Professional Documents
Culture Documents
)
5
$
7
9
*
Management of nonperforming assets in IOB
!%("#C(d,("'#. N%"-i")&#) i"'%2 of the +an! grew by 47.K= to
3s.4$>$ crore. Fee&based income increased to 3s.5J%7 crore
supported by income from bancassurance at 3s.I$ crore.
While the growth in )%)(! F-"## of the +an! was contained at K.%=
%-&()i"1 F-"## of the +an! grew by a moderate 57.>= during
FN5% on account of provision for wage revision.
N) i")&#) i"'%2 improved to 3s.>I$5 crore with a growth of
4%.J= compared to 3s.JK5$ crore as at Garch 4%%(. 'he +an! could
maintain the spread by increasingly focusing on core business growth
and containing cost. N) I")&#) M(&1i" <NIM= improved from 4.K$=
as at Garch 4%%( to 4.$%= as at Garch 4%5%.
*4 FY19 P&$%&2("'
O-&()i"1 -&%$i) for the quarter grew by 54.J= to 3s.5J7% crore
compared to 3s.54K7 crore last year.
) total -&%,i#i%" of 3s.(4K crore was made for the quarter
higher than the 3s.>>J crore for the same quarter a year ago.
#ncome from #(! %$ i",#)2")# during the quarter was to the
e"tent of 3s.55J crore as against 3s.7J( crore during the same
quarter a year ago.
6n account of the above ") -&%$i) for QJ FN5% wor!ed out to
3s.>%7 crore compared to 3s.K5( crore during the corresponding
quarter of last year.
Buring QJ FN5% the +an!s )%)(! i"'%2 increased to 3s.>>%K
crore contributed by 3s.7>J> crore from i")&#) i"'%2 $&%2
!%("#C(d,("'#.
O-&()i"1 F-"## during the quarter was maintained at
3s.$KK crore.
N) i")&#) i"'%2 for the quarter rose to 3s.5>($ crore from
3s.57%> crore a year ago recording good growth of 44.J=.
Bu#i"## G&%0)+ ("d P&%du')i,i)4
)gainst the challenging economic environment, )%)(! :u#i"## reached
3s.J%7($I crore as at
Garch 4%5% recording a
robust y&o&y growth of
4J.7= over 3s.74>554
crore last year.
66
FY+0, FY+09 FY+10
2-1310
325112
)039,-
0
100000
200000
300000
)00000
R
#
$
C
r
o
r
e
Tot(. /0#!%e##
Management of nonperforming assets in IOB
While aggregate deposits of the +an! grew by 4>.I= y&o&y to touch
3s.47JI>5 crore ") (d,("'# increased to 3s.5I(77> crore
registering a y&o&y growth of 44.>=. C&di) )% d-%#i) &()i% stood at
K4.5I=.
'he +an!/s '%& d-%#i)# grew by 74.7=. 'he share of CASA
d-%#i)# in domestic deposits was 4(.$>=. 2avings deposits recorded
a growth of over 5(=.
Buring FN5% the +an! had launched a nationwide S(,i"1# U)#(,
campaign to mobili*e higher savings deposits. 'he +an! could add a
significant 5I la!h plus new savings ban! accounts during the campaign
period.
'he +an!s d%2#)i' :u#i"## constituted (I.K= of the aggregate
business with 3s.44$JJ> crore 0(K.J=1 under deposits and 3s.5I44$K
crore 0(>.(=1 under advances.
.roductivity measured as Bu#i"## -& E2-!%4 rose to R#.D.7>
crore as at Garch 4%5% compared to 3s.K.$% crore a year before.
Bu#i"## -& B&("'+ rose to R#.1>8..> crore as against 3s.55$.(I
crore at Garch 4%%(. 'he +an! has added 8.54 2i!!i%" clientele during
the year ta!ing the total '!i")! :(# to 7K.7J million as at Garch
4%5%.
