1. A Grand Project Report On A Study on Impact of NPA on Profitability and Liquidity In Public Sector Banks A Project Report Submitted in Partion Fulfillment of award of MBA Degree Project Guide Prof. Ranjani SrinivasanSubmitted By Ketan Dhameliya (22) Pankaj Kamaliya (40)Submitted toS. K. PATEL INSTITUTE OF MANAGEMENT & COMPUTER STUDIES Gandhinagar, India March-2013

2. CertificateThis is to certify that Mr. Ketan Dhameliya And Mr.Pankaj Kamaliya of MBA 2nd year student of S. K. Patel Institute of Management and Computer Studies, Gandhinagar has completed his comprehensive Project titled A Study on Impact of NPA on Profitability and Liquidity In Public Sector Banks in the year 2011-2013 in partial fulfilment of kadi Sarva Vishwavidyalaya requirements for the award of the title of Master of Business Administration.Dr.Bhavin Pandya (Director)Date:-Prof. Ranjani Srinivasan (Guide) 3. Declaration We, hereby declare that the comprehensive Project titled, A Study on Impact of NPA on Profitability and Liquidity in Public Sector Banks is original to the best of our knowledge and has not been published elsewhere. This is for the purpose of partial fulfilment of Kadi Sarva Vishwavidyalaya requirements for the award of the title of Master of Business Administration, only.Ketan Dhameliya:-Pankaj Kamaliya:- 4. Acknowledgements We express our sincere gratitude towards all those people who have helped us in the preparation of this report. We are very much thankful to our external guide Prof. Ranjani Srinivasan, who had guided us while preparation of this project. We would like to thank Prof.sonu gupta (Head of Department) who guided us throughout our report. Apart from them we also like to thank our director Dr.Bhavin Pandya (Director) who gave us wonderful opportunity to work on this project. We also like to thank Prof. Sandhya Harkawat (Grand project coordinator) who helped us to finish project on time. Thus ending here we would like to thank the officials of S.K.Patel Institute of Management who have supported us a lot in preparing this report. 5. Executive summary This project comprises Objectives and Introduction of study of Banking Industries, NPA in public sector private sector and foreign sector and other variable like priority sector non priority sector and others We also included introduction part of study we included, Industry overview, Types of NPAs, Industry analysis, Research methodology which includes objectives of study, scope of study sampling size and Data interpretation and analysis by using various charts. We also used statistical tool that is Descriptive test Correlation analysis Regression analysis Jarque-Bera, Kurtosis, Skewness, Pairwise Granger Causality Tests, Johansen Cointegration Test, and Ratio of NPA and Advances. Finally we concluded with learning part. We got good knowledge about corporate and its activities.