CHAPTER - 1

INTRODUCTION OF BANKING SECTOR

A bank is financial institution which accept deposits and provide credit to the public.
Banks are performed their lending activities directly or indirectly by capital markets. In most
of the countries banks are highly regulated because of their importance in financial stability of
the country.

BANKING REGULATION ACT, 1949

The Banking Regulation Act came into force from 16 March, 1949. It is a legislative in
India which regulates all the banking firms in India. It became applicable in Jammu and
Kashmir from 1956 and rest in India from 1949.In 1956, it was amended and it also became
applicable to co-operative banks and introduce other changes also.

The Banking Regulation Act,1949 provides the power to the Reserve Bank Of India
(RBI) to have regulation over shareholding and voting rights of shareholders, to license banks,
to regulate the operations of banks, to supervise the appointment of the boards and
management, lay down instructions for audits, issue directives in the interests of public good
and can impose penalities.

In 2017, some amendments are made in banking regulation act. For this purpose, the
Banking Regulation (Amendment) Bill, 2017 was introduced in Lok Sabha on July 24,2017
and in Rajya Sabha it was passed on Aug 10, 2017 by the Minister of Finance, Mr. Arun
Jaitley. This bill is passed to amend the provisions of the Banking Regulation Act, 1949 for
handling the cases related to stressed assets.

Stressed assets are those loans where is default in payment made by the borrower or
where the loan has been restructured.

The bill is also applicable to the state bank of india, its subsidiaries and regional rural
banks.

PRIVATE BANKS

The Private Sector banks in simple terms can be say that its majority of shares or
equity is held by its private share holders not by the government. The Nedungadi bank was the
first private sector bank in India. It was founded in 1899 by Rao Bahadur T.M. Apper in
Kerala. In 1969, Indian Government was nationalized all the major banks. It is divided into
two parts i.e. old and new private banks.

The old private sector banks are those which were existed prior to nationalized in
1969. After the banking reforms, the old private sector banks got license to continue and there
are existed in India along with new private banks and government banks.

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 The new private sector banks are those who gained their banking license when there is
change in the policy of 1990s. Out of all the following banks, there are new nine private sector
banks i.e. Axis Bank, DCB (Development Credit Bank), HDFC Bank, ICICI Bank, Indusind
Bank, Kotak Mahindra Bank, Yes Bank, IDFC Bank, Bandhan Bank. All the remaining banks
are old private sector banks.

In world, India has one of the largest members of private sector banks. According to
Statistics revealed by RBI, currently there are 22 private sector banks running in India.

The private banks which are currently running in India are:

1. HDFC Bank
2. Axis Bank
3. ICICI Bank
4. Indusind Bank
5. YES Bank
6. Federal Bank
7. South Indian Bank
8. Kotak Bank
9. Nainital Bank
10. IDBI Bank
11. Karnatka Bank
12. Karur Vysya Bank
13. City Union Bank
14. Catholic Syrian Bank
15. Tamilnad Mercantile Bank
16. Dhanlaxmi Bank
17. RBL Bank
18. IDFC Bank
19. Bandhan Bank
20. Lakshmi Vilas Bank
21. DCB Bank
22. Jammu & Kashmir Bank
Nainital Bank is a subsidiary of the Bank of Baroda with the 98.57% stake in it.

Source : RBI

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 PRIORITY SECTOR LENDING
Banks are not only the administrators of the money but they are also play an important
role in accelerating the pace of development of different sectors of the economy. In a
developing economy, there is always a need of capital for certain sectors and sections of the
society. For this purpose, special schemes and regulations are framed for the banks to deploy
the credit to those sectors who deserve special attention in the context of capital and these
sectors are called priority sectors. When credit is provided to these main sectors it is called
priority sector lending.
In India, in order to view the national importance and priorities of the synchronization
of the lending activities, the Reserve Bank of India, provide an important role to the priority
sectors.
Over the last four decades, the Indian economy has undergone into a structural
transformation which helps to increase employability, improve competitiveness of the
economy, helps to create basic infrastructure.
EVOLUTION AND EMERGENCY OF PRIORITY SECTOR LENDING
In 1967-68 to overcome the several imbalances, existed then both in agriculture and
industrial fronts has introduced the concept of priority sector lending in the credit policy when
the attention on priority sectors is drawn by the then Dy. Prime Minister and Finance Minister
Shri Moraji Desai in Lok Sabha. The concept of Priority Sector Lending has introduced for the
various historical reasons, like most of the bank advances was given to the medium and large
scale industries whereas sectors like agriculture, small scale industries and export were grow
weak for want of funds.
One of the main reason is also that, for the first time the Godgil Study Group of the
National Credit Council found that agriculture sector was totally neglected and two third of
the bank credit was provided to the industrial sector. To provide guidance and to suggest
projects in the agriculture sector. The Agriculture Finance Corporation Ltd. Was set up for
extending financial assistance by the commercial banks. To provide remittance facilities to
rural centres and lending to sugar factories an attempt was made. But all these attempts did not
add up to more than a fraction of total credit.
After this in July 1968, the second meeting of the National Credit Council held. In the
meeting, only agriculture and small scale industry were included to the priority sector. While
the targets were set up for agriculture and industry, The Finance Minister specifically stated,”
the importance of priority sector should not make as unmindful of the requirements of other
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imported sectors. When we remove credit gaps, which undoubtedly exist in the priority
sectors, we should not in the process of create credit gaps in other areas. The legitimate needs
of our large and medium industries have to be met. This is true not only of industry but also of
trade and many other territory activities.” (Moraji Desai, 1968).
In October,1968 the representatives of major banks with the Governor of Reserve
Bank Of India makes suggestions regarding the setting of target. The banks to allocate 15
percent and 31 percent respectively of their deposits to agriculture and small scale industries,
proposed by that time of Governor L.K. Jha.
In January 1971, the RBI has set up the Credit Guarantee Corporation of India limited
which is now known as the Deposit Insurance And Credit Guarantee Corporation provides
incentive to banks so that they provide credit to small borrowers.
The banks provide advances to priority and other neglected sections of the society
without insisting adequate security at a concession rate of interest. However, the banking
statistics revealed that at the time of bank nationalization this designated priority sector as well
as neglected sections received about 15 percent of the total bank credit (GOI,1991).

EVOLUTION OF PRIORITY SECTOR LENDING

1969 Commercial banks nationalized; emphasis is on-lending to agriculture,

export sector and small scale industries (SSI).
1972 Formalization of priority sector lending on basis of report submitted by the
informal study group.
1974 Public banks to lend one third of its outstanding credit portfolio to priority
sector lending.
1978 Private banks to lend one third of its outstanding credit portfolio to priority
sector lending.
1980 Public and private banks to lend 40 percent of portfolio to priority sector
lending by 1985.
1988 Foreign banks to lend 15 percent of portfolio to priority sector lending by
1992.
2012 For all banks with more than 20 branches: PSL to increase to 40 percent of
adjusted net bank credit (ANBC), direct and indirect agriculture lending set
at 13.5 % and 4.5 % of ANBC.
2015 RBI circular on priority sector lending based on recommendations of
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 internal working group.
2016 Reserve Bank of India circular regarding the priority sector lending
certification.

On the later period, the proportion of advances has increased from 15 percent to 33.3
percent in 1974 and to 40 percent in 1980 to the priority sector.
Later on, the profitability of banks had adversely affected because the advances to
priority sector revealed in a loss of interest income due to highly subsidized lending rates
which cause result in anxiety among the bankers. And this also cause raising volume of non-
performing assets (NPAs) (Niranjan & Anbumani 2002).
The Narsimhan Committee has drawn attention on the problem of low and declining
profitability and suggested that there should be discard of the stipulations of the priority sector
which is 40 percent. They also suggest that the proportion of aggregate credit shall be fixed at
10 %.
On the basis of the recommendation of the working group on April 30,2007 the
guideline for priority sector lending was revised and overall target was fixed at 40 percent of
Net Bank Credit (NBC) for domestic banks ( private sector banks and public sector banks) and
32 percent for foreign banks (RBI,2009).
SECTORS INCLUDED IN PRIORITY SECTOR LENDING
Priority sector includes the following categories which are updated as on Dec 28, 2018 :
1. Agriculture
2. Micro, Small And Medium Enterprises
3. Education
4. Housing
5. Export Credit
6. Social Infrastructure
7. Renewable Energy
8. Others
COMMON GUIDELINES FOR PRIORITY SECTORY LOANS
Banks should follow common guidelines of advances of all categories under the
priority sector:
Rate of interest:- The rate of interest will be depend upon the department of banking
regulation which is issued from time to time.

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Service Charges:- There should be no service charges and inspection charges are levied on
priority sector loans upto Rs.25,000.
Receipt, Sanction/ Rejection/ Disbursement Register:- The banks should be maintained a
register/ electronic record. The details of date of receipt, sanction, rejection or disbursement of
loans with reasons should be recorded. And these records should be available to all inspection
agencies.
Issue of Acknowledgement of Loan Application:- Banks should have to provide the
acknowledgement of loan applications which they are received under priority sector loans.
The bank communicates its decision in writing to the applicants within a time limit which is
prescribed by the bank boards.
PRIORITY SECTOR LENDING CERTIFICATES
To meet the priority sector lending obligations in India, priority sector lending
certificates act as a tool for promoting comparative advantage among banks. The banks who
have a comparative advantage in priority sector lending should earn priority sector lending
certificates. And the banks would be required to buy priority sector lending certificates (Social
Credits) who falling short of the target. The main motive of priority sector lending certificates
(Social Credits) to create market efficiency in priority sector lending and the forward market
helps the banks to focus and plan better in this regard.
Priority Sector Lending Certificates is used in Asia and other parts of the world as a
method of directing credit. In priority sector lending total INR 21,543,562.9 million (US$
322,361 million as of June, 2016) credit extended by the banks.
BACKGROUND
In 28 March, 2007 A.M Godbale was first who proposed the tradable priority sector
lending certificates. The High Level Committee on financial sector reforms on April 7, 2008
in draft report and later on 12 September, 2008 in a final report recommended the introduction
of priority sector lending certificates. As a result, the Reserve Bank of India has launches the
priority sector lending certificates on April 7, 2016. The portal of trading of priority sector
lending certificates was a total of INR 430.1 billion (US$ 6.63 billion as of 31 March, 2017)
within twelve months of the launch.

TYPES OF PRIORITY SECTOR LENDING CERTIFICATES

Basically, there are four types of priority sector lending certificates:

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PSLC Agriculture:- For agriculture lending sub target the PSLC agriculture priority sector
lending certificates are used.
PSLC SF/MF:- These type of priority lending certificates are used for small and marginal
farmers lending sub-target.
PSLC Micro Enterprise:- These are another type of priority sector lending certificates which
are used for more enterprises lending sub-target.
PSLC General:- These are other lending sub-targets for which priority sector lending
certificates are also required.
If the banks are fail to meet their priority sector targets then it is required that they
have to make contribution to RIDF (Rural Infrastructure Development Fund)

PRIORITY SECTOR LENDING -TARGETS AND CLASSIFICATION

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 In July, 2014 an Internal Working Group (IWG) was set up to revise the existing
priority sector lending guidelines. To invite comments the report of the Internal Working
Group was placed in the public domain. The recommendations were examined by the IWG
which were came in the lights of comments, suggestions received from government of India,
banks and other stakeholders. Then the revised guidelines are being issued mention in the
Master Circular RPCD. CO. Plan. BC 10/04.09.01/2014-15 dated july1, 2014 on priority
sector lending- Targets and Classification. After this, the guidelines are issued in 2016.
The salient features of the revised guidelines are mentioned below:
Categories of the priority sector:- In addition to the existing categories, Medium
Enterprises, Social Infrastructure and Renewable Energy will also become part of the priority
sector.
Agriculture:- The difference between direct and indirect agriculture is dispensed with. The
agriculture activities are classified under three sub-categories (i) Farm credit (which will
include short-term crop loans and medium/long term credit to farmers) (ii) Agriculture
Infrastructure and (iii) Ancillary Activities. A list of eligible activities under the three sub-
categories is indicated below:
1.1 Farm Credit:- A. Loans to individual farmers including self help groups or joint liability
groups i.e. group of individual farmers, provided banks maintain disaggregated data of such
loans. Proprietorship firms for farmers, directly engaged in agriculture and allied activities viz.
dairy, fishery, animal husbandry, poultry, bee keeping and sericulture. This will include:
(i) Crop loans to farmers, which will include traditional/ non-traditional plantations,
horticulture and loans for allied activities.
(ii) Medium and long term loans to farmers for agriculture and allied activities (e.g. purchase
of agriculture implements and machinery, loans for irrigation and other developmental
activities undertaken in the form and developmental loans for allied activities.
(iii) Loans to farmers for pre and post harvest activities viz. Spraying, Weeding, Harvesting,
Sorting, Grading and transporting of their own farm produce.
(iv) Loans to farmers upto Rs.5 million against pledge/hypothecation of agriculture produce
( including warehouse receipts) for a period not exceeding 12 months.
(v) Loans to distressed farmers indebted to non- institutional lenders.
(vi) Loans to farmers under the Kisan Credit Card Scheme.
(vii) Loans to small and marginal farmers for purchase of land for agriculture purposes.

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B. Loans to corporate farmers, Organizations/companies of individual farmers, partnership
firms and co-operative farmers who directly engaged in agriculture and allied activities viz.
dairy, fishery, animal husbandry, bee keeping, sericulture and poultry upto an aggregate limit
of Rs.20 mllion per borrower. This will include:
(i) Crop loans to farmers which will include traditional/ non-traditional plantations and
horticulture and loans for allied activities.
(ii) Medium and long term loans to farmers for agriculture and allied activities (e.g. purchase
of agriculture implements and machinery, loans for irrigation and other developmental
activities undertaken in the farm and developmental loans for allied activities).
(iii) Loans to farmers for pre and post harvest activities viz. Spraying, Weeding, harvesting,
Sorting, Grading and transporting of their own farm produce.
(iv) Loans upto Rs. 5 million against pledge/hypothecation of agriculture produce (including
warehouse receipts) for a period not exceeding 12 months.
1.2 Agriculture Infrastructure:- (i) Loans for constitution of storage facilities (Warehouse,
Market Yards, Godowns and Silos) including cold storage units/cold storage chains designed
to store agriculture produce/products irrespective of their location.
(ii) Soil conservation and watershed development.
(iii) Plant tissue culture and agri-biotechnology, seed production, production of bio-
pesticides, bio-fertilizer and verni composting.
For the above loans, an aggregate sanctioned limit of Rs.1 billion per borrower from the
banking system will apply.
1.3 Ancillary Activities:- (i) Loans upto Rs.50 million to co-operative societies of famous for
disposing to the produce of members.
(ii) Loans for setting up of agri clinics and agri business centres.
(iii) Loans for food and agri-processing upto an aggregate sanctioned limit of Rs.1 billion per
borrower from the banking system.
(iv) Loans to custom service units managed by individuals, institutions or organizations who
maintain a fleet of tractors, buildozers, well boring equipment, threshers, combines etc. and
undertake work for farmers on contract basis.
(v) Bank loans to primary agriculture credit societies, farmers service societies and large sized
Advasi multi purpose societies for on lending to agriculture.
(vi) Loans sanctioned by banks to MFIs for on lending to agriculture sector as per the
conditions specified in paragraph 19 of these Master Directions.

