A Study of Priority Sector Lending with special reference to Selected Public Sector Banks in Shimoga District

  • S Manjushree (Research Scholar), Assistant Professor, Department of Commerce, Government First Grade College Narasimharajapura, Bangalore, Karnataka, India
  • K V Giridhar Assistant Professor, Sahyadri Commerce and Management, Shivamogga, Karnataka, India
Keywords: District credit plan, NABARD, Potential linked plan, Government, total outlay, Lead Bank

Abstract

A financial institution has a major role to play in the development of any district as they provide financial assistance to the people who take up income-generating activity. The district is predominantly agriculture having 58% land id irrigated area and 42% rain-fed area. Efficient planning facilitates optimal and needs-based use of available resources for meeting the development needs of the region in an equitable and scientific manner. Priority sector lending is a scheme guided by the Government. As per RBI directive, commercial banks advised granting 40% of their total advances to borrowers in the priority sectors. Priority means to give preference and privilege. This paper provides a platform to understand priority sector lending by public sector banks with special reference to shivamogga district. The District credit plan of shivamogga district during the year 2019-2020 provides the information of outlay. An outlay of Rs.3395 crores has been provided for agriculture out a total priority outlay of RS.6262 crores. The study has used both primary and secondary data. The collected data are embodied by using tables, and analysis was done by using percentage analysis and a statistical tool like X2 test is also used.

Published
2020-01-01
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