A STUDY ON BRANCH-LEVEL PRACTICES FOR NPA PREVENTION AND EARLY RECOVERY AT IOB MUGALIVAKKAM

Non-Performing Assets (NPAs) represent one of the most significant challenges confronting public sector banks in India. This study examines the branch-level practices employed by the Indian Overseas Bank (IOB), Mugali vakkam branch, Chennai, for NPA prevention and early recovery. Using secondary data from IOB Annual Reports, RBI Financial Stability Reports, and press releases spanning FY 2020-21 to FY 2024-25, the study analyses five-year trends in Gross NPA Ratio, Net NPA Ratio, Provision Coverage Ratio (PCR), and Net Profit. The findings reveal a sharp decline in the Gross NPA Ratio from 11.69% to 2.10%, a near-complete elimination of Net NPA exposure (3.58% to 0.40%), and a concurrent rise in Net Profit from Rs. 831 Crore to Rs. 4,754 Crore. Statistical analyses including trend analysis, percentage analysis, mean and standard deviation, correlation, and ratio analysis are employed to examine the three key objectives of the study: understanding NPA prevention effectiveness, evaluating recovery outcomes, and identifying problems in branch-level NPA control. The study demonstrates that disciplined branch-level practices in loan appraisal, post-disbursement monitoring, and recovery action are central to IOBs financial turnaround.