Commercial Banks' Finance to Private Corporate Sector in India, 1969-70 - 1990-91

Commercial Banks' finance to private corporate sector has been a subject of interest since the nationalisation of banks in 1969. This has assumed further importance in the context of recent policy changes. This paper attempts to examine the role of commercial banks in financing private corporate sector for the period from 1969-70 to 1990-91. The analysis has been carried out against the background of the credit policies of the Reserve Bank of India. In a regulated financial system, the credit policies are aimed at regulating the supply of bank credit. The study indicates the effectiveness of credit policies aimed to reduce the dependence placed on banks by the private corporate sector.