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(vii) Outstanding deposits under RIDF and other eligible funds with NABARD an account of
priority sector shortfall.
For the purpose of computation of achievement of the sub target, small and marginal farmers
will include the following:-
 Marginal farmers with landholding of upto 1 hectare and small farmers with
landholding of more than 1 hectare and upto 2 hectares.
 Landless agriculture labourers, tenant farmers, oral lessees and share croppers whose
share of landholding is within the limits prescribed for small and marginal farmers.
 Loans to self help groups or joint liability groups i.e. groups of individual small and
marginal farmers directly engaged in agriculture and allied activities provided banks
maintain disaggregated data of such loans.
 Loans to farmers producer companies of individual farmers and co-operative of
farmers directly engaged in agriculture and allied activities, where the membership of
small and marginal farmers is not less than 75 percent by number and whose land
holding share is also not less than 75 percent of the total land holding.
 The loans which are provided to food and agro processing units will form part of
agriculture.
Small and Marginal Farmers:- For small and marginal farmers, a target of 8% of ANBC or
credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher has been
prescribed which is to be achieved in a phased manner i.e. 7 percent by March 2016 and 8
percent by march 2017.
Micro, Small and Medium Enterprises:- For micro enterprises, a target of 7.5% of ANBC
or Credit Equivalent Amount of Off Balance Sheet Exposure, whichever is higher has been
prescribed which is to be achieved in a phased manner i.e. 7% by march 2016 and 7.5% by
march 2017.
3.1 Limits For Investment in Plant and Machinery/Equipment:- The limits for investment
in plant and machinery, equipment for manufacturing/service enterprise as notified by
ministry of micro, small and medium enterprises vide S.O. 1642 (E) dated september 9, 2006
are as under:

Manufacturing Sector Investment in Plant And Machinery

Enterprises
Micro Enterprises Does not exceed 25 lakh rupees.
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Small Enterprises More than 25 lakh rupees but does not exceed 5 crore rupees.
Medium Enterprises More than 5 crore rupees but does not exceed 10 crore rupees.
Service Sector Enterprises Investment in Equipments
Micro Enterprises Does not exceed 10 lakh rupees.
Small Enterprises More than 10 lakh rupees but does not exceed 2 crore rupees.
Medium Enterprises More than 2 crore rupees but does not exceed 5 crore rupees.

Bank loans to micro, small and medium enterprises for both manufacturing and service
sectors are eligible to be classified under the priority sector as per the following norms:
3.2 Manufacturing Enterprises:- The micro, small and medium enterprises engaged in the
manufacture or production of goods to any industry specified in the first schedule to the
industries (Development and Regulation) act 1951 and as notified by the government from
time to time. The manufacturing enterprises are defined in terms of investment in plant and
machinery.
3.3 Service Enterprises:- All bank loans to MSMEs who are engaged in providing or
rendering of services which is defined in terms of investment in equipment under MSMED
Act,2006 shall qualify under the priority sector without any credit cap.
3.4 Factoring Transactions:- (i) On with recourse basis by banks the factoring transactions
are which carry out the business of factoring departmentally, wherever the ‘assignor’ is a
micro, small or medium enterprises, subject to the corresponding limits for investment in plant
and machinery/equipment and other extent guidelines for priority sector classification. Such
outstanding factoring portfolio may be classified by banks under MSME category on the
reporting dates.
(ii) In terms of paragraph 9 of the department of banking regulation circular
DBR.NO.FSD.BC.32/24.01.007/2015-2016 dated July 30,2015 on ‘Provision of Factoring
Services by Banks-Review’, inter-alia, the borrower’s bank shall obtain from the borrower,
periodical certificates regarding factored, receivables to avoid double financing/counting.
Further, the ‘factors’ must intimate the limits sanctioned to the borrower and details of debts
factored to the banks concerned, taking responsibility to avoid double financing.
(iii) Factoring transactions taking place through the trade receivables discounting system shall
also be eligible for classification under priority sector upon operationalization of the platform.
3.5 Khadi and Village Industries Sector (KVI):- All loans which are provided to units in the
KVI sector will be eligible for classification under the sub-target of 7.5 percent prescribed for
micro enterprises under priority sector.
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 3.6 Other Finance to MSMEs:- (i) Loans to entities involved in assisting the decentralized
sector in the supply of inputs and marketing of outputs of artisans, village and cottage
industries.
(ii) Loans to co-operatives of producers in the decentralized sector viz. artisans, village and
cottage industries.
(iii) Loans sanctioned by banks to MFIs for on-lending to MSME sector as per the conditions
specified in paragraph 19 of these Master Directions.
(iv) Credit outstanding under General Credit Cards (including Artisan Credit Card, Weaver’s
Card, Swarojgar Credit Card etc. in existence and catering to the non-farm entrepreneurial
credit needs of individuals).
(v) In terms of revised guidelines issued by Department of Financial Services, Ministry of
Finance, dated September 24,2018 overdraft limit to Pradhan Mantri Jan-Dhan Yojana
account holder has been raised to Rs. 10,000/-, age limit of 18-60 years has been raised to 18-
65 years and there will not be any conditions attached for overdraft upto Rs. 2000/- These
overdraft will qualify as achievement of the target for lending to micro enterprises.
(vi) Outstanding deposits with SIDBI and MUDRA Ltd. On account of priority sector
shortfall.
3.7 To ensure that MSMEs do not remain small and medium units merely to remain eligible
for priority sector status, the MSME units will continue to enjoy the priority sector lending
status upto three years after they grow out of the MSME category concerned.
4. Export Credit:- The export credit extanded as per the details below will be classified as
priority sector:-

Domestic Banks Foreign Banks with 20 Foreign banks with less than 20
branches and above branches
Incremental export credit over Incremental export credit Export credit will be allowed upto 32
corresponding date of the preceding over corresponding date of percent of ANBC or credit equivalent
year, upto 2 percent of ANBC or credit the preceding year, upto 2 amount of off-balance sheet exposure,
equivalent amount of off balance sheet percent of ANBC or credit whichever

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 exposure, whichever is higher, equivalent amount of off- is higher.
effective from April 1, 2015 subject to balance sheet exposure,
a sanctioned limit of upto Rs.250 whichever is higher, effective
million per borrower to units having from April1, 2017.
turnover of upto Rs.1 billion.

Export credit includes pre and post shipment export credit (excluding off balance sheet items)
as defined in master circular on Rupee/Foreign currency export credit and customer service to
exporters issued by the department of banking regulation.
5. Education:- Loans to individuals for educational purposes including vocational courses
upto Rs. 1 million irrespective of the sanctioned amount will be considered as eligible for
priority sector.
6. Housing:-

1. 6.1 2. Loans that are provided to individuals upto Rs.3.5 million in metropolitan centres (whose population
is 10 lakh and above). Loans that are provided to other centres for purchase/construction of a
dwelling unit per family is upto Rs.2.5 million. The overall cost of the dwelling unit in the
metropolitan centre and at other centres does not exceed Rs.4.5 million and Rs.3 million
respectively.
6.2 The loans sanctioned for repairs to damaged dwelling units of families upto Rs. 0.5 million in
metropolitan centres and upto Rs. 0.2 million in other centres.

3. 6.3 4. Bank loans that are provided for construction of dwelling units or for slum clearance and
rehabilitation of slum dwellers subject to a ceiling of Rs.1 million per dwelling unit to any
government Agency.

6.4 The loans sanctioned by banks for housing projects exclusively for the purpose of construction of
houses for EWS (economically weaker sections) and LIG (low income groups), the total cost of
which does not exceed Rs.1 million per dwelling unit. For the purpose of identifying the
economically weaker sections and low income groups, the family income limit is revised to Rs.0.3
million per annum for economically weaker sections and Rs.0.6 million per annum for low income
groups, in alignment with the income criteria specified alignment with the income criteria specified
under the Pradhan Mantri Awas Yojana.

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6.5 Bank loans to Housing Finance Companies, approved by NHB for their refinance, for on-lending for
the purpose of purchase/construction/reconstruction of individuals dwelling units or for slum
clearance and rehabilitation of slum dwellers, subject to an aggregate loan limt of Rs.1 million per
borrower.
The eligibility under priority sector loans to Housing Finance Companies is restricted to 5% of
the individual banks total priority sector lending on an ongoing basis. The maturity of bank loans
should be co-terminus with average maturity of loans extended by HFCs. Banks should maintain
necessary borrower-wise details of the underlying portfolio.

6.6 Outstanding deposits with NHB on account of priority sector shortfall.

7. Social Infrastructure:-7.1 Under social infrastructure sector, bank loans upto Rs.50
million per borrower is eligible for building social infrastructure for activities like schools,
drinking water facilities, health care facilities and sanitation facilities (including loans for
construction/refurbishment of toilets and improvements in water facilities in the household) in
tier II to tier VI centres are eligible for classification under priority sector.
7.2 Bank credit to Micro Finance Institutions extended for on-lending to individuals and also
to members of SHGs/JLGs for water and sanitation facilities will be eligible for categorization
as priority sector under ‘Social Infrastructure’, subject to the criteria laid down in paragraph
19 of these Master Directions.
8. Renewable energy:- Bank loans are sanctioned to borrowers upto a limit of Rs.150 million
for purposes like solar based power generators, biomass based power generators, wind mills,
micro hydel plants and for non conventional energy based public utilities. Viz. street lighting
systems and remote village electrification. For individual households, the loan limit will be
Rs.1 million per borrower.
9. Weaker Sections:- For weaker section, there is no change in the target which is 10% of
ANBC or credit equivalent amount of off balance sheet exposure, whichever is higher. Priority
sector loans to the following borrowers will be considered under weaker sections category:-

No. Category
(i) Small and Marginal Farmers.
(ii) Artisans, Village and Cottage industries where individual credit limits do not exceed

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 Rs.0.1 million.
(iii) Beneficiaries under Government Sponsored Schemes such as National Rural Livelihood
Mission (NRLM), National Urban Livelihood Mission (NULM) and self employment
scheme for rehabilitation of manual scavengers.
(iv) Scheduled castes and scheduled tribes.
(v) Beneficiaries of differential rate of interest scheme.
(vi) Self help groups.
(vii) Distressed farmers indebted to non-institutional lenders.

(viii) Distressed persons other than farmers, with loan amount not exceeding Rs.0.1 million
per borrower to prepay their debt to non-institutional lenders.
(ix) Individual women beneficiaries upto Rs.0.1 million per borrower.
(x) Persons with disabilities.
(xi) Overdraft limit to PMJDY account holder upto Rs.10,000/- with age limit of 18-65
years.
(xii) Minority communities as may be notified by Government of India from time to time.

In States, where one of the minority communities notified is, in fact, in majority, item (xii)
will cover only the notified minorities. These states/union territories are Jammu and Kashmir,
Punjab, Meghalaya, Mizoram, Nagaland and Lakshadweep.
10. Target for foreign banks:- Foreign banks with 20 branches and above already have
priority sector targets and sub-targets for agriculture and weaker sections and these targets are
to achieved by 31 March,2018 as per the action plans submitted by them and approved by
RBI. The sub-targets for small and marginal farmers and micro enterprises will be made
applicable past 2018 after a review in 2017.
Foreign banks who have less than 20 branches with a target of 40% of ANBC or credit
equivalent amount of off balance sheet exposure, whichever is higher, on par with other banks
by 2019-20 and the sub targets for these banks would be dedicated in due course if to be made
applicable post 2020.
11. Others:- 11.1 Loans that are provided directly by banks to individuals and their self help
groups and joint liability groups not exceeding Rs.50,000 per borrower. The loans provided to
the individual borrowers household annual income in rural areas does not exceed Rs.0.1
million and for non rural areas it does not exceed Rs.0.16 million.
11.2 Loans to distressed persons [other than farmers included under paragraph 6 (6) (A) (V)]
not exceeding Rs.0.1 million per borrower their debt to non-institutional lenders.
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11.3 Loans sanctioned to state sponsored organizations for scheduled castes/scheduled tribes
for the specific purpose of purchase and supply of inputs and/or the marketing of the outputs
of the beneficiaries of these organizations

12. Instead of Annual basis, now the priority sector non-achievement will be assessed on
quarterly average basis at the end of the respective year from 2016-17 onwards.

The revised guidelines are became operational with effect from the date of the circular. Those
loans which are sanctioned under the guidelines issued prior to this date will continue to be
classified under priority sector till repayment/maturity/renewal.

Source : Master Direction- Priority Sector Lending- Targets And Classification (updated as on
Dec4,2018), RBI.

TARGETS AND SUB TARGETS OF BANKS UNDER PRIORITY SECTOR

Categories Domestic Scheduled Commercial Banks Foreign banks with less than 20
(excluding regional rural banks and branches
small finance banks) and foreign banks
with 20 branches and above
Total Priority 40% of adjusted net bank credit for credit 40% of adjusted net bank credit or
Sector equivalent amount of off balance sheet credit equivalent amount of off
exposure, whichever is higher. balance sheet exposure,
whichever is higher, to be
achieved in a phased manner by
2020.
Agriculture 18% of ANBC or credit equivalent amount Not Applicable.
of off balance sheet exposure, whichever is
higher.
Within the 18 percent target for agriculture,
a target of 8 % of ANBC or credit
equivalent amount of off balance sheet
exposure, whichever is higher is prescribed
for small and marginal farmers.
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Micro 7.5 percent of ANBC or credit equivalent Not Applicable.
Enterprises amount of off balance sheet exposure,
whichever is higher.
Advances To 10 percent of ANBC or credit equivalent Not Applicable.
Weaker amount of off balance sheet exposure,
Sections whichever is higher.
# Domestic banks have been directed to ensure that their overall direct lending to non-corporate
farmers does not fall below the system-wide average of the last three years achievement. All
efforts should be maintained to reach the level of 13.5 percent direct lending to the beneficiaries
who earlier constituted the direct agriculture sector. The applicable system wide average figure for
computing achievement under priority sector lending will be notified every year. For FY 2018-19,
the applicable system wide average figure is 11.99 percent.
Source: RBI Publications 2017-18

(ii) The total Priority Sector Target of 40% for foreign banks with less than 20 branches has to
be achieved in a phased manner as under:

Financial Year The total priority sector as percentage of

ANBC or credit equivalent amount of off
balance sheet exposure, whichever is higher.

2015-16 32%

2016-17 34%

2017-18 36%

2018-19 38%

2019-20 40%

The additional priority sector lending target of 2 percent of ANBC each year from 2016-17 to
2019-20 has to be achieved by lending to sectors other than exports. The sub-targets for these
banks, to be made applicable post 2020, would be decided in due course.

(iii) The computation of priority sector targets/sub targets achievement will be based on the
ANBC or credit equivalent amount of off balance sheet exposure, whichever is higher, as on
the corresponding date of the preceding year.

Computation of Adjusted Net Bank Credit ( ANBC )

Bank credit in India ( As prescribed in item No.VI of Form ‘A’ I

under section 42 (2) of the RBI Act,1934.

Bills rediscounted with RBI and other approved financial II

institutions

17
Net Bank Credit ( NBC) III(I-II)

Bonds/debentures in Non-SLR categories under HTM( Held To IV

Maturity) category + Other investments eligible to be treated as
priority sector + Outstanding deposits under RIDF and other
eligible funds with NABARD,NHB and SIDBI on account of
priority sector shortfall + Outstanding PSLCs

Eligible amount for exemption on issuance of long term bonds for V

infrastructure and affordable housing.

Eligible advances extended in India against the incremental

FCNR(B)/NRE deposits, qualifying for exemption from VI
CRR/SLR requirements.

ANBC III+IV-V-III
Source : RBI (Targets and Classification)

CHAPTER - 3

RESEARCH METHODOLOGY
The research design of the study is priority sector lending by private sector banks. Private
sector banks consist of old and new private sector banks. There are nine new private sector
banks and thirteen old private sector banks. The study attempts to fulfill its objectives by
making analysis of priority sector lending of private banks and their target percentage of
ANBC or off balance sheet exposure, whichever is higher fixed by RBI.

SOURCE OF DATA
This study is based on secondary data.

The secondary data is collected from Annual reports of RBI, statiscal tables relating to priority
sector lending are published by RBI, journals, research papers which are used for the study.

PERIOD OF STUDY:- This study includes the data over past 5 years i.e. from 2014-
2018.

OBJECTIVES OF THE STUDY

 To understand the concept of priority sector lending in India.
18
 To study the targets and classifications of priority sector lending in India.

