A Study of Reasons of Banks Non-Performing Assets (NPA) in Farming Sectors

INTRODUCTION

In, Indian some cautionary indicates are seen now a day. The government of India is taking part in the merger process of banks. Besides this, employees of the various banks are taking part in strike time to time. In total there are many problems here questions are, why there are many problems? Why banks in India are not performing well? When we try to get the answers, we find that there is something wrong with assets of banking sectors. InIndia is means distribution of assets by banks in form of loan and advance is wrong. Banks profitability depends mainly on the returns of assets but wrongly distributed or invested assets do not generate productive assets. Once assets are become non productive then these are categories as non performing assets (NPA) before making a detailed discussion, we should understand the categorization of Non-performing of assets: 1. Substandard assets: loans and advance as given by banks which are not performing for or less than 18 months 2. Doubtful assets: assets which are not productive assets for banks for more than 18 months. 3. Loss assets: assets which are not defined as loss assets by auditors of the banks and under inspection of the central bank of India. In this why, the researcher studied the problems of NPA at broad level and found that banks in India spend their assets in various sectors and to others, however, this projects, reason of banks NPA in only farming sectors is considered. Banks provide loan to the farmers to grow their crops. But, it is seen many times that farmers are not in capacity of repayment of loans. Thus this project is carried to study the reasons of non repayments of loan by farmers.

Kamra & Samir (2013)The Paper Analysis The Position Of Npa In Selected Banks Name Is Sbi, Pnb, Cbi. NPA Adversely Affect The Profitability, Liquidity And Solvency Of The Banks. Researcher of This Study to try to Find out The Trends ofNPA of Values, Gross NPA And Net NPA as A Percentage of Net Advances And Gross Advances, Researcher Used Secondary Data for This Study. Bhatia, K. at all (2015)on his entitled topic on ―Comparative Study of Performance of Public and Private Sector Bank‘Attempted to compare the performance of public sector banks & private sector banks in Indore District. The researcher used primary as well as secondary data for this study. Researcher take data for find out the results from 50 public sectors banks and private sectors bank customers. The researcher used primary as well as secondary data for concluded the results. The researcher find out most of the respondents have saving accounts in public sectors banks and private sectors banks. Researcher find out that respondents are more satisfy in private sectors banks in comparison to public sectors banks in respects to their working process, transactions facility and etc.

Technology‖.Attempted to compare the performanceof 3 public sector and 3 private sector. Researcher used secondary data for this study. The researcher take data from last 5 years from 2009 to 2013 forcomparisonof study on public sectors banks and private sectors banks. Tools and techniques for this study was percentage method and compare the Gross and Net NPA of Public Sector and Gross and Net NPA of Private Sector Banks. The results of this study show that level of Net NPA of public sectors banks is very low in comparison of private sectors banks.

Afterreviewing the literature, some gaps were obtained by the researchers and these gaps were transformed in the form of objective of the study, i.e. To study the reason of non Performing assets (NPA) of banking sectors in Farming Sectors.

This study was run by an individual researcher. It was not possible for the researcher to consider the whole banking sector of India. Therefore, this project was carried in district Rohtak, Jind and Panipat of Haryana State.

SAMPLE AND TECHNIQUE:

To study the problem, a sample of 150 respondents was taken form 3 districts of Haryana with the help of lottery method and then 150 respondents were selected from 3 districts. Name of districts 1. Rohtak 2. Jind 3. Panipat

To Find Out The Objectives Of The Present Study Researcher Use Primary Data for Collected From 150 Respondents By Using A Well Structured Questionnaire.

To attain the objectives of this study, researcher use percentage and correlation coefficients methods.

TABLE NO 1

The reasons of banks non performing assists in Indian farming sectors were observed. The results to given in table no 1 explained that maximum farmers of districts Rohtak (38%),Jind (46%) and district Painpat (36%) were agreed that natural reasons like rain and others had great effect on the production of crops and many times it went negative for the farmers. Besides this 22% farmers of districts Rohtak and 14% in districts Jindand also 24% of Panipat districtshowed cause to non repayments to their loans as wrong estimation of loan demand by them. 14% farmers in Rohtak and 10% farmers in Jindand only 06% farmers in Painpatfound like the persons who take loans from banks for their farming but it was used for other purpose.

The relationships between the reasons given by farmers of various districts were analysed with the help of correlations coefficients analyses. The results of analysis (given in table no 2) showed that the gathered responses of farmers were found highly correlated. The correlations coefficients between the farmers of Rohtak and Jind 0.929, between farmers of Rohtak and Panipat,it was 0.894and between farmers of Jind and Panipat, it was obtained again i.e.,0.87. It means the main causes of non payments of loans and advances timely were natural reasons.

findings of the research work, i.e. • The main reasons of NPA in farming sectors is natural reasons • The assists of banks become NPA due to wrongly estimate deemed of loans by farmers. • The relationships between the farmers for non-repayments of their loans were found highly correlated.

After obtaining the finding of the study, the researcher suggested some meaningful points, there were: • Farmers cops destroyed due to natural eliminate so; banks should restructured loans given to farmers. • Banks should check the projected performance against which loans were sanctioned. • Some farmer‘s educations program should be by banks.

The present study was run up to study the problems of NPA in farming sector and to provide some solutions. In this research work, problems or reasons of NPA were obtained in this form of natural reasons, under or over financing by banks, wrong estimation of loans, markets conditions and use of loan of other purpose by considering these reasons banks or loan provides can take steps to prevent their assets to be NPA further, to improve the productivity of their assets, banks can also consider these reasons of NPA to solve the problems of farmers.

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