Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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:
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
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
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 :
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:
Relaxation in Eligibility :
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
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.
P a p e r re q u i re d f ro m g u a r a n t o r s :
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.
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
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
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.
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 :
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.
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.
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
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.
Doubtful Asset
A non performing asset may be classified as doubtful on the basis
of following criteria.
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. 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.
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
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;
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.
I. Interest accrued on loans and demanded during the period for which it
remains unrealized as on the date of the balance sheet.
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
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.
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.
(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.
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
The following ratios are found out for ratio analysis as well as
comparative statement analysis.
RATIO ANALYSIS
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 :
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.
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.
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 :
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
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
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
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.
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.
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
WORKING
= 5.65%
= 3.58%
= 33.22%
= 16.78%
= 38%
= 4.61%
= 35.62%
= 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.