Chirag Jain

Synopsis Presentation on
A critical study of loan scheme offered by SBI bank with regard to rise in NPA
Under The Guidance Of

Dr. Rambabu Shridhar
Asst. Professor, SOM ITM Presented By: Chirag Jain
University, Gwalior MBAN1MG22058
Introduction
“Loans and Advances” the topic deals with the financial growth of society’s the
bank will plays an important role. Public will borrow the loans for various
purpose from the banks. By providing loans to the skilled people to build their
infrastructure, so that it creates employment opportunities. These loans and
advances granted by commercial banks to the highly beneficial to firms and
individual, companies for meeting their short term & long term financial needs
for their business.
INDIAN BANKING INDUSTRY: In India the banking is originated in 18th century.

The oldest bank in India is the ‘State Bank of India’, It is the largest commercial
bank in India. Its responsibilities taken by Reserve Bank of India. The Imperial
Bank of India was took over these responsibilities in 1935 relating to the
functioning of commercial Banks. After the Independence the RBI was become
nationalised and it got the all powers. And 14 largest commercial banks was
nationalized in 1961.
Conceptual Model
Variables
Independent Variable- The factors that can affect the approval, terms
and conditions of a loan are known as the variables, in loan schemes.
•Credit Score - It tells the borrower’s credit score, which lenders use to
evaluate creditworthiness and repayment capability of Borrower.
•Income - The borrower’s income also plays a role as lenders assess
whether they have the capacity to repay the loan.
•Loan Purpose -Its purpose are considerations for lenders in
determining eligibility criteria and terms.
•Loan Term - The duration of the loan can impact interest rates; shorter
term loans might have low interest rates compared to longer term ones.
•Financial History – As Lenders also examine a borrower’s history,
repayment patterns and any defaults when making lending decisions.
Employment History- The Stability and history of employment can
impact on loan approval. They prefer borrowers with a steady job and
consistent income.
Dependent Variable - It's the variable that "depends" on the
independent variable’s for its value.
Non Performing Asserts (NPA)
NPA stands for Non-Performing Assets. In the context of banking and
finance, Non-Performing Assets refer to loans or advances made by
banks and financial institutions that have ceased to generate income for
the lender.
As Non-performing assets can include loans, mortgages, credit card
debt, or any other type of financial obligation where the borrower has
defaulted on payments.
Literature Review
1. Similar research was undertaken by Rao (2013), who discovered that

services and product innovations are the main tools for progress. People will
be more worried and mindful about loans when they receive transparent
services and perfect goods without hidden fees, and they will then be able to
decide whether or not to apply for a home loan or what should be the loan's
term.
2. KaminiRai (2012), in her study on “Performance of NPAs in Indian
Commercial Banks” has examined the main reasons for increasing NPA’s in
banks in India. She pointed out that the targetoriented approach, which
results in unproductive administration of loan accounts, lack of managerial
and technical expertise on part of the borrowers which eventually worsens
the qualitative aspect of lending by banks, are the main reasons for the
increasing NPAs in banks.
Rationale of the Study
Every bank and SBI has a separate set of rules, such as those governing
interest rates, processing costs, maximum loan amounts, loan terms,
procedures for leasing or mortgaging property, and loan recovery. People
don't know about all these things, therefore it's important to research which
banks and SBI offer loans with the fewest restrictions and where clients
might profit from a sizable loan. Studying the services or programmes
offered by these various banks and SBI is necessary. I have thus chosen to
compare the methods used by the bank and SBI to sanction loans. The
report also addresses the challenges associated with obtaining a loan from a
bank. Therefore, I decided to evaluate the process for approving loans
schemes , the range of interest rates, and the challenges that arise while
doing so and to analyze the NPA and Its relevance in SBI
Objectives of the Study
1.To study the concept of Non- Performing Assets and its relevance in the SBI.
2. To Study the impact of NPA in profitability of SBI.
3. To Study the loan schemes really responsible for raising NPA
Hypothesis of the Study
H1: There is a Significance relationship between loan schemes of SBI and NPA.
H2: There Is a Significance association between NPA and Profitability Of SBI
Research Methodology
• The study: To study the stated objectives, this study is a fact finding and
analytical in nature of SBI
• Sample Design: The study is based on secondary data and data has been collected
from annual reports of the SBI website for the above analysis . The present study
covers three year period ranging from 2020-23
• Data Collection: The Secondary data was collected from the annual report of SBI.
Annual Audit reports information Collected through RTI Application
• Data Analysis Tools: Correlation, Coefficient of determination, ANOVA, and
Friedman Test
• Period of the study: Three years data during the period 2020-23 was considered
for the study.
Refrences
• Agarwala and Agarwala (2019), A critical review of non-performing assets
in the Indian banking industry.
• Gupta (2012), A Comparative Study of Non-Performing Assets of SBI & Associates
& Other Public Sector Banks, SIT Journal of Management, Vol. 2. No. 2. December
2012. Pp.175-189
• Wadhwa and Ramaswamy (2020), Impact of NPA on Profitability of Banks, Volume
No.4, May-2020 DOI: 10.46647/ijetms.2020.v04i03.001
• Nerkar and Dhongde (2018), A critical analysis of educational loan schemes of
banks and their role for Socio Economic development in India, [VOLUME 5 I ISSUE
2 I APRIL – JUNE 2018]
• Koley (2019), Analysis of Financial Position and Performance of Public and Private
Sector Banks in India: A Comparative Study on SBI and HDFC Bank, Vol.2 No.1 (Jan.
2019)

Chirag Jain

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chirag Jain

Uploaded by

Copyright:

Available Formats

Synopsis Presentation on

Under The Guidance Of

INDIAN BANKING INDUSTRY: In India the banking is originated in 18th century.

1. Similar research was undertaken by Rao (2013), who discovered that

Hypothesis of the Study

You might also like