C&di) S12")#
)dvances to -&i%&i)4 #')%& reached 3s.>(75% crore recording a
significant y&o&y growth of 45.I= and accounted for J7.(4= of the
adEusted net ban! credit. ,redit to agriculture touched R#.85958 '&%&
signifying a strong 4J.J= growth covering 8D.>D !(6+ farmers. 'he
+an!/s credit to Mi'&%, S2(!! ("d Mdiu2 E")&-&i## 0G2GEs1 grew
by a robust 7%.J= to reach R#.>1954 '&%& compared to a level of
3s.47$47 crore a year ago.
'he +an! opened "i" F'!u#i, 2i'&%$i"("' :&("'+# in urban
centres to cater to the requirements of the urban poor.
2ustaining its premier position among nationali*ed ban!s the +an!s
du'()i%" !%(" -%&)$%!i% increased to R#.87D. '&%& as at Garch
4%5% registering a y&o&y growth of 85.DL and covering more than 1.51
!(6+ students.
67
Management of nonperforming assets in IOB
With a disbursal of R#.7.5> '&%& during the year credit under &)(i!
!"di"1 %-&()i%"# touched R#.8>D98 '&%& as at Garch 4%5% with a
y&o&y growth of 89.5>L. 'he +an!s retail portfolio as a proportion of net
credit stood at 14.5DL. )dvances under housing 0direct1 increased by
87.1L growth to reach R#.1911. '&%&. Aousing portfolio with a
significant portion in priority ambit constituted 48.>L of the retail
portfolio.
,ontinuing with its commitment to greater financial inclusion in the
country the +an! has achieved )%)(! $i"("'i(! i"'!u#i%" in all the 8.
!(d di#)&i')# spread across five 2tates. With a mobili*ation of 4.59
!(6+ "%-$&i!! (''%u")# during the year the total tally under such
accounts rose to 81.79 !(6+ since inception. )mount under such
accounts increased to 3s.7$4.> crore. 'he +an! has so far formed 7.4
la!h S!$ H!- G&%u-# 02A9s1 with credit
lin!ing of 4.K> la!h 2A9s with an outstanding amount of 3s.(4I crore.
E"tending credit under financial inclusion the +an! has issued 5$$KI4
9eneral ,redit ,ards amounting to 3s.4I(.IJ crore.
Further ( "0 '(2-u# for #ndian overseas ban! +an! #nstitute for
)rtisans was inaugurated at Harai!udi 'amil -adu by 2hri .
,hidambaram Aonble Dnion Aome Ginister of #ndia during Becember
4%%(.
T%)(! :u#i"## of all 7 33+s sponsored by the +an! reached
3s.5K>%( crore with a growth of 47.J=. For the year ended Garch
4%5% all 33+s posted a profit after ta" of 3s.5%K.$ crore recording a
good growth of 4(.J=.
)ll subsidiaries and sponsored entities of the +an! posted better
performance in FN5%.
D!i,&4 C+(""!# ("d T'+"%!%14 Ad,("'2")
Buring FN5% the +an! undertoo! ( 2(M%& :&("'+ F-("#i%" d&i,
across the country. +efitting its 5%J
th
year of e"istence the +an! on its
Founders Bay i.e. 5(
th
-ovember 4%%( opened 5%J branches across
the country inaugurated by Aonble Finance Ginister 2hri .ranab
Gu!herEee. 'he +an! opened 75J branches during the year ta!ing the
total tally under the branch networ! to 7%JI branches including 7
overseas branches at London Aong Hong and 2hanghai. 3ecently in
)pril 4%5% the +an! opened its 4
)+
%,&#(# :&("'+ () Li'#)& DH.
Dnder C%& B("6i"1 S%!u)i%" the +an! has covered 5$%( branches
accounting for a substantial (%= of the +an!s business as at Garch
6*
Management of nonperforming assets in IOB
4%5%. With over 4%%% )'Gs the +an! has a debit card base of J(.(I
la!h as at Garch 4%5%. 'he number of branches offering A"40+&
B("6i"1 0)W+1 and I")&") ("d M%:i! B("6i"1 0#G+1 services
e"panded to 4%(5 and 5(>( branches respectively.
