Non-Performing Assets in Maharashtra's Cooperative Banking Sector - A Case Study of Satara and Sangli DCCBs

Non-performing assets (NPAs) are a significant challenge in the banking sector, particularly for District Central Cooperative Banks (DCCBs) in Maharashtra, which play a crucial role in rural credit and agricultural financing. This study aims to conduct a comparative analysis of NPA management in Satara DCCB and Sangli DCCB, two prominent cooperative banks in the state. The research examines the trends, causes, and impact of NPAs in these banks over the past decade. It also evaluates the effectiveness of recovery mechanisms, including legal actions, restructuring, and government policies. Data for the study is collected from annual reports, RBI and NABARD publications, and interviews with bank officials and borrowers. The findings indicate that both banks face high NPAs due to inadequate credit appraisal, loan waivers, political interference, and weak recovery mechanisms