A SYNOPSIS for

A Project Report on
A COMPARATIVE STUDY OF NPA OF URBAN CO-OP BANK
In respect of
NAGAR URBAN CO-OP BANK, SINNAR

Submitted to

SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE

In partial fulfilment of the degree of
Master of Commerce (Advanced Accounting and Taxation)

Submitted by
SUMIT SANJAY JOSHI
M.Com-II Sem-IV (Roll No – 26)

Under the Guidance of

PROF. S. P. JADHAV
M.Com, M.Phil

Submitted through

GMD ART, BW COMMERCE AND SCIENCE COLLEGE,

SINNAR, DIST. NASHIK.
2021-2022
 SYNOPSIS
Name of Student: SUMIT SANJAY JOSHI
Class: M.Com-II SEM-IV
Roll No: 26

Project Topic: A COMPARATIVE STUDY OF NPA OF URBAN CO-

OP BANKS

INTRODUCTION

The UCBs are part of banking sector. It traces mainly an importance in the regional economic
growth by serving the goals of economic policies enunciated in successive five-year development
plan. The efficiency of UCBs is helping in the determination step of development in regional
economy. In academic view the postindependence period, the Banking sector has played
important and commendable role in supporting the government to achieve its social and economic
objectives through deposit mobilization, mass branch networking, and priority sector lending,
employment generation etc. The asset quality is a prime concern and influences various
performance indicators, i.e., profitability, intermediation costs, liquidity, credibility, income
generating capacity and overall functioning of UCBs. The reduction in asset quality results in
accumulation of Non-Performing Assets (NPAs). In connectivity of present study, on the growth
of NPA in the public and private sector banks in India, analysed sector wise non-performing
assets of the commercial banks by academicians. The present study focuses on the current
scenario of urban co-operative banking system with special reference to Non-performing Assets
(NPA) in Sinnar, Maharashtra state of India, by mentioning its need, brief history, current
structure, improvement in financial position of UCBs, contribution of UCBs towards economic
development of the country. This study also highlights the challenges faced under the NPA and its
future effect on Nagar urban cooperative Bank, Branch Sinnar.

TITLE OF THE STUDY

The present research work, the titled “A STUDY OF NON-PERFORMING ASSETS OF URBAN
CO-OPERATIVE BANK IN RESPECT OF NAGAR URBAN CO-OP. BANK” from this
research work the researcher aims to study about NPA and its impact on profitability of selected
UCB in urban region.

IMPORTANCE OF STUDY

This project research help to know about-

1. Co-Operative movement in Maharashtra.

2. Importance of Co-Operative Banks in Sinnar Region.
3. About Loan Sanctioning process of Co-Op Banks.
4. Analysis of causes of NPA in co-op sector and remedies for issue.

SELECTION OF PROBLEM FOR RESEARCH

The present financial analysis on non-performing assets of the urban cooperative banks is crucial
part. NPA management as per the RBI instructions is practically difficult to urban cooperative
banks. A safety point of view it is very necessary to study NPA of urban cooperative bank.
Therefore, Researcher select to do research about the financial analysis of Nagar Urban Co-Op.
Bank in which his main focus is on NPA of the bank, because from last fifteen years number of
co-operative banks are not performing well due to high NPA ratios. So that it can be verify
regarding effectiveness of urban co-operative bank within the study region.

OBJECTIVES OF THE STUDY

The study will undertaken with the following objective

1. To study the functioning and management of Urban Co-operative Bank:

2. To study the structure/ pattern of loaning to its members by Co-operative Banks and
procedure for its disbursement and recovery
3. To study the growth of non- performing assets in Urban Co-operative Banks
4. To analyze the reasons of decline in profitability of Urban Co-operative Banks due to
increasing NPA.
 5. To recognize reasons that lead to NPAs and study of various provisions of the Act with
special emphasis on reduction of NPAs.

SCOPE OF THE STUDY

The scope of the study is very limited with selected organization for study.
1. Organization selected for study is Nagar Urban Co-Op Bank.
2. Due to time limitation for study only selective data will decided to study.

HYPOTHESIS

The following hypotheses were set for this research.

Appropriate control over NPA reduces losses and increase profitability gradually of Co-Op bank.

RESEARCH METHODOLOGY

Primary Data:

This is original data. Analysis of project work mainly depends on primary data.

For this project work decided to collect primary data from employees of organization selected by
–

1. Conducting Interviews.
2. By arranging Questionnaire survey.

Secondary Data:

This is the data readymade available from previous research and from reference material
published time to time.

Secondary data collected from-

1. Academic Books
 2. Reference book related to studied.
3. Journals published by Research and Apex organizations i.e. Maharashtra Co_Op
Department, ICAI, CMA and ICSI, etc.
4. Financial data will extracted from published audited annual report for the financial year
years 2016-2021 of selected organizations.

Method of data collection

1. Arrangement of Interview
2. Questioner Survey
3. Financial Reports of selected Bank

Periodicity

As regard use of statistical data for analyses, the study contains a period of five financial year, i,e,,
2016-2021 for transition impact analysis.

Sample Size

For research Randam Sampling method will used. For analysis Questioner method will be useful
and arrange interview schedule with employees of different departments of selected organization.

LIMITATIONS

The present study will conducted on NPA of urban cooperative banks only. Researcher is selected
only co-operative banking sector because of regional concepts can better explain the NPA in
compare to others. While collecting data of NPA of Nagar Urban Cooperative Banks, collective
and diagnostic approach was used for the analysis and study. NPA data already reflected in the
annual report of UCB. The study is conducted for the period 2016-17 to 2020-21. Influence of
regulatory measures taken after the study period might influence the findings of the study.

CHAPTERISATION

Ch. No. I. Introduction.

Ch. No. II. Research Methodology

Ch. No. III. Profile of Organization

Ch. No. IV. Thermotical Background

Ch. No. V. Data Analysis and Interpretation

Ch. No. VI. Conclusion, Findings and suggestion.

BIBLIOGRAPHY

Co-Op Banking, Principals, Law and Practice – Indian Institute of Banking and Finance

Study Notes issued on NPA of Co-Op Banks – ICAI

Report on NPA of Co-Op Banks 2021 – RBI

WEBSITES

https://mahamcdc.com
https://mahasahakar.maharashtra.gov.in
https://sahakarayukta.maharashtra.gov.in
http://scribe.com
http://researchgate.net

GLOSSARY
PHOTOGRAPHY
ANNEXURES

Sumit Joshi Prof. S. P. Jadhav

Student Research Supervisor