CHAPTER 6

ANALYSIS AND OBSERVATIONS

1
 ANALYSIS AND OBSERVATIONS

In this chapter, an attempt has been made to test the significance

difference of various aspects of Non-Performing Assets between
selected public sector and private sector banks. The study is done for
period of five years from 2015-16 to 2019-20. Testing of Hypotheses
has been done by using Analysis of Variance (ANOVA) test.

Hypothesis:

Ordinarily when one talks about hypothesis, hypothesis simply

means a mere assumption or some supposition to be proved or
disproved but for a researcher hypothesis is a formal question that he
intends to resolve. Thus, a hypothesis may be defined as a proposition
or a set of propositions which set forth as an explanation for the
occurrence of some specified phenomena either asserted merely as a
provisional conjecture to guide some investigations or accepted as
highly probable in the light of established facts. A research objective is
frequently a predicted statement that connects an independent variable
to a dependent variable and may be examined or judged using scientific
procedures.

Hypothesis should be capable of being objectively verified,

judged and tested. A hypothesis is testable if other deductions can be
made from it which in turn can be accepted or rejected by observation.

2
Testing of Hypotheses

6.1 Analysis 1

H01: There is no significant difference in mean variance between the

Gross NPAs of the Selected Banks.

As discussed earlier, six leading Indian banks, three banks from

public sector and three banks from the private sector have been selected
for this study and the period is five years from 2015-16 to 2019-20.

Table: 6.1.1
Gross NPA to Gross Advances ratio
(In percentage)
YEARS SBI PNB BOB HDFC ICICI AXIS

2015-16 6.50 12.90 9.99 0.94 5.21 1.67

2016-17 6.90 12.53 10.46 1.05 7.89 5.04

2017-18 10.91 18.38 12.26 1.30 8.84 6.77

2018-19 7.53 15.50 9.61 1.36 6.70 5.26

2019-20 6.15 14.21 9.40 1.26 5.53 4.86

3
20

18

16

14
SBI
12 PNB
10 BOB
8 HDFC
ICICI
6
AXIS
4

0
2015-16 2016-17 2017-18 2018-19 2019-20

Figure: 6.1 GROSS NPA TO GROSS ADVANCES RATIO BAR GRAPH

18.38

15.5
14.21
12.9 12.53 12.26

10.46 10.91
9.99 9.61
8.84
7.89 7.53
6.5 6.9 6.77 6.7 6.15
5.21 5.04 5.26 5.53
4.86

1.67
0.94 1.05 1.3 1.36 1.26
2015-16 2016-17 2017-18 2018-19 2019-20
SBI 6.5 6.9 10.91 7.53 6.15
PNB 12.9 12.53 18.38 15.5 14.21
BOB 9.99 10.46 12.26 9.61 9.4
HDFC 0.94 1.05 1.3 1.36 1.26
ICICI 5.21 7.89 8.84 6.7 5.53
AXIS 1.67 5.04 6.77 5.26 4.86

SBI PNB BOB HDFC ICICI AXIS

Figure: 6.2 GROSS NPA TO GROSS ADVANCES LINE GRAPH

4
 It is clear from table 6.1.1that there has been fluctuating trend in
NPAs over the period in all selected banks. SBI's gross nonperforming
assets to gross advances ratio grew from 6.50 percent at the end of
2016 to 10.91 percent over the period of March 2018, before falling to
6.15 percent in 2020. In the instance of PNB, the ratio rose from 12.90
percent at the end of 2016 to 14.21 percent over the period of March
2020, with a high of 18.38 percent in 2018. BOB grew from 9.99
percent at the end of 2016 to 12.26 percent over the period of March
2018, then decreased to 9.40 percent in the following year. In HDFC,
the ratio of gross nonperforming assets to gross advances jumped from
0.94 percent at the end of 2016 to 1.26 percent over the period of
March 2020. This ratio grew in ICICI from 5.21% at the end of 2016 to
5.53 percent over the period of March 2020. This ratio in AXIS has
risen from 1.67 percent at the end of 2016 to 4.86 percent over the
period of March 2020.

