To assess the impact of role of the non-performing assets (NPA’s) on the profitability of the bank.

1    To study the nature and cause of NPAs
2    To assess the growth and magnitude of NPAs in ALLAHABAD BANK.
3    To study the measures taken by ALLAHABAD BANK to reduce NPAs.

1    Personal interviews and discussions are conducted with the officials of the bank.
2    Expert’s opinions soughed on various aspects dealing with NPAs.
3    Analysis of annual report, profit and loss account and balance sheet of ALLAHABAD BANK.


The Non Performing Assets in Allahabad Bank MBA Banking Projects Case study is laid on macro level and to find the impact of NPAs in ALLAHABAD BANK. It also analyses the efficiency of recovery measures undertaken by ALLAHABAD BANK.


Study is undertaken regarding the NPAs in ALLAHABAD BANK for period of 3 years.


1    Study is entirely based on data willingly provided by the bank officials.
2    Study is confidential in nature, so the views expressed by the officials may be a general opinion.
3    The findings of the Study can not be applied to other branches of ALLAHABAD BANK.


Tackling the high level NPAs is certainly a major concern for the Indian banking industry. Raising level of NPAs is becoming a concern for the banks.
The report on NPAs in ALLAHABAD BANK conveys its concern about management of NPAs in the Indian banking system.
The suggestion and recommendations are listed below:
1.    ALLAHABAD BANK must employ/adopt scientific approach for appraisal before the loan is distributed and monitor it closely in real time.
2.    It must provide need based micro-credit for needy entrepreneur with good proposals and implement a system for selecting a good borrower.
3.    It must build a credit information bureau to restrict the errant borrower, from switching banks.
4.    Banks should always follow basic lending norms and take quick credit decisions.
5.    It must break up recovery to branch level network.
6.    It must set up separate NPA cell at each branch level.
7.    Take every NPA case as a separate issue and analyze the need for future findings from an economic point.
8.    Opt for out of court settlements.
9.    Remove the ‘Gross’ and ‘Net’ terms while distinguishing the NPAs.
10.    Government should set up asset Reconstruction Company as proposed by the Narasimham committee, to take over the bad loans of commercial banks and salvage what they can.
11.    Banks should develop advanced skills in risk management and evaluation of various credit risks.
12.    The regulatory authority should strengthen the debt recovery tribunal by appointing more judge and adequate number of recovery officers to dispose off the case.
13.    Periodically a list of defaulters may be published to enable the banks to take necessary action against the defaulters.
14.    Amend the relevant laws like CPC, Limitations act, Stamp act, Evidence act etc, to ensure that the bank default cases are dealt with an altogether different basis with limited number of adjournments.
15.    RBI could lower the bank’s exposure to individual borrowers, to bring economic prosperity equally around the country.
16.    The government should see to that the strong bank should not be merged with the weak bank, as it may effect the performance of the strong bank.
17.    The banks should cut down the operational expenses to bring bank the back on the track of profitability. VRS is one such measure to reduce the expenses.
18.    Government should not provide any re-capitalization facility from here after, as infusion of new capital may not restructure or lift the banks performance; hence the weak banks should be closed down.

Download Non Performing Assets in Allahabad Bank MBA Final Year Banking Sector Projects.