 To compare the target achieved by the private banks in study period.

 To make suggestions on the basis of findings of the study.

19
 CHAPTER- 4

PRIORITY SECTOR LENDING BY PRIVATE BANKS

In this chapter, discussion was made on prioriy sector lending by private sector banks i.e. what targets are fixed for the priority
sector lending and whether that targets of priority sector lending are achieved by private banks fixed by RBI. The study is an
attempt to find out that how much advances are provided to different sectors of priority sector lending by different banks from
last five years.

TABLE NO.1

State-Wise Distribution of Select items of scheduled commercial banks' advances to priority sector
Year-2018

(Amount in Rs. Millions)

State Total Priority Agriculture MSMEs Export credit Education Housing Renewable Social other categories Loans to Weaker
Sector Energy infrastructure under priority Sections under
sector priority sector

No. of Balance No. of Balance No. of Balance No. of Balance No. of Balance No. of Balance No. Balance No. of Balanc No. of Balanc No. of Balance
A/cs O/s A/cs O/s A/cs O/s A/cs O/s A/cs O/s A/cs O/s of O/s A/cs e O/s A/cs e O/s A/cs O/s
A/cs

Northern 11291 5582463 70987 2277148 2872235 2666764 784 79543 17777 56257 72786 475496 155 4292 1466 5318 39665 65002 71728 1404483
Region 079 05 5 0 92 6 94

Chandigar 95112 127725 19659 26826 39792 86470 9 160 4455 1657 1773 12073 5 82 15 18 13404 439 43095 10915
h

Delhi 61036 1202463 32549 128640 380253 918774 503 63471 32963 12017 11356 107941 70 2768 127 429 50324 7668 14778 46906
1 6 2

Haryana 20180 1113948 12397 526703 528195 441854 116 13685 32477 10561 13955 77812 70 208 248 508 77716 2618 12347 281888
96 20 4 12

Himachal 50874 152973 32363 53201 125204 73056 0 0 13870 3547 40696 22667 5 0 149 200 5184 302 34194 51152
20
Pradesh 5 7 3

Jammu & 75807 236488 40411 83964 278292 123983 1 0 12798 3129 36376 20794 153 620 40 25 11134 3973 49221 58401
Kashmir 4 2 21 6

Punjab 25374 1288393 16202 720208 637525 458389 103 1428 31397 11441 16492 91756 68 319 384 645 82800 4207 16792 440108
96 95 4 11

Rajasthan 47631 1460474 34587 737605 882974 564239 52 800 49815 13907 21497 142453 53 296 503 3492 15609 45795 32339 515113
95 33 1 4 34

North 30294 364199 21541 136444 687817 175977 70 118 23271 6733 73681 41953 35 3 106 180 90366 2792 16695 119431
Eastern 87 41 93
Region

Arunachal 25174 9017 13737 1740 10119 6641 0 0 572 156 668 460 0 0 8 13 70 8 18853 4595
Pradesh

Assam 21386 262790 16472 103293 364519 123986 56 93 14743 4254 48711 28977 16 2 62 101 63298 2085 12403 77072
70 65 07

Manipur 65140 14578 37847 4240 21204 6644 0 0 846 296 5066 3336 17 0 16 51 144 11 44044 5314

Meghalaya 93918 16294 65428 5217 17645 8189 14 25 2949 827 3297 1912 0 0 5 4 4580 119 80255 7818

Mizoram 21539 12404 16653 1400 193399 7900 0 0 524 156 6882 2859 0 0 5 4 4580 119 80255 7818

Nagaland 51784 10676 38554 2834 11156 6723 0 0 396 118 1496 983 0 0 4 3 178 15 44571 6007

Tripura 43726 38440 33465 17720 69775 15893 0 0 3241 925 7561 3426 2 1 6 2 22020 472 21770 12770
2 7 4

Central 16730 4017812 11362 185320 356978 1593029 280 33325 23686 66006 99420 456012 1342 982 1667 2140 56352 13114 11756 1275898
Region 161 496 7 6 0 071

Chhattisga 11776 353502 61137 110276 385089 188308 1 0 20095 5359 69950 47853 20 50 119 168 91049 1489 79542 67986
rh 99 6 8

Madhya 53918 1324618 33218 671094 1199015 438469 86 30190 76428 19423 58032 159747 109 357 577 715 21349 4622 32819 356091
Pradesh 32 00 6 1 48

Uttrakhan 29635 734320 23621 405825 453329 263756 13 436 47491 13704 77201 49494 93 111 215 266 22966 728 14436 200896
d 20 86 49

21
Uttar 71971 1605372 50671 666009 1532350 702496 154 2699 92853 27521 26672 198917 1120 464 756 992 23601 6275 62350 650926
Pradesh 10 34 9 4 46

Eastern 17184 2640677 11995 949222 3480298 1286310 339 14344 22923 68237 38767 232891 1025 651 662 1157 82166 16438 10399 536849
Region 0491 037 1 6 8 056

Andaman 19218 7784 8891 979 8331 5705 0 0 424 125 1502 953 0 0 5 10 65 12 7774 987
& Nicobar

Bihar 54644 569218 40908 273590 991629 210423 1 3 10198 30944 68037 49180 123 11 196 423 21160 4014 39976 211896
66 95 1 4 27

Jharkhand 18643 298152 12277 80264 459795 173607 15 105 46661 15646 51068 26913 75 77 151 143 78885 1398 13671 65452
61 11 18

Odisha 34840 467681 24343 151364 729348 248676 5 209 55385 14751 90184 48567 89 34 229 400 17440 3678 28028 128788
18 77 1 91

Sikkim 31703 9443 14965 2066 9330 4525 0 0 461 138 4637 2674 0 0 4 8 2306 33 20299 2842

West 63203 1288400 42181 440959 1281865 643374 318 14027 24319 6633 17224 103973 738 528 77 173 35440 7304 22033 126894
Bengal 25 98 8 7 47

Western 14271 9812951 82310 3935154 3575993 3641380 2322 215827 25756 68623 14147 1575312 483 4952 1527 2029 74790 36027 92507 1723939
Region 499 97 6 60 3 00

Dadra & 11152 10024 3305 685 3938 6520 19 199 256 79 3330 2382 1 150 4 5 299 4 3346 747
Nagar
Haveli

Daman & 6664 6738 1647 351 3002 5431 0 0 168 58 1645 893 0 0 2 2 200 3 1455 410
Diu

Goa 16292 80992 57693 17036 75002 49748 2 27 4699 1389 17829 12457 9 64 41 27 7651 245 80600 12594
6

Gujarat 40478 2030332 22721 623365 1007244 959619 351 14039 44482 13887 50120 409244 116 2174 464 916 22192 7089 22902 341227
99 15 5 2 28

Maharasht 10042 7684864 58963 3293718 2486807 2620062 1950 201562 20796 53210 89075 1150337 357 2564 1016 1078 51783 28687 68750 1368961
ra 858 37 1 1 1 71

Southern 49610 9782197 37167 4543389 7854235 3778066 920 117503 15028 351870 16876 1119621 2248 11264 51634 11011 13441 73136 36434 3378182
Region 735 101 02 20 75 652

Andhra 87513 1717668 73863 1016437 991241 478513 25 4112 95305 33537 25043 182619 443 432 481 743 27090 1276 65794 699782
22
Pradesh 25 08 2 58

Karnataka 76719 2062950 50144 901953 1744257 799006 167 58557 19994 44448 37908 253957 1104 4187 857 2022 33204 32761 53628 644628
42 88 2 1 6 76

Kerala 73486 1404675 51506 657117 1058984 477133 15 1005 31335 83888 36311 214089 87 80 406 1961 46205 15403 57811 605541
91 79 6 4 0 26

Lakshadw 2377 316 654 27 1404 156 0 0 24 7 269 125 0 0 0 0 26 1 6851 831
eep

Puducherr 37372 55972 23033 20533 99884 25867 0 0 13505 2928 12038 6206 4 1 849 65 17107 372 23204 14058
i 3 6 7

Tamilnadu 21366 3440066 16150 1484290 3402367 1492281 669 41381 82145 158839 46281 293190 349 4435 48872 3662 47986 15852 15378 1052836
630 244 4 5 0 542

Telangana 40960 1100549 32343 463033 556098 505109 44 12449 59216 28224 21987 169434 261 2130 169 2558 25996 7473 30937 360507
47 92 1 52

All India 11211 3220029 78008 1369456 22040361 1314152 4715 460659 24275 617727 52858 3901285 2072 22143 57062 21835 39642 206508 76682 8438782
7042 8 577 1 4 12 03 5 88 966

Source : RBI (Statistical Tables related to Banks in India)

23
Interpretation :- In year 2018, the table shows that the more credit outstanding was in MSME
sector of northern region and more number of accounts were opened under loan to weaker
sections. Under northern region, if we talk about particular sector then in Chandigarh there were
more number of accounts that opened in loans to weaker sections whereas more credit
outstanding in agriculture sector. In Delhi, more credit outstanding was under agriculture sector
whereas more number of accounts were opened under MSME sector. In Haryana, more credit
outstanding and number of accounts were opened under agriculture sector. In Himachal Pradesh,
more number of accounts were opened under loans to weaker sections and more credit
outstanding was in agriculture sector. In Jammu and Kashmir, more number of accounts were
opened under MSME sector whereas more credit outstanding under agriculture sector. In Punjab
State, more number of accounts were opened under loans to weaker sections and the credit
outstanding was in agriculture sector. In Rajasthan, both credit outstanding and number of
accounts were opened under agriculture sector.

In North Eastern Region, more number of accounts were opened in agriculture sector
whereas more credit outstanding under MSME sector. In Arunachal Pradesh, more number of
accounts were opened under loans to weaker sections and the balance outstanding was in MSME
sector. In Assam, more number of accounts were opened under agriculture sector and more credit
outstanding in MSME sector. In Manipur and Meghalaya, more number of accounts were opened
under loans to weaker sections whereas more credit outstanding under MSME sector. In
Mizoram, more number of accounts were opened under MSME sector and credit outstanding
also under MSME sector. Nagaland had more credit outstanding in MSME sector and more no.
of accounts were opened under loans to weaker sections. But Tripura state had both number of
accounts and balance outstanding in agriculture sector.

In Central Region, more number of accounts were opened under loans to weaker sections
and more balance outstanding in MSME sector. Under Central Region, in Chhattisgarh more
credit outstanding in MSME sector and more number of accounts are opened under loans to
weaker sections. In Madhya Pradesh and Uttrakhand, both credit outstanding and more number
of accounts were opened under agriculture sector. In Uttar Pradesh, more number of accounts
were opened under loans to weaker sections whereas more credit outstanding in MSME sector.

24
 In Eastern Region, both credit outstanding and more number of accounts were opened
under agriculture sector. Under Eastern Region, in Andaman and Nicobar more credit
outstanding in MSME sector and more number of accounts were opened under agriculture sector.
In Bihar, more number of accounts were opened and the amount outstanding both under
agriculture sector. In Jharkhand, the large amount outstanding under agriculture sector and large
number of accounts were opened under weaker sections. In Odisha and Sikkim, large number of
accounts were opened under weaker sections where the large amount of credit outstanding in
MSME sector. In West Bengal, the large number of accounts were opened under agriculture
sector and the large amount of credit outstanding also in agriculture sector.

In Western Region, the large number of accounts were opened under loans provide to
weaker sections whereas the large amount of credit outstanding in agriculture sector. Under
Western Region, in Dadra and Nagar Haveli and in Daman & Diu, both credit outstanding and
large number of accounts were opened under MSME sector. In Gujarat and Goa, the large
number of accounts were opened under weaker sections whereas the large amount of credit
outstanding under MSME sector. In Maharashtra, the total large number of accounts were
opened under weaker sections but the credit outstanding was under agriculture sector.

In Southern Region, both the large amount of credit outstanding and large number of
accounts were opened under agriculture sector. In Andhra Pradesh, both the large amount of
credit outstanding and large number of accounts were opened under the agriculture sector. In
Karnataka and Kerala, the large number of accounts were opened under weaker sections and the
large amount of credit outstanding under agriculture sector. In Lakshadweep, both the large
amount of credit outstanding and the large number of accounts were opened under weaker
sections. In Pondicherry, the large amount of credit outstanding under MSME sector and large
number of accounts were opened under weaker sections. In Tamilnadu and Telangana, the large
number of accounts were opened under agriculture sector whereas the large amount of credit
outstanding under MSME sector.

25
 TABLE NO.2

Year : 2017
(Amount in Rs. Millions)
State Total Priority Agriculture MSMEs Export credit Education Housing Renewable Social other categories Loans to Weaker
Sector Energy infrastructure under priority Sections under
sector priority sector

No. of Balanc No. of Balance No. of Balanc No. of Balance No. of Balanc No. of Balanc No. of Balanc No. of Balanc No. of Balanc No. of Balance
A/cs e O/s A/cs O/s A/cs e O/s A/cs O/s A/cs e O/s A/cs e O/s A/cs e O/s A/cs e O/s A/cs e O/s A/cs O/s

Northern 102210 526661 638160 2181812 281227 234493 1039 126902 182180 53743 67762 519687 23294 5085 1644 3534 14094 29751 64133 1113551
Region 75 9 4 7 1 7 0 19

Chandigar 83919 126864 17431 29803 41168 80565 10 437 4543 1651 18159 13407 3 11 34 139 2571 851 30889 8600
h

Delhi 667249 124578 38280 178700 451648 785054 709 109818 32152 11113 12410 146874 75 2712 195 530 19613 9771 75226 92866
7 9

Haryana 173555 967242 110138 466821 483394 396675 63 12541 34495 10156 95054 77849 76 629 299 727 20785 1844 10068 213670
2 6 14

Himachal 489249 143979 315682 49711 114587 68605 0 0 14287 3451 41090 21750 12 3 160 285 3431 174 33874 48201
Pradesh 5

Jammu & 734890 191797 401579 73621 260073 98008 0 0 11959 2816 27713 15941 22997 854 48 33 10521 524 47737 51357
Kashmir 0

Punjab 227474 122990 146296 697437 598261 427130 127 1625 31730 10675 15906 87286 52 370 398 778 22148 4600 15033 368880
9 2 7 6 38

Rajasthan 423546 136108 304427 685718 863146 488893 130 2481 53014 5678 21243 156581 79 505 1041 61871 11987 23038 329977
7 9 9 8 94

North 335329 348664 205984 126883 111531 171331 82 315 33591 6970 70959 41104 25 15 153 265 73331 1781 30977 173398
Eastern 3 2 0 17
Region

26
Arunachal 25002 8635 13953 1964 9606 6044 0 0 675 162 655 445 0 0 7 12 106 8 67893 9890
Pradesh

Assam 253066 249717 156797 91709 858689 123438 62 180 17186 4490 47473 28514 24 15 111 181 39144 1189 22139 98189
2 3 55

Manipur 64829 19819 39869 10867 19256 5654 0 0 916 314 4577 2907 1 0 14 55 196 23 73335 9442

Meghalaya 107597 16755 69417 5719 31710 8082 20 136 2726 727 3363 2049 0 15 6 5 355 37 79638 10718

Mizoram 35397 8737 17628 1357 9345 4065 0 0 549 169 7791 3062 0 0 5 6 79 78 10712 14488
7

Nagaland 60836 9933 43947 2760 14530 6047 0 0 404 121 1694 972 0 0 3 3 258 29 79268 10494

Tripura 528970 35068 307055 12507 172174 18000 0 0 11135 987 5406 3155 0 0 7 2 33193 418 47650 20177
1

Central 154595 362063 103369 1736438 349037 134946 346 4303 247572 64778 95413 451334 1447 988 2461 3851 42628 9472 11118 1203013
Region 59 1 48 0 6 4 1 795

Chhattisga 100986 315598 495015 100616 412987 161788 7 198 19632 4931 67669 47509 18 7 152 216 14384 334 68535 104515
rh 4 2