>.11 FUTURE GOALS
'he +an! aims to reach an (11&1() :u#i"## figure of R#.5 !(6+
'&%&, comprising total deposits of 3s.4$>%%% crore and advances of
3s.45>%%% crore.
'he +an! will continue to focus on '%& :u#i"## with the obEective
of augmenting profits and profitability.
E"panding global footprints the +an! is li!ely to open a
3epresentative 6ffice at S+(&M(+ shortly in addition to 3+# approval
already obtained in ( international centres.
'argets to achieve 199L CBS '%,&(1 by Lune 4%5%
'he +an! has plans to open %,& 899 "0 :&("'+# during
FN4%55.
6+
Management of nonperforming assets in IOB
>.18 FINANCIAL DETAILS
TABLE NO. >.5
TABLE SHO?ING FINANCIAL POSITION OF INDIAN OVERSEAS
BANK BANK
0)mount in
,rore 3s1
P(&)i'u!(&# 8995-97 8997-9D 899D-19
)dvances 54K4.I4 45IK.(K 4>(%75
Beposits (I(%$.J4
55I$%7.4
7
5J47$5.J
>
-et .rofit 5J4%.$5 5KJK7.K75$K75.7>
-on&.erforming )ssets $((.%7 5>%K.4> 5K((.K%
-on&.erforming )ssets 0= -et
-.)1 %.$J 5.%( 5.%I
#n the )nnual 3eport of #ndian overseas ban! +an! we can observe that
their level of -on&.erforming )ssets is fluctuating year on year from
%.$J= to 5.%I=.
7,
Management of nonperforming assets in IOB
S.W.O.T ANALYSIS
A -.ar./01 -mall 23n-0l.an24 50-ine-- mi67. 2arr4 30. .7e 83ll39in6
%:OT anal4-i-:
STRENGTHS:
Ban; i- a5le .3 re-13n< =er4 >0i2;l4 a- 9e 7a=e n3 re< .a1e( n3 nee< 83r
7i67er mana6emen. a11r3=al( e.2.
Ban; i- a5le .3 6i=e reall4 633< 20-.3mer 2are( a- .7e 20rren. -mall
am30n. 38 93r; mean- 9e 7a=e 1len.4 38 .ime .3 <e=3.e .3 20-.3mer-
Ban;?- lea< 23n-0l.an. 7a- -.r3n6 re10.a.i3n 9i.7in .7e mar;e.
Ban; 2an 27an6e <ire2.i3n >0i2;l4 i8 9e 8in< .7a. 30r mar;e.in6 i- n3.
93r;in6
Ban; 7a- li..le 3=er7ea<( -3 2an 388er 633< =al0e .3 20-.3mer-.
WEAKNESSES:
Ban; 7a- n3 mar;e. 1re-en2e 3r re10.a.i3n
Ban; 7a- a -mall -.a88 9i.7 a -7all39 -;ill- 5a-e in man4 area-
Ban; i- =0lnera5le .3 =i.al -.a88 5ein6 -i2;( lea=in6( e.2.
71
Management of nonperforming assets in IOB
Ban;?- 2a-7 8l39 9ill 5e 0nrelia5le in .7e earl4 -.a6e-.
OPPORTUNITIES:
Ban;in6 50-ine-- -e2.3r i- e@1an<in6( 9i.7 man4 80.0re 3113r.0ni.ie- 83r
-022e--
Ban;?- l32al 230n2il 9an.- .3 en230ra6e l32al 50-ine--e- 9i.7 93r;
97ere 13--i5le
Ban;in6 23m1e.i.3r- ma4 5e -l39 .3 a<31. ne9 .e27n3l36ie-
THREATS:
:ill <e=el31men.- in .e27n3l364 27an6e .7i- mar;e. 5e43n< 30r a5ili.4
.3 a<a1.A
A -mall 27an6e in 8320- 38 a lar6e 23m1e.i.3r mi67. 9i1e 30. an4 mar;e.
