FINDINGS OF THE STUDY

Findings of the Study are described below !"! The word BANK acts as the bridge between the people who needs money and who have excess money with them. In the past, when barter system was in the existence, at that time there is no any se o! money. !"# Act ally the word Ban" is derived !rom the word Banc s or Ban# e that is, a bench. The early ban"ers, the $ews in %ombardy, transacted their b siness on benches in the mar"et place. !"$ In the IN&IA, the ban"ing system was started many years ago. This system was started in the second or third cent ry A.&., 'an , the great (ind $ rist, devoted a section o! his wor" to deposits and advances and laid down r les relating to rates o! interest to be paid or charged. !"% The ! nctions o! the ban"s are become very important d ring last ) decades. It is not wrong in saying that ban"*s monetary and credit policies have played an important role in riding the growth o! co ntry*s !inancial system. !"& The basic motto to !orm late co operative ban"s was to combat the problems o! indebtedness o! r ral !armers to money lenders. Beca se as we all "now that in India +,- o! the total pop lation is residing in r ral sector. !"' !"( There is no any standard de!inition o! the term co operative ban"s. B t we can simply de!ine co operative ban" with the concept o! co operation. Their operations are restricted to a partic lar state in case o! a state Apex ban", a partic lar district in case o! district co operative ban" and to a local area in case o! primary co operative society. !") !"* There is always a two sides o! a coin. I! on one side we can have positivity than on the other sides negativity m st be there. It.s easy to provide money b t it.s very to gh to get it bac" at time. Increasing ratio o! will! l de!a lter.s short rain!all, dro ght, dro ght, scarcity, etc.

!"!+ Technology has always been seen as an instr ment o! social progress. The h man aspiration !or contin o s improvement in the standards o! living increasingly depends pon technology as it to ches all aspects o! a h man being. !"!! /is"s management has been a very important component o! b siness plan !or the ban"s and an nderc rrent o! ris" mitigation and planning has always been part o! the ban"ing b siness. !"!# There is a sea change in the Indian ban"ing system over the last 01, years. There were only 23 ban"s with 4 st /s.0, ,02 cr. deposits and /s.565 cr. o! credit in 025+. Today, the deposits amo nt to /s. ),, 03,63, cr and credits /s. 60, 15,206 cr. !"!$ 6.0 The electronic age has a meant several changes !or ban"ing. 7irstly the delivery channels have increased leading to lower cost and wider variety o! services. The local intensity o! the ban" in its c stomer centric approach, hassle !ree exec tion o! the decision 8 technologies are their main di!!erence !rom commercial ban"s, also high level o! commitment at all levels o! management 8 sel! committed gro nd level sta!! ma"es them di!!erent !rom other commercial ban"s. 6.6 7armers are needs to the money !or increasing their !arm prod ction at di!!erent section li"e seeds9 new medicines9 !ertili:ers and new technology. That all the loans are provided by &istrict ;o<=perative Ban"s, commercial and citi:en ban". 6.) >trategically located, designed and e# ipped to consistently deliver a new ?age branch ban"ing experience. All the branches are very well managed by well trained sta!! and maintain the rep tation o! the ban". 6.5 The /a4"ot district co<operative ban" is an agric lt ral ban" and it is also based on the development o! !armers and agric lt ral development. And also o r economy is also based on development o! villages. 6.1 Ban" was registered in 0212 and have commenced wor"ing in 023,Ban" is holding b siness license No. /@;&<A('<11; date 05A,2A0225.

6.3

The resol tion o! the congress points o t. 'embership o! a cooperative society sho ld be vol ntary and available witho t arti!icial restriction or any social, political, racial or religio s discrimination, to all persons who can ma"e se o! its services and are willing the accept the responsibilities o! membership.

6.+

The co<operative ban"s have been established nder the co<operative societies Acts o! di!!erent states. (ence the state governments reg late these ban"s. =nly the state co<operative ban"s have assessed to the reserve ban" o! India.

).0.0

/ecovery 'anagement is the process o! planning, testing, and implementing the recovery proced res ad standards re# ired to restore service in the event o! a component !ail re9 either by ret rning the component to normal operation, or ta"ing alternative actions to restore service.

