MMS PROJECT REPORT

On

THE STUDY OF THE TOP 3 BANKS IN INDIA WITH A LOW NPA RATE

submitted by:
Divyal Ghode – 23106A1007
Anushka Dandwate – 23106A1019
Aboli Fendar – 23106A1041
Darsani Nadar – 23106A1050
Indulekha Manakulam – 23106A1055
Akanksha Rai – 23106A1066

Under the guidance of

MRS. SMITA MUKHERJEE

Master Of Management Studies By :

FY – MMS (DIV-A)

Academic Year 2023-2024

CONTENTS

SR. NO TOPICS PAGE NUMBER

1 ABSTRACT
2 INTRODUCTION
3 RESEARCH OBJECTIVE
4 LITERATURE REVIEW
5 RESEARCH METHOD
6 RESULTS
7 CONCLUSION
8 PRACTICAL IMPLICATIONS
9 REFERENCES
ABSTRACT

This report delves into the factors enabling HDFC Bank, ICICI Bank, and Axis Bank, India's leading institutions, to
maintain exceptionally low Non-Performing Assets (NPAs). We dissect their internal strategies, including rigorous
credit appraisal processes that assess borrower viability, coupled with robust loan monitoring for early issue
identification. Additionally, effective risk management likely involving portfolio diversification mitigates potential
losses. Furthermore, external factors like a favorable economic climate, strategic choices in lending to sectors with
lower default risks, and supportive government initiatives promoting financial discipline contribute to their success.
By analyzing these elements, this report aims to not only illuminate the specific strengths of these frontrunners but
also extract valuable knowledge applicable to the broader Indian banking sector, paving the way for a more resilient
financial landscape.
INTRODUCTION
Non-performing assets (NPAs) are a significant threat to the stability of Indian banks. However, some institutions
have achieved remarkable success in keeping their NPA ratios low. This report investigates the factors contributing
to this achievement in the top 3 Indian banks: HDFC Bank, ICICI Bank, and Axis Bank.

NPA (Non-Performing Assets) are those in which the principal and interest are remained overdue for a period of 90
days.

Understanding their strategies is crucial. We will analyze their internal practices, including meticulous credit
appraisal processes, robust loan monitoring mechanisms, and effective risk
management frameworks. These frameworks likely involve portfolio diversification to mitigate risk across various
sectors and borrowers.

External factors also play a role. The prevailing economic climate heavily influences a borrower's ability to repay
loans. Additionally, the banks' strategic choices in lending to
sectors with a proven track record of loan repayment and lower default risks can significantly impact their NPA
ratios. Finally, government initiatives promoting financial discipline and
strengthening debt resolution processes can contribute to a healthier banking environment.

By dissecting these internal and external elements, this report aims to not only illuminate the specific strengths of
these leading banks but also extract valuable knowledge applicable to
the broader Indian banking sector. This understanding can equip other banks with the tools
and strategies necessary to replicate their success, fostering a more robust and financially
sound banking landscape in India.
RESEARCH OBJECTIVE
This study investigates the low NPA (Non-Performing Asset) management strategies of HDFC Bank,
Axis Bank, and ICICI Bank, India's leading private sector banks. It aims to identify the key practices they
employ, such as credit risk assessment, loan monitoring, and debt recovery.

By comparing their historical NPA ratios, provisioning coverage, and resolution timelines, the research
will analyze the effectiveness of each bank's approach. Additionally, it will explore the role of risk
management frameworks and technology adoption in their success.

The expected outcome is to uncover best practices in low NPA management specific to the Indian
private banking sector. This knowledge will be valuable for other banks, policymakers, and investors
seeking to understand the keys to financial stability in the Indian market.
LITERATURE REVIEW
RESEARCH METHOD
RESULTS
CONCLUSION
PRACTICAL IMPLICATIONS
REFERENCES