Problem of Non Performing Assets in Priority Sector Advances in India
Najmi Shabbir, Dr. Rachna Mujoo

The present paper mainly analyses the trend of Priority Sector Advances and of NPAs (Non Performing Assets) in Public, Private and Foreign Banks from 2001 to 2011. After nationalisation of the Banks directed lending to certain sectors, such as, Agriculture, Small Scale Industries and weaker section and others, collectively known as Priority Sector was emphasized. Under this Sectoral and Sub-sectoral targets have been laid down from time to time, with the aim of upliftment of these sectors and to bring about a balanced development of the country. An important aspect about priority sector is whether lending to priority sector is as safe as to other sectors or not? In other words, it is important to investigate whether the level of NPAs or NPLs (Non performing lending) in PS ( priority sector) is higher or lower than NPAs of other sectors of the economy in public Sector Banks as compared to Private Sector Banks, this issue is being discussed in this paper.

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