Madhya 494563 114452 290493 575399 115824 378129 90 753 81214 19081 54800 165899 102 500 527 824 25252 3941 31875 338514
Pradesh 7 5 5 2 5 2 68

Uttrakhan 708078 227491 397604 83996 230022 104474 12 28 22767 6493 52720 31635 47 70 248 446 4658 350 52678 53996
d 4

Uttar 879598 193301 653939 976428 168911 705076 237 3324 123959 34274 28574 206292 1280 412 1534 2365 15471 4848 67190 705989
Pradesh 0 8 4 9 0 7 91

Eastern 171792 245252 108307 854196 511508 116398 704 23748 275946 78982 48190 325175 707 1130 1080 1753 47315 9713 14698 831057
Region 91 7 13 1 7 7 3 399

Andaman 18664 7173 8776 950 7748 4946 0 0 449 149 1640 1111 0 0 8 12 43 4 74702 114889
& Nicobar 2

Bihar 460880 503523 342893 239563 852849 182829 1 3 100362 31540 64159 47433 51 8 311 413 16213 1734 37293 217085
0 7 0 03

Jharkhand 168987 259372 109098 66088 478809 151445 12 95 47123 15162 37039 25725 64 90 172 176 35666 591 12501 115365
4 9 26

27
Odisha 289163 411843 190810 138172 782308 206380 6 954 59668 15684 91529 48901 89 26 313 459 49621 1268 21759 107699
9 5 90

Sikkim 40114 10121 14050 1688 19594 5220 0 0 614 139 5384 3059 0 0 7 1 465 14 10967 9412
0

West 793020 126049 437985 407735 297377 613167 685 22697 67730 16307 28215 198946 503 1006 269 694 22522 6102 66862 266607
Bengal 0 6 6 3 6 8 88

Western 137849 836885 786175 3446572 383084 303132 2610 314597 252443 75205 13585 143387 510 5144 2219 2885 47353 34826 90929 1358024
Region 07 1 3 8 4 27 3 1 95

Dadra & 11915 8406 3187 593 5356 5460 3 270 192 53 2730 1861 1 150 7 12 439 7 5255 684
Nagar
Haveli

Daman & 7216 6366 2349 481 2837 4890 0 0 219 76 1616 913 0 0 0 0 195 7 1585 285
Diu

Goa 155708 76195 54720 15799 72267 42639 4 2749 4362 1264 17998 13194 18 165 68 61 6271 323 75444 12696

Gujarat 365911 193498 205006 625147 993456 866352 263 20372 44022 22865 46516 390855 78 2137 535 684 10553 6572 21435 361802
4 5 7 0 3 93

Maharasht 995095 634289 575143 2804552 275693 211198 2340 291206 203648 50947 87102 102704 413 2692 1609 2127 36109 27917 68671 982558
ra 4 9 0 2 4 3 9 3 18

Southern 418362 924442 315326 4281442 676298 325191 1207 179717 155551 348859 16965 117926 3308 11130 23138 10607 26096 81228 30589 3062790
Region 42 8 30 1 9 4 02 7 2 411

Andhra 802611 155102 669447 898447 945324 407770 234 18416 100026 33899 26507 186683 408 492 1184 1339 19397 3980 60592 541176
Pradesh 8 7 0 5 85

Karnataka 654330 202894 429037 890501 157980 721410 200 83866 202558 46216 37499 267702 2264 3628 945 1893 92169 38529 41005 636774
7 5 0 4 7 93

Kerala 576356 131992 421183 619705 868932 399012 30 3393 269010 78527 38643 228799 86 141 607 2305 26632 18690 48228 599879
2 2 4 1 38

Lakshadw 3595 385 1643 69 1600 166 0 0 30 8 294 141 0 0 0 0 28 1 2297 325
eep

Puducherr 271157 51441 178117 18605 68015 23420 0 0 13333 2837 10563 6375 2 0 242 76 885 128 22010 23639
y 1

Tamil 172161 316363 130324 1379534 273054 126198 693 60476 906412 157260 42096 309841 213 3624 19790 4233 10510 15134 12431 945031
28
nadu 45 9 31 1 7 4 1 917

Telangana 401235 112906 312376 474581 568765 438154 50 13565 64145 30112 23817 179727 335 3245 370 761 16750 4765 29523 315965
8 9 5 8 80

All India 101834 293017 690034 1262734 231268 113129 5988 649583 254724 628536 52396 395044 29291 23493 30695 22884 18491 166772 75010 7741834
367 21 90 4 67 57 6 56 0 98 636

Source : RBI (Statistical Tables related to Banks in India)

29
Interpretation :- In Northern Region, total large number of accounts were opened under weaker
sections whereas the credit outstanding amount was under agriculture sector. Under northern
region, in Chandigarh and Delhi, large number of accounts were opened under loans to weaker
sections and the credit outstanding was under MSME sector. In Haryana, both the credit
outstanding amount and the large number of accounts were came under the agriculture sector. In
Himachal Pradesh and Jammu & Kashmir, large number of accounts were opened under loans to
weaker sections and the credit outstanding amount was in MSME sector. In Punjab, the large
number of accounts were opened under loans to weaker sections and the credit outstanding
amount was came under the agriculture sector. In Rajasthan, both the large number of accounts
were opened and the credit outstanding amount was in agriculture sector.

In North Eastern Region, total large number of accounts were opened under loans provide
to weaker sections and the large amount of credit outstanding was also came under loans provide
to weaker sections. In Arunachal Pradesh, both the large amount of credit outstanding and the
large number of accounts were opened under loans provide to weaker sections. In Assam, the
large number of accounts were opened under loans provide to weaker sections whereas the large
amount of credit outstanding was in MSME sector. In Manipur, the large amount of credit
outstanding was under agriculture sector and the large number of accounts were opened under
loans provide to weaker sections. In Meghalaya, Mizoram, Nagaland and Tripura, both the large
amount of credit outstanding and the large number of accounts were opened under the loans
provide to weaker sections.

In Central Region, total large number of accounts were opened under loans provide to
weaker sections and the large amount of credit outstanding was under the agriculture sector. In
Chhattisgarh and Uttarakhand, the large number of accounts were opened under loans provide to
weaker sections and the large amount of credit outstanding under MSME sector. In Madhya
Pradesh and Uttar Pradesh, the large number of accounts were opened under loans provide to
weaker sections and the large amount of credit outstanding was under agriculture sector.

In Eastern Region, the large number of accounts were opened under loans provide to
weaker sections and the large amount of balance outstanding was in MSME sector. Under

30
eastern region, in Andaman & Nicobar and Sikkim, the large amount of credit outstanding and
the large number of accounts were opened under loans provide to weaker sections. In Bihar, the
large amount of credit outstanding was under agriculture sector and the large number of accounts
were opened under loans provide to weaker sections. In Jharkhand and Orissa, the large amount
of balance outstanding was under MSME sector whereas the large number of accounts were
opened under loans provide to weaker sections. In West Bengal, the large amount of credit
outstanding under MSME sector and the large number of accounts were opened under loans
provide to weaker sections.

In Western Region, the large amount of credit outstanding was under agriculture sector
and large number of accounts were opened under loans provide to weaker sections. Under
Western Region, in Dadra & Nagar haveli, both the large amount of credit outstanding and the
large number of accounts were came under the MSME sector. In Daman & Diu, the large
number of accounts were opened under agriculture sector whereas the large amount of balance
outstanding under MSME sector. In Goa, the large number of accounts were opened under loans
provide to weaker sections and the large amount of credit outstanding under MSME sector. In
Gujarat, the large number of accounts were opened under loans provide to weaker sections
whereas the large amount of credit outstanding under MSME sector. In Maharashtra, the large
amount of credit outstanding under agriculture sector and the large number of accounts were
opened under loans provide to weaker sections.

In Southern Region, the total large number of accounts were opened under the
agriculture sector and the large amount of balance outstanding was also came under this
category. Under southern region, in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana
have large number of accounts were opened under agriculture sector and the large amount of
credit outstanding was also came under agriculture sector. In Lakshadweep and Pondicherry, the
large number of accounts were opened and amount was outstanding under loans provide to
weaker sections. In Kerala, the large number of accounts were opened under loans provide to
weaker sections and the large amount of credit outstanding was in agriculture sector.

31
 TABLE NO.3
Year:2016

(Amount in Rs. Millions)

State Total Priority Agriculture MSMEs Export credit Education Housing Renewable Social other Loans to
Sector Energy infrastructure categories Weaker
under priority Sections under
sector priority sector

No. of Balanc No. of Balance No. of Balanc No. of Balan No. of Balan No. of Balanc No. Balanc No. of Balan No. of Balan No. of Balan
A/cs e O/s A/cs O/s A/cs e O/s A/cs ce O/s A/cs ce O/s A/cs e O/s of e O/s A/cs ce O/s A/cs ce O/s A/cs ce O/s
A/cs

Northern 987719 511663 633865 2124995 249158 227679 1155 15425 185407 52615 703214 484097 2648 3699 1928 3914 12877 16261 63351 11087
Region 6 2 4 2 6 4 3 3 61 52

Chandigarh 73593 120375 14007 27097 35603 76421 39 1088 4306 1553 17000 13762 6 16 41 156 2591 283 60915 13434

Delhi 632995 127116 51106 181698 405482 773700 934 14828 31223 10614 129978 153944 61 1282 230 579 13981 7525 18160 47609
9 6

Haryana 163555 952640 107366 474226 414670 390351 56 8085 35552 9916 93255 67792 69 237 385 601 17902 1434 97690 19771
1 2 9 9

Himachal 482664 141104 317512 51067 106640 65351 0 0 14263 3410 39919 20498 21 1 189 354 4120 423 33371 44832
Pradesh 6

Jammu & 744030 193809 400737 82054 235394 89701 0 0 11486 2735 62021 17122 2620 667 80 164 8111 1366 47325 48608
Kashmir 1 3

Punjab 219468 122741 144695 701409 539699 429310 65 1526 31682 10268 149994 78960 51 924 477 1056 25758 3957 14049 33678
2 2 6 59 1

Rajasthan 411368 121012 303467 607445 754094 451962 61 1728 56895 14118 211047 132020 74 572 526 1005 56310 1273 29038 41976
1 3 4 03 9

North 305739 311074 212381 109318 797617 155106 99 320 49272 6738 72159 38682 21 6 164 346 14246 560 26078 12323
Eastern 3 5 76 8
Region

Arunachal 26555 7774 15551 1671 9435 5462 0 0 573 147 764 472 0 0 7 12 225 11 24217 4735

32
Pradesh

Assam 229946 225378 160655 82591 613312 110995 74 186 23806 4327 47091 26680 20 6 117 228 8490 364 19322 82746
0 0 15

Manipur 65456 12141 38828 3823 16402 5034 0 0 1099 352 6114 2857 1 0 17 63 2995 12 48560 5063

Meghalaya 104945 15808 73978 4613 24663 8478 25 133 2278 627 3412 1934 0 0 5 6 584 17 99729 7066

Mizoram 36748 8442 20202 1422 8127 3910 0 0 583 198 7629 2895 0 0 3 5 204 11 29467 3599

Nagaland 56751 9095 44299 3014 9864 4897 0 0 389 102 1858 1052 0 0 5 3 336 27 51409 5473

Tripura 467478 32437 324407 12183 115814 16330 0 0 20544 986 5291 2792 0 0 10 29 1412 117 42227 14455
9 5

Central 145958 330075 100709 1525465 302482 128054 145 3313 252700 64354 924967 414437 1089 1429 2929 4218 31823 6999 10717 11178
Region 33 8 46 0 2 7 759 73

Chhattisgar 889117 274142 467902 82193 329482 148668 3 103 18152 4375 60035 38211 14 72 138 219 13391 300 63433 59967
h 5

Madhya 454711 101594 272692 498592 100217 349421 32 1457 79448 18544 524874 143290 105 316 620 1028 21292 3293 29977 33227
Pradesh 0 2 6 6 9 90 8

Uttrakhand 870321 267932 461248 82268 309227 142991 0 0 31519 8432 55128 31779 615 230 1517 1732 11067 501 19242 22455
77 9

Uttar 828928 174274 641487 862412 138393 639463 110 1752 123581 33004 284930 201156 355 811 654 1238 80850 2905 51613 50106
Pradesh 5 2 0 5 57 9

Eastern 181722 233125 126207 839791 457237 108150 605 19583 285431 77082 475336 299541 740 705 1358 1871 21569 11171 15251 62957
Region 51 3 18 2 9 1 149 3

Andaman & 19357 7811 8695 1461 8437 5015 0 0 447 141 1661 1182 0 0 8 9 109 3 10291 1339
Nicobar

Bihar 524316 469928 426357 233199 733519 160595 2 57 101703 30863 62129 43155 55 7 329 480 81856 1572 45240 19707
9 6 72 0

Jharkhand 162047 249939 110152 68041 415140 145212 12 5 46209 14394 35735 23597 62 136 165 129 21625 423 12309 58948
3 5 67

Odisha 271270 384692 186207 127557 656942 191771 8 1037 61086 15818 95928 46942 50 11 504 631 36112 925 20524 11582
5 5 20 2

33
Sikkim 38016 9928 16623 1660 13979 4677 0 0 845 132 6263 3447 1 8 1 297 10 28067 3232

West Bengal 853853 120895 536822 409872 274435 574239 583 18484 75141 15734 273620 181217 572 552 344 619 75692 8238 74053 25316
1 4 4 5 32 3

Western 137246 750578 762846 3057033 363885 267708 3008 35952 257790 64131 138765 130065 1265 4560 2974 3277 80464 39519 91327 10337
Region 60 2 5 3 1 5 7 6 8 36 78

Dadra & 9584 7685 3404 664 3580 5031 4 373 219 64 2129 1384 1 150 7 11 240 8 3810 650
Nagar
Haveli

Daman & 7307 5902 2218 371 2564 4149 0 0 230 89 2143 1281 0 0 1 0 151 13 1570 258
Diu

Goa 148263 74061 57729 18422 58928 39915 5 1945 3028 1009 16676 12375 25 2 80 80 11792 313 68847 10111

Gujarat 352928 168563 206267 516959 900011 779218 238 30237 46367 13686 431584 338304 68 1167 624 705 87713 5361 21256 28461
2 6 7 99 7

Source : RBI (Statistical Tables related to Banks in India)

34
Interpretation:- In Northern Region, the total large number of accounts were opened under
agriculture sector and the large amount of credit outstanding in MSME sector. Under Northern
Region, in Chandigarh, Himachal Pradesh and Jammu & Kashmir, the large amount of credit
outstanding under MSME sector whereas the large number of accounts were opened under loans
provide to weaker sections. In Delhi, the large number of accounts were opened under MSME
sector and the large amount of balance outstanding was also come under MSME sector. In
Haryana, Punjab and Rajasthan, large number of accounts were opened under agriculture sector
and the large amount of credit outstanding was also come under the agriculture sector.

In North Eastern Region, the large amount of balance outstanding under MSME sector and
the large number of accounts were opened under loans provide to weaker sections. In Arunachal
Pradesh and Assam, the large amount of balance outstanding under MSME sector and the large
number of accounts were opened under loans provide to weaker sections. In Manipur, the large
number of accounts were opened under loans provide to weaker sections and the large amount of
credit outstanding was also come under loans provide to weaker sections. In Meghalaya and
Mizoram, the large amount of credit outstanding was in MSME sector and the large number of
accounts were opened under loans provide to weaker sections. In Nagaland and Tripura, the large
amount of credit outstanding under loans provide to weaker sections and the large number of
accounts were also opened under loans provide to weaker sections.

