Academic Discourse
Year : 2012, Volume : 1, Issue : 2
First page : ( 152) Last page : ( 169)
Print ISSN : 2278-3296. Online ISSN : 2349-4441.

Priority Sector Advances: Performance of Public Sector Banks in India

Dr. Sharma Poonam

Assistant Professor, Department of Commerce, S. A. Jain College, Ambala City

Online published on 18 June, 2014.

Abstract

Priority Sectors are those segments which are entitled to financial facilities in preference to others like agriculture, SSIs and weaker sections etc. Financing of Priority Sector is an important programme to eliminate the conflict between economic growth and social justice. A concept of “Priority Sector” category of borrowers has been evolved to ensure increased flow of bank credit to certain sectors, which earlier (before nationalization of banks) did not have any easy access or had little access to institutional credit. According to RBI's guidelines 40 percent of NBC should be given to priority sectors (after nationalization of banks). This paper examines the performance of public sector banks regarding priority sector advances, whether they are giving the advances to priority sectors according to the guidelines of RBI or not.

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Keywords

RBI, NBC, Beneficiaries, Priority Sectors.

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