In performance term HDFC Bank has shown the consistent ratio

throughout study period while other selected banks gross NPA Ratio
fluctuating. PNB having highest Gross NPA Ratio in study period
among all selected banks. Gross NPA ratio growth highest in Axis
Bank 1.67 to 4.86 percent among selected Banks.

5
Calculation of Mean, Standard Deviation & Coefficient of Variation

SBI: -

Input Data:
Input = 6.50, 6.90, 10.91, 7.53, 6.15

Objective:
Find what coefficient of variance for given data?
Formula:

Solution:
Mean = (6.50 + 6.90 + 10.91 + 7.53 + 6.15)/5 = 37.99/5

Mean = 7.598

Standard Deviation σ = √ (1/5 - 1) x ((6.50 - 7.598)2 + (6.90 -7.598)2

+ (10.91 -7.598)2 + (7.53 -7.598)2 + (6.15 -7.598)2)
= √ (1/4) x ((-1.098)2 + (-0.698)2 + (3.312)2 + (-0.068)2 + (-1.448)2)
= √ (0.25) x ((1.205604) + (0.487204) + (10.969344) +
(0.0046239999999999) + (2.096704))
= √ (0.25) x (14.76348)
= √ (3.69087)
= 1.9212

Coefficient of Variance = σ/μ = 1.92127.598

Coefficient of Variance = 0.2529

6
PNB: -

Input Data:
Input = 12.90, 12.53, 18.38, 15.50, 14.21
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (12.90 + 12.53 + 18.38 + 15.50 + 14.21)/5
= 73.52/5
Mean = 14.704

Standard Deviation σ = √(1/5 - 1) x ((12.90 - 14.704)2 + ( 12.53 -

14.704)2 + ( 18.38 - 14.704)2 + ( 15.50 - 14.704)2 + ( 14.21 - 14.704)2)
= √(1/4) x ((-1.804)2 + (-2.174)2 + (3.676)2 + (0.796)2 + (-0.494)2)
= √(0.25) x ((3.254416) + (4.726276) + (13.512976) + (0.633616) +
(0.244036))
= √(0.25) x (22.37132)
= √(5.59283)
= 2.3649

Coefficient of Variance = σ/μ

= 2.364914.704
Coefficient of Variance = 0.1608

7
BOB: -

Input Data:
Input = 9.99, 10.46, 12.26, 9.61, 9.40
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (9.99 + 10.46 + 12.26 + 9.61 + 9.40)/5
= 51.72/5
Mean = 10.344

Standard Deviation σ = √(1/5 - 1) x ((9.99 - 10.344)2 + ( 10.46 -

10.344)2 + ( 12.26 - 10.344)2 + ( 9.61 - 10.344)2 + ( 9.40 - 10.344)2)
= √(1/4) x ((-0.354)2 + (0.116)2 + (1.916)2 + (-0.734)2 + (-0.944)2)
= √(0.25) x ((0.125316) + (0.013456) + (3.671056) + (0.538756) +
(0.891136))
= √(0.25) x (5.23972)
= √(1.30993)
= 1.1445

Coefficient of Variance = σ/μ

= 1.144510.344
Coefficient of Variance = 0.1106

8
HDFC BANK: -

Input Data:
Input = 0.94, 1.05, 1.30, 1.36, 1.26
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (0.94 + 1.05 + 1.30 + 1.36 + 1.26)/5
= 5.91/5
Mean = 1.182

Standard Deviation σ = √(1/5 - 1) x ((0.94 - 1.182)2 + ( 1.05 - 1.182)2

+ ( 1.30 - 1.182)2 + ( 1.36 - 1.182)2 + ( 1.26 - 1.182)2)
= √(1/4) x ((-0.242)2 + (-0.132)2 + (0.118)2 + (0.178)2 + (0.078)2)
= √(0.25) x ((0.058564) + (0.017424) + (0.013924) + (0.031684) +
(0.006084))
= √(0.25) x (0.12768)
= √(0.03192)
= 0.1787

Coefficient of Variance = σ/μ

= 0.17871.182
Coefficient of Variance = 0.1512

9
ICICI Bank:

Input Data:
Input = 5.21, 7.89, 8.84, 6.70, 5.53
Objective:
Find what coefficient of variance for given data?

