A Comparative Analysis of Priority and Non-Priority Sector NPAs in Public Sector Banks in Gwalior

Abstract

In economic development of any country, the major role is played by the banking system and in India; this role is played by Public sector banks due to their higher contribution in credit and finance for trade and industry at both domestic and international level. But now a day, the problem of non-performing assets is hampering them in their business growth. The level of   Non-performing assets (NPAs) is rising in Indian banking industry especially in Public sector banks. This problem is not new for banks but it is rapidly affecting the financial health of banks. According to report of Reserve Bank of India (RBI), the gross Non-Performing Assets (NPAs) of Public Sector Banks (PSBs) are just under Rs. 4 lakh crore in October to December 2017. They together account for 90% of such bad apples in the country's banking portfolio. The share of net NPAs is even higher at 92% of the total bad loans reported so far in the banking system. In present study, a comparative analysis of priority and non-priority sector NPAs is done by the researcher with the help of primary. Out of total population, the sample size of 60 bank employees is taken by the researcher from various Public sector banks of Gwalior. Data analysis is done with the help of Chi-square test. The researcher found that the priority sector NPAs are higher in public sector banks of Gwalior as compared to non-priority sector NPAs.