).0.6

/ecovery 'anagement does not incl de B siness /ecovery B&isaster /ecoveryC or vital records bac" p storage. /ecovery 'anagement will assist in providing the necessary re# irements to s pport day<to<day service delivery in the event o! a disaster event.

).0.)

there is no any s bstit te !or proper and timely monitoring o! the borrowers acco nts. Dhen borrower becomes a de!a lter, a ban" may have remedies !or recovery o! d es.

).0.5

& ring the last two decades, recovery o! loans has become a ma4or problem !or the ban"ing ind stry, 'ore and more borrowers are becoming will! l de!a lters.

).0.1

Dhen assets become non per!orming, according to /BI norms ban" have to ma"e provision. Dhich impacts their pro!itability adversely generally ban"s ma"e provision !rom gross pro!it.

5.0.0

A research problem in general, re!ers to some di!!ic lty which a researcher experiences in the context o! either a theoretical or practical sit ation and wants to obtain a sol tion !or the same.

5.0.6

In the analysis o! N@A in /&;B% descriptive as well as analytical research design is sed, in which past data o! the ban" is sed to interpret the N@A o! the Ban".

5.0.)

The tas" data collection begins a!ter a research problem has been de!ined and research design chal"ed o t, while deciding abo t the method o! data collection to be sed !or st dy, researcher sho ld "eep in mind two types o! &ataE 0C @rimary data 6C >econdary data

5.0.5

(ypothesis is s ally considered as the principal instr ment in research. Its main ! nction is to s ggest new experiments and observation.

1.0.0

the investment o! the ban" increase in 6,,F<,2. Beca se o! increase in ban" deposit ! nd !low also increase and it*s a!!ect on investment. ,F<,2 !inance easily get by relie! ! nd. >o,investment amo nt increase in every year.

1.0.6

(igh gross N@A indicate law # ality credit port!olio o! the ban" 8 vice<versa. De can see by graph that gross N@A is high in 6,,1<,3 then a!ter constantly red ce in every year beca se o! ban" recovery strategy decreased which re!lact # ality o! the ban"

1.0.)

(igh net N@A indicates low # ality credit port!olio o! the ban" 8 vice<versa. It is decrease in 6,,3<,+ beca se o! s !!icient provision are not provided so next year amo nt going on =B:eroC level. It indicates e!!icient management o! N@A done by the ban" which are good indicator o! ban"*s per!ormance.

1.0.5

I! gross N@A decreases percentage o! gross N@A also decrease and vice<versa. It red ces a!ter every year beca se low gross N@A.

1.0.1

the s m o! all loan assets that are classi!ied as net N@A o! provision made as per /BI g ideline as on balance sheet date. It is related with provision i! it*s amo nt decreases then G o! net N@A going , B:ero levelC indicate improving assets # ality o! the ban".

1.0.3

there is a scope !or advances p gradation or improvement beca se it will be very easy to recover the loan d e to minim m d ration o! de!a lt. B t it is red ced constantly which shows ban"*s e!!icient management towards the N@A red ction.

1.0.+

It has red ced in 6,,1<,3, 6,,3<,+ and again it increase in 6,,+<,F and in 6,,F< ,2 shows h ge decrease which indicates the recovery o! N@A.

1.0.F

%oss asset means there is least chance o! recovery by the ban". %oss assets were !l ct ating in all the years. >o this indicates that there are chances o! recovery. And it also a!!ect the pro!itability o! the ban". .

1.0.2

It is grad ally decreasing which shows that shareholders* ris" to the ban" is constantly red cing and in the year 6,,+<,F and 6,,F<,2 Ban" net N@A has remained ,- that is why, the shareholders* /is" ratio shows ,-. It shows ban"*s e!!icient management towards red cing N@A.

1.0.0, the G o! wor"ing ! nd Hs level going on same level b t only in 6,,1<,3 ! nd is decrease. >o they got wor"ing ! nd increase a!ter commition on it. >o their wor"ing ! nd increases. I! wor"ing ! nd increase then interest income decreases 8 vice<versa. 1.0.00 non<int income increased step by step in 6,,1<,3 it is decreased beca se o! ban" have a target to give +- credit on his !armers 8 1.1- credit also give to his wor"ers. so, percentage o! wor"ing ! nd increased in every year. 1.0.06 oprating pro!it o! a wor"ing ! nd in 6nd year increase b t in )rd year decrease and 5th year also increase. I! oprating pro!it increasing wor"ing ! nd decresing 8 vice<versa. It*s a!!ect on loan and advance. 1.0.0) wor"ing pro!it o! the b siness provision o! the b siness increase so ban" give a credit to a !armer*s at lower rate. In 6,,F<,2 beca se o! this provision amo nt increased )3crores so it*s e!!ect done on b siness and deposit and advances also increase b t !or ban" has no bene!it to increase in a wor"ing pro!it. .

