final year project

日期 : Jan 2017 - Dec 2017

The current study is concerned about investigating the impact and significance of bank internal factors such as return on asset, loan to deposit ratio, capital adequacy ratio, loan loss reserves and loan to asset ratio of NPL to total advances ratio of different category of banks. Bank internal factors are taken as independent variables while NPL to total advances is considered as dependent variable. In this study we are mainly focused on comparing the results of private banks, state owned banks and specialized banks. The analysis is based on the sample of 13 private banks, 5 specialized banks and 3 state owned banks. Observed indication showed that there is a substantial difference in NPL ratio to different categories of banks such as percentage of NPL in specialized banks is greater rather in private and public owned banks. Loan to asset ratio, loan loss reserves and loan to deposit ratio have a significant relationship between NPL ratio of private banks while insignificant relationship between capital adequacy ratio, return on asset and NPL ratio in private banks. Capital adequacy ratio and loan loss reserve has a significant relationship between NPL ratio of specialized banks and return on asset, loan to deposit ratio and loan to asset ratio has insignificant relationship between NPL ratios of specialized banks. Capital adequacy ratio and loan to deposit ratio have a statistically significant relationship between NPL ratio of state owned banks while insignificant relationship between NPL ratio and loan loss reserves, loan to asset ratio and return on asset for state owned banks. Research will help managers to understand and overcome the problem of non-performing loans in different category of banks.