13-i.i3n 9e a27ie=e
T7e 23n-0l.an24 mi67. .7ere83re <e2i<e .3 -1e2ialiBe in ra1i< re-13n-e(
633< =al0e -er=i2e- .3 l32al 50-ine--e-. Mar;e.in6 930l< 5e in -ele2.e<
l32al 105li2a.i3n-( .3 6e. .7e 6rea.e-. 13--i5le mar;e. 1re-en2e 83r a -e.
a<=er.i-in6 50<6e.. T7e 23n-0l.an24 -730l< ;ee1 01/.3/<a.e 9i.7 27an6e-
in .e27n3l364 97ere 13--i5le.
72
Management of nonperforming assets in IOB
CHAPTER IV
ANALYSIS AND INTERPRETATION OF THE DATA
#n recent years a parado" has been observed in -.)
management of #ndian ban!s while the gross and net -.) levels of
most ban!s have come down in percentage terms. 'herefore the
criteria of gross -.) as well as -.) percentages cannot be the only
yardstic! for measurement rating of a ban!s performance with respect
to -.) management. Goreover the techniques adopted by ban! for
-.) reduction must vary widely and play a significant role in quality of
-.) management of ban!.
'his chapter deals with the analysis and interpretation of data
collected from the ban!. 'he balance sheet and other relevant data
which was published in the 4%%K&%$ 4%%$&%( and 4%%(&5% annual
reports were collected and studied. )s the -.) data is sensitive an
attempt has been made to analy*e the data of #ndian overseas ban!
+an! !eeping in view of the limitation. 9uidance was ta!en from the
officials of the ban!s to understand the concept and analy*e how the
level of -on&.erforming )ssets affects the performance of the ban!.
73
CHAPTER-)
DATA ANALYSIS
AND
INTERPRETATION
Management of nonperforming assets in IOB
TABLE NO. 4.1
TABLE SHO?ING THE LEVEL OF NON-PERFORMING ASSETS OF
INDIAN OVERSEAS BANK BANK
Y(& L,! %$ NPA
i" L
A2%u") %$
NPA <R#. i"
'&%&=
T%)(! R)u&"
%" A##)# i"
L
4%%K&%$ %.$J= $((.%7 5.%I=
4%%$&%( 5.%(= 5>%K.4> 5.JK=
4%%(&5% 5.%I= 5K((.K% %.$K=
G'*0( No. <.&@*A C G'*0( s(o)i-g -e+ NPA i- 0e'9e-+*ge
S9*1e
O, *Dis &9. E
!.8F
OD *Dis &9. E
&,e*'
,.)?
+.,@
+.,A
-,,B.,) -,,).,@ -,,@.+,
Le4e1 o2 NPA i- F
%evel of 13! in C
G'*0( No. <.&@3A C G'*0( s(o)i-g -e+ NPA i- *.o6-+
S9*1e
O, *Dis &9. E 8!!
9'o'e
74
Management of nonperforming assets in IOB
OD *Dis &9. E &,e*'
)@@.,*
+(,B.-(
+B@@.B
+.,A +.?B ,.)B
-,,B.,) -,,).,@ -,,@.+,
C(*'+ Ti+1e
!mount of 13! in crore &s 4otal returns in C
I-2e'e-9e
)ccording to the above table the level of -.) is fluctuating every
year from %.$J= in 4%%$ to 5.%(= in 4%%( and 5.%I= in the year 4%5%.
'otal return on )ssets of ban! are fluctuating at the rate of 5.%I=
5.JK= and %.$J= for this year.
TABLE NO. 4.8
TABLE SHO?ING RATIO OF NPA TO ADVANCES
<I"L=
Y(& G&%## NPA C G&%##
(d,("'#
N) NPA C N) (d,("'#
4%%K&%$ 5.5$ .%.$J
4%%$&%( 5.>I 5.%(
4%%(&5% 5.>4 5.%I
75
Management of nonperforming assets in IOB
G'*0( No. <.8 C G'*0( s(o)i-g '*+io o2 NPA +o *74*-9es
S9*1e
O,
*Di&9.E!.8F
OD *Dis
&9.E,e*'
-,,B.,) -,,).,@ -,,@.+,
+.+)
+.(A
+.(-
,.)?
