TWO WAY FIXED EFFECT OF PRIORITY SECTOR LENDING (SECTOR WISE) ON NON PERFORMING ASSETS OF INDIAN COMMERCIAL BANKS

Reserve Bank of India has fixed some targets and sub targets for all commercial banks for PSL (PrioritySector Lending). Priority sector lending refers to that sector of economy which is not getting adequatefinancial assistance from different financial institutions. Due to Priority sector Lending, Non-performingassets of the banks are increasing day by day. This research paper is an attempt to measure the two wayeffect of every sector of PSL on NPA for public and private banks. Effect between PSL and NPA is foundwith the help of E Views Software. The period of study is 2001 to 2013. For the analysis Pooled RegressionModel, Panel Regression Model and Two Way Fixed Effect Model is used.