A Comparative Study of Priority’s and Non-Priority’s Sub-Sectors NPAs in Indian Commercial Banks

ABSTRACT

The purpose of this paper is to examine the impact of sub-sector NPAs on total priority and non-priority sector (NPS) NPAs. The impact of both priority and non-priority sector non-performing assets (NPAs) on overall GNPAs in Indian commercial banks is also being investigated. The data is analysed using statistical techniques such as descriptive statistics, simple correlation, multiple regression, and Durbin-Watson by using software such as SPSS. According to the findings, sub-sector NPAs have a positive and considerable impact on overall priority sector and non-priority sector NPAs and that both sector NPAs have a positive and noticeable impact on the overall GNPAs of all three sector banks: Public Sector Banks, Private Sector Banks, and Foreign Banks. Not all sub-sectors, however, are equally dangerous. Although industries, agriculture and the service sector make significant contributions, food credit and other loans are the least risky lending sectors. The study findings will help banks and policymakers develop prominent credit policies for high-risk industries and lend appropriately to critical industries.

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