Analysis of non performing assets of Indian overseas bank with reference to puliyangudi branch

Today the Indian banking system has undergone significant transformation following financial sector reforms, adopting international best practices. Several prudential, payment, integrating and provisioning norms have been introduced, and these are pressurizing banks to improve efficiency and trim down NPAs to improve the financial health in the banking system.

It affects liquidity and profitability, in addition posing threat on quality of asset and survival of banks it is among the best in the world because Indian banks are favorable on growth, asset quality and profitability; RBI and Government have made some notable changes in policies and regulation to strengthen the sector. NPA involves Gross NPA, Net NPA, Additions to NPA, Reductions to NPA and Provisions towards NPA and compare it with Total Advances and Total Deposits of banks. The necessity of provisions, any increase in which bring down the overall profitability of banks; is the indicator of banking health in a country. In this paper the researcher focused on the impact of NPA-particularly on the profit, priority & non priority sector wise NPA and their contribution to the total NPA. After collection of data, were analyzed by using ratio analysis, vertical analysis, and horizontal analysis trend analysis for projecting the trend of NPA for the next two years.