In Central Region, the large amount of credit outstanding under agriculture sector and the
large number of accounts were opened under loans provide to weaker sections. In Chhattisgarh,
the large amount of credit outstanding under MSME sector and the large number of accounts
were opened under loans provide to weaker sections. In Madhya Pradesh, the large amount of
balance outstanding was in agriculture sector and the large number of accounts were opened
under loans provide to weaker sections. In Uttrakhand, both the large credit outstanding amount
and the large number of accounts were opened under loans provide to the weaker sections. In
Uttar Pradesh, both the large amount of credit outstanding and the large number of accounts were
opened under the agriculture sector.

35
 In Eastern Region, the large number of accounts were opened under MSME sector and the
large amount of balance outstanding was also come under MSME sector. In Andaman &
Nicobar, the large amount of balance outstanding under MSME sector and the large no. of
accounts were opened under loans provide to weaker sections. In Bihar, the large amount of
credit outstanding was under the agriculture sector whereas the large number of accounts were
opened under loans provide to weaker sections. In Jharkhand, Orissa, Sikkim and West Bengal,
the large amount of balance outstanding in MSME sector whereas large number of accounts were
opened in loans provide to weaker sections.

In Western Region, the large amount of credit outstanding in agriculture sector whereas the
large number of accounts were opened under loans provide to the weaker sections. Under
Western Region, in Dadra & Nagar Haveli, Goa and Gujarat, the large amount of credit
outstanding in MSME sector whereas the large number of accounts were opened under loans
provide to weaker sections. In Daman & Diu, the large amount of credit outstanding and the
large number of accounts were opened under MSME sector.

36
 TABLE NO.4
Year: 2015

(Amount in Rs. Millions)

Agriculture and Total Advances Total Advances Total Advances to Advances to Export Credit Total Priority Loans to Loans to Loans to
Allied Activity to Micro and to SE, Weaker Sections, SHGs/JLG to MSE Sector Individual Farmers MFIs for on
State/Union/ Small Manufacturing Education and for Advances Farmers, through Lending
Territory Total Enterprises, Enterprises and Housing Loans Corporate, PSCS/FSS/LAM
Khadi and Service Partnership PS
Village Enterprises Firms and
Industries Other
Institutions

No. of Balanc No. of Balan No. of Balanc No. of Balance No. of Balanc No. of Balan No. of Balan No. of Balan No. of Balanc No. Balan
A/cs e O/s A/cs ce O/s A/cs e O/s A/cs O/s A/cs e O/s A/cs ce O/s A/cs ce O/s A/cs ce O/s A/cs e O/s of ce
A/cs O/S

Northern 11779 354138 197442 20844 193459 206520 623388 1455781 98743 8142 377 79204 89210 44564 57390 13784 798 1278 1561 7785
Region 212 6 2 95 8 9 7 48 79 36 46 6

Chandigarh 18774 41071 28269 67800 28165 66616 37552 27525 119 168 3 41 66226 10137 11961 7291 89 146 7 47
1

Delhi 48170 211987 344001 67440 343551 665822 201510 204977 2211 697 330 64393 53888 11031 21400 67824 - - 73 7383
9 3 16

Haryana 19877 762482 329997 35195 312387 347180 874470 227718 11663 1234 13 14101 14677 81438 93080 27669 92 243 9868 194
87 7 55 5 8 9

Himachal 60142 99755 87860 57916 87328 57793 324939 60038 3975 413 - - 44820 13010 28793 41419 12 2 129 2
Pradesh 1 8 4 0

Jammu & 84740 164740 222783 84089 217695 83124 526987 71235 2256 128 - - 80753 18477 50178 49572 101 640 2 2
Kashmir 2 5 0 8

Punjab 15046 112063 392201 44424 389321 442118 135025 38789 13865 1951 6 207 19345 10793 14792 52036 68 126 61 37
25 4 9 6 13 15 68 9

Rajasthan 30960 103270 563311 40407 556144 402556 291817 484498 64654 3552 25 462 36579 10434 25058 41537 436 121 5476 121
77 4 6 3 28 18 81 2

37
North 23085 155583 315606 12973 306256 128271 122149 127395 48759 4412 1 213 15761 25291 10855 59063 211 29 14 1696
Eastern 24 9 1 60 6 05
Region

Arunachal 31300 3823 10356 5268 10096 5196 24840 4984 199 20 - - 28458 7729 14855 1256 - - - -
Pradesh

Assam 17016 116555 221627 91573 215351 90694 847602 80076 39089 3678 - - 11415 17834 79456 43068 186 25 14 1696
97 66 7 1

Manipur 79694 6701 13125 4964 11777 3897 51563 7167 1680 62 - - 60055 10317 36404 2885 3 1 - -

Meghalaya 14134 8256 17348 7191 17256 7163 85674 9217 958 69 1 213 94394 14033 69843 3367 - - - -
5

Mizoram 36832 2655 6195 3395 6021 3363 31420 6709 39 7 - - 34559 8264 19928 1350 - - - -

Nagaland 86746 5127 13172 3773 12700 3646 49280 6139 1325 88 - - 59132 7419 41122 2084 21 2 - -

Tripura 23091 12471 33783 14476 33055 14312 31092 13106 5469 486 - - 15799 26808 10879 5053 1 1 - -
2 6 2

Eastern 15315 152617 208329 92610 206085 916025 826808 1433770 377617 27688 120 13594 10655 19827 78501 46258 581 516 9303 33688
Region 325 3 4 7 4 0 643 78 35 6

Andaman & 15959 1689 8634 5035 8606 5031 10059 2390 129 10 - - 19175 7341 7632 687 - - - -
Nicobar

Bihar 51508 312314 449593 13596 446383 135105 236453 222255 82351 4900 - - 32370 41273 24359 65045 220 107 2964 244
33 3 2 11 9 60

Jharkhand 21830 152924 240792 13936 238706 125923 116221 83663 16574 2251 - - 13763 21360 99204 40464 39 36 999 486
31 7 89 1 2

Odisha 35399 218322 385728 15809 382252 157273 176966 156475 110020 10975 1 1093 22356 32582 16030 88548 90 79 2984 969
26 5 8 43 8 04

Sikkim 19457 2549 9667 3995 9609 3985 20483 6812 382 33 - - 26828 9112 9244 1159 1 1 - -

West Bengal 26328 771758 988880 49648 975298 488708 294112 332174 168161 9520 119 12501 37605 10141 28022 16668 231 293 2356 31989
05 5 1 97 57 53 5

Central 18507 276231 200821 11490 208494 114077 861899 1318585 275526 17948 36 1362 12519 29114 86550 99693 1528 1048 2457 3625
Region 954 3 5 40 3 6 0 160 49 53 9 0

Chattisgarh 74460 261270 156789 12621 155063 125848 431140 84040 16921 1500 - - 61533 23459 33242 45724 55 103 59 14
38
 7 6 3 7 4

Madhya 31522 904832 633525 34316 629561 341479 269209 396869 171272 5993 31 830 36730 92527 23054 34964 219 160 3546 189
Pradesh 05 5 3 12 6 52 4

Uttrakhand 15016 304921 266964 14867 265118 147889 179952 136490 14831 1170 - - 11402 31698 74169 99360 127 102 2928 969
76 9 72 6 7

Uttar 11396 147650 950937 53098 935201 525560 527251 701185 72502 9286 5 533 70904 14345 53403 50221 1127 683 1803 2454
Pradesh 109 8 0 0 3 90 22 1 7

Western 12995 160243 245342 21587 244037 212328 770078 1955261 49926 18849 1368 24330 10803 59148 53956 82975 937 1913 2862 2910
Region 643 66 0 55 4 5 6 4 923 58 59 4 4

Dadra & 5314 1010 2916 3869 2876 3815 5875 1951 69 6 - - 8304 5863 2377 381 2 - - -
Nagar
Haveli

Daman & 12464 339 2355 4467 2321 4402 5897 1217 1 0 - - 5510 5582 1111 150 - - - -
Diu

Goa 11480 19514 65068 41842 646218 41716 172192 23365 5283 259 1 3038 15507 67358 46532 5766 3 2 24 5
2 5

Gujarat 39005 907597 725811 69283 721369 690203 220032 473040 120748 4787 121 11791 30844 13942 15387 31288 567 416 724 1181
26 3 1 93 45 36

Maharashtr 90727 424088 165727 14157 164918 138314 531650 1428688 373525 13797 1246 22847 75505 44418 38069 56719 365 1495 2787 1724
a 09 1 0 45 0 9 1 5 41 10 03 0 6

Southern 62733 780594 479458 24707 476058 245922 441922 3938405 160299 255276 367 75175 39983 78184 30367 29872 1586 5834 4965 37036
Region 297 3 1 47 7 4 4 113 08 181 35 3

Andhra 19718 233814 106926 60645 105937 603874 893711 1131291 755485 144419 52 14859 11642 21272 93771 90693 1110 4741 2242 11913
Pradesh 610 4 4 2 4 1 277 71 60 6

Karnataka 83452 186429 113008 56112 112412 558157 390667 762345 401062 40610 74 31874 60054 18383 39682 55772 153 919 2373 13371
31 9 6 4 8 0 04 97 41 7 2

Kerala 92179 115809 632132 31834 626710 316867 387462 669322 123998 21953 17 2327 59916 11404 46582 48851 80 31 1779 3769
40 2 6 7 20 04 38 6 0

Lakshadwee 3386 116 1625 612 1685 612 3890 473 14 0 - - 3803 811 1315 55 - - - -
p

Puducherri 34971 130062 52941 23487 52855 23239 168878 10628 4614 645 - - 26345 48004 18319 14081 1 0 13 0
39
 4 9 9

Tamilnadu 25198 241522 190847 96072 189583 956475 116781 1348867 317817 47649 224 26114 16076 26635 12179 10199 222 144 5876 7983
416 4 3 5 5 75 550 20 094 21

All India 12363 122255 136235 89188 134876 883279 613261 9572195 290326 332314 2269 41285 84459 23336 59092 67140 5621 10619 1277 86741
9955 8 38 83 12 2 74 1 3 047 889 569 24 80

Source : RBI (Statistical Tables are related to Banks in India)

40
Interpretation:- In Northern Region, the total large number of accounts were opened under the
agriculture and allied activity sector whereas the large amount of credit outstanding was also
come under the agriculture and allied activity sector. Under Northern Region, in Chandigarh the
large number of accounts were opened under advances which provided to Weaker Sections,
Education and Housing loans sector whereas the large amount of credit outstanding in advances
that were provided to Micro and Small Enterprises, Khadi and Village Industries. In Delhi, the
large amount of credit outstanding and the large number of accounts were opened under total
advances which were provided to Micro and Small Enterprises, Khadi and Village industries. In
Haryana, Himachal Pradesh and Jammu & Kashmir, the large number of accounts were opened
under agriculture and allied activities whereas the large amount of balance outstanding was also
fall under the agriculture and allied activity category. In Punjab and Rajasthan also the large
number of accounts were opened under agriculture and allied activity category whereas the large
amount of credit outstanding under the agriculture and allied activity category.

In North Eastern Region, the large number of accounts were also opened under the
agriculture and allied activity category and the large amount of credit was also outstanding under
this sector. Under North Eastern Region, in Arunachal Pradesh the large number of accounts
were opened under the agriculture and allied activity category whereas the large amount of credit
outstanding was under the advances which were provided to the Micro and Small Enterprises,
Khadi and Village industries. In Assam, the large number of accounts were opened under the
agriculture and allied activities and the large amount of balance outstanding was also fall under
this sector. In Manipur, the large number of accounts were opened under agriculture and allied
activity sector and the large amount of credit outstanding was under the total advances which
were provided to Weaker Sections, Education and Housing loans. In Meghalaya, Mizoram and
Nagaland, the large number of accounts were opened under the agriculture and allied activity
sector and the large amount of balance outstanding under the total advances which were provided
to Weaker Sections, Education and Housing loans. In Tripura, the large number of accounts were
opened under the agriculture and allied activity sector and the large amount of balance
outstanding under the total advances provided to Micro and Small Enterprises, Khadi and Village
industries.

41
 In Eastern Region, the large amount of credit outstanding and the large number of accounts
were opened under the agriculture and allied activity sector. Under Eastern Region, in Andaman
& Nicobar, the large number of accounts were opened under the agriculture and allied activity
sector and the large amount of credit outstanding was under the total advances which were
provided to Micro and Small Enterprises, Khadi and Village industries. In Bihar, Jharkhand and
Orissa, the large amount of credit outstanding under the agriculture and allied activity sector
whereas the large number of accounts were also opened under this category. In Sikkim, the large
amount of credit outstanding was under the total advances which were provided to Weaker
Sections, Education and Housing Loans whereas the large number of accounts were also opened
under this category. In West Bengal, the large amount of credit outstanding under the agriculture
and allied activity sector whereas the large number of accounts were opened under the total
advances which were provided to Weaker Sections, Education and for Housing loans.

In Central Region, both the large amount of credit outstanding and the large number of
accounts were fall under the agriculture and allied activity category. Under Central Region, in
Madhya Pradesh, Uttar Pradesh, Uttrakhand and Chhattisgarh, also the large number of accounts
and the large amount of balance outstanding fall under the category of agriculture and allied
activity.

In Western Region, the large number of accounts and the large balance outstanding
amount both fall under agriculture and allied activity sector. Under Western Region, in Dadra &
Nagar Haveli, the large amount of balance outstanding under the total advances provided to
Micro and Small Enterprises, Khadi and Village industries and the large number of accounts
were opened under the sector where total advances provided to Weaker Section, Education and
for Housing loans. In Daman & Diu, the large number of accounts were opened under the
agriculture and allied activity sector whereas the large amount of credit outstanding under the
total advances which are provided to Micro and Small Enterprises, Khadi and Village industries.
In Goa, the large amount of balance outstanding under the agriculture and allied activity sector
whereas the large number of accounts were opened under the total advances which were
provided to SE, Manufacturing Enterprises and Service Enterprises. In Gujarat and Maharashtra,

42
the large number of accounts were opened under the agriculture and allied activity category
whereas the large amount of balance outstanding was also fall under this category.

In Southern Region, the large number of accounts were opened under the agriculture and
allied activity category whereas the large amount of credit outstanding was also fall under this
category. In Andhra Pradesh, Karnataka and Kerala, the large number of accounts were opened
under the agriculture and allied activity and the large amount of credit outstanding also falls
under this category. In Lakshadweep, the large number of accounts were opened under the
agriculture and allied activity sector whereas the large amount of balance outstanding was fall
under two categories i.e. one was under the total advances which were provided to Micro and
Small Enterprises, Khadi and Village industries and the other category is the total advances that
were provided to SE, Manufacturing Enterprises and Service Enterprises. In Pondicherry and
Tamilnadu, the large number of accounts were opened under the agriculture and allied activity
category whereas the large amount of credit outstanding was also fall under this category.