Formula:

Solution:
Mean = (5.21 + 7.89 + 8.84 + 6.70 + 5.53)/5
= 34.17/5
Mean = 6.834
Standard Deviation σ = √(1/5 - 1) x ((5.21 - 6.834)2 + ( 7.89 - 6.834)2
+ ( 8.84 - 6.834)2 + ( 6.70 - 6.834)2 + ( 5.53 - 6.834)2)
= √(1/4) x ((-1.624)2 + (1.056)2 + (2.006)2 + (-0.134)2 + (-1.304)2)
= √(0.25) x ((2.637376) + (1.115136) + (4.024036) + (0.017956) +
(1.700416))
= √(0.25) x (9.49492)
= √(2.37373)
= 1.5407

Coefficient of Variance = σ/μ

= 1.54076.834
Coefficient of Variance = 0.2254

10
AXIS BANK: -

Input Data:
Input = 1.67, 5.04, 6.77, 5.26, 4.86
Objective:
Find what coefficient of variance for given data?

Formula:

Solution:
Mean = (1.67 + 5.04 + 6.77 + 5.26 + 4.86)/5
= 23.6/5
Mean = 4.72

Standard Deviation σ = √(1/5 - 1) x ((1.67 - 4.72)2 + ( 5.04 - 4.72)2 +

( 6.77 - 4.72)2 + ( 5.26 - 4.72)2 + ( 4.86 - 4.72)2)
= √(1/4) x ((-3.05)2 + (0.32)2 + (2.05)2 + (0.54)2 + (0.14)2)
= √(0.25) x ((9.3025) + (0.1024) + (4.2025) + (0.2916) + (0.0196))
= √(0.25) x (13.9186)
= √(3.47965)
= 1.8654

Coefficient of Variance = σ/μ

= 1.86544.72
Coefficient of Variance = 0.3952

11
Table 6.1.2

Mean, S.D. and C.V. Calculated on the basis of Table 6.1.1

Banks Mean Standard Coefficient

Deviation of
Variation
SBI 7.598 1.92 25.29
PNB 14.704 2.36 16.08
BOB 10.344 1.14 11.06
HDFC 1.182 0.18 15.12
ICICI 6.834 1.54 22.54
AXIS 4.720 1.87 39.52
Sources: - calculated on the basis of table 6.1.1

Mean
16

14

12

10

8
Mean

0
SBI PNB BOB HDFC ICICI AXIS

Figure: 6.3 Mean of Gross NPA of Selected Banks

12
 Standard Deviation
2.5

1.5

Standard Deviation
1

0.5

0
SBI PNB BOB HDFC ICICI AXIS

Figure: 6.4 Standard Deviation of Gross NPA of Selected Banks

Coefficient of Variation
45

40

35

30

25

20 Coefficient of Variation

15

10

0
SBI PNB BOB HDFC ICICI AXIS

Figure: 6.5 Coefficient of Variation of Gross NPA of Selected Banks

13
 Table 6.1.2 shows that bank wise Mean, Standard deviation and
coefficient of variation of GNPAs to Gross Advances ratio of selected
banks. PNB has highest mean value while HDFC has lowest value in
comparison to other Banks. Standard Deviation of Gross NPAs to
Gross Advances Ratio is 2.36 in PNB has highest and coefficient of
variation with 39.52 percent of Axis Bank has highest. It means this
ratio is highly variable in PNB than the other selected banks. HDFC
has less Standard Deviation and coefficient of variation comparison to
others.

