Pre and Post Merger Analysis of Non Performance Assets (NPAs): A Study with Special Reference to ICICI Bank Ltd.
Keywords:
Non Performing Assets, ICICI bank, Gross NPAs, Substandard AssetsAbstract
Banking sector plays a imperative role in the capital formation of the country although there are various hurdles to reach positive progress of banking sector such as, risk management, efficiency and productivity in the functioning of bank, maintaining loan portfolio etc. but apart from these there is a big challenge for the better functioning of ICICI Banks in managing Non- Performing Assets. The main objectives of the study are to understand the various concepts of NPAs and RBI guidelines for non-performing assets. And to trace out the pre and post merger analysis of gross NPAs to gross advances and net NPAs to net advances and to analyze the pre and post merger analyze in the classification of loan assets and also to examine the pre and post merger analysis in movements of gross and net NPAs of ICICI bank. The study used secondary sources of data and to measure the reliability of NPAs data applied descriptive statistics such as standard deviation, mean, and one way ANOVA test. It results there is no significant association between pre-merger and post-merger performance towards movement of gross NPAs and net NPAs of ICICI bank therefore the null hypotheses is accepted. The overall analysis showed that post merger NPAs performance was better and good compared to the pre merger NPAs performance of ICICI bank. Therefore magnitude of NPA is comparatively higher in banking sector and it improves the efficiency and profitability of banks the NPA need to be reduced and controlled. In this paper, an effort has been made to analyze the pre and post merger analysis of Non-Performance Assets of the ICICI Bank.
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