43
 TABLE NO.5

Year:2014

(Amount in Rs. Millions)

State Agriculture Total Advances Total Advances Total Advances Advances to Export Credit Total Priority Loans to Loans to Farmers Loans to MFIs
and Allied to Micro and to SE, to Weaker SHGs/JLG to MSME Sector Advances Individual through for on Lending
Activity Small Manufacturing Sections, Farmers, PSCS/FSS/LAM
Enterprises, Enterprises and Education and Corporate, PS
Total Khadi and Service for Housing Partnership
Village Enterprises Loans Firms and
Industries Other
Institutions

No. of Balan No. of Balan No. of Balan No. of Balan No. of Balanc No. Balanc No. of Balan No. of Balan No. of Balanc No. of Balanc
A/cs ce O/s A/cs ce O/s A/cs ce O/s A/cs ce O/s A/cs e O/s of e O/s A/cs ce O/s A/cs ce O/s A/cs e O/s A/cs e O/s
A/cs

Northern 10666 32013 184536 18715 182882 18544 569232 53672 67122 12313 372 102317 812214 40351 50659 11258 1176 1575 17907 5380
Region 962 95 9 31 6 87 2 7 1 56 78 36

Chandiga 23965 61948 31578 66769 31044 66167 41939 22081 167 312 1 7 69704 10336 18546 6833 102 188 2 24
rh 4

Delhi 17722 38251 329865 62156 330409 61092 316389 18615 1480 1714 321 87836 593962 10896 32787 55560 3 4 1780 4783
8 9 3 1 6 11

Haryana 17699 67815 287440 31125 285315 30853 836377 19926 7727 1206 23 13831 130713 71325 81623 23422 121 349 7975 216
94 8 1 9 9 2 7 3 6

Himachal 55531 82020 89649 54468 87891 54290 634852 54951 4025 339 - - 421169 11913 27567 42063 15 4 17 6
Pradesh 3 0 0

Jammu 80233 14200 193709 72469 187233 71610 584007 75037 1960 163 - - 698607 15447 69473 59615 100 611 31 2
& 8 1 4 0
Kashmir

Punjab 26520 95502 372169 40639 370855 40482 113271 32295 15001 4682 8 249 178158 98182 11316 39454 91 165 1359 190
35 0 0 1 9 2 2 4 92 7

Rajastha 48710 84061 540959 33862 537079 33814 263773 42328 36762 3898 19 845 324998 87349 20963 37361 744 254 6743 158
44
n 10 8 2 4 9 2 5 6 20

North 23428 15358 261998 11372 249234 11208 116820 11881 48372 3827 1 306 153829 23048 13966 74296 251 48 63 825
Eastern 61 7 2 0 0 0 2 0 09
Region

Arunach 26935 3891 7549 4357 6717 4253 24735 4029 165 20 - - 22751 6858 13193 1163 - - - -
al
Pradesh

Assam 17037 11116 180065 79476 172263 78498 802774 78296 37020 3018 - - 109981 16036 84251 39218 206 38 62 825
10 8 9 6 8

Manipur 74171 7794 11790 4890 10264 4714 55959 7284 2809 144 - - 56772 11494 69217 4057 6 5 1 0

Meghalay 10164 7892 15498 6587 14566 6539 76419 8553 901 55 1 306 72470 13319 15990 1289 - - - -
a 1

Mizoram 66375 2903 5689 3176 5419 3128 30817 6232 98 21 - - 49235 8259 36216 2002 - - - -

Nagaland 15429 5738 10537 3983 9815 3841 49244 5630 1656 120 - - 90413 8010 42070 22137 37 3 - -
4 7

Tripura 21568 14299 30876 11253 30190 11108 123252 8792 5723 449 - - 146832 22174 98708 4430 2 1 - -
3

Eastern 13721 14703 175190 85280 172650 84346 759483 75463 408121 39478 145 12846 947010 18601 66672 40752 1007 952 47804 24393
Region 939 45 5 3 3 1 2 6 8 34 55 4

Andaman 10143 1276 8920 6164 8808 6157 9345 2181 581 44 - - 15765 8194 4468 452 5 17 5 0
&
Nicobar

Bihar 44745 44108 411808 11506 407422 11425 237597 19116 66755 3913 - - 283213 38291 21424 16127 276 134 19165 1479
72 0 0 1 9 5 9 6 15 2

Jharkhan 18676 94028 217142 10802 214600 10736 110409 88303 20945 1511 - - 125772 19183 82125 33795 56 112 2557 3311
d 33 7 6 0 0 0 1

Orissa 37195 21617 432167 14090 427459 14018 171348 14381 148807 11816 1 429 231342 30525 14122 62592 172 269 20629 1990
29 6 1 9 0 3 0 5 27

Sikkim 17638 2495 4822 3083 4716 3067 21122 6959 352 31 - - 21211 8235 7614 1092 1 1 - -

West 39936 71169 677046 47957 664098 47244 237081 15634 170681 22162 144 12417 302985 96370 22792 14832 497 418 5448 17612

45
Bengal 84 1 0 9 6 64 3 4 80 5

Central 16542 24142 178946 98468 176895 97978 779508 46188 201735 20486 40 2983 111029 25451 74955 86714 2937 3950 45233 4829
Region 167 32 2 3 5 3 1 5 24 93 56 0

Chattisga 66315 11452 145730 11614 144874 11593 411374 71031 13093 1158 - - 558195 21437 25224 36918 124 920 1403 24
rh 0 2 4 2 3 7

Madhya 41475 79694 547754 25515 544040 15440 242972 41788 76081 3952 33 1080 309517 76446 20114 30253 340 286 8872 293
Pradesh 05 4 8 8 5 0 9 0 75 3

Uttrakha 81534 15125 207071 12346 200501 12191 163491 16877 37260 4078 1 34 712701 22638 49949 85304 288 579 3448 968
nd 0 2 2 0 2 2 4 8

Uttar 10836 13372 888907 48991 879540 48753 391907 53020 75301 11298 6 1869 673684 13399 47323 44238 2185 2165 31510 3543
Pradesh 358 23 8 3 0 0 9 76 36 4

Western 11471 49325 219505 19961 218873 19693 728571 18133 288464 27968 940 185306 964207 56482 45643 64241 1643 2468 15031 3247
Region 508 03 2 68 1 32 0 02 8 27 37 1

Dadra & 4599 834 2453 2782 2449 2778 5114 1575 26 1 1 101 7108 4445 1029 222 2 - - -
Nagar
Haveli

Daman & 3645 861 1872 3313 1872 3343 2663 1160 2 9 - - 5611 4751 1084 463 - - - -
Diu

Goa 99846 19004 49120 30092 48900 30002 74792 21710 3158 257 1 2311 128001 54886 38383 4649 3 2 92 3

Gujarat 33052 71731 630630 60166 629344 60032 187653 41325 38537 3865 108 11810 269714 12005 12715 21738 1116 919 351 995
03 7 5 0 7 3 9 05 13 2

Maharas 80582 41944 151097 13582 150616 13318 532660 13965 246741 23837 830 171083 680420 43836 37032 41969 522 1547 14588 2249
htra 17 88 7 86 6 88 4 2 9 41 89 4

Southern 59222 72950 466359 22165 463385 22059 373017 35927 348918 391295 352 86224 382329 72226 27938 28926 1692 5922 54283 47420
Region 371 46 5 30 7 89 95 65 4 92 99 6718 66

Andhra 20650 23562 121931 55305 120983 55038 924347 10800 103432 166813 44 14618 123529 20657 95975 98800 1231 4819 1259 10336
Pradesh 198 29 8 6 2 8 0 26 2 99 48 08 7

Karnatak 76274 15524 916367 46009 903869 45814 388399 69710 309045 34970 99 29458 541782 15752 37334 50442 94 775 22107 24177
a 98 05 7 7 8 3 3 32 00 9

Kerala 88363 10598 559082 28049 554482 27927 137127 63553 239574 27164 18 2806 574985 10621 41815 42849 76 83 16942 5612

46
 61 04 7 5 63 7 6 83 68 6

Lakshad 57081 238 896 98 892 96 6138 472 17 1 - - 4375 353 11357 43932 - - - -
weep 9

Puducher 43482 29310 49054 18160 48948 17672 76383 20020 17971 1427 1 - 304532 42978 12783 10518 2 11 53 11
ry 2 3

Tamil 21667 22070 191887 90462 190783 90043 103090 11596 188825 160921 190 39342 144034 24762 10490 91728 289 234 13922 7385
Nadu 784 60 8 2 4 9 42 08 5 07 05 810 3

All India 62290 19377 125073 80354 123961 79641 676116 86651 450299 495366 1850 389982 781085 21541 53434 60098 8706 14915 180321 86094
7817 269 81 38 06 52 39 25 8 35 889 433 73

Source : RBI (Statistical Tables related to Banks in India)

47
Interpretation:- In Northern Region, the total large number of accounts were opened under the
agriculture and allied activity sector whereas the large amount of balance outstanding was also
falls under this category. Under Northern Region, in Chandigarh, the large number of accounts
were opened under the total advances provided to the Weaker Sections, Education and for
Housing Loans and the large amount of balance outstanding under the total advances provided to
Micro and Small Enterprises, Khadi and Village industries. In Delhi, the large amount of credit
outstanding was under the total advances that were provided to Micro and Small Enterprises,
Khadi and Village industries whereas the large number of accounts were opened under the
advances that were provided to SE, Manufacturing Enterprises and Service Enterprises. In
Haryana, both the large credit outstanding amount and large number of accounts were fall under
the agriculture and allied activity category. In Himachal Pradesh, the large amount of balance
outstanding was under the agriculture and allied activity sector whereas the large number of
accounts were opened under the total advances which were provided to the Weaker Sections,
Education and for Housing Loans. In Jammu & Kashmir, Punjab and Rajasthan, both the large
credit outstanding amount and the large number of accounts were opened under the agriculture
and allied activity sectors.

In North Eastern Region, the large number of accounts were opened under the agriculture
and allied activity sector and the large amount of credit outstanding was also come under this
sector. Under North Eastern Region, in Arunachal Pradesh, the large number of accounts were
opened under the agriculture and allied activity sector and the large amount of credit outstanding
in the sector where the advances were provided to Micro and Small Enterprises, Khadi and
Village industries. In Assam and Manipur, the large number of accounts were opened under the
agriculture and allied activity sector and the large amount of credit outstanding was also under
the sector of the agriculture and allied activity. In Meghalaya and Mizoram, the large number of
accounts were opened under the agriculture and allied activity whereas the large amount of credit
outstanding under the advances that were provided to Weaker Sections, Education and for
Housing Loans. In Nagaland, the large number of accounts were opened under the loans that
were provided to Individual Farmers, Corporate, Partnership Firms and Other Institutions
whereas the large amount of credit outstanding was also fall under this category. In Tripura, the

48
large number of accounts were opened under the agriculture and allied activity category and the
large amount of balance outstanding was also come under this category.

In Eastern Region, the large number of accounts were opened under the agriculture and
allied activity category and the large amount of credit outstanding was also come under this
category. Under Eastern Region, in Andamon & Nicobar, the large number of accounts were
opened under the agriculture and allied activity category and the large amount of credit
outstanding was under the advances that were provided to SE, Manufacturing Enterprises and
Service Enterprises. In Bihar, Orissa and West Bengal, the large number of accounts were
opened under the agriculture and allied activity category and the large amount of credit
outstanding was also come under this category. In Jharkhand, the large number of accounts were
opened under the agriculture and allied activity category and the large amount of balance
outstanding was under the advances that were provided to Micro and Small Enterprises, Khadi
and Village industries. In Sikkim, the large number of accounts were opened under the advances
that were provided to the Weaker Sections, Education and for Housing Loans and the large
amount of credit outstanding was also come under this category.

In Central Region, the large number of accounts were opened under the agriculture and
allied activity category and the large amount of credit was also outstanding under this category.
Under Central Region, in Chhattisgarh the large number of accounts were opened under the
agriculture and allied activity category and the large amount of credit outstanding was under the
advances that were provided to the Micro and Small Enterprises, Khadi and village industries. In
Madhya Pradesh, Uttrakhand and Uttar Pradesh, both the large amount of credit outstanding and
the large number of accounts were opened under the agriculture and allied activity category.

In Western Region, the large number of accounts were opened under the agriculture and
allied activity category and the large amount of credit outstanding was also come under this
category. Under Western Region, in Dadra & Nagar Haveli, the large number of accounts were
opened under the agriculture and allied activity category whereas the large amount of credit
outstanding under the advances that were provided to Micro and Small Enterprises, Khadi and
Village industries. In Daman & Diu, the large number of accounts were opened under the
agriculture and allied activity category and the large amount of credit outstanding was under the
49
advances that were provided to SE, Manufacturing Enterprises and Service Enterprises. In Goa,
the large number of accounts were opened under the agriculture and allied activity category
whereas the large amount of credit outstanding under the advances that were provided to the
Micro and Small Industries, Khadi and Village industries. In Gujarat and Maharashtra, the large
number of accounts were opened under the agriculture and allied activity category and the large
amount of credit outstanding was also come under this category.

In Southern Region, the large amount of credit outstanding and the large number of
accounts were opened under the agriculture and allied activity category. In Andhra Pradesh,
Karnataka, Pondicherry and Tamil Nadu the large amount of credit outstanding and the large
number of accounts were opened under the agriculture and allied activity category. In Kerala,
large amount of credit outstanding come under the agriculture and allied activity category and
the large number of accounts were opened under the advances that were provided to the Weaker
Sections, Education and Housing Loans. In Lakshadweep, the large amount of credit outstanding
and the large number of accounts were opened under the loans provided to individual farmers,
corporate, partnership firms and other institutions.

50
 TABLE NO.6

DISTRIBUTION OF OUTSTANDING ADVANCES TO PRIORTY

SECTOR
YEAR:2018

(Amount in Rs. Billion)

Net Bank Credit 1. Priority I. II. MSMEs III. IV 2. Loans to

Bank Credit Equivalent of Sector Agriculture Education .Housing Weaker
Name (NBC) as on off Balance Sections
the sheet under
correspondi Exposures priority
ng date of (CEOBE) as sector
the on the including net
preceding correspondin PSLC
year g date of the SF/MF
preceding
year
No. Bal No. Bal No. Bala No. Bala No. Bal No Balanc
of anc of anc of nce of nce of anc . of e O/S
A/cs e A/cs e A/cs O/s A/cs O/s A/cs e A/c
O/s O/s O/s s
Axis 3338.64 767.54 2 133 1 429. 0 498.2 0 5.73 0 269. 1 159.16
Bank 4.73 50 3 59
Limite
d
Bandha 163.73 - 4 125. 4 125. 0 0.00 - - 0 - - -
n Bank 73 73
Limite
d
Catholi 82.72 3.78 0 35.5 0 16.9 0 20.07 0 1.61 0 2.62 0 11.96
c 2 7
Syrian
Bank
Limite
d
City 241.12 28.11 0 124. 0 47.9 0 79.03 0 1.65 0 7.19 0 27.31
Union 75 8
Bank
Limite
d
DCB 159.59 - 0 80.0 0 29.0 0 47.18 0 0.05 0 10.0 0 22.14
Bank 5 3 8
Limite
d
Federal 720.30 97.79 1 303. 1 142. 0 115.7 0 7.15 0 29.1 1 98.58
Bank 36 97 9 2
Limite
d
HDFC 5386.42 883.20 6 217 3 106 3 890.4 0 2.69 0 208. 4 589.87
Bank 2.27 7.35 2 40
Limite
d
ICICI 4008.87 1147.72 2 138 2 648. 0 470.4 0 0.97 0 237. 1 251.86
Bank 4.81 64 1 48
Limite

51
d
IDFC 516.31 14.18 2 240. 1 61.1 0 69.56 0 0.00 0 37.4 1 54.86
Bank 31 9 7
Limite
d
Indusin 1112.30 442.51 4 483. 2 151. 2 322.3 0 0.04 0 5.33 3 99.93
d Bank 53 80 4
Limite
d
Jammu 535.03 - 1 216. 0 76.2 0 112.0 0 2.34 0 19.1 0 53.49
& 21 5 1 1
Kashmi
r Bank
Limite
d
Karnat 375.85 57.60 0 205. 0 68.7 0 113.3 0 1.94 0 19.8 0 25.20
aka 94 8 5 9
Bank
Limite
d
Karur 415.06 - 1 185. 1 80.6 0 97.04 0 1.53 0 8.64 1 52.98
Vysya 70 5
Bank
Limite
d
Kotak 1367.18 328.82 1 612. 1 280. 0 402.9 0 0.63 0 18.9 1 188.51
Mahin 70 29 7 3
dra
Bank
Limite
d
Laksh 239.58 24.1 0 100. 0 43.5 0 48.16 0 0.47 0 5.85 0 23.36
mi 9 99 3
Vilas
Bank
Limite
d
Nainita 32.80 0.95 0 18.1 0 7.53 0 8.14 0 0.16 0 1.99 0 3.09
l Bank 5
Limite
d
RBL 289.60 89.40 2 114. 1 47.3 1 61.87 0 0.29 0 0.77 2 48.63
Bank 86 5
Limite
d
South 468.46 - 1 217. 0 90.3 0 144.0 0 1.96 0 19.5 0 58.76
Indian 57 0 7 4
Bank
Limite
d
TamilN 222.62 45.85 1 150. 1 54.9 0 82.90 0 1.49 0 10.9 1 38.00
ad 44 8 6
Mercan
tile
Bank
Limite
d
The 66.85 3.99 0 33.8 0 14.4 0 14.99 0 0.76 0 2.87 0 9.86
Dhanla 6 6
kshmi
Bank

