A Proposal Submitted To Saurashtra University on Partial

Fulfillment of Requirement for the Award of Doctor of

Philosophy (Ph.D)

“AN ANALYTICAL STUDY OF CREDIT MANAGEMENT IN INDIAN

BANKING SECTOR - A COMPARATIVE STUDY OF PUBLIC
SECTOR, PRIVATE SECTOR AND FOREIGN BANKS WORKING IN
INDIA”

Submitted by
Dipali Rajendrabhai Dashani

Submitted to
Saurashtra University
Department Of Commerce &
Business Administration
Rajkot-360005

Nov-2019
 INDEX

1. Introduction

2. Literature Review

3. Title of Study

4. Objectives of the Study

5. Hypothesis of the Study

A. H0 Hypotheses
B. H1 Hypotheses

6. Research Design

A. Sample
B. Data Collection
C. Tools and Techniques
D. Significances of the Study
7. Chapter Plan
8. Limitations of the Study
1. Introduction

Thank God,
In joy & sorrow
To deposit & borrow,
BANKS ARE THERE,
Otherwise,
The question would be funny,
To keep & get money,
HOW & WHERE ………

These words indicate the importance of Banks. Banking system occupies an

important role in economy of a nation. In fact, banking system of any country is the
lifeblood of an economy. A banking institution is indispensable in a modern society. It
plays a pivotal role in the economic development of a country and forms the core of
the money market in country.

The study of Indian Banking sector occupies an important place in

development of economy in India, and is related to close and critical study of various
measures observed in the operation of business and management organization.

The world has become a global market in modern era Globalization has
affected the banking sector also. There is not only branch expansion but they
changed significantly with the entry of new private sector and foreign banks. So,
there is cut throat competition in between public sector, private sector and foreign
banks to each other. Though these different banks are differ significantly from each
other in all means.

Importance of credit not only because of their social obligation to cater to the
credit needs of different sections of the community but also because lending is the
most profitable activity for the interest rates realized on business loans have always
been well above those realized on investment. Credit being the principal source of
income for commercial banks usually represents one of the principal assets of the
bank. Their proper management becomes all the more necessary. The extension of
credit on a sound basis is therefore very essential to the growth and prosperity of a
bank.

Until recently, banks were the major suppliers of working capital to trade and
industry and they had the privilege of receiving the bulk of lending facilities produced
by the banks. Hence, the management of the credit operations of the banks is
required to be more creative than the traditional approach followed by it earlier.

Lending activities of banks have surround effect on the economy. So, if it

becomes fail then it adversely affects the whole economy. Recently, banks realized
that an increase in retail credit increased the credit risk.

So, an examination of some of the important aspects of Credit Management

of Indian Banks would provide an insight into the credit activities of banks.

2. Literature Review

1. Falguni Tanna
She has prepared an M.Phil dissertation on “Credit management in Indian
banking sector (A comparative study of Central bank of India and UCO
bank)” This researcher has covered majority area of credit management
and credit deployment to various sectors and areas by sampled banks.

2. Pro. Nirmal Nathwani

This author analyzed in his Ph.D thesis, “The study of Financial
Performance of Banking Sector of India”, with coverage of entire Indian
banking sector. He included net NPA to net advance ratio to measure
credit efficiency of banking sector with many other aspect related to
profitability, productivity, Operating profit etc.
 3. Disha Bansal
This author analyzed in her Ph.D thesis, “Impact of liberalisation on
productivity and profitability of Public sector banks in India.”She evaluate
liberalisation effect on productivity and profitability of Public sector banks.

4. Deepak Sharma
This author analyzed in his Ph.D thesis, “Critical evaluation of Indian
Banking sector with reference to Private Sector Bank and Public Sector
Bank.”He included productivity and profitability point wise and bank wise.

5.Rajeshri Nathwani

This author analyzed in her Ph.D thesis,” The study of Customers’

preference and managerial effectiveness of Nationalized and Private
Sector Bank.” based on the satisfaction measures taken by the nationalized
and private sector banks.

6. Parul Chotalia

This author analyzed in her Ph.D thesis,” Performance Appraisal of State

Bank of India and its Associate Banks.” She measured branch productivity
and employee productivity of sample banks, search out the major
problems and prospects of the banking sector.

3. Title of Study

“AN ANALYTICAL STUDY OF CREDIT MANAGEMENT IN INDIAN BANKING

SECTOR - A COMPARATIVE STUDY OF PUBLIC SECTOR, PRIVATE SECTOR
AND FOREIGN BANKS WORKING IN INDIA”
4. Objectives of the Study

The motive of the study will be to understand and compare the credit
management of Indian banking sector including Public Sector, Private Sector and
Foreign banks working in India.

The broader objectives of the study will be as under:-

1. To analyze the credit management of public sector banks, private sector

banks and foreign banks working in India.
2. To know the soundness of credit management in banks.
3. To identify the sectoral credit deployment by banks.
4. To find out the security covered by banks against sanctioned credit.

5. Hypothesis of the Study

Hypothesis study is important for evaluating performance which shows that

there is any difference among the performance or not.

For the present study the researcher will formulate two hypothesis, null
hypothesis and alternate hypothesis. The broader hypothesis would be as under...

A. H0 Hypotheses
1. H0:- There would be no significant difference in credit deposit ratio,

sectoral credit deployment, credit sanctioning among public sector

banks, private sector banks and foreign banks working in India.

2. H0:- There would be no significant difference in gross NPA to gross

credit, net NPA to net advance among public sector banks, private

sector banks and foreign banks working in India.

B. H1 Hypotheses
1. H1:- There would be significant difference in credit deposit ratio,
sectoral credit deployment, credit sanctioning among public sector
banks, private sector banks and foreign banks working in India.
 2. H1:- There would be significant difference in gross NPA to gross
credit, net NPA to net advance among public sector banks, private

sector banks and foreign banks working in India.

6. Research Design

A. Sample

The total no. of bank is the universe of the study. At this stage researcher has
decided to take top five banks according to their paid up capital from public
sector bank, private sector bank and foreign banks working in India.

B. Data Collection

This study will be based on secondary data. The data collect from published
annual report of bank; other information related to bank will be collect from
official website and net sources, books, journals and news papers etc.

C. Tools and Techniques

 Tools
 Ratio Analysis
 Trend Analysis
 Mean

 Techniques
 Chi square test
 ANOVA
 Standard Deviation
 Regression
 Correlation
 Multivariance Analysis
 D. Significances of the Study

The study will be based on secondary data related to the Indian public sector
bank, private sector bank and foreign bank working in India.

1. It can give detail information and understanding regarding banking

sector in India.
2. It can give comparative analysis of credit management of public sector
bank, private sector bank and foreign bank working in India.
3. It can give broader idea of work of selected banks especially in credit
area.
4. This study can give such useful information to the bankers, customers,
shareholders and people who are interested in investment in bank.

7. Chapter Plan

1. Banking Sector in India

2. Credit management – Conceptual Framework
3. Research Methodology
4. Data Analysis and Interpretation
5. Findings, Suggestions and Conclusions

8. Limitations of the Study

1. The data, which will be use for this study will be mainly secondary data,
which will be taken from published annual reports and other reports
from time to time. The limitation of secondary data remains with it and
also will apply to this research work.
2. The researcher is an external evaluator hence the insight view of bank
is beyond the limitation of researcher.
REFERENCES

 Vasant Desai :- “Indian Banking Nature & Problems”

 R. Kothari :- “Research Methodology- Methods & Techniques”

 RBI- “Statistical Tables Relating to banks in India”

 Ravi M. Kishore “Cost Accounting and Financial Management”

 S. K. Misra & V. K. Puri :- “Indian Economy”

 G. Vijayaragavan :- “Bank Credit Management”

 The Indian Economy

 RBI Bulletin

 IBA Bulletin

 www.financeindia.org

 www.rbi.org.in

 www.banker'sindia.com