THE GROWTH OF FINANCIAL INSTITUTIONS IN JAMMU AND KASHMIR WITH SPECIAL REFERENCE TO NON-PERFORMING ASSETS

The paper discussed the growth of financial Institutions in Jammu and Kashmir. It has found that regional rural banks, private sector banks, and public sector banks are playing vital role in credit distribution in Jammu and Kashmir. Private sector banks are in leading position of branches and touching points. Nearly 50% districts have credit-to-deposit ratio lower than the standard level 70%. There are mixed success in achieving credit targets in banks. Canara Bank is the largest beneficiary under the Pradhan Mantri Suraksha Bima Yojana. There is huge gap of beneficiaries of Atal Pension Scheme, and Prime Minister's Self-Employment Scheme. Banks are not achieving credit and beneficiaries target in priority sector. They achieved target of credit allocation in personal loans and housing sectors in non-priority sector. J&K Grameen Bank, and State Bank of India, has more linked with self-help groups. Total non-performing assets in Jammu and Kashmir under Kisan Credit Card is 270.26 crores which is 5% of credits. J&K SFC has the highest gross NPA percentage (56.85), followed by Cooperative Banks (33.80), and Regional Rural Banks (6.30). Public Sector Banks has the least gross NPA percentage (2.35), preceded by Private Sector Banks (4.02). Private Sector Banks has the highest gross NPA volume. MSME sector has the highest volume of non-performing assets, followed by Agricultural sector and MUDRA. PMEGP scheme has the highest volume of non-performing assets, followed by NULM, and NRLM. Therefore, government will implement policies for minimizing the non-performing assets in banking sector.