1.0.05 @rovisions are "ept as per pro!it re# irement it is constantly increase in every year b t in 6,,F<,2 it decreased. as N@A o! the ban" also decrease that is bene!icial !or ban". 1.0.01 # ality o! credit port!olio o! the ban" provision are "ept as per pro!it re# irement. In 6,,F<,2 provisions are decrease beca se her original val e o! N@A is calc lated which shows e!!icient mgt o! N@A by the ban" which are good indicator o! ban"*s per!ormance. 1.0.03 (igh gross N@A 8 net N@A indicate low # ality credit port!olio o! the ban" 8 vice<versa. As per re# irement o! gross N@A, @rovisions done on 0,,- a!ter comes net N@A which is small then gross N@A In last two gross N@A goes :ero level. De can see by chart that N@A is overall good. 1.0.0+ Dhen IAN ded cted !rom N@A o! the provision and get amo nt which is not more important !or the @ercentage o! the provision when @ercentage decrease net N@A and gross N@A that indicate so ndness o! the ban". (ere @ercentage o! net N@A decrease beca se net N@A also decrease. 1.0.0F non<interest amo nt is lower than interest wor"ing ! nd. @ercentage o! wor"ing ! nd increase 0- in every year and in non<interest income increased 1- a!ter every year. 1.0.02 TJ5.13 is greater than N ll hypothesis that is :ero. >o, I re4ect the N ll hypothesis and accept the alternative hypothesis. It means that N@A and Net pro!it o! the ban" have a correlation.

>KIIL>TI=N> T= BANK
Ban" appraisal process sho ld be time bo nd.

Altho gh ban" has separate /ecovery ;ell, employees have some cas al attit de toward the recovery so there sho ld be speci!ied H%oan /ecovery @olicy* giving details o! strategies to be adopted !or a recovery o! d es, period wise target level o! red ction in N@A.

The inspection o! pre and post sanction sho ld be more strict and reg lar.

The !inancial liability o! the borrower sho ld be chec"ed on more scienti!ic and statistical base and not depending on relationship ban"ing.

To cond ct monthly or # arterly meeting !or meaning! l dialog with the borrower BN@AC cons lting with the management to arrive at possible sol tion

To sta!! sho ld be motivated towards achieving recovery and awarded !or the same.

,ON,-USION OF THE STUDY

In the recession era all the ind stry sectors are going thro gh ro gh phase, so these have e!!ect on ban"s as N@A as economic condition is in the slac" stat s. That is why, !or any ban"ing or !inancial instit tion N@A is inevitable in the loan port!olio. B t e!!ort sho ld be made to maintain a reasonable level on N@As. New e!!ective strategies sho ld be employed to !ace all challenges. An e!!icient management with strategies s itable !or speci!ic ban"s can only tac"le N@As, which are emerging. (ence, ! ll a tonomy !or ban" boards is re# ired. I! the ban"s approach is pro!essional and sets aims towards achieving high target with hard wor", N@A management can be e!!iciently done. The ban"s can apply holistic approach and properly scr tini:e the ! t re advances so that the problem o! N@A co ld be prevented there!ore it is advisable !or ban"s to have preventive approach than c rative approach.

.I.-IOG/01HY
.oo2s The /a4"ot district co<operative ban", ann al report !rom 6,,5< 6,,3 to 6,,F<6,,2.

The /a4"ot district co<operative ban" N@A statement o! the year

6,,5<6,,3 to 6,,F<6,,2.

'anagement o! N@A in Ban"s 8 7inancial instit tion. <B./amachandra /eddy

3ebsites www. /dcban". in Narsimham;ommitteeAhind onnet.com,report.rbi.org,in,the hind b sinessline.com