38The bank had reached the minimum level of NPAs the year 2010 11 by taking the

38the bank had reached the minimum level of npas the

This preview shows page 84 - 87 out of 87 pages.

level of reduction in NPA’s from 18.38%.The bank had reached the minimum level of NPA’s in the year 2010-11 by taking the following norms in true letter and spirit. Recovery Cell: The bank had constituted recovery cell wherever necessary and progress in recovery of loans was monitored on monthly basis adequate attention was paid to upgrade substandard advances.And interest/installments were recovered by increasing the involvement of staff members. Other Measures which was taken up to keep minimum level of NPA’s: Strengthening Credit Management System The Bank has taken a specific time bond plan for reduction of NPA’s more than 5% of the loans & advances and reached the level in the year 2010-11. The Bank has not taken any statutory steps in recovery of dues and it is appreciated that the bank reached the desired end. The Bank has not taken one time settlement and write off in a transparent manner. In future the bank should watch for early warning signals in the areas relating to financial and attitudinal factors etc 84
Image of page 84
Curative Measures: These measures are aiming at maximizing recoveries,so that the bank funds locked up in NPA’s are realized for re-cycling. A branch wise target for reduction of NPA’s has been taken up by the branch and more emphasis laid on high value NPA accounts. Analysis of NPA’s: In the year 2009-10 the bank analyzed the NPA position with regard to age, sectors and areas ascertain the reasons for the high level of NPA’s of 18.38% and taken necessary measures by holding recovery camps and regular form of visit to the borrowers. Due emphasis has been laid on bringing back the assets from doubtful [D3] category to doubtful [D1] category. So, this is to entail lesser provisions. The bank has taken up the programme and reached the desired end of 5% of NPA’s to Loans O/S. Filing of DICGC: Since the bank is participating in Deposit Insurance Credit Guarantee Corporation has taken up action to file the claims in time keeping in view the lock-in-period of 3years to avail the benefit of the amounts received from DICGC in the year 2011 which lessened the provision requirements to the minimum extent. 85
Image of page 85
BIBLIOGRAPHY 86
Image of page 86
BIBLIOGRAPHY: Banking Law and Practice : P.N. Varshney Indian Financial Systems : H.R. Mancharaju Indian Financial Systems : Avadhani REPORTS: 1. Annual reports of DCCB, Khammam 2. The management accountant [ICWAI] annual reports WEBSITES: 1) 2) 3) 87
Image of page 87

You've reached the end of your free preview.

Want to read all 87 pages?

  • Summer '17
  • javed
  • Banks of India, NPAs

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes