Fareed Ahmed | Dr. B.R. Ambedkar Open University (original) (raw)

Papers by Fareed Ahmed

international journal of research and analytical reviews, 2023

International Journal of Research in Social Sciences Vol. 7 Issue 12, December 2017,, 2017

Asset quality is the indicator for the health of the banking industry in a country. With the intr... more Asset quality is the indicator for the health of the banking industry in a country. With the introduction of international norms of Income Recognition, Asset classification and Provisioning in the banking sector, managing Non-Performing Assets have emerged as one of the major challenges facing the
banks. This study provides an analysis of the trends of NPAs of Public and Private Sector Banks in India and found that the NPAs of both the groups have been increasing regularly year by year but the magnitude of Non-Performing Asset is comparatively higher in public sectors banks than private
sector banks. Further it analysed the asset quality in terms of Gross Non-Performing Asset & Net Non-Performing Asset to Total Assets ratios, Slippage & Net Slippage ratios, Restructured Standard Asset ratio, Stressed Asset and Impaired Asset ratios besides Gross Non-Performing Asset and Net Non-Performing Asset ratios based on the secondary data. Analysis of variance (ANOVA) and F-test are used with the help of Statistical Package for the Social Sciences to ascertain the significant difference in various parameters of Net-Performing Asset between Public Sector Banks and Private Sector Banks. It was observed that there is significant difference in between Public Sector Banks and Private Sector
Banks in respect of Net Non-Performing Asset ratio, Restructured Standard Asset ratio, Stressed Asset and Impaired Asset ratios and there is no significant difference in respect of Gross Non-Performing Asset ratio, Gross Non- Performing Asset & Net Non-Performing Asset to Total Assets ratios, Slippage and Net Slippage ratios .

IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 9. Ver. VIII (September 2017), P, 2017

Since the global financial crisis of 2008-09, the asset quality and profitability of Indian banki... more Since the global financial crisis of 2008-09, the asset quality and profitability of Indian banking
deteriorated. The Gross NPA ratio rose sharply to 7.5% in FY16 compared to 2.2% in FY09. Once the account is classified as NPA, income from NPA is not recognized on accrual basis and the unrealized interest that was taken to Profit and Loss account on accrual basis shall also be reversed as the policy of income recognition. Operational effectiveness of the banks is affected by the quality of advances, which in turn has an impact on the profitability, cost effectiveness, liquidity, and solvency position of the banks. Hence, an attempt was made to study the impact of NPAs on the bank’s performance. Data was collected on Scheduled Commercial Banks in India from RBI reports, and simple correlation and regression applied in order to establish linkages between selected variables—Profit, ROA, ROE, Cost to Income ratio and Provisions, and NPA. The results of statistical analysis indicate that NPAs have insignificant inverse relationship with profit, significant negative impact on ROA, ROE, and a significant positive impact on Cost to Income ratio and Provision. As such, NPAs put detrimental impact on the bank’s performance.

International Journal of Management And Social Science Research Review (IJMSRR) · Sep 1, 2017, 2017

stable and sound banking system is required for a healthy growth of an economy. But the sharp ris... more stable and sound banking system is required for a healthy growth of an economy. But the sharp rise of non-performing assets (NPAs) has pushed the Indian commercial banks to the brink of a crisis. Chartered Accountants (CAs) render services both to banks and entrepreneurs, so it was felt that obtaining their opinion, pertaining to NPAs is useful and hence an attempt has been made to know their perception towards the management of NPAs. A survey was conducted with a structured questionnaire. Important causes and impacts of NPAs were studied and ranked. The CAs considered diversion of funds, poor monitoring, lack of supervision and follow up, and economic slowdown as the most important causes and erosion of profits and increasing provisions as the two most important consequences of NPAs. Kendall’s coefficient of Concordance indicates that there is significant agreement among CAs in the ranking of different causes and different items of impact of NPA.
Further, ANOVA analysis revealed that there is significant relationship between experience of CAs and some of the causes and items of impact of NPA. The perception of CAs towards other causes and impact of NPAs was also studied. Researchers in future may conduct such studies based on the response from Bank Officials.

Does Indian Banking Sector Need A Bad Bank to resolve Non-Performing Assets Does Indian Banking Sector Need A Bad Bank to resolve Non-Performing Assets International Journal of Research in Engineering, IT and Social Sciences · Mar 13, 2021, 2021

Accumulation of Non Performing Assets in recent years remains an area of concern for Indian Banks... more Accumulation of Non Performing Assets in recent years remains an area of concern for Indian Banks
particularly Public Sector banks and they are expected to rise further in the coming months on account of COVID19 pandemic. They should be tackled with sincere efforts. The role of IBC has been significant yet not sufficient to resolve enormous number of NPAs. The idea of Bad Bank has been avoided for a long time in India. Bad Bank, which is essentially an ARC, has the potential to get financial sector ready to release funds. Having a Bad Bank will let the banks continue the lending however, it will bring its own challenges, but this seems be to be the best suited time for its incorporation for the recovery of the banking sector. A challenge for a bad bank may be developing a sustainable and unique business model. In this paper, we suggested a model, which rests on an idea that combines the conventional bad bank approach with the instrument of equalization claims. This model effectively addresses three key challenges., the transparent removal of stressed assets and gives the banks to start fresh lending, offers the chance to keep the cost to taxpayers low and avoids the risk of moral hazard. It is suggested that the bad bank shall be established with finite life period of maximum 8 years and then this bank can be dissolved. The bad bank can have majority of employees on contract basis for fixed salaries and some activities may be outsourced which will be proved cost-effective. The turnaround of stressed assets by an ARC & AMC, public or private, needs an efficient insolvency law, experienced restructuring professionals and other experts, and a market for stressed assets.

International Journal of Research in Social Sciences Vol. 7 Issue 12, December 2017,, 2017

sset quality is the indicator for the health of the banking industry in a country. With the intro... more sset quality is the indicator for the health of the banking industry in a country. With the introduction of international norms of Income Recognition, Asset classification and Provisioning in the banking sector, managing Non-Performing Assets have emerged as one of the major challenges facing the
banks. This study provides an analysis of the trends of NPAs of Public and Private Sector Banks in India and found that the NPAs of both the groups have been increasing regularly year by year but the magnitude of Non-Performing Asset is comparatively higher in public sectors banks than private
sector banks. Further it analysed the asset quality in terms of Gross Non-Performing Asset & Net Non-Performing Asset to Total Assets ratios, Slippage & Net Slippage ratios, Restructured Standard Asset ratio, Stressed Asset and Impaired Asset ratios besides Gross Non-Performing Asset and Net Non-Performing Asset ratios based on the secondary data. Analysis of variance (ANOVA) and F-test are used with the help of Statistical Package for the Social Sciences to ascertain the significant difference in various parameters of Net-Performing Asset between Public Sector Banks and Private Sector Banks. It was observed that there is significant difference in between Public Sector Banks and Private Sector
Banks in respect of Net Non-Performing Asset ratio, Restructured Standard Asset ratio, Stressed Asset and Impaired Asset ratios and there is no significant difference in respect of Gross Non-Performing Asset ratio, Gross Non- Performing Asset & Net Non-Performing Asset to Total Assets ratios, Slippage and Net Slippage ratios .

International Journal of Management, IT & Engineering Vol. 11 Issue 02, February 2021, 2021

Indian banking was subjected to reforms since 1991 that led to gradual transformation on some di... more Indian banking was subjected to reforms since 1991 that led to gradual transformation on some
dimensions of performance in the course of time, particularly with regard to efficiency, capitalization,
technology, governance with equal emphasis on stability. Meantime Global Financial Crisis of 2007–
2008 led to bank failures in many countries. However, Indian banks escaped from major catastrophic
financial damages banks might have suffered. But it could not remain insulated from dampening effect
of recession in Indian economy. It adversely impacted Indian economy with a time lag and then
onwards it has been undergoing a crisis on account of Stressed Assets. Government has implemented a
comprehensive 4Rs strategy of Recognising NPAs transparently, Resolution and recovery,
Recapitalisation and Reforms to address this problem. PSBs’ Whole Time Directors and Senior
Executives at PSB Manthan recommended a six-point action plan on Enhanced Access & Service
Excellence or EASE. The main objective of the EASE reforms was to improve the performance of
PSBs and ensure financial stability among others. The Ease reforms which were launched in January
2018, and the subsequent edition of the program ― EASE 2.0 built on the foundation laid in EASE 1.0
and furthered the progress on reforms. This paper examined the PSB EASE Reforms journey and its
impact on the performance of PSBs and observed it had positive impact.

International Journal of Interdisciplinary and Multidisciplinary Studies (IJIMS), 2017, Vol 4, No.3,448-462. 4, 2017