52
Limite
d
Yes 1260.95 484.48 1 571. 1 204. 0 325.8 0 0.00 0 24.0 1 118.71
Bank 58 58 8 4
Limite
d
Source : RBI (Statistical Tables related to Banks in India)

Interpretation:- In year 2018, the large distribution of outstanding advances to priority sector
were made under MSME sector that was 498.23 in Axis Bank Limited. The lesser amount of
balance outstanding was 5.73 under Education sector and the total outstanding advances were
given to priority sector was 1334.73. In Bandhan Bank Limited, the large amount of credit
outstanding was 125.73 under agriculture sector and there was no balance outstanding under
education sector. In Catholic Syrian Bank, the total priority sector balance outstanding was 35.52
and the large amount of balance outstanding was 20.07 under MSME sector. The lesser amount
of balance outstanding was 1.61 under education sector. In City Union Bank Limited, the total
priority sector balance outstanding was 124.75 and the large amount of balance outstanding was
79.03 under MSME sector. The lesser amount of balance outstanding was 1.69 under education
sector. In DCB Bank Limited, the total amount of balance outstanding to priority sector was
80.05 and the large amount of balance outstanding was 47.18 under MSME sector. The lesser
amount of balance outstanding was 0.05 under education sector. In Federal Bank Limited, the
total priority sector outstanding advances were 303.36 and the large amount of credit was
outstanding 142.97 under agriculture sector. The lesser amount of balance outstanding was 7.15
under education sector. In HDFC Bank Limited, the total priority sector outstanding balances
were 2172.27 and the large amount of balance outstanding was 1067.35 under agriculture sector.
The lesser amount of balance outstanding was 2.69 under education sector. In ICICI Bank
Limited, the total priority sector outstanding advances were 1384.81 and the large amount of
balance outstanding was 648.64 under agriculture sector. The lesser amount of balance
outstanding was 0.97 under education sector. In IDFC Bank Limited, the total priority sector
outstanding advances were 240.31 and the large amount of outstanding advances were 69.56
53
under MSME sector. The lesser amount of balance outstanding was 37.47 under the housing
sector and there was no amount of credit outstanding under the education sector. In Indusind
Bank Limited, the total priority sector outstanding advances were 483.53 and the large amount of
balance outstanding was 322.34 under MSME sector. The lesser amount of balance outstanding
was 0.04 under the education sector. In Jammu & Kashmir Bank Limited, the total priority sector
outstanding advances were 216.21 and the large amount of balance outstanding was 112.01
under MSME sector. The lesser amount of balance outstanding was 2.34 in education sector. In
Karnataka Bank Limited, the total outstanding advances to priority sector were 205.94 and the
large amount of balance outstanding was 113.35 under MSME sector. The lesser amount of
balance outstanding was 1.94 under education sector. In Karur Vysya Bank Limited, the total
priority sector outstanding advances were 185.70 and the large amount of balance outstanding
was 97.04 under under MSME sector. The lesser amount of balance outstanding was 1.53 under
education sector. In Kotak Mahindra Bank Limited, the total priority sector outstanding advances
were 612.70 and the large amount of balance outstanding was 402.97 under MSME sector. The
lesser amount of balance outstanding was 0.63 under education sector. In Lakshmi Vilas Bank
Limited, the total priority sector outstanding advances were 100.99 and the large amount of
balance outstanding was 48.16 under MSME sector. The lesser amount of balance outstanding
was 0.47 under education sector. In Nainital Bank Limited, the total priority sector outstanding
advances were 18.15 and the large amount of balance outstanding was 8.14 under MSME sector.
The lesser amount of balance outstanding was 0.16 under education sector. In RBL Bank
Limited, the total priority sector outstanding advances were 114.86 and the large amount of
balance outstanding was 61.87 in MSME sector. The lesser amount of balance outstanding was
0.29 in education sector. In South Indian Bank Limited, the total priority sector outstanding
advances were 217.57 and the large amount of balance outstanding was 144.07 under MSME
sector. The lesser amount of balance outstanding was 1.96 under education sector. In Tamilnad
Mercantile Bank Limited, the total priority sector outstanding advances were 150.44 and the
large amount of balance outstanding was 82.90 under MSME sector. The lesser amount of
balance outstanding was 1.49 under education sector. In Dhanlakshmi Bank Limited, the total
priority sector outstanding advances were 33.86 and the large amount of balance outstanding was
14.99 under MSME sector. The lesser amount of balance outstanding was 0.76 under education
sector. In Yes Bank Limited, the total priority sector outstanding advances were 571.58 and the
54
large amount of balance outstanding was 325.88 under MSME sector. The lesser amount of
balance outstanding was 24.04 under housing sector whereas there was no amount of balance
outstanding was under education sector.

55
 TABLE NO.7
YEAR:2017

(Amount in Rs. Billion)

Net Bank Credit 1. Priority I. Agriculture II. MSMEs III. IV. Housing Loans to
Credit Equivalent of Sector Education Weaker
Bank (NBC) as off Balance Sections
Name on the Sheet under
correspon Exposures priority
ding date (CEOBE) as sector
of the on the including
Preceding correspondin net PSLC
Year g date of the SF/MF
preceding
year No. Balan No. Balan No. Balan No Balan No. B No. Bala
of ce O/s of ce O/s of ce . of ce O/s of a of nce
A/cs A/cs A/cs O/s A/ A/cs l A/c O/s
cs a s
n
c
e
o
/
s

Axis Bank 2917.50 659.38 2 1185.0 1 441.16 0 440.3 0 3.59 0 272. 1 143.
6 4 17 67

Bandhan 104.23 - 7 164.48 4 77.40 3 77.34 0 0.07 0 0.15 7 145.

Bank 18
Limited

Catholic 79.57 4.10 0 38.20 0 17.29 0 22.07 0 1.79 0 2.66 0 12.8

Syrian 2
Bank

City Union 212.53 26.15 0 86.31 0 43.57 0 62.36 0 1.75 0 6.62 0 24.9
Bank 4

DCB Bank 130.33 - 0 62.64 0 21.16 0 42.49 0 0.07 0 6.76 0 15.2

Limited 1

Federal 566.64 85.68 1 243.08 0 123.97 0 75.76 0 7.11 0 30.0 0 81.1

bank 5 9

HDFC 4353.64 794.40 6 1799.0 2 761.67 3 802.5 0 2.15 0 238. 4 396.

Bank 7 8 30 82

ICICI 3529.39 1135.63 3 1490.7 2 556.85 1 626.1 0 0.46 0 267. 1 233.

Bank 8 6 31 69

IDFC 496.67 45.02 1 171.48 1 20.93 0 82.45 0 0.00 0 34.3 1 28.2

Bank 2 7
Limited

Indusind 884.19 378.62 3 367.64 0 117.12 2 250.1 0 0.03 0 3.92 3 77.3

Bank 0 7

Jammu & 523.14 - 1 170.82 0 66.22 0 86.04 0 2.03 0 14.4 0 47.1

Kashmir 8 9
Bank

Karnataka 342.73 53.53 0 172.39 0 65.83 0 83.18 0 1.87 0 19.8 0 25.4

Bank 3 4

Karur 394.76 - 1 185.20 1 77.38 0 95.58 0 1.72 0 9.41 1 47.7

Vysya 3
Bank

Kotak 1202.81 316.69 1 550.22 1 228.95 1 313.5 0 0.34 0 20.7 1 148.

Mahindra 3 3 39
Bank

Lakshmi 198.19 24.41 0 81.91 0 35.73 0 40.56 0 0.54 0 2.17 0 20.1

Vilas Bank 9

Nainital 27.39 0.88 0 15.56 0 6.56 0 6.45 0 0.18 0 2.13 0 3.14

Bank

RBL Bank 213.16 213.16 2 92.42 1 41.57 1 50.83 0 0.18 0 0.84 2 38.2
Limited 5

South 414.71 - 1 186.03 0 81.55 0 97.74 0 2.22 0 13.5 0 46.8

Indian 5 8
Bank

Tamilnad 228.21 40.56 1 131.14 0 43.31 0 75.65 0 1.62 0 10.5 0 30.9

Mercantile 1 6
Bank

The 74.70 4.15 0 35.65 0 15.03 0 16.79 0 0.72 0 2.45 0 9.50

Dhanlaksh
mi Bank
LTD.

Yes Bank 982.10 374.25 1 357.05 1 129.17 0 209.0 0 0.00 0 14.4 1 76.6
LTD. 2 1 4

Source : RBI (Statistical Tables related to Banks in India)

Interpretation:- In Year 2017, in Axis Bank Limited, the total priority sector outstanding
advances were 1185.06 and the large amount of credit outstanding advances were 441.16 in
agriculture sector. The lesser amount of credit outstanding was 3.59 in education sector. In
Bandhan Bank Limited, the total priority sector outstanding advances were 164.48 and the large
amount of credit outstanding was 145.18 under the loans that were provided to weaker section
under priority sector including net PSLC SF/MF. The lesser amount of credit outstanding was
0.07 under the education sector. In Catholic Syrian Bank, the total priority sector outstanding
advances were 38.20 and the large amount of balance outstanding was 22.07 in MSME sector
and the lesser amount of balance outstanding was 1.79 under the education sector. In City Union
Bank, the total priority sector outstanding advances were 86.31 and the large amount of balance

57
outstanding was 62.36 under MSME sector. The lesser amount of balance outstanding was 1.75
under the education sector. In DCB Bank Limited, the total priority sector advances were 62.64
and the large amount of balance outstanding was 42.49 under MSME sector. The lesser amount
of balance outstanding was 0.07 under MSME sector. In Federal Bank Limited, the total priority
sector outstanding advances were 243.08 and the large amount of balance outstanding was
123.97 under agriculture sector. The lesser amount of credit outstanding is 7.11 under education
sector. In HDFC Bank, the total priority sector outstanding advances were 1799.07 and the large
amount of balance outstanding was 802.58 under MSME sector. The lesser amount of balance
outstanding was 2.15 under education sector. In ICICI Bank, the total priority sector outstanding
advances were 1490.78 and the large amount of balance outstanding was 626.16 under MSME
sector. The lesser amount of balance outstanding was 0.46 under education sector. In IDFC
Bank, the total priority sector outstanding advances were 171.48 and the large amount of balance
outstanding was 82.45 under MSME sector. The lesser amount of balance outstanding was 20.93
under agriculture sector whereas there was no amount of balance outstanding was under
education sector. In Indusind Bank, the total priority sector outstanding advances were 367.64
and the large amount of balance outstanding was 250.10 under MSME sector. The lesser amount
of balance outstanding was 0.03 under the education sector. In Jammu & Kashmir Bank, the total
priority sector outstanding advances were 170.82 and the large amount of balance outstanding
was 86.04 under MSME sector. The lesser amount of balance outstanding was 2.03 under
education sector. In Karnataka Bank, the total priority sector outstanding advances were 172.39
and the large amount of outstanding advances were 83.18 in MSME sector. The lesser amount of
outstanding advances was 1.87 under education sector. In Karur Vysya Bank, the total priority
sector outstanding advances were 185.20 and the large amount of balance outstanding was 95.58
under MSME sector. The lesser amount of balance outstanding was 1.72 under education sector.
In Kotak Mahindra Bank, the total priority sector outstanding advances were 550.22 and the
large amount of balance outstanding was 313.53 under MSME sector. The lesser amount of
balance outstanding was 0.34 under education sector. In Lakshmi Vilas Bank, the total priority
sector outstanding advances are 81.91 and the large amount of balance outstanding is 40.56
under MSME sector. The lesser amount of balance outstanding was 0.54 under education sector.
In Nainital Bank Limited, the total priority sector outstanding advances were 15.56 and the large
amount of balance outstanding was 6.56 under agriculture sector. The lesser amount of balance
58
outstanding was 0.18 under education sector. In RBL Bank Limited, the total priority sector
outstanding advances were 92.42 and the large amount of balance outstanding was 50.83 under
MSME sector. The lesser amount of balance outstanding was 0.18 under education sector. In
South Indian Bank Limited, the total priority sector outstanding advances were 186.03 and the
large amount of balance outstanding was 97.74 under MSME sector. The lesser amount of
balance outstanding was 2.22 under education sector. In Tamilnad Mercantile Bank, the total
priority sector outstanding advances were 131.14 and the large amount of balance outstanding
was 75.65 under MSME sector. The lesser amount of balance outstanding was 1.62 was under
education sector. In Dhanlakshmi Bank Limited, the total priority sector outstanding advances
were 35.65 and the large amount of balance outstanding was 16.79 under MSME sector. The
lesser amount of balance outstanding was 0.72 under education sector. In Yes Bank Limited, the
total priority sector outstanding advances were 357.05 and the large amount of balance
outstanding was 209.02 under MSME sector. The lesser amount of balance outstanding was
14.41 under housing sector whereas there was no amount of balance outstanding was under
education sector.

TABLE NO.8
YEAR: 2016

(Amount in Rs. In Billion)

59
Bank Net Bank Credit Equivalent 1. Priority I. Agriculture II. MSMEs III. IV. Housing Loans to
Name Credit of off balance Sector Education Weaker
(NBC) as on sheet exposure Sections under
the (CEOBE) as on priority sector
correspondin the corresponding
g date of the date of the
preceding preceding year
year

No Bala No. of Balanc No. Balanc No. Bala No. Bala No Balance
. of nce A/cs e O/s of e O/s of nce of nce . of O/s
A/ O/s A/cs A/cs O/s A/cs O/s A/
cs cs

Axis 2379.38 697.18 1 992.4 1 355.99 0 369.72 0 1.18 0 245.0 1 119.47

Bank 3 7

Bandh - - 6 116.3 4 61.18 2 54.94 0 0.24 0 0.01 6 113.69

an 8
Bank
Limite
d

Catholi 94.16 4.36 0 45.19 0 15.98 0 24.49 0 1.86 0 2.79 0 10.69

c
Syrian
Bank

City 180.89 24.36 0 102.9 0 33.90 0 59.78 0 1.77 0 6.61 0 16.74

Union 0
Bank

Develo 105.58 - 0 60.43 0 17.12 0 34.77 0 0.14 0 5.62 0 11.40

pment
Credit
Bank

Dhanla 81.22 5.39 0 34.10 0 14.14 0 15.35 0 0.70 0 2.39 0 8.82

kshmi
Bank

Federa 513.13 70.66 1 222.4 0 110.47 0 69.58 0 6.94 0 28.02 0 72.91

l Bank 8

HDFC 3389.48 790.86 4 1599. 2 652.51 2 707.18 0 1.38 0 236.0 3 303.54

Bank 98 1

ICICI 3031.31 0.00 2 1311. 2 545.84 0 494.30 0 0.35 0 265.6 1 204.35

Bank 91 5

IDFC - - 0 22.38 0 1.28 0 8.03 - - 0 13.06 0 6.68

Bank
Limite
d

Indusi 687.88 322.75 3 299.0 1 110.22 2 185.00 0 0.03 0 2.66 3 72.08

nd 9
Bank

Jamm 462.51 - 1 192.2 0 78.71 0 90.13 0 1.94 0 18.03 0 49.17

u & 7
Kashm
ir
Bank

Karnat 319.95 52.54 0 161.5 0 58.37 0 80.26 0 1.66 0 19.98 0 26.03

aka
Bank
60
 0

Karur 366.91 - 1 170.8 1 78.68 0 79.58 0 1.81 0 9.17 1 40.81

Vysya 3
Bank

Kotak 1075.14 - 2 489.6 1 207.62 1 252.22 0 0.20 0 22.97 1 101.53

Mahin 9
dra
Bank

Laksh 165.13 19.10 0 73.50 0 30.86 0 38.11 0 0.74 0 2.10 0 17.72

mi
Vilas
Bank

Nainita 25.97 1.17 0 14.71 0 5.23 0 6.83 0 0.18 0 2.07 0 3.23

l Bank

Ratnak 145.30 36.46 2 77.27 1 27.64 1 31.24 0 0.26 0 1.44 2 29.23

ar
Bank

South 377.26 - 0 191.4 0 79.02 0 86.11 0 2.23 0 14.76 0 45.18

Indian 5
Bank

Tamiln 195.45 29.27 0 126.1 0 43.99 0 70.42 0 1.63 0 10.02 0 26.71

ad 1
Merca
ntile
Bank

Yes 755.50 290.67 3 320.7 3 139.81 0 165.39 0 0.00 0 12.10 3 81.25

Bank 1

Source : RBI (Statistical Tables related to Banks in India)

