An Analytical Study of Weaker Section Finance and NPAs

The Endeavor of this paper is to study the impact of Weaker Section Finance on Non Performing Assets (NPAs ) of the Public and Private Sector Banks in India. On one hand, it is the primary responsibility of the respective governments of every state to ensure that at least the basic needs viz. food, clothing and shelter of all its citizens are fulfilled. Among the basic needs food is the foremost priority for every individual. In India there are millions of marginal farmers who toil to even make both ends meet. Agricultural sector plays an important role in generating employment and upliftment of poor people. As a financial cover, banking sector in India lends to the Small and Marginal Farmers, Landless Labours, Scheduled Caste/Schedule Tribes, and other under-privileged through the different Government sponsored schemes for the Socio-Economic Development of the weaker section of our country. Banks allot substantial portion of their lending to these segments. On the other hand the performance of the banking sector is affected due to the non recovery of the lending done to this specific sector. An analytical study of Weaker Section Finance and NPA of the Public and Private Sector Banks in India is undertaken in this paper.