Page 44 - BANKING FINANCE SEPTEMBER 2015

ARTICLE

State Bank of 3.91 4.89 5.72 3.86 6.03 4.88 the NPA by adopting suitable recovery strategies appro-
Mysore 2.18 2.28 2.08 2.26 5.35 2.83 priate to the context.
1.92 2.06 8.79 2.37 5.80 4.18
State Bank of Table 4: Non-Performing Assets in Personal
Patiala Loan of SBI Associate Banks

State Bank of (Figures in %)
Travancore

Sources: Annual Reports of SBI's Associate Banks. Bank/Year 2010 2011 2012 2013 2014 Mean

Table 2 clears that, the average NPA in Industrial Sector State Bank of 2.02 1.79 2.26 2.03 1.74 1.96
over the period of study is 4.88 percent in State Bank of Bikaner & Jaipur
Mysore, 4.18 percent in State Bank of Travancore, 3.55
percent in State Bank of Hyderabad, 2.33 percent in State State Bank of 1.53 1.17 1.62 1.05 1.00 1.27
Bank of Patiala and 2.68 percent in State Bank of Bikaner Hyderabad
and Jaipur. This shows that NPA is high in State Bank of
Mysore and less in State Bank of Bikaner and Jaipur. State Bank of 1.08 2.12 1.23 1.99 1.81 1.64
Hence, State Bank of Mysore can adopt appropriate re- Mysore
covery strategies to minimize NPAs.
State Bank of 2.08 3.13 3.36 2.99 1.42 2.59
Patiala

State Bank of 1.29 1.31 1.74 2.36 2.47 1.83
Travancore

Table 3: Non-Performing Assets in Service Sec- Sources: Annual Reports of SBI's Associate Banks.
tor of SBI Associate Banks
It is clear from Table 4 that the average NPA of State
(Figures in %) Bank of Hyderabad in personal loan is lowest ( i.e. 1.27
per cent) and it is the highest in State Bank of Patiala ( i.e.
Bank/Year 2010 2011 2012 2013 2014 Mean 2.53 per cent) as compared to other banks of SBI group
during the period of study.
State Bank of 2.64 1.65 3.83 7.80 5.58 4.3
Bikaner & Jaipur The average non-performing assets is 1.64 per cent in per-
sonal loan in State Bank of Mysore, 1.96 per cent in State
State Bank of 1.69 2.30 5.92 5.18 4.70 3.95 Bank of Bikaner & Jaipur, 1.27 per cent in State Bank of
Hyderabad Hyderabad, 2.59 per cent in State Bank of Patiala and
1.83 per cent in State Bank of Travancore during the pe-
State Bank of 8.11 7.22 7.32 9.50 6.95 7.82
Mysore

State Bank of 3.12 3.30 4.63 5.03 3.01 3.81
Patiala

State Bank of 2.03 1.65 2.93 3.45 6.54 3.32
Travancore

Sources: Annual Reports of SBI's Associate Banks.

It is evident from Table 3 that the average non-perform-
ing assets is 7.82 per cent in State Bank of Mysore, 4.3
per cent in State Bank of Bikaner & Jaipur, 3.95 per cent
in State Bank of Hyderabad, 3.81 per cent in State Bank
of Patiala and 3.32 per cent in State Bank of Travancore
during the period of study. This indicates that the average
NPA in service sector is high in State Bank of Mysore and
low in State Bank of Patiala among the SBI group. This
signifies that State Bank of Mysore should try to manage

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