+.,@
+.,A
C(*'+ Ti+1e
Gross 13! ; Gross advances 1et 13! ; 1et advances
I-2e'e-9e
'he above table shows the ratio between -.)s to advances. 9ross
-.) ratio for three years was 5.5$= 5.>I= and 5.>4= respectively.
)nd -et -.) ratio was %.$J= 5.%(= and 5.%I= respectively for the
years 4%%$ 4%%( and 4%5%; it shows that both gross and net -.) ratio
ratios are fluctuating continuously.
TABLE NO. <.:
TABLE S=OGING RATIO OF NPA TO TOTAL ASSETS DIn CE
76
Management of nonperforming assets in IOB
G'*0( No. <.: C G'*0( s(o)i-g '*+io o2 NPA +o +o+*1 *sse+s
S9*1e
O, *Dis &9.
E !.8 F
OD *Dis &9.
E &,e*'
+.+
+.,A
+.B?
+.-+
,.B?
+.-+
-,,B.,) -,,).,@ -,,@.+,
C(*'+ Ti+1e
Gross 13! ; 4otal assets DIn CE 1et 13! ; 4otal assets DIn CE
I-2e'e-9e
'he table J.7 shows ratio between -.) to total assets ratio between
gross -.) to total assets is decreasing from 5.55 to 5.%I and finally to
5.KJ and net -.) to total assets is decreasing from 5.45 to %.KJ and to
increases to 5.45 which is a negative sign of improvement in -.)
position.
TABLE NO. 4.4
77
Y(& G&%## NPA C T%)(!
(##)#
N) NPA C T%)(!
(##)#
4%%K&
%$
5.55 5.45
4%%$&
%(
5.%I %.KJ
4%%(&
5%
5.KJ 5.45
Management of nonperforming assets in IOB
ASSET CLASSIFICATION OF INDIAN OVERSEAS BANK BANK
03s. in crore1
P(&)i'u!(&# 8997-9D 899D-19
-E' -.) 5>%K.4> 5K((.K%
2ub&standard
assets
5>5J.>( 5(>7.>(
Boubtful assets IJI.(K I4K.7(
Loss assets I.J5 (.77
'otal advances 45IK.(K 4>(%.75
G'*0( No. <.< @*A C G'*0( s(o)i-g 91*ssi2i9*+io- o2 *74*-9es
S9*1e
O, *Dis &9. E
#!! 9'o'e
OD *Dis &9. E
&,e*'
!
#!!
&!!!
&#!!
8!!!
8#!!
:!!!
8!!$!" 8!!"&!
NET NPA
S63s+*-7*'7 *sse+s
Do63+261 *sse+s
Loss *sse+s
To+*1 *74*-9es
G'*0( No. <.< @3A C G'*0( s(o)i-g 91*ssi2i9*+io- o2 NPAs
S9*1e
7*
Management of nonperforming assets in IOB
O, *Dis &9.
E #!! 9'o'e
OD *Dis &9.
E &,e*'
!
#!!
&!!!
&#!!
8!!!
8!!" 8!&!
S63s+*-7*'7 *sse+s Do63+261 *sse+s Loss *sse+s
I-2e'e-9e
'he table J.J e"plains division of advances of #ndian overseas
ban! +an! for year 4%%( -et -.) were 3s. 5>%K.4> crore sub
standard assets 3s.5>5J.>( doubtful assets IJI.(K loss assets 3s.
I.J5crore and total advances stood at 3s. 45IK.(K crore. )nd for the
year 4%5% -et -.) 3s. 5K((.K% crore sub standard assets 3s.
5(>7.>( crore doubtful assets I4K.7( crore loss assets 3s. (.77 crore
and total advances were 3s. 4>(%.75 crore.
