Page 42 - Banking Finance AUGUST 2015

ARTICLE

Bank Credit of Scheduled Commercial Banks (as on 31st March) (Rs. Crore)

Year 2009 2010 2011 2012 2013 2014
Bank Credit 413636 469239 697295 669769 648607 752626

S. No. Sectors Amount Outstanding (Rs. Crore)

1. Agriculture March 2010 March 2011 March 2012 March 2013
(a) Direct Finance
(b) Indirect Finance 372463 265826 106637 414973

2. Small Scale Industries 300190 114783 479400 367052
3. Micro & Small Enterprises
4. Setting up of Industrial Estates 112348 531701 447094 84607
5. Small Road & Water transport operations
6. Retail Trade 276319 369430 396993 478361
7. Small Business
8. Professional & Self employed persons 5916 7243 6631 50927
9. Micro Credit 35855 41341 46727
10. Education
11. Consumption 41 36 114 213892
12. State sponsored Corporations/Organisations 173184 188472 194283

for on lending to other priority sector 863778 1021495 1124148 1283411
13. State sponsored organization for SC/ST purchase 2078397 2493499 3018476 3530808

& supply of inputs & marketing of outputs
14. Housing Loans
15. Funds provided to RRBs
16. Advances to self help groups
17. Advances to software industries
18. Advances to food & agro processing sector
19. Investment in venture capital
20. Total Priority Sector Advances
21. ANBC (Adjusted Net Bank Credit)

Causes for occurrence of NPA 4 Due to fail in the measuring paying capacity or solvency
position of the customers.
NPAs result from what are termed as "Bad Loans" or
defaults. Defaults, in the financial parlance, is the failure 4 Worst internal bank management
to meet financial obligations, like non-payment of a loan 4 Due to lack in internal audit system
installment. These loans can occur due to the following 4 Bad credit policy
reasons:
Impact of NPAs:
4 Usual banking operations/Bad lending practices
NPAs is not only reflected badly in a bank's account books,
4 A banking crisis but they adversely impact the national economy. Following
are some impacts of NPAs:
4 Business Cycle

42 | 2015 | AUGUST | BANKING FINANCE