Non- performing Assets in Co-operative Banks

A non performing asset is a loan or advance for which the principle or interest payment remained overdue for a period of 90 days.This study has been conducted in the Mahendragarh district of Haryana. Study is focusing on to explore the status of NPA in the co-operative banking system which is explained through studying it in the co-operative banks of the Mahendergarh district.
Fasible way to tackle the menace rationally for co-operative sectors specially that the factors which causing the NPA should be identified unbiased. The identification of the factors and implementing policies to root out these factors is the best possible way to tackle the NPA menace in the co-operative sector. In Mahendragarh co-operative banks, the study through the primary survey to identify the factor causing NPA in the sector is successful in its motive at some extent. The main factors which causing it is explained that failure of bring the required capital, too ambitious project, lack of proper planning, diversion of funds and heavy borrowing, poor credit appraisal, non-inspection of units, lack of motivation to employee, disrupted policy of the government and political hostility to the banking administration. So our study is an insight into the co-operative sectors banks of the Mahendragarh district of
Haryana. It explains the NPA story, how its pattern impacts the economy and suggested ways to tackle the NPA menace.