NPA Management In State Bank Of India

I am pursuing MBA (master of business administration) from IIM Ahemdabad. I want to know about NPA (Non Performing Assets) in state bank of India. Please provide me detailed information about this?

Hello sir, is there any one can tell me which Factors Considered for Sanctioning of Loan of NPA Management In State Bank Of India?

[pooja]

The NPA Management in State Bank of India is considering various factors for Sanctioning of Loan.

The State Bank of India's NPA Management Policy seeks to lay down the Bank's policy on management and recovery on NPAs and proactive initiatives to prevent generation of NPAs.

The aim of NMP is to contain net NPAs to less than five percent of Bank's total loan assets in conformity with the international standard.

The basic tenets of the policy includes detail notification for 'maintaining the asset quality'; 'identification of potential NPAs'; 'Problem loan review and reporting'; 'approach to rehabilitation of borrowers business' etc.

Here is PDF for Factors Considered for Sanctioning of Loan of NPA Management In State Bank Of India:

Factors Considered for Sanctioning of Loan of NPA Management In State Bank Of India:

Parameters First Second Third Fourth Total Rank
Score 4 3 2 1
Project Appraisal 4 31 0 0 109 2
Borrower Selection 31 4 0 0 248 1
Security Pledge 0 0 35 0 70 3
Third Party Guarantee 0 0 0 35 35 4

Basic Tenets of NMP:

Stop slippage of performing assets to non-performing assets through early identification on the basis of early warning signals and initiation of corrective action.

Once the assets are classified as NPAs, the branch/bank should redouble its effort to reduce the quantum of NPAs.

In the three months to June, SBI's gross NPAs rose to 9.97 per cent from 7.40 per cent and net NPAs jumped to 5.97 per cent from 4.36 per cent. Retail NPAs grew 1.56 per cent to Rs 7,632 crore, while bad loans in the agri book grew 9.51 per cent to Rs 17,988 crore.

Objectives:-

To understand what is non performing Assets and what are the underlying reasons for the emergence of the NPA's

To study the position of NPA in SBI group

To understand the impact of NPA on strategic banking whole

To know the reason for an Asset becoming NPA

To suggest measures to reduce NPA

To study the methods adopted by the RBI to look after NPA management

To study why banks and financial institutions are facing problems of swelling NPAs even after the passing of the act