TABLE 4.5
CAPITAL ADE*UACY RATIO OF INDIAN OVERSEAS BANK BANK
Y(& C(-i)(! AdEu('4 R()i%
<L=
7+
Management of nonperforming assets in IOB
4%%>&%I 55.44
4%%I&%K 57.>
4%%K&%$ 57.7
4%%$&%( 5J.5
4%%(&5% 57.J7
G'*0( No. <.# C G'*0( s(o)i-g 9*0i+*1 *7e56*9, '*+io o2 I-7i*-
o4e'se*s 3*-; B*-;
S9*1e
O, *Dis &9. E
&8.$F
OD *Dis &9. E
&,e*'
13.5
13.3
14.1
13.43
12.*
13
13.2
13.4
13.6
13.*
14
14.2
2,,6/,7 2,,7/,* 2,,*/,+ 2,,+/1,
Ca1i.al A<e>0a24 Ra.i3 CDE
I-2e'e-9e
,apital )dequacy 3atio is also called as ,apital to 3is! Weighted
)ssets 3atio 0,3)31; it is the ratio of ban!s capital to its ris!. ,)3 of
#ndian overseas ban! +an! was 55.44= in 4%%>&%I 57.>= in 4%%I&%K
57.7= in 4%%K&%$ 5J.5= in 4%%$&%( and 57.J7= in the year 4%%(&5%.
TABLE NO. 4..
SECTOR ?ISE GROSS NPA <R#. I" '&%&=
Y(& NPA i"
P&i%&i)4
S')%&
NPA i" N%"-
P&i%&i)4 S')%&
NPA i"
Pu:!i'
S')%&
T%)(!
4%%K&
%$
((%.$( 57I>.7> >.4I 47I5.>%
*,
Management of nonperforming assets in IOB
4%%$&
%(
5%$>.$> I$$.4( (.(K 5K$J.45
4%%(&
5%
(47.K7 >JJ.>% 5$.(I 5J$K.5(
G'*0( No. <.% C G'*0( s(o)i-g se9+o' )ise g'oss NPA
S9*1e
O, *Dis &9. E
#!! 9'o'e
OD *Dis &9. E
&,e*'
++,.*+
1,*5.*5
+23.73
1365.35
6**.2+
544.5
5.26 +.+7 1*.+6
2361.5
17*4.21
14*7.1+
,
5,,
1,,,
15,,
2,,,
25,,
2,,7/,* 2,,*/,+ 2,,+/1,
#PA in Pri3ri.4 %e2.3r #PA in #3n/Pri3ri.4 %e2.3r #PA in P05li2 %e2.3r T3.al
I-2e'e-9e
'he above chart shows that -.) in non priority sector was more
in the year 4%%J&%> than priority sector but it reduced than priority sector
for 4%%>&%I and 4%%I&%K. -.) in public sector shows increase in -.)
for all the years.
TABLE NO. 4.5
MOVEMENT OF NPA
P(&)i'u!(&# 4%%( 4%5%
G&%## NPA G&%## NPA
6pening 54K4.I4 45IK.(K
*1
Management of nonperforming assets in IOB
+alance
)dditions Buring
the Nr.
47KK.KJ 74II.77
3eductions
Buring the Nr.
5J$4.7( 4$J7.((
,losing +alance 45IK.(K 4>(%.75
G'*0( No. <.> C G'*0( s(o)i-g .o4e.e-+ o2 NPA
S9*1e
O, *Dis &9. E #!!
9'o'e
OD *Dis &9. E
&,e*'
,
5,,
1,,,
15,,
2,,,
25,,
3,,,
35,,
!r3-- #PA 2,,+ !r3-- #PA 2,1,
O1enin6 Balan2e A<<i.i3n- $0rin6 .7e Yr.
Re<02.i3n- $0rin6 .7e Yr. Cl3-in6 Balan2e
I-2e'e-9e
'he above table shows movement of gross -.)s the
amount of gross -.)s are fluctuating for both the years 4%%( and 4%5%
where closing balance is more than the opening balance.
TABLE NO. 4.7
MOVEMENT OF PROVISIONS FOR NPA#
03s. #n crore1
P(&)i'u!(&# 899D 8919
6pening balance 7K7.5% I>K.K(
.rovisions made (%%.%% 5J4I.5K
*2
Management of nonperforming assets in IOB
during the year
Write off 8 write bac!
of e"cess provisions
I5>.75 54(K.5I
,losing balance I>K.K( K$I.$%
G'*0( No. <.$ C G'*0( s(o)i-g .o4e.e-+ o2 0'o4isio- 2o' NPAs
S9*1e
O, *Dis &9. E
8!! 9'o'e
OD *Dis &9. E
&,e*'
!
