AN ASSESSEMENT OF NON-PERFORMING ASSETS (NPA) AT SREE THYAGARAJA CO-OPERATIVE BANK LIMITED

AN ASSESSEMENT OF NON-PERFORMING ASSETS (NPA) AT SREE THYAGARAJA CO-OPERATIVE BANK LIMITED

Miss Annapoorna C¹                                                                       Dr. S. Baskaran²

4^th semester student, Department of MBA                                Professor and HOD, Department of MBA

Dr. Ambedkar Institute of Technology,                                       Dr. Ambedkar Institute of Technology,

Mallathahalli, Bengaluru 560056                                                 Mallathahalli, Bengaluru 560056

Abstract:

India's cooperative banks have played a vital role in the country's performance in promoting financial presence. Since its beginning, they have brought important achievements and contributing to the empowerment and security of rural Indian. By offering loans and other facilities to farmers, small businessmen, start-ups, they are providing timely support to rural residents. Non-performing assets are those loans and advances on which principle or Interest amount is overdue for a period of 90 days. Non-performing assets are the indicator of the financial health of the bank. However, any loan repayment default will have an impact on the bank's operational effectiveness and financial stability. Managing NPA of the bank is a very comprehensive subject and very significant apprehension in the banking industry. To improve the efficiency and profitability of the banks the NPA need to be reduced and controlled. Reduced NPA generally indicate that the credit appraisal process has been strengthened and growth in NPA indicate the need for maintain provision in the balance sheet which will affect the profitability of the banks.  The purpose of the study is to be familiar with the data of recent years and advancement of the bank in numerous sections of NPA.

Keywords: Co-operative banks, Non-performing assets