Abstract
Sector wise distribution of institutional credit goes a long way in ensuring adequate proportion of formal credit to different sectors depending on their significance in the nations’ economy. Recent times have shown mounting level of “NPAs” which has adversely affected the existence of these institutions and has led to vanishing their status from market. In the view to tackle these situations certain governing authorities like RBI has evolved various measures to find out the proportion of credit flow to different sectors of economy. The present paper attempts to find out the influence of distribution of Gross Advances by Non-Banking Companies towards various sectors i.e. Agriculture, Industry, Services and Retail on Gross NPA of these companies for the period from 2015-16 to 2019-20. Published data from various RBI publications and reports has been collected. And Correlation and Linear Regression Analysis has been applied to dataset. It was found that all independent variables have positive correlation with Gross NPA and Advances towards Industry, Services and Retail Sectors has significantly influenced the Gross NPA of these companies whereas Advances towards Agriculture Sector do not significantly affect the levels of NPA.
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