8!!
<!!
%!!
$!!
&!!!
&8!!
&<!!
&%!!
8!!" 8!&!
O0e-i-g 3*1*-9e
P'o4isio-s .*7e 76'i-g +(e ,e*'
G'i+e o22 ? )'i+e 3*9; o2 eD9ess 0'o4isio-s
C1osi-g 3*1*-9e
I-2e'e-9e
'able -o. J.$ e"plains about movement of provisions for -.)
provision for -.) made for the year 4%%( was 3s. (%%.%% crore and for
the year 4%5% was 3s. 5J4I.5K crore.
TABLE NO. 4.D
COMPARISON OF INDIAN OVERSEAS BANK BANK ?ITH OTHER
NATIONALISED BANKS
P(&)i'u!(&# 8997-9D 899D-19
G&%## NPA N) NPA G&%## NPA N) NPA
*3
Management of nonperforming assets in IOB
#ndian
overseas ban!
+an!
5.>I 5.%( 5.>4 5.%I
,entral +an!
of #ndia
5.( %.( 5.I %.K
,orporation
+an!
%.( %.4 %.I %.4
Bena +an! 5.> %.I 5.7 %.I
#ndian +an! %.K %.5 %.> %.55
G'*0( No. <." C G'*0( s(o)i-g 9o.0*'iso- o2 I-7i*- o4e'se*s
3*-; B*-; )i+( o+(e' -*+io-*1ise7 3*-;s.
S9*1e
O, *Dis &9. E !.# F
OD *Dis &9. E &,e*'
*4
Management of nonperforming assets in IOB
!
!.#
&
&.#
8
G'oss NPA
8!!$!"
Ne+ NPA
8!!$!"
G'oss NPA
8!!"&!
Ne+ NPA
8!!"&!
C*-*'* B*-; Ce-+'*1 B*-; o2 I-7i*
Co'0o'*+io- B*-; De-* B*-;
I-7i*- B*-;
I-2e'e-9e
'able -o. J.( compares the -.) position of #ndian overseas ban!
+an! with other ban!s for the last year #ndian overseas ban! +an! had
less -.) ratio than ,entral +an! of India. And had more NPA than
Corporation Bank, Indian Bank and Dena +an!.
*5
Management of nonperforming assets in IOB
CHAPTER V
SUMMARY OF FINDINGS, SUGGESTIONS AND
CONCLUSIONS
5.1 SUMMARY OF FINDINGS
51 T7e In<ian 3=er-ea- 5an; 5an; i- 1r3=i<in6 <i88eren. .41e- 38
-er=i2e- .3 .7e 20-.3mer- -027 a- $e13-i. -27eme- L3an-( $eman< <ra8.(
-a8e <e13-i.- l32;er( $e5i. 2ar< an< 2re<i. 2ar<( ATM 8a2ili.4 e.2.
-E :7ile -ele2.in6 .7e 5an; 20-.3mer- are 23n-i<erin6 =ari30- 8a2.3r-
li;e Ban; ima6e( Pr3<02.- an< -er=i2e-( in.ere-. ra.e- an< -e20ri.4 e.2. in .7a.
m3re .7an 5,D 38 .7e 20-.3mer- are a..ra2.e< 54 Ban; ima6e( -e20ri.4 an<
1r3<02.- an< -er=i2e-.
*6
CHAPTER-5
FINDING1
SUGGESTIONS
AND
CONCLUSION
Management of nonperforming assets in IOB
71 'he #ndian overseas ban! +an! is trying to reduce its level of
-on&.erforming )ssets and thereby trying to improve the quality of the
loans.
J1 customers are attracted by different types of technology
enabled services indian overseas ban! ban!.
>1 'he department is holding e"perts the particular field.
I1 #nterest rates are for domestic deposits are low.
K1 # felt that information about -.) is not easly available.
$1 With careful observation # felt that -.) is increasing day by
day in ban!s.
