PRIORITY SECTOR LENDING AND NPAs

The issue of increasing NPA is alarming for the banks. There is great essence of finding solution to this situation when NPA is moving towards double digit. Large percentage of Priority sector lending has been found to turn into NPA, however the contribution of non-priority sector towards NPA is no less. The basic reason for the emergence of priority sector lending is to provide financial assistance to the priority sectors by providing priorities in taking loans. The Government always looks at the wider prospects of the country. When the Government wants the development at large, it promotes the schemes which is supposed to be implemented at large let it be medical facilities, job opportunities, government schemes for unprivileged, the senior citizens, and so on.