STUDY ON NON PERFORMING ASSET IN AGRICULTURE SECTOR STATE BANK OF INDIA IN PURNIA DISTRICT BIHAR
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Date
2017
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Publisher
Birsa Agricultural University, Ranchi, Jharkhand-6
Abstract
This project entitled “Study on non performing asset in agriculture sector state bank of India in
Purnia district Bihar” was done to study the reason behind the increase in number of NPA in
agriculture sector. As we know agriculture is very important sector in India but despite of having
so much importance it is increasingly facing many problems. Government and banks are
continually working for the development of this sector, but the banks are facing major problem of
NPA which decreases its profitability and leads to the less disbursement of credit among the
farmers. This study identifies the effect of a set of microeconomic variables like age, sex,
educational status etc of Indian farmers on the management of their credit. An attempt is made to
find the causes of non performance of farmers and also remedies are designed to overcome these
credit risks. Credit management includes planning, organizing, controlling, directing, and cocoordinating
the credit sanctioning policies in order to decrease the non- performing assets.
We know that NPA can only be reduced but it cannot be avoided. Even if the banks don’t want to
sanction the loans, they are obligated by the government as it leads to investment of money for
development purposes. Especially in agriculture sector sanctioning of credit is of at most
importance as agriculture is the backbone of India and a lot of scope has been given to agricultural
sector.
The main objective of the study is to know the difficulties faced by our Indian farmers in paying
back the burrowed amount with regular payment of interest by studying the impact of different
variables on the non performing farmers. I have used the data collection methods and interview
method to collect sufficient information. From the study it may be concluded that the bankers can
avoid sanctioning loans to the non creditworthy borrowers by adopting certain measure. They are
careful appraisal of the project which involves checking the economic viability of the project. A
banker must consider return on investment on a proposed project. If the calculated return is
sufficiently higher than the credit amount he can sanction the loan. He can constantly monitor the
borrower in order to ensure that the amount sanctioned is utilized properly for the purpose to
which it has been sanctioned. This involves post sanction inspection by the banker. By considering
all the above factors the banker can reduce the non performing asset in a bank.
Description
STUDY ON NON PERFORMING ASSET IN AGRICULTURE SECTOR STATE BANK OF INDIA IN PURNIA DISTRICT BIHAR
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