The Impact Of The COVID-19 Pandemic On Non-Performing Assets In Agriculture And MSE Sectors: A Comparative Analysis Of Indian Banks (2017–2023)

The Indian banking sector has witnessed exponential growth, both in its overall spread and in credit expansion. However, this growth has been accompanied by a persistent rise in stressed assets over the years. The extent of non-performing assets reflects the financial health of banking sector and Indian banking sector has been struggling to keep the non-performing assets in check at par with Basel norms. The analysis of non-performing assets (NPAs) provides valuable insights into the unique challenges confronting sensitive sectors of the economy. In compliance with regulatory mandates, all commercial banks allocate a specified portion of their credit to priority sectors. This study explores notable trends within these priority sectors, particularly focusing on agriculture and micro and small industries, both of which were significantly impacted by the unprecedented COVID-19 pandemic in 2020. By examining data from public, private, and foreign banks over a six-year period (2017–2023), this research utilizes statistical methods, including t-tests, ANOVA, and descriptive analysis, to uncover patterns and highlight sector-specific issues.