Disturbing Non-Performing Asset (NPA) in Priority Sector and Non-Priority Sector Lending (NPSL) Between Public Sector and Private Sector Bank
Keywords:
Priority Sector Lending (PSL), Non Priority Sector Lending (NPSL), Non-Performing Asset (NPA)
Abstract
The Indian banking industry faces an enormous issue in the form of Non-Performing Assets (NPA). Though NPAs are rampant in the Indian banking industry, particularly in Indian public sector banks, it is also the main reason for their obligatory lending to the priority sector. Banks have huge scope to extend credit to both the priority and non-priority sectors as the NPAs have not yet reached such magnitude that can seriously harm the efficiency of a bank. The problem of the NPAs is of great interest to academics and policymakers. The purpose of this paper is to check whether NPAs in Indian commercial banking has reached a critical stage.
References
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Arora, N., Arora, N. G., & Kanwar, K. (2018). Non-performing assets and technical efficiency of Indian banks: a meta-frontier analysis. Benchmarking: An International Journal, 25(7), 2105-2125.
Arabi,U. (2007) “Bank Credit Flow Performance in India: An Evaluation”, Prajnan Vol. XXXV, No.3, NIBM Publication, pp-273- 280
Boyd, J. H., & De Nicolo, G. (2005). The theory of bank risk taking and competition revisited. The Journal of Finance, 60(3), 1329-1343.
Desai, R. (2019). Impact of Sectorial Advances on Priority Sector NPA – Case of BSE Bankex. 2(2), 121.
Dr.Sukhdev Singh16 (2006) “Performance of Banking Sectors in Comparison to Benchmarks” Indian Banker, IBA Journal, Published by IBA, Vol INo.4, April, pp 33-35.
Goyal, N., Agrawal, R., & Aggarwal, R. (2016). Two way fixed effect of priority selending (sector wise) on non performing assets of indian commercial banks. International Journal of BRIC Business Research. https://doi.org/10.14810/ ijbbr.2016.5101.
Kesavan V (2016) A Study on the NonPerforming Assets of Banks in India, International Journal for Research in Business, Management and Accounting, Vol. 2 Issue 1 January 2016.
Master Circular- Priority Sector LendingUCBs Circular UBD.CO.BPD.(PCB) MC. No.7/09.09.001/2014-15 dated July 01, 2014. Master circulation –priority sector Lending –RBI/ FIDD/2020-2021 FFIDDCO.Plan. BC.5/04.09..01/2020-202.
Naastepad, C. W. M. (2001). The MacroEconomic Effects of Directed Credit Policies: A Real-Financial CGE Evaluation for India. Development and Change, 32(3), 491-520.
Nikam K. S. & Sehgal S. (2016) A study of the reasons for rising NPA’s in public and private sector banks in India and measures to control it., International Research Journal Of Multidisciplinary Studies, Vol. 2, Issue 4, April, 2016.
Ranjan Mohapatra, D., & Gaur, D. (2019). Non-Performing Assets In India: Priority Vs Non-Priority Sector Lending. https://www.researchgate. net/publication/ 341071819.
Rajan, R., & Dhal, S. C. (2003). Nonperforming loans and terms of credit of public sector banks in India: An empirical assessment. Reserve Bank of India Occasional Papers, 24(3), 81- 121.
Shabbir, N., & Mujoo, D. R. (2014). Problem of Non Performing Assets in Priority Sector Advances in India. Journal of Economics and Development Studies, 2(1), 241-275.
Seema N & Jyoti A N (2015) A study on priority sector lending and its targets in India, International Journal of Advanced Multidisciplinary Research, Vol.2 Issue 6 pp 31-4.
Saini, P., & Sindhu, J. (2014). Role of Commercial Bank in the Economic Development of India.
Singh, V. R. (2016). A Study of NonPerforming Assets of Commercial Banks and it ’ s recovery in India A Study of Non-Performing Assets of Commercial Banks and it ’ s recovery in India. 4(March), 110–125.
Uday S. Bose27 Vinimaya Vol.xxv No.4 (2004-2005) SERFAESI ACT: An Effective Recovery Tool –pp 44-46.