eduction of NPAs and containing new NPAs is the major challenge Indian Commercial banks facing to... more eduction of NPAs and containing new NPAs is the major challenge Indian Commercial banks facing today. So, we attempted to ascertain the perception of CAs towards the NPAs and what the probable causes and consequences ofhaving NPAs according to them. A survey was conducted with a structured questionnaire. About 9 important causes responsible for NPAs were studied and ranked. The CAs considered diversion of funds, poor monitoring, lack of supervision and follow-up, and economic slowdown as the most important causes. It also observed that CAs perceived erosion of profits and increasing provisions as the two most important consequences of NPAs, out of seven items of impact studied. Kendall’s coefficient of concordance (W) indicates that there is significant agreement among CAs in the ranking of different causes and different items of impact of NPA. Further, ANOVA analysis revealed that there is significant relationship between experience of CAs and some of the causes and items of impact of NPA.The perception of CAs towards other causes and impact of NPAs was also studied. Bank ownership, Aggressive lending, Unhealthy Competition, Time /cost overrun, Waiver of loans, Weak supply and demand scenario and Vagaries of monsoon are some of the other reasons of NPA and the respondents are also of the opinion that banks fail to reduce the rate of interest and developed aversion to lending as a result of NPAs. Further, it is observed that NPAs have adverse impact on liquidity, Shareholders’ value and banks’ credibility.

International Journal of Multidisciplinary Educational Research Volume 9 Issue 11(8), 2020

Licensing of Small finance banks is another step to bring the unbanked under the ambit of the ban... more Licensing of Small finance banks is another step to bring the unbanked under the ambit of the banking system. They were set up to offer basic banking services such as accepting deposits and lending to the unserved and the under-served sections, including small businesses, marginal farmers, micro and small industries, and the unorganised sector. At end March 2018, ten SFBs were operational. As all the 10 SFBs have full operations for two financial years, an attempt has made in this paper to evaluate their comparative performance. We have developed a model that ranks bank performances based on 31 indicators across five major parameters -- Strength and Soundness, Growth, Credit quality and priority sector lending, Profitability and Efficiency. Banks are assigned a ranking in each sub-parameter as well as an overall ranking based on their performance across all major parameters. In our analysis Fincare SFB stood at top followed by Ujjivan and Utkarsh SFBs in second and third positions. It can also be observed that each of the 10 SFBs scored differently across our 31 indicators. Further analysis can be undertaken based on more granular data to know whether SFBs are fulfilling the objective of their formation.

International Journal of Research in Management, Economics and Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 07 Issue 11, November, 2017

Non-Performing Assets have emerged as one of the major challenges facing the banks. An attempt is... more Non-Performing Assets have emerged as one of the major challenges facing the banks. An attempt is made in this paper to assess the impact of bank specific variables like Gross advances, Credit Deposit ratio, Share of Secured and Term Loans and Weighted Average Lending Rate (WALR) Correlation and linear regression analysis was applied with the help of SPSS. The study revealed that there is significant positive impact of Gross advances, Gross Advances with time Lags and Credit Deposit (CD) ratio on Non-performing Assets (NPAs), contrary to the perception of few opinion makers, supporting the pro-cyclical nature of the banking system, wherein asset quality can get compromised during periods of high credit. It is also revealed that Share of Secured and Term Loans and Lending rates have been found to be not significant in affecting the Non-performing Loans (NPLs), which is contrary to the general perception. Further, as the R2 values explained only part of variation in NPA, indicating that there are other qualitative bank specific factors like deficiency in the credit appraisal standards and poor monitoring and lack of supervision and follow-up and borrower related factors like Diversion of funds, Wilful Default etc., and Macroeconomic factors like Gross Domestic Product (GDP) have significant impact on NPAs. So further research studies may be attempted focusing on these parameters.

NTERNATIONAL JOURNAL OF RESEARCH IN ENGINEERING, IT AND SOCIAL SCIENCES (IJREISS) · Nov 18, , 2021

il palm cultivation assumes significance for augmenting the indigenous availability of edible oil... more il palm cultivation assumes significance for augmenting the indigenous availability of edible oil as it
is the highest oil yielding perennial crop. The rising urban population, changes in consumption patterns and limited domestic production have led to India’s increasing imports of edible oils. To address this, the Government of India has drawn up a strategy to promote large-scale palm oil cultivation through a special programme on Palm Oil Area Expansion and assuring benchmark price and compensation. Therefore, an attempt has been in this paper to study the economic and other aspects of Oil palm cultivation. The study revealed that the Oil Palm is a highly remunerative crop to the farmers based on the costs and returns analysis. The high positive net present worth, the benefit-cost ratio of 1.51, the internal rate of return of 28.41 %, Low Break-even Point and Lesser Pay Back Period indicated that the investment on oil palm orchard is a profitable and financially viable proposition. So farmers may be encouraged to take up Oil palm cultivation. However, the domestic palm oil industry needs to adopt a credible mechanism to demonstrate that the growth in domestic production of palm oil is not promoted at the cost of the environment and that stakeholders follow sustainable (environmental & social) business models.