For testing the hypothesis H01 that “There is no significant

difference in mean variance between the Gross NPAs of the Selected
Banks”, here we will apply ANOVA test. For this, we have to calculate
the mean of all the samples here all the selected public and private
banks are our samples. Then mean of the samples means will be
calculated. After that Sum of Squares SS between and SS within will be
calculate for making ANOVA table.

14
 Figure:6.6 Mean, S.D. and C.V. Calculated on the basis
of Table 6.1.1

45

40
39.52

Mean

35

30

25 25.29

Standard
22.54
Deviation

20

16.08
15 15.12
14.704

11.06
10 10.344

Coefficient of
Variation 7.598
6.834

5 4.72

2.36
1.92 1.87
1.14 1.182 1.54
0 0.18
Sourc
es: -
SBI PNB BOB HDFC ICICI AXIS
calcul
at
Mean 7.598 14.704 10.344 1.182 6.834 4.72
Standard Deviation 1.92 2.36 1.14 0.18 1.54 1.87
Coefficient of Variation 25.29 16.08 11.06 15.12 22.54 39.52

15
 Data Summary

Std.
Groups N Mean Std. Dev.
Error

Group 1 5 7.598 1.9212 0.8592

Group 2 5 14.704 2.3649 1.0576

Group 3 5 10.344 1.1445 0.5118

Group 4 5 1.182 0.1787 0.0799

Group 5 5 6.834 1.5407 0.689

Group 6 5 4.72 1.8654 0.8342

ANOVA Summary

Degrees of Sum of Mean

Source P-
Freedom Squares Square F-Stat
Value
DF SS MS

Between
5 540.3016 108.0603 39.3446 0
Groups

Within Groups 24 65.9162 2.7465

Total: 29 606.2178

16
Analysis of Variance Results
Now, we can prepare ANOVA table for testing our hypothesis on based
of above information’s: -

Table 6.1.3 ANOVA 1

Source of Sum of Degree of Mean
Variation Square Freedom (d.f.) Square
(SS) (MS)
Between 540.302 (6 – 1) = 5 108.0603
Within 65.916 (30 – 6) = 24 2.7465
Total 606.218 29
F- Ratio 108.0603 ÷ 2.7465 = 39.3446
F- limit 2.62 at 5% level of significance
(From the F-
table)
Source: calculated on the basis of Table 6.1.1 & 6.1.2

The above table 6.1.3 shows that the calculate value of F is

39.3446 which is more than the table value 2.62 at 5% level with d.f.
being v1 = 5 and v2 =24. This analysis rejects the null-hypothesis of
There is no significant difference in mean variance between the Gross
NPAs of the Selected Banks. So, it can be concluded that there is
significant difference in Mean variance between Gross NPAs of
selected banks.

So, the Null-hypothesis rejected.

From above analysis we can conclude that as there is significant

difference in mean variance between the Gross NPAs of the Selected
Banks. In above Analysis we can see that in selected Banks having
significant Difference.

17
6.2 Analysis 2

H02: There is no significant difference in mean variance between the Net

NPAs of the Selected Banks.

Here also six leading Indian banks, three banks from public
sector and three banks from the private sector have been selected for
this study and the period is five years from 2015-16 to 2016-20.

YEARS SBI PNB BOB HDFC ICICI AXIS

2015-16 3.81 8.61 5.06 0.28 2.67 0.70

2016-17 3.71 7.81 4.72 0.33 4.89 2.11

2017-18 5.73 11.24 5.49 0.40 4.77 3.40

2018-19 3.01 6.56 3.33 0.39 2.06 2.06

2019-20 2.23 5.78 3.13 0.36 1.41 1.56

Table 6.2.1 Net NPA to Net Advances ratio (In percentage)

Sources: -
(i) Annual Reports and Balance Sheets of SBI, PNB, BOB, HDFC, ICICI and
AXIS Various Issues.
(ii) The ratio that are not available, are calculated.

