In case of advances to the small-scale sector by the state-owned banks, the non-performing assets (NPAs) in percentage terms went down significantly from 25.01 per cent as on March 31, 1997 to 23.18 per cent at the close of last financial year.

The marginal fall in NPA was also witnessed in case of other priority sector advances which include loans to weaker sections of the society.

As far as agriculture sector is concerned, the NPAs declined from Rs 7,487 crore as on March 1997 to Rs 6,668 crore as on March 31, 1998. In percentage term the NPAs came down to 19.44 per cent towards the close of the last fiscal as opposed to 25.21 per cent as on March 31, 1997.

Out of the total priority sector advances of 40 per cent, the banks are required to lend 18 per cent to the agriculture sector. The total outstanding in this sectorwas up from Rs 29,700 crore as on March 31, 1997 to Rs 34,304 crore at the end of March 1998.

Among the public sector banks which have achieved the sub-target of 18 per cent advances towards the agriculture sector include State Bank of Travancore, Canara Bank, Oriental Bank of Commerce, Indian Bank, Indian Overseas Bank, Bank of India and Andhra Bank.

The industrial recession notwithstanding, the small-scale industry (SSI) sector has not done badly as far as servicing bank credit was concerned. According to figures compiled by the banking division of the finance ministry, the NPAs in this sector have gone up from Rs 7,796 crore as on March 31, 1997 to Rs 8,833 crore towards the end of March 1998. However, the credit to this sector too moved up from Rs 31,175 crore to Rs 38,109 crore as on March 31, 1998. And thus the good news is that the sticky advances as percentage of outstanding came down to 23.18 as on March 31, 1998 from 25.01 per cent at the end of previous fiscal.

The SSI advances, in percentageterms went up from 16.63 per cent on the net bank credit in March 1997 to 17.46 per cent as on March 1998.

The advances to the other priority sector, which mostly include weaker sections, have gone up from Rs 16,833 crore as on March 31, 1997 to Rs 18,905 crore as the end of 1997-98. The NPAs in the sector, have also moved up from Rs 5,084 crore to Rs 5,683 crore during the corresponding period.

However, the NPAs as percentage of total outstanding in this sector reported a marginal decline to 30.06 per cent from 30.20 per cent at the end of March 1997.

Among the priority sector sub-targets, the worst performer is the weaker sections category. Under this category, the banks are required to lend 10 per cent of the net bank bank credit. The credit under this category is given to small and marginal farmers, artisans, self help groups and beneficiaries of the IRDP, SUME, SLR and DRI schemes.