Singh, Arvind Kr.Sharma, Charulata2018-01-192018-01-192017http://krishikosh.egranth.ac.in/handle/1/5810039672STUDY ON NON PERFORMING ASSET IN AGRICULTURE SECTOR STATE BANK OF INDIA IN PURNIA DISTRICT BIHARThis 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.en-USnullThesis