Reasons for NPA's in agricultural finance: from the borrowers perspective-a study with special reference to Dakshina Kannada district

The present paper makes an attempt to study the problem of Non Performing Assets (NPAs) in agriculture sector and behavior of borrower towards NPA in Dakshina Kannada district. Agriculture is primary occupation in India. Agriculture is still a main occupation in rural areas in India. Commercial banks, Cooperative banks and RRBs are part of institutional financing in India. NPA is a serious concern of banks in India. NPAs not only affect the performance of the banks but also put irreparable harm to the entire economy. It endangers the very foundation of the credit system. The present paper focuses on the borrower's attitude towards NPA in agriculture sector. The required data is collected from the borrowers (agricultural loans) in Dakshina Kannada district of Karnataka state. The data collected is analysed using SPSS. There are several reasons for the default by farmers in study area. The primary reason is lack of availability of labour. The study found that the farmers in the study area take loan for farming purpose and it decreases with the increase of annual income.