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PERFORMING ASSETS IN
STATE BANK OF MYSORE”
By:
Abhijna.P
Reg No. 1DSO7MBA03
COMPANY PROFILE
Founded : Mysore, 1913 (as Mysore bank)
Meaning:
An asset, including a leased asset, becomes
nonperforming when it ceases to generate income
for the bank.
A NPA is a loan or an advance where Interest
and/ or installment of principal remain overdue for
a period of more than 90 days in respect of a term
loan.
INTRODUCTION
2008-09
2005- 2006- 2007- projecte Inference:
Items 06 07 08 d
Gross NPA
level 398.13 383.76 376 336 From the chart,
Operating
profit 438 471.58 515 721 it is understood
that as the gross
NPA level started
decreasing in
recent year,
operating profit
started increasing
drastically.
CORRELATION TEST
HYPOTHESIS
H0: There is no significant relationship between gross NPA of a bank to its
operating profit.
H1: There is a significant relationship between gross NPA of a bank to its
operating profit.
Operating
Gross NPA profit
Gross NPA Pearson Correlation 1 -.992(**)
Sig. (2-tailed)
.008
N
4 4
Operating Pearson Correlation -.992(**) 1
Sig. (2-tailed)
Profit .008
N
4 4
** Correlation is significant at the 0.01 level (2-tailed).
INFERENCE:
There is a negative correlation exists between gross NPA of a
bank with operating profit at a 0.01 level significance. So H1
is accepted, which states there is a significant relationship
between gross NPA of a bank to its operating profit.
RECENT YEAR NPA PERFORMANCE
CHART
All
Grou bank
p s
avera avera
2 2 ge ge
State bank 2003 2004 2005 006 007 2007- 2007- Inference:
of Mysore -04 -05 -06 -07 -08 08 08
Net NPA
ratio 2.96 0.92 0.74 0.45 0.43 1.43 1
In recent
years Net NPA
ratio has come
down drastically,
which is very
much below the
standard level of
1, which is very
favorable for the
bank.
COMPARISON WITH OTHER GROUP
BANKS