Interpretation:- In Year 2016, the total priority sector outstanding advances were 992.43 and
the large amount of balance outstanding was 369.72 under MSME sector in Axis Bank. The
lesser amount of balance outstanding was 1.18 under education sector. In Bandhan Bank
Limited, the total priority sector outstanding advances were 116.38 and the large amount of
balance outstanding was 113.69 under the loans that were provided to weaker sections under
priority sector. The lesser amount of balance outstanding was 0.24 under education sector. In
Catholic Syrian Bank, the total priority sector outstanding advances were 45.19 and the large
amount of balance outstanding was 24.49 under MSME sector. The lesser amount of balance
outstanding was 1.86 under education sector. In City Union Bank, the total priority sector
outstanding advances were 102.90 and the large amount of balance outstanding was 59.78 under
MSME sector. The lesser amount of balance outstanding was 1.77 under education sector. In
Development Credit Bank (DCB), the total priority sector outstanding advances were 60.43 and

61
the large amount of balance outstanding was 34.77 under MSME sector. The lesser amount of
balance outstanding is 0.14 under education sector. In Dhanlakshmi Bank, the total priority
sector outstanding advances were 34.10 and the large amount of balance outstanding was 15.35
under MSME sector. The lesser amount of balance outstanding was 0.70 under education sector.
In Federal Bank, the total priority sector outstanding advances were 222.48 and the large amount
of balance outstanding was 110.47 under agriculture sector. The lesser amount of balance
outstanding was 6.94 under education sector. In HDFC Bank, the total priority sector outstanding
advances were 1599.98 and the large amount of credit outstanding was 707.18 under MSME
sector. The lesser amount of balance outstanding was 1.38 under education sector. In ICICI Bank
Limited, the total priority sector outstanding advances were 1311.91 and the large amount of
outstanding balance was 494.30 under MSME sector. The lesser amount of balance outstanding
was 0.35 under education sector. In IDFC Bank Limited, the total priority sector outstanding
advances were 22.38 and the large amount of balance outstanding was 13.06 under housing
sector. The lesser amount of balance outstanding was 1.28 under agriculture sector. In Indusind
Bank Limited, the total priority sector outstanding advances were 299.09 and the large amount of
balance outstanding was 185.00 in MSME sector. The lesser amount of balance outstanding was
0.03 in education sector. In Jammu & Kashmir Bank, the total priority sector outstanding
advances were 192.27 and the large amount of balance outstanding was 90.13 in MSME sector.
The lesser amount of balance outstanding was 1.94 in education sector. In Karnataka Bank, the
total priority sector outstanding advances were 161.50 and the large amount of balance
outstanding was 80.26 under MSME sector. The lesser amount of balance outstanding was 1.66
in education sector. In Karur Vysya Bank, the total priority sector outstanding advances were
170.83 and the large amount of outstanding balance was 79.58 under MSME sector. The lesser
amount of balance outstanding was 1.81 in education sector. In Kotak Mahindra Bank, the total
priority sector outstanding advances were 489.69 and the large amount of balance outstanding
was 252.22 under MSME sector. The lesser amount of balance outstanding was 0.20 in
education sector. In Lakshmi Vilas Bank, the total priority sector outstanding advances were
73.50 and the large amount of balance outstanding was 38.11 under MSME sector. The lesser
amount of balance outstanding was 0.74 under education sector. In Nainital Bank, the total
priority sector outstanding advances were 14.71 and the large amount of balance outstanding was
6.83 under MSME sector. The lesser amount of balance outstanding was 0.18 under education
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 sector. In Ratnakar Bank, the total priority sector outstanding advances were 77.27 and the large
amount of balance outstanding was 31.24 under MSME sector. The lesser amount of balance
outstanding was 0.26 under education sector. In South Indian Bank, the total priority sector
outstanding advances were 191.45 and the large amount of balance outstanding was 86.11 under
MSME sector. The lesser amount of balance outstanding was 2.23 under education sector. In
Tamilnad Mercantile Bank, the total priority sector outstanding advances were 126.11 and the
large amount of balance outstanding was 70.42 under MSME sector. The lesser amount of
balance outstanding was 1.63 under education sector. In Yes Bank, the total priority sector
outstanding advances were 320.71 and the large amount of balance outstanding was 165.39
under MSME sector. The lesser amount of balance outstanding was 12.10 under housing sector
whereas there was no amount of balance was outstanding under education sector.

TABLE NO.9

Comparative Analysis of Different Bank Groups

(Amount in Rs. Billion)
Item Target/Sub Public sector Banks Private Sector Banks Foreign Banks
Target (Percent
OF

63
 ANBC/OBE)

Amount Percent OF Amount Percent OF Amount Percent

Outstanding ANBC/OBE Outstanding ANBC/OBE Outstandi OF
ng ANBC/OB
E

1 2 3 4 5 6 7 8

Total 40 19,889 39.5 7,110 42.5 1,238 36.9

Priority
Sector
Advances

Of which

Total 18 9,229 18.3 2,762 16.5 176 -

Agricultur
e

Small and 8 4,375 8.7 920 5.5 - -

Marginal
Farmers

Non- 11.7 6,273 12.5 1,750 10.5 - -

Corporate
Individual
Farmers

Micro 7.5 3,151 6.3 1,386 8.3 - -

Enterprise
s

Weaker 10 5,753 11.4 1,507 9.0 53 -

Sections

Source : RBI (Annual Report)

Interpretation:- In Year 2017, the public sector banks are not achieve the target of total priority
sector advances. The public sector banks achieve the target of agriculture, small and marginal
farmers, non-corporate individual farmers and weaker sections whereas the public sector banks
are not achieve the targets of only micro enterprises sector.

The private sector banks achieve the targets of total priority sector advances and the
sector of micro enterprises whereas the private sector banks fails to meet the targets of
agriculture, small and marginal farmers, non-corporate individual farmers and weaker sections
sector.

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 The foreign sector banks are failed to meet the overall targets of priority sector advances.

TABLE 10

CREDIT DEPLOYMENT TO SELECT SECTORS

Sectors Outstanding as Year On Year Growth (Recent)
on March
30,2018 2016-17 2017-18 2018-19
(Amount in
Billion)

1 2 3 4 5

Non Food Credit (1 to 4) 78,884 8.4 8.1 11.1

1.Agriculture & Allied Activities 10,302 12.4 3.8 6.5

2.Industry (Micro & Small, 26,993 -1.9 0.7 0.9

Medium and Large)
8909 -6.1 -1.7 0.0
(i) Infrastructure

Of which:
5196 -9.4 -1.1 -1.2
(a) Power
846 -6.8 -0.6 6.8
(b)Telecommunications
1665 1.4 -7.5 -5.7
(c) Roads
4160 1.2 -1.2 -5.5
(ii) Basic Metals & Metal Product
1554 -3.0 6.8 3.3
(iii) Food Processing

3.Services 20505 16.9 13.8 23.3

4.Personal Loans 19085 16.4 17.88 17.9

5.Priority Sector 25532 9.4 4.8 6.3

Source : RBI (Annual Report)

Interpretation:- The Outstanding amount is Rs. 78,884 in non-food credit sector and there is 8.4
percent growth is decline in year 2017-18. In 2018-19 the growth is increased to 11.1 percent. In
agriculture and allied activity sector, the outstanding amount is Rs.10,302. There is 12.4 percent
growth in year 2016-17 whereas the growth is decline to 3.8 percent in year 2017-18. And in
year 2018-19 the growth is increased again and it become to 6.5 percent but is also less as
compared to year 2016-17 growth. In industry sector, the overall outstanding amount is
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Rs.26,993 and in 2016-17 there is -1.9 percent growth which is increased in year 2017-18 to 0.7
percent growth and in year 2018-19 it is increased to 0.9 percent. Under industry sector, in
infrastructure sector, the outstanding amount is Rs. 8909 and there is -6.1 growth and in year
2017-18 the growth is -1.7 and in year 2018-19 the growth is 0 %. Under infrastructure, in
power sector the outstanding amount is Rs.5196 whereas there is -9.4 percent growth in year
2016-17 and in year 2017-18 the growth is -1.1 percent and the growth is -1.2 percent in year
2018-19. Under telecommunication sector, the outstanding amount is Rs.846 whereas the growth
is -6.8 percent in year 2016-17. The growth is -0.61 in 2017-18 and the growth is increased to 6.8
percent in year 2018-19. Under road sector, the outstanding amount is Rs.1665 and the growth
is 1.4 percent in year 2016-17 whereas the growth is decline to -7.5 percent in year 2017-18 and
the growth is -5.7 percent in year 2018-19. In basic metals & metal products, the outstanding
amount is Rs.4160 and the growth is 1.2 percent in year 2016-17. The growth is decline to -1.2
percent in year 2017-18 and the growth is -5.5 percent in year 2018-19. In food processing, the
outstanding amount is Rs.1554 and the growth is -3.0 percent whereas the growth is increase to
6.8 percent in year 2017-18 and the growth is also decline in year 2018-19 to 3.3 percent. In
service sector, the outstanding amount is Rs.20505. The growth is 16.9 percent in year 2016-17
and the growth is decline to 13.8 percent in year 2018-19. The growth is increased to 23.3
percent which is the highest growth till now as compared to other sectors. Under personal loans,
the outstanding amount is Rs.19085 and the growth is 16.4 percent in year 2016-17. The growth
is increased to 17.88 percent in year 2017-18. The growth is increased to 17.9 percent in year
2018-19. Under priority sector, the outstanding amount is Rs. 25532 and the growth is 9.4
percent in year 2016-17 whereas the growth is decline to 4.8 percent in year 2017-18. The
growth is increased to 6.3 percent in year 2018-19 as compared to year 2017-18 but less as
compared to year 2016-17.

Table 11

PERFORMANCE IN ACHIEVEMENT OF PRIORITY SECTOR LENDING

TARGET
(Amount in Rs. Billion)

End-March Public Sector Banks Private Sector Banks Foreign Banks

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 1 2 3 4

2014 16190 4645 907

(39.4) (43.9) (35.8)

2015 17512 5303 970

(37.3) (42.8) (35.9)

2016 19850 6480 1104

(39.30) (44.1) (35.3)

2017 19889 7110 1239

(39.5) (42.5) (36.4)

2018 20723 8046 1402

(39.9) (40.8) (38.3)

SOURCE: Report on Trend and Progress of Banking in India, RBI

Interpretation:- The private sector banks crosses the total target of priority sector lending from
2014 to 2018. The amount of private sector banks also increases from 2014 to 2018 i.e. Rs. 4645
billion to 8046 billion. The public sector banks and the foreign banks did not achieve the target
of priority sector lending. The table shows that the public sector banks reach at the target of 39.9
percent which is near to 40% but still the public sector banks were not able to achieve the target
of 40% of priority sector lending. The amount of public sector banks was increased from Rs.
16190 billion to Rs. 20723 billion. The foreign banks were also not able to achieve the target of
priority sector lending whereas the amount of foreign banks increases to Rs. 907 billion to Rs.
1402 billion.

CHAPTER-5

FINDINGS & SUGGESTIONS

67
1. Priority sector banks are those banks whose major equity of shares held by the
individuals not by the government.

2. In Indian banking sector, there are presently 22 private sector banks are running in India.

3. Priority sector lending is that credit which is provided to the priority sectors. The priority
sectors are those who deserve special attention for the requirement of capital.

4. The main priority sectors are agriculture, MSME, education, housing, export credit,
social infrastructure, renewable energy and others.

5. If the banks are fail to meet the priority sector targets then it is required that the banks
have to make contribution to Rural Infrastructure Development Fund.

6. The targets of total priority sector are 40% of ANBC or credit equivalent amount of off
balance sheet exposure whichever is higher.

7. In year 2018, in state wise distribution of select items of scheduled commercial banks
advances to priority sector, the large number of accounts are opened under eastern region
and the large amount of balance outstanding under western region.

8. In year 2018, under all over India, the large amount of balance outstanding is in MSME
sector while the large number of accounts are opened under loans provided to weaker
sections.

9. In year 2017, the large number of accounts are opened under southern region and the
large amount of balance outstanding also under southern region.

10. Under all over India, the large number of accounts are opened under loans provided to
weaker sections whereas the large amount of balance outstanding under agriculture
sector.

11. In year 2016, the large number of accounts are opened under eastern region and the large
amount of balance outstanding is under western region.

12. In all over India, the large number of accounts are opened under the loans provided to
weaker sections and the large amount of balance outstanding under MSME sector.

13. In 2015, the large number of accounts are opened under southern region and the large
amount of balance outstanding under western region.

14. In all over India, the large number of accounts are opened under agriculture and allied
activity sector whereas the large amount of balance outstanding also under this sector.

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15. In 2014, the large number of accounts are opened under southern region and the large
amount of balance outstanding is also under this sector.

16. In all over India, the large number of accounts are opened under agriculture and allied
activity sector and the large amount of balance outstanding also under this sector.

17. In 2018, the large amount of balance outstanding under agriculture sector in HDFC Bank
limited.

18. In 2017, the large amount of balance outstanding under MSME sector in HDFC Bank
limited.

19. In 2016, the large amount of balance outstanding under MSME sector in HDFC Bank
limited.

20. The target of total priority sector advances are achieved by private sector banks in year
2017 and 2018.

21. The private sector banks fails to achieve the target of some sectors under priority sector.

22. The service sector has highest growth in credit deployment in year 2018-19 i.e. 23.3%.

SUGGESTIONS
1. The bank groups need to focus more to achieve their priority sector lending targets fixed
by RBI.

2. The bank groups need to focus on advances given to agriculture and weaker sections.

3. Except southern region, other regions also need to focus on lending to priority sector.

4. Except HDFC Bank limited, other banks need to focus on lending to priority sector.

REFERENCES

69
Asia Journal of Finance & Accounting, 2010, Vol.2, No. 1 : ES.

Govt. of India (1991a) Report of the Committee on Financial system, Ministry of Finance,
December.

Govt. of India (1998) Report of the Committee on Financial system, Ministry of Finance,
(Narasimhan Committee-II), April.

http://www.rbi.org.in/scripts/faqview.asps?ids8(accessed 15/5/09)

http://www.rbi.org.in/

Niranjan S. and Anbumani V. 2002, Social objectives and Priority sector lending, Banking and
Financial Sector Reforms in India, Deep and Deep Publications, PP-237.

RBI (2014), MASTER CIRCULAR- Priority Sector Lending- Targets and Classification,
Mumbai : RBI.

The Economic Times (2011 May 10). Priority Sector Landing, Retrieved January 28, 2017 from
http://www.economictimes.inidatimes.com

Uppal, R.K. (2009) Priority Sector Advances, Trends, Issues and Strategies. Journal of
Accounting and Taxation, 1(15), 79-89.

http://vikaspedia.in/agricultur/agri-credit........

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