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ARTICLE

borrower, which has been classified by bank as sub-standard, doubtful or loss asset, The average amount per defaulter
in accordance with the direction or guidelines relating to assets classification issued was more among the large farmers
by RBI. A non-performing asset (NPA) is a loan or an advance where; (Rs.99,615), followed by the medium
a. Interest and/ or Installment of principal remain overdue for a period of farmers (Rs.83,176), the small
farmers (Rs.56,041) and the marginal
more than 90 days in respect of a Term Loans (TLs). farmers (Rs.33,194). It may be noted
that the amount defaulted per
b. In respect of overdraft or cah credit advances, the account remains "out beneficiary increases when the land
of order", i.e. if the outstanding balance exceeds the sanctioned limit holding size increases. t-value is
or drawing power continuously for a period of 90 days, or if there are calculated (3.97), which is significant
no credits continuously for 90 days as on the date of balance sheet, or if at 1 per cent level.
the credits are not adequate to cover the interest due during the same
period,

c. In respect of bills purchased or discounted, the bill remains overdue for a The total number of defaulters in the
period of more than 90 days. canal region was 70 and the total
amount defaulted was Rs.46,35,000.
d. In respect of agricultural advances for short duration crops, where the The percentage of defaulters was
installment of principal or interest remains overdue for two crop seasons, 57.14 among those who borrowed
and below Rs.50,000 and this percentage
decreased to 32.86 in the case of
e. In respect of agricultural advances for long duration crops, where the those who borrowed between
principal or interest remains overdue for one crop season. Rs.50,000 and 1,00,000 and further
decreased to 10 in the case of those
3. Category wise distribution of Defaulters who borrowed above 1,00,000.

Table - 1

Category wise Distribution of Defaulters The percentage of amount in default
in the non-canal region was 39.25
Percentage Average among those who borrowed below
Rs.50,000. The percentage decreased
S. Category Total No. of of amount per to 36.41 in the case of those who
No. borrowed between Rs.50,000 and
Borrowers Defaulters Defaulters Defaulters Rs.1,00,000 and the percentage
1. Marginal farmers decreased further to 24.34 in the case
2. Small Farmers (Rs.) of those who borrowed above
3. Medium farmers Rs.1,00,000.
4. Large farmers 49 36 73 33,194
In the canal region the percentage of
Total 75 49 65 56,041 defaulters of the marginal farmers
't' Value was 24.28. It was 31.42 among the
52 34 65 83,176 small farmers, 27.14 among the
medium farmers, and 17.14 among
34 26 76 99,615 the large farmers. In the non-canal
region the percentage of defaulters
210 145 69 64,545 of marginal farmers was 25.33, 36
among the small farmers, 20 among
r = 3.97** p = 0.014 the medium farmers, and 18.67
t - Critical Value = 3.182 among the large farmers. The

O **Significant at 1 per cent level
O Source : Field data

Table 1 shows that out of the 210 sample borrowers, 145 (69 per cent) were
defaulters. The average amount defaulted by them was Rs.64,545. The
percentage of defaulters among the marginal farmers was 73, followed by the
small farmers 65 per cent, medium farmers 65 per cent and large farmers 76
per cent.

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