016

BANK
16.78% 21.99% 20.10%
BAREILLY
DIST.
22.92% 22.41% 20.55%
PRIME

Interpretation:
It indicates the degree of risk associated with the shareholders
investment. High ratio means high risk to the shareholder. Above table of
two bank indicates the prime bank is able to reduce the shareholders risk
in the last three years while in case of Bareilly Urban co-
operativecorrelated-operative banks ratio is moderate but increasing
which may leads to divert their funds to other bank which has lower risk.
Bank should keep constant eye on this ratio to maintain and attract the
funds of shareholders.
6. PROVISION RATIO:
It is the ratio of total provision held in respect to gross NPA of the
bank.
Provision ratio = Total Provision x 100
Gross NPAs

2011-2012 2013-2014 2015-2016

BANK
38% 31% 31.67%
BAREILLY
DIST.
3.55% 6.45% 10.84%
PRIME

Interpretation:
It indicates the degree of safety measures adapted by the banks. It
has direct bearing on profitability, dividend and safety of the shareholders
fund. If the provision ratio is less, it indicates that the bank has made
under provision. The above table indicates the provision ratio of two
banks which saws Bareilly Urban co-operativebank has more than 30%
of its gross NPA from last three year which saws over provision of NPA
which indicates that bank believe in top keep higher safety for
profitability, dividend and safety of shareholders funds. The prime bank
has not more provision ratio so the bank has to improve this ratio.
7. INTEREST SPREAD RATIO:
This is the excess of total interest earn over the total interest
expanded.
( Interest earned during the year-
Interest Spread ratio = Interest paid during the year x 100
Standard Assets

2011-2012 2013-2014 2015-2016

BANK
4.61% 4.77% 5.60%
BAREILLY
DIST.
12.53% 11.43% 10.82%
PRIME

Interpretation:
This ratio indicates the efficiency of the bank in managing and
marching the interest expenditure and interest income effectively. Interest
spread is critical to a banks success as it exerts a strong influence on its
bottom line. The above table shows that Bareilly Urban co-operativebank
is leading in interest spread ratio compare to prime bank but we can also
see that from last three year its interest spread ratio increasing which
indicates that banks earning asset is increasing and non-performing
account is rapidly converting in the performing account.
8. SUBSTANDARD ASSETS
It is the ratio of total substandard assets to gross NPA of the bank.

Substandard assets = Total substandard Assets x 100

Gross NPAs

2011-2012 2013-2014 2015-2016

BANK
35.62% 32.97% 38.99%
BAREILLY
DIST.
72.42% 72.41% 70.27%
PRIME

Interpretation:
It indicates the scope of up gradation / improvement in NPA.
Above table of different ratio of substandard shows that prime co-
operative Bank has highest ratio which means in all NPA substandard
ratio has major proportion which indicates that there is the highest scope
for advance up gradation on improvement because it will be very easy to
recover the loan as minimum duration of defaults. The ratio of Urban co-
operative bank has not much scope of loan gradation or improvement as
their ratio is very low.
9. DOUBTFUL ASSET RATIO:
It is the ratio of total doubtful assets to gross NPA of the bank.

Doubtful Asset = Total doubtful Assets x 100

Gross NPAs
2011-2012 2013-2014 2015-2016
BANK
51.41% 56.10% 49.19%
BAREILLY
DIST.
27.58% 27.59% 29.73%
PRIME

Interpretation:
It indicates scope of compromise of up NPAs reduction. Above
table shows the Bareilly Urban co-operativeBank ratio is considerably
decreasing for the last three years, which implies that it has to go for
compromise as its substandard assets consist highest portion in the total
NPAs. While in prime bank it remains very stable.
 IN COMPARISON TO THE PREVIOUS YEAR PERFORMANCE

