STATUS OF INSTITUTIONAL FINANCE IN JHARKHAND WITH SPECIAL STUDY ON NON-PERFORMING ASSETS: CHALLENGES AND GOVERNMENT INITIATIVES

The paper discussed the status of institutional finance in Jharkhand. It has found that the number of bank branches were increased during 2015-16 to 2022-23. Share of ATMs in Jharkhand is lower than the national figure. Urban branches have more deposits than the branches in semi-urban or rural areas. The share of advances allocated by scheduled commercial banks is lower than the national figures. Compared to non-priority areas, priority areas have a higher percentage share of advances to total advances in Jharkhand. Scheduled Commercial Banks distribute highest amount of funds followed by Lead Banks. Percentage advances in urban areas are higher than the semi-urban and rural areas. Credit-deposit ratio is not the same in different categories of banks in the state. Small Finance Banks have the highest credit-deposit ratio, followed by Private sector banks, and Regional Rural Banks. Credit-deposit ratio of banks in districts of Jharkhand are not the same. Percentage of non-performing assets under different Government sponsored schemes varies. Non-performing assets are higher in the PMEGP scheme, then the MUDRA Loans and Self-help Group schemes. Non-performing assets in percentage of gross credit have increased since 2018-19. Therefore, there should be proper implementation of policies for reducing non-performing assets in financial institutions in Jharkhand.