NPA Management in New Generation Co-operative Banks: A Study of BZRC Mahila Sahakari Bank Ltd, Belgaum

The introduction of NPA norms in banks in India in 1991-92 resulted in great changes in the banking field. NPA norms considered to be major highlights of banking reforms have resulted in more stringent policies to be adopted by all banks while sanctioning and recovery of loans. However NPAs are still mounting and eroding the profits and financial strength of banks. The present study was initiated to study how the new generation co-operative banks, which commenced their business after the introduction of NPA norms, managed their NPAs. BZRC Mahila Bank Ltd, an ideal institution under the co-operative set-up which started its operations in the year 1996, when the NPA norms were already applicable to all the co-operative banks was chosen for the study. The study relates to 5 years NPA position of the bank from 2008 to 2012. The study is based on the secondary data provided by the annual reports of the bank and NPA statements provided by the bank. Primary data is also collected by oral discussions with the Bank CEO. It is evident from the study that the Bank has made continuous efforts to keep the NPAs under control and to a maximum extent it has succeeded.