Journal Press India^®

Author Details ( * ) denotes Corresponding author

The inter-state growth in priority sector credit, number of accounts and credit per account of commercial banks has been analyzed from the period 2011 to 2020. The study is based upon secondary data of commercial banks and all the required information has been collected from the various relevant publications of RBI on banking statistics. The exponential growth rate, mean and t-test have been calculated. It was found that the growth of credit to priority sector declined in the recent years and in some states the numbers of accounts in priority sector of commercial banks have been continuously recording a declining rate of growth which needs to be checked keeping in view the government’s broad objectives of social and financial inclusion. The priority sector credit per account recorded a negative rate of growth in five states in period I and in as many as nineteen states during period II.

Keywords

Commercial banks; Priority sector credit; Accounts; COVID-19; Lockdown.

1. Gupta, S. P. (2000). Statistical Methods. Sultan Chand and Sons: New Delhi.
2. Gupta, Y., & Kumar, S. (2008).  A comparative study of priority sector lending in India by public and private sector banks. The Indian Journal of Economics, 89(353), 193-204.
3. Kapoor, G. P. (2004). Commercial Banking. A.P.H. Publishing Corporation: New Delhi.
4. Kumar, S. (2017). Priority sector advances of commercial banks in India: Trends and strategies. Journal for Studies in Management and Planning, 3(5), 84-100.
5. Kumar, S. (2017). Priority sector lending in India by public sector banks: A study of pre and post reform period. Education Pedia Publications (P) Ltd.: New Delhi.
6. Kumar, S. (2019). An analysis of priority sector lending and non-performing assets of commercial banks in India. European Journal of Business and Social Sciences, 7(4), 1189-1198.
7. Kumar, S. (2021). Some empirical results on commercial banks lending to priority sector in India. SSRG International Journal of Economics and Management Studies, 8(2), 5-10.
8. Kumar, S., & Kumar, P. (2016). Agricultural credit in India: A study of public and private sector banks. SSRG International Journal of Economics and Management Studies, 3(6), 30-36.
9. Kumar, S., & Kumar, P. (2016). Priority sector lending in India by public and private sector banks: A comparative analysis. MUDRA: Journal of Finance and Accounting, 3(2), 17-28.
10. Kumar, S., & Prakash, P. (2018). Emerging trends of NPAs in priority and Non-priority sector in India: A study of public and private sector banks. PRAGATI Journal of Indian Economy, 5(1), 1-14.
11. Raman, P. (2013). A study on the performance of commercial banks towards priority sector advances in Tamil Nadu. International Journal of Marketing, Financial Services and Management Research, 2(2), 1-4.
12. Ramesha, K. (1998-99). Bank credit to SSIs: A study in inter-state disparity. Prajnan, 27(3), 25-32.
13. Reserve Bank of India. (2011-2020). Banking Statistics - Basic Statistical Returns of Scheduled Commercial Banks (2011-2020). RBI Publication, Mumbai.
14. Reserve Bank of India. (2011-2020). Statistical Tables Relating to Banks in India (2011-2020). RBI Publication, Mumbai.
15. Reserve Bank of India. (2020). Master Directions-Priority Sector Lendings (PSL)-Target and Classification. RBI Publication, Mumbai. (www.rbi.org.in)
16. Shajahan, K. M. (1998). Priority sector bank lending- Some important issues.  Economic and Political Weekly, 22(42 & 43), 2749-2756.
17. Shete, N. B. (2002-03). Priority sector advances of banks during the post-reform period. Prajnan, 31(1), 21-37.
18. Sooden, M. (1997). Inter-state disparities of commercial banks in India. Prajnan, 26(2), 325-45.
19. Sooden, M., & Kumar, S. (2007). Priority sector lending in the post reform period. The Quarterly Journal of Finance- Finance India, 21(4), 1389-1404.
20. Veerakumar, K. (2012). Non-performing assets in priority sector: A threat to Indian scheduled commercial banks. International Research Journal of Finance and Economics, 93, 6-23.