URBAN CO- URBAN CO- PTIME PRIME

RATIO OPERATIVE(02- OPERATIVE(01- (02-03) (01-02)
03) 02)
Increase Increase Increase Increase
Gross NPA
Increase Increase Increase Increase
Net NPA
Increase Decrease Increase Increase
Gross NPA
Rat
io
Decrease Decrease Increase Increase
Net NPA
Rat
io
Decrease Increase Increase Increase
Problem
As
set
Rat
io
Decrease Increase Decrease Increase
Depositors
Saf
ety
Rat
io
Decrease Increase Increase Increase
Shareholders
ris
k
Rat
io
Increase Decrease Decrease Decrease
Provision
Rat
io
 Decrease Decrease Increase Increase
Interest
Spr
ead
Rat
io
Increase Decrease Increase Increase
Sub-Standard
As
set
Rat
io
Decrease Increase Decrease Decrease
Doubtful
As
set
Rat
io

WORKING

BAREILLY URBAN CO-OPERATIVEBANK FOR 2015-2016

1. Gross NPA Ratio = 2227.84 x 100

39434.34

= 5.65%

2. Net NPA Ratio = 2227.84-846.47 x 100

39434.34-846.47

= 3.58%

3. Problem Asset Ratio = 2227.84 x 100

128395.66
 = 1.74%

4. Depositors Safety Ratio = 37206.5 x 100

113999.72

= 33.22%

5. Shareholders Risk Ratio = 2227.84-747.65 x 100

8233.94

= 16.78%

6. Provision Ratio = 846.47 x 100

2227.84

= 38%

7. Interest Spread Ratio = 1932.33-215.58 x 100

37206.5

= 4.61%

8. Sub-standard Asset Ratio = 793.48 x 100

2227.84

= 35.62%

9. Doubt-full Asset Ratio = 1145.38 x 100

2227.84

= 51.41%
 CHAPTER: 9: FINDIGS

1) From the gross NPA Ratio of the bank in 2001 is 5.75%. Which
suddenly decreases in 2002 i.e. 5.23% by 0.52%. It is good for the
bank But in increases in 2003 i.e. 5.65% by 0.42%, which is bad
for the bank.
2) Gross NPA Ratio i.e. urban co-operative bank has stable 5 to 6 %
and Prime bank ratio has increases from the last three years. So
quality of credit portfolio of Bareilly Urban co-operativebank is
lower.
3) Net NPA Ratio of The Bareilly Urban co-operativeBank was higher
than Prime Bank. It shows that Bareilly Urban co-operativeBank
consist of risky assets. It will become dangerous in the long term
solvency.
4) Depositors Safety ratio is lower than compare to prime bank in
each year. So Bareilly Urban co-operativebank should improve it.
5) The prime bank is reduce the share holders risk in last three years
while in case of Bareilly Urban co-operativeBank Ratio is
moderate but increasing, So bank is divert their funds to other
banks.
6) Provision ratio find that total provision divided gross NPAs of the
bank in 2001 is 31.67% and it decreasing in 2002 i.e. 31% by
0.67% and it also increases in 2003 i.e. 38% by 7% increases. So
we can say that firm keep higher safety to compare the prime bank.
7) Substandard Asset Ratio find that total substandard asset upon
gross NPAs of the bank in 2001 is 38.99% it decreases in 2002 i.e.
32.97% by 5.02% decrease and also increase in 2003 i.e. 35.62%
by increase 2.5% in other side prime bank ratio is increases its ratio
in each year.
8) Substandard ratio of Bareilly Urban co-operativebank has not
much scope of loan gradation or improvement as their ratio is very
low.
 SUGGESTIONS
Identifying reasons for turning of each account of a branch into
NPA is the most important factor for upgrading the asset quality, as
that would help initiate suitable steps to upgrade the accounts.

The bank must focus on recovery form those borrows who have the
capacity to repay but are not repaying initiation of coercive action a
few such borrows may help.

The recovery machinery of the bank has to be streamlined, targets

should be fixed for field officers / supervisors not only for recovery
in general but also in terms of upgrading number of existing NPAs.

In the bank there should be a proper manpower planning.

Bank should try to establish the branches in competitive market, so
it will increase their profit.
Now a day more competition increase in the market so bank should
give more facility to its customers like ATM facilities by which it
can attract more and more customers.
Bank has required increasing the cash and bank balances by
reducing the unnecessary expenses for future plan.
Increase the advances, which is beneficial for the bank to meet
cash requirements from the out side.
Bank should increase the deposits through the advertisement &
dividend payment etc.
In last, I suggest that bank should update its website for better
marketing so customer see the bank's position progress.