5.8 SUGGESTIONS
E=en .73067 5an; i- 1r3=i<in6 <i88eren. .41e- 38 -er=i2e- 50. 5an; i- n3.
23n2en.ra.in6 3n 3.7er -er=i2e- li;e M0.0al 80n<-( In-0ran2e( $ema.
a2230n. 8a2ili.4 an< Online 5an;in6 -er=i2e- -3 i8 5an; im1r3=e- .7e-e
-er=i2e- .7en 5an; 2an -a.i-84 .7e e@i-.in6 20-.3mer- an< a..ra2. ne9
20-.3mer-.
. 'he ban! should be cautious while providing loans to the priority
sector since -on&performing )ssets of priority sector are not
decreasing at the required level.
Each branch should daily update the details loans section so that
early detection of the -on&performing )ssets can become possible.
'he securities sei*ed from the defaulters should be sold as soon as
possible so the value of assets should not come down 8 depreciate.
'he ban! should ensure that the assets given as securities are
properly insured by the customers or not.
M3re n0m5er 38 In<ian 3=er-ea- 5an; Ban; ATM 30.le.- i- .7e 23n2ern 38
m3-. 38 .7e re-13n<en.- COnl4 46D 38 .7e 20-.3mer- are -a.i-8ie< 9i.7
a=aila5ili.4 38 ATM 2en.er-E. In =ie9 .3 in2rea-e .7e e@i-.in6 -a.i-8a2.i3n
ra.e( In<ian 3=er-ea- 5an; 5an; -730l< -.0<4 .7e 8ea-i5ili.4 38 -.ar.in6 ATM
30.le.- a. 7i67 0.ili.4 area- in Bellar4 2i.4. In<ian 3=er-ea- 5an; 5an; 2an
*7
Management of nonperforming assets in IOB
-.ill a..ra2. ne9 20-.3mer- 54 1r3=i<in6 e/-er=i2e- li;e ne. 5an;in6( 173ne
5an;in6 e.2.
A6ri20l.0ri-.- an< -mall -2ale in<0-.rie- 9an. .7e l3an a. l39 in.ere-. ra.e-.
In<ian 3=er-ea- 5an; 5an; 7a- .3 im1r3=e .7e 1r3m3.i3nal a2.i=i.4 rela.in6
.3 2an2ar<.
5.> CONCLUSION
Fr3m .7i- -.0<4 I 2an 23n2l0<e .7a. In<ian 3=er-ea- 5an; Ban;
i- 1r3=i<in6 <i88eren. .41e- 38 .7e -er=i2e- .3 i.- 20-.3mer-. A 8e9 -er=i2e-
1r3=i<e< 54 In<ian 3=er-ea- 5an; Ban; are 23mm3n an< al-3 9e 2ame .3 ;n39
.7a. 20-.3mer- -a.i-8a2.i3n .39ar<- In<ian 3=er-ea- 5an; Ban;.
2ince last few years -on&performing )ssets has become one of
the parameters which are used for deciding the efficiency of the ban!s.
#t is crucial for the ban!s to maintain the level of -on&performing )ssets
to the minimum possible level. )nd #ndian overseas ban! +an! has
been successful in maintaining the -on&performing )ssets under
control.
6ne more important event which can increase the -on&performing
)ssets is the political interference Gr. .ranab Gu!erEee Finance
Ginister of central government decided for the waiver of loan amount of
farmers is really going to affect the performance of #ndian overseas
ban! +an!.
BIBLIOGRAPHY
**
Management of nonperforming assets in IOB
@%u&"(!# ("d 2(1(/i"#3
2hreyas M #6+ +an! Gaga*ine
)nnual 3eport of #6+ +an! 4%5%&55
B%%6#3
Fasant Besai :+an!s and #nstitutional Ganagement; first edition
Aimalaya .ublishing Aouse 4%5%
?: #i)#3
www.iob.in
www.moneycontrol.com
*+
Management of nonperforming assets in IOB
+,
Management of nonperforming assets in IOB
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Management of nonperforming assets in IOB
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Management of nonperforming assets in IOB
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