18
12

10

8
SBI
PNB

6 BOB
HDFC
ICICI
4 AXIS

0
2015-16 2016-17 2017-18 2018-19 2019-20

Figure: 6.7 Graph of Net NPA to Net Advances ratio

Figure:6.8 Net NPA to Net Advances

10 ratio
9
8.61
8

5 5.06

4 4.06
3.81
3 2.85
2.57 2.67
2.35
2 2.1 2.12
1.82 1.89
1.52 1.52 1.61
1.28
1 0.97
0.77 0.7
0.7534 0.43 0.44
00..225 00..322 0.2 0.28
0
2011-12 2012-13 2013-14 2014-15 2015-16

SBI PNB BOB HDFC ICICI AXIS

19
 It is clear from table 6.2.1 that there has been fluctuating trend in
NPAs over the period in all selected banks. SBI's net nonperforming
assets to net advances ratio climbed from 3.81 percent at the end of
2016 to 5.73 percent at the end of March 2018, before falling to 2.23
percent in 2020In the instance of PNB, this ratio rose from 8.61 percent
at the end of 2016 to 11.24 percent at the end of March 2018, before
falling to
5.78 percent in 2020. In the instance of BOB, the ratio rose from 5.06
percent at the end of 2016 to 5.49 percent at the end of March 2018,
before falling to 3.13 percent in 2020. The ratio of HDFC's net
nonperforming assets to net advances climbed from 0.28 percent at the
end of 2016 to 0.36 percent over the period of March 2020. Similarly,
at ICICI, this ratio grew from 2.67 percent at the end of 2016 to 4.89
percent at the end of March 2017, before falling to 1.41 percent in
2020This ratio increased at AXIS Bank from 0.70 percent at the end of
2016 to 1.56 percent by the end of March 2020. In terms of
performance, HDFC has showed a tremendous improvement in the
management of non-performing assets. PNB has the highest net NPA
Ratio of all the banks studied.

20
Calculation of Mean, Standard Deviation & Coefficient of Variation
SBI: -
Input Data:
Input = 3.81, 3.71, 5.73, 3.01, 2.23
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (3.81 + 3.71 + 5.73 + 3.01 + 2.23)/5
= 18.49/5
Mean = 3.698

Standard Deviation σ = √(1/5 - 1) x ((3.81 - 3.698)2 + ( 3.71 - 3.698)2

+ ( 5.73 - 3.698)2 + ( 3.01 - 3.698)2 + ( 2.23 - 3.698)2)
= √(1/4) x ((0.112)2 + (0.012)2 + (2.032)2 + (-0.688)2 + (-1.468)2)
= √(0.25) x ((0.012544) + (0.000144) + (4.129024) + (0.473344) +
(2.155024))
= √(0.25) x (6.77008)
= √(1.69252)
= 1.301
Coefficient of Variance = σ/μ
= 1.3013.698
Coefficient of Variance = 0.3518

21
PNB: -
Input Data:
Input = 8.61, 7.81, 11.24, 6.56, 5.78
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (8.61 + 7.81 + 11.24 + 6.56 + 5.78)/5
= 40/5
Mean = 8

Standard Deviation σ = √(1/5 - 1) x ((8.61 - 8)2 + ( 7.81 - 8)2 +

( 11.24 - 8)2 + ( 6.56 - 8)2 + ( 5.78 - 8)2)
= √(1/4) x ((0.61)2 + (-0.19)2 + (3.24)2 + (-1.44)2 + (-2.22)2)
= √(0.25) x ((0.3721) + (0.0361) + (10.4976) + (2.0736) + (4.9284))
= √(0.25) x (17.9078)
= √(4.47695)
= 2.1159

Coefficient of Variance = σ/μ

= 2.11598
Coefficient of Variance = 0.2645

22
BOB: -
Input Data:
Input = 5.06, 4.72, 5.49, 3.33, 3.13
Objective:
Find what coefficient of variance for given data?
Formula:

