Agency-Wise and Region-Wise Analysis of Non-Performing Assets under SHG-Bank Linkage Model

This study investigates the agency-wise and region-wise distribution of Non-Performing Assets (NPAs) under the Self-Help Group – Bank Linkage Programme (SHG-BLP) in India. Using annual data spanning seven years (2017–18 to 2023–24), the paper examines NPA levels across four banking categories: Public Sector Banks, Private Banks, Regional Rural Banks (RRBs), and Cooperative Banks. Statistical tools such as One-Way ANOVA and Tukey’s Honestly Significant Difference (HSD) test are employed to assess whether differences in mean NPA percentages are statistically significant. The analysis extends to regional differences across six geographical zones in India. The results reveal that Cooperative Banks report the highest SHG-linked NPAs, while Public Sector Banks consistently maintain the lowest. Regionally, the Northern and North Eastern regions show alarmingly high NPA levels, contrasting with the relatively disciplined Southern and Eastern regions. The findings highlight the need for targeted policy measures to address institutional inefficiencies and regional disparities in SHG-linked credit delivery.