STUDY ON PERFORMANCE OF FOREIGN BANKS IN INDIA

Managing NPAs should be pro-active function than a reactive response. As management of Non-performing assets has direct bearing on the bottom lines of banks, it needs highly focused and professional approach The main objectives of the study are to analyse the impact of NPAs of Scheduled Commercial Banks, Public Sector Banks and Foreign Banks in India. The data for the present study are collected from secondary sources. Twelve years of Gross NPAs, Net NPAs, Gross NPAs as Percentage of Gross Advances, Net NPAs as Percentage of Net Advances, Gross NPAs as Percentage of Total Assets, Net NPAs as Percentage of Total Assets data from 2002-03 to 2013-14 of Foreign Banks in India been collected from the official websites of Reserve Bank of India (rbi.org.in) and various other reports like magazines, journals, published books. The data collected for the study has been analysed logically and meaningfully to arrive at meaningful conclusions. The statistical tools applied for data analysis is descriptive statistics are used. To sum up, Compound Annual growth rate of Gross NPAs and Net NPAs of all banks under study are not less than 15.33% during the study period. They have maintained consistency in their growth since their coefficient of variation is less than one. Hence, NPAs should be curbed on war-footing otherwise, it will have disastrous effect on its survival and sustenance