International Journal of Research in Engineering, IT and Social Sciences, ISSN 2250-0588, Impact Factor: 6.565, Volume 11 Issue 01, , Page 1-13, 2021

Non-performing assets (NPAs) have become a major challenge for Indian Public Sector banks during ... more Non-performing assets (NPAs) have become a major challenge for Indian Public Sector banks during
the past few years. Insolvency and Bankruptcy code introduced in 2016 to tackle stressed Asset problem faced by the Indian banking sector in a systematic and time bound manner by consolidating the extant of multiple laws that have been dealing with insolvency and bankruptcy. As it has completed four years, an attempt was made to assess the effectiveness of IBC. The Code has been amended five times since its enactment for its effective implementation. There has been good progress in insolvency ecosystem. The recovery rate under IBC is 45.5%, the highest among all options available to creditors for recovery. About 250 CIRPs had yielded resolution plans and the amount realiasable was Rs.1.89 lakh crore as against claimed amount and liquidation value of Rs. 423 lakh crore and Rs. 1.03 lakh crore respectively. There is some respite in the gross NPAs of banking industry during the last year. The recovery rate improved nearly threefold from 25.7 per cent in 2016 to 71.6 per cent in 2019. The overall time taken in recovery also improved nearly three times, coming down from 4.3 years in 2016 to 1.6 years in 2019. India’ resolving ranking improved and there by ease of doing. The code has had a positive impact on the insolvency process and will continue to have it on the banking sector and in turn the Indian economy.

ournal of Emerging Technologies and Innovative Research (JETIR) ·, 2023

An adequate level of foreign exchange reserves has become an important parameter for determining ... more An adequate level of foreign exchange reserves has become an important parameter for determining a country’s ability to absorb external shocks. An attempt has been made in this paper to study the trends, composition and assess the adequacy of India’ reserves. The trend in India’s forex reserves revealed that despite liberalization of the economy and adoption of current account convertibility since the early 1990s, reserve level remained low during the 1990s.The pace of reserve buildup accelerated since 2000 due to various factors and increased manyfold during the study period from a meagre amount of US$ 5.8 billion in1991 to US$ 561 billion as of February,2023. A good amount of reserves also accumulated during the pandemic period. The analysis of composition of reserves indicated that the share of gold in total forex reserves has fallen drastically and consequently the share of foreign currency assets increased substantially as compared to the period prior to liberalization of the Indian economy.
Different researchers have applied various methods to ascertain the adequate level of foreign exchange reserves. However, no one measure can fully capture the range of factors that bear on a country’s resilience against shocks. The different measures of estimating adequacy level of reserves applied in this study showed that the country holds reserves more than the adequate level. If any particular shock affects the economy, then it has a greater capacity to absorb the shock. In more extreme situations, even if the entire economy goes into depression and there is a sudden stop of foreign capital inflow, then also the country has sufficient reserves to endure the shock for certain periods. Moreover, reserves are only one part of a country’s defense against shocks.

The concept of Non-Performing Assets (NPAs) emerged as a contemporary issue when Reserve Bank of ... more The concept of Non-Performing Assets (NPAs) emerged as a contemporary issue when Reserve Bank of India (RBI) introduced the prudential norms on the recommendations of the Narsimham Committee in the year 1992-93. During the past few years there was an alarming increase of NPAs of Indian banks. Among the bank-groups, Public Sector banks (PSBs) are particularly struggling with high NPAs. An attempt is made in this paper to evaluate the NPA management of PSBs and Private Sector Banks (PVSBs). Most of the earlier researchers used Gross NPA (GNPA) and Net NPA (NNPA) ratios to compare the performance of PSBs and PVSBs. We attempted to compare the performance in terms of growth rates of GNPAs, NNPAs, NPA additions, NPA reductions, GNPA generation ratio and Incremental NPA Accretion rate besides GNPA and NNPA ratios. The results indicate that there is no significant difference between PSBs and PVSBs in respect of annual growth rates of GNPA & NNPA, GNPA ratio and Incremental NPA Accretion ra...

In a bank led economy, the concern for effective management of non-performing assets (NPAs) in th... more In a bank led economy, the concern for effective management of non-performing assets (NPAs) in the Indian banking sector is relevant. The most commonly used indicators for assessing the performance of banks, have been Gross NPA (GNPA) and Net NPA (NNPA) ratios. But the techniques adopted by banks for NPA reduction vary widely and play a significant role in the improvement of quality of NPA management of banks. After an in-depth analysis of various factors affecting NPA management in banks, this paper makes an attempt to compare the performance of Indian banks with respect to various aspects of NPA management, by developing an index which will enable one to have a clear understanding of the bank's performance vis-à-vis its peers. By constructing this index, the study revealed that, though the economic downturn was faced by all banks, deterioration in asset quality and poor NPA management was not reflected across all bank groups and PSBs share a disproportionate and increasing bur...

banking by Fareed Ahmed