Non-Performing Assets at Andhra Pradesh Grameena Vikas Bank (A Case Study of K Agraharam Branch, Narsipatnam, Visakhapatnam District)

The necessity of rural finance was felt to provide protection and support to the rural population in India. The farmers and the small entrepreneurs in rural area still rely more on unorganized sector for funds by paying a very high rate of interest. The banks were established in rural areas to cater to the increasing demand for credit for agricultural and non-agricultural purposes. Farmers in rural areas also face the risk of unpredictable production of crops due to high dependency on monsoon. The problem of growing over-dues is the area of major concern for all the rural banks. The present study focuses on analyzing the rural credit provided by Andhra Pradesh Grameenavikas Bank, K Agraharam branch and identifying the factors responsible for the rising Non Performaing Assets (NPAs).