Solution:
Mean = (5.06 + 4.72 + 5.49 + 3.33 + 3.13)/5
= 21.73/5
Mean = 4.346

Standard Deviation σ = √(1/5 - 1) x ((5.06 - 4.346)2 + ( 4.72 - 4.346)2

+ ( 5.49 - 4.346)2 + ( 3.33 - 4.346)2 + ( 3.13 - 4.346)2)
= √(1/4) x ((0.714)2 + (0.374)2 + (1.144)2 + (-1.016)2 + (-1.216)2)
= √(0.25) x ((0.509796) + (0.139876) + (1.308736) + (1.032256) +
(1.478656))
= √(0.25) x (4.46932)
= √(1.11733)
= 1.057

Coefficient of Variance = σ/μ

= 1.0574.346
Coefficient of Variance = 0.2432

23
HDFC BANK: -
Input Data:
Input = 0.28, 0.33, 0.40, 0.39, 0.36
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (0.28 + 0.33 + 0.40 + 0.39 + 0.36)/5
= 1.76/5
Mean = 0.352

Standard Deviation σ = √(1/5 - 1) x ((0.28 - 0.352)2 + ( 0.33 - 0.352)2

+ ( 0.40 - 0.352)2 + ( 0.39 - 0.352)2 + ( 0.36 - 0.352)2)
= √(1/4) x ((-0.072)2 + (-0.022)2 + (0.048)2 + (0.038)2 + (0.008)2)
= √(0.25) x ((0.005184) + (0.000484) + (0.002304) + (0.001444) +
(6.4E-5))
= √(0.25) x (0.00948)
= √(0.00237)
= 0.0487

Coefficient of Variance = σ/μ

= 0.04870.352
Coefficient of Variance = 0.1383

24
ICICI BANK: -
Input Data:
Input = 2.67, 4.89, 4.77, 2.06, 1.41
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (2.67 + 4.89 + 4.77 + 2.06 + 1.41)/5
= 15.8/5
Mean = 3.16

Standard Deviation σ = √(1/5 - 1) x ((2.67 - 3.16)2 + ( 4.89 - 3.16)2 +

( 4.77 - 3.16)2 + ( 2.06 - 3.16)2 + ( 1.41 - 3.16)2)
= √(1/4) x ((-0.49)2 + (1.73)2 + (1.61)2 + (-1.1)2 + (-1.75)2)
= √(0.25) x ((0.2401) + (2.9929) + (2.5921) + (1.21) + (3.0625))
= √(0.25) x (10.0976)
= √(2.5244)
= 1.5888

Coefficient of Variance = σ/μ

= 1.58883.16
Coefficient of Variance = 0.5028

25
AXIS BANK: -
Input Data:
Input = 0.70, 2.11, 3.40, 2.06, 1.56
Objective:
Find what coefficient of variance for given data?
Formula:

Solution :
Mean = (0.70 + 2.11 + 3.40 + 2.06 + 1.56)/5
= 9.83/5
Mean = 1.966

Standard Deviation σ = √(1/5 - 1) x ((0.70 - 1.966)2 + ( 2.11 - 1.966)2

+ ( 3.40 - 1.966)2 + ( 2.06 - 1.966)2 + ( 1.56 - 1.966)2)
= √(1/4) x ((-1.266)2 + (0.144)2 + (1.434)2 + (0.094)2 + (-0.406)2)
= √(0.25) x ((1.602756) + (0.020736) + (2.056356) + (0.008836) +
(0.164836))
= √(0.25) x (3.85352)
= √(0.96338)
= 0.9815

Coefficient of Variance = σ/μ

= 0.98151.966
Coefficient of Variance = 0.4992

26
 Table 6.2.2
Mean, S.D. and C.V. Calculated on the basis of Table 6.2.1
Data
Banks Mean Standard Coefficient
Deviation of Variation

