Target Growth Kate of 9% for I 2th Plan by Government of India -A Feasibility or an Illusion amidst Inflation and High Interest Rates--An Analysis of Factors Responsible for Loan Account Turning Non Performing Assets of Govt. Loan Schemes Sanctioned by Nationalized Banks Under 'PMKY' Scheme In Goa During 2006-2008

Abstract

Poverty alleviation is a herculean task our Governments have been facing after liberalization of our country. Banks were nationalized in the year 1969 and to address this issue, various loan schemes were formulated by Government of India and various State Governments. Nationalised Banks have been financing extensively to the rural/urban educated unemployed youths under Government Sponsored Schemes. One of the Central Govt. schemes under which such finance has been done extensively since 1993, is Prime Minister·s Rojgar Yojana (PMRY). The scheme was discontinued by Government of India in 2008 and a new scheme called Prime Minister's Employment Generation Programme has been launched by Government of India in its place. Though the nomenclature of the scheme is different, it is a new version of PMRY Scheme. Finance made by Nationalised Banks to the beneficiaries of PMRY scheme failed due to number of reasons and accounts turned bad loans (Non Performing Assets- NP A). The researcher has tried to isolate the reasons for loan accounts turning Bad (NPA) The researcher has gathered primary data from two districts of Goa State, North Goa and South Goa from the Bankers, DIC officials and Borrowers through a questionnaire and secondary data has been obtained from the websites of banks, RBI website, Lead Bank Manager's offices and DIC offices (unpublished data). The data gathered has been tabulated and different tools like averages, weighted averages, correlation, standard deviation, charts and graphs have been used for proving the hypothesis. The findings will be useful for the Banks while going ahead in financing under PMEGP scheme so that the past mistakes committed will be eliminated and good recovery in these loans can be made. The findings also will be useful for the DIC offices for deciding their future strategy while helping banks for making recoveries.