SBI 3.698 1.301 35.18

PNB 8.000 2.116 26.45

BOB 4.346 1.057 24.32

HDFC 0.352 0.049 13.83

ICICI 3.160 1.589 50.28

AXIS 1.966 0.982 49.92

Sources: - calculated on the basis of table 6.2.1

Mean
9
8
7
6
5
4 Mean

3
2
1
0
SBI PNB BOB HDFC ICICI AXIS

Figure: 6.9 Graph of Mean of Net NPA of Selected Banks

27
 Standard Deviation
2.5

1.5

Standard Deviation
1

0.5

0
SBI PNB BOB HDFC ICICI AXIS

Figure: 6.10 Graph of Standard Deviation of Net NPA of Selected Banks

Coefficient of Variation
60

50

40

30
Coefficient of Variation

20

10

0
SBI PNB BOB HDFC ICICI AXIS

Figure: 6.11 Graph of Coefficient of Variance of Net NPA of Selected Banks

28
 Figure: 6.12 Mean, S.D. and C.V. Calculated
on the basis of Table 6.2.1 Data

50.28 49.92

35.18

26.45
24.32

13.83

3.698 4.346
3.16
2.116 1.966
1.589
1.301 1.057 0.982
0.305429
SBI PNB BOB HDFC ICICI AXIS
Mean 3.698 8 4.346 0.352 3.16 1.966
Standard Deviation 1.301 2.116 1.057 0.049 1.589 0.982
Coefficient of Variation 35.18 26.45 24.32 13.83 50.28 49.92

Mean Standard Deviation Coefficient of Variation

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 Table 6.2.2 shows that bank wise Mean, Standard deviation and
coefficient of variation of NNPAs to Net Advances ratio of selected
banks. PNB has highest mean value while HDFC has lowest value in
comparison to other Banks. Standard Deviation of Net NPAs to Net
Advances Ratio is 2.116 of PNB is highest and highest coefficient of
variation with 49.92 percent in AXIS Bank. It means this ratio is highly
variable in PNB&AXIS Bank than other selected Banks. HDFC has
less Standard Deviation and coefficient of variation than other Banks.

For testing the hypothesis H02 “There is no significant difference

in mean variance between the Net NPAs of the Selected Banks Banks”,
we will again apply ANOVA test. For that, we have to calculate the
mean of all the samples. Here all six selected public and private banks
are our samples. Then mean of the sample means will be calculated.
After that, Sum of Squares SS between and SS within will be calculate
for making ANOVA table.

30
 Analysis of Variance Results
F-statistic value = 18.5609
P-value = 0.00

DATA SUMMARY
Group N Mean Std. Dev.

SBI 5 3.698 1.301

PNB 5 8.000 2.116
BOB 5 4.346 1.057
HDFC 5 0.352 0.048
ICICI 5 3.160 1.589
AXIS 5 1.966 0.982

Now, we can prepare ANOVA table for testing our hypothesis on the
basis of above information’s: -

Source of Sum of Degree of Mean

Variation Square (SS) Freedom (d.f.) Square (MS)
Between 166.6908 (6 – 1) = 5 33.338
Within 43.1075 (30 – 6) = 24 01.796
Total 209.7984 29
F- Ratio 33.3382 ÷ 1.7961 = 18.5609
F- limit 2.62 at 5% level of significance
(From the F-
table)
Table 6.2.3 ANOVA 1

Source: calculated on the basis of Table 6.2.1 & 6.2.2

31
 The above table 6.2.3 shows that the calculate value of F is
18.56 which is more than the table value 2.62 at 5% level with d.f.
being v1 = 5 and v2 =24. This analysis rejects the null-hypothesis of
There is no significant difference in mean variance between the Net
NPAs of the Selected Banks. So, it can be concluded that there is
significant difference in mean variance between the Net NPAs of the
Selected Banks.

So, the Null-hypothesis rejected.

From above analysis we can conclude that as there is significant

difference in mean variance between the Net NPAs of the Selected
Banks. In above Analysis we can see that in selected Banks having
significant Difference.

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