Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Credit Allocation by Indian Commercial Banks


Affiliations
1 Swarna Bharathi Institute of Management Science, Khammam, Telangana, India
     

   Subscribe/Renew Journal


Bank credit plays an important role in economic development. Growth in bank credit can influence the demand for goods and services and is a powerful tool to boost the economy, especially when there is a slowdown. On the other hand, it is important to note that what part of bank credit is extended to each sector over a period of time, so that it will help in understanding how various sectors are expanding and further it helps in analyzing the quality and dimension of growth. It is also a need to analyze whether the bank credit is being extended to the sectors that are part of strategic policy initiatives. This article aims at discussing the Guidelines of the Central Bank of India (RBI) and the credit allocation by scheduled commercial banks of India to various sectors of the economy.Bank credit plays an important role in economic development. Growth in bank credit can influence the demand for goodsand services and is a powerful tool to boost the economy, especially when there is a slowdown. On the other hand, it is important to notethat what part of bank credit is extended to each sector over a period of time, so that it will help in understanding how various sectors areexpanding and further it helps in analyzing the quality and dimension of growth. It is also a need to analyze whether the bank credit is beingextended to the sectors that are part of strategic policy initiatives. This article aims at discussing the Guidelines of the Central Bank of India(RBI) and the credit allocation by scheduled commercial banks of India to various sectors of the economy.

Keywords

Credit Allocation, Indian Commercial Bank, Bank Credit, Credit Growth, Sectoral Deployment.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Chandrayya, V. (1990). Bank credit in India. Published Thesis. New Delhi: Discovery Publishing House, pp. 21–22.

  • Irwin, R. D. (1965). Credit: Management handbook. Prepared by Credit Research Foundation; National Association of Credit Management Second Edition, Homewood, IL.

  • Kealhofer, S. (2002). The economics of the bank and of the loan book (p. 4). San Francisco, CA: Moody’s K.M.V.

  • Padma, A. S. (1995). Performance of banks’ lending to priority sectors: An appraisal of Andhra Bank in Warangal District. M.Phil. Dissertation, Kakatiya University Warangal, p. 9, 84–89.

  • Perumalla, R. D. (1993). Management of finances in commercial banks: A study. Ph.D Thesis, Kakatiya University, pp. 40, 54, 73 and 224.

  • RBI Documents. (2012). Master circulars: Priority sector lending-targets and classification, July 20.

  • RBI Documents. (2013). Master circular: Exposure norms for financial institutions, July 1.

  • Symss, J. (2003). Marketing of banking services: A case study of Andhra Bank. Thesis, submitted to Osmania University, Hyderabad, p. 122.


Abstract Views: 334

PDF Views: 0




  • Credit Allocation by Indian Commercial Banks

Abstract Views: 334  |  PDF Views: 0

Authors

Ramanadh Kasturi
Swarna Bharathi Institute of Management Science, Khammam, Telangana, India

Abstract


Bank credit plays an important role in economic development. Growth in bank credit can influence the demand for goods and services and is a powerful tool to boost the economy, especially when there is a slowdown. On the other hand, it is important to note that what part of bank credit is extended to each sector over a period of time, so that it will help in understanding how various sectors are expanding and further it helps in analyzing the quality and dimension of growth. It is also a need to analyze whether the bank credit is being extended to the sectors that are part of strategic policy initiatives. This article aims at discussing the Guidelines of the Central Bank of India (RBI) and the credit allocation by scheduled commercial banks of India to various sectors of the economy.Bank credit plays an important role in economic development. Growth in bank credit can influence the demand for goodsand services and is a powerful tool to boost the economy, especially when there is a slowdown. On the other hand, it is important to notethat what part of bank credit is extended to each sector over a period of time, so that it will help in understanding how various sectors areexpanding and further it helps in analyzing the quality and dimension of growth. It is also a need to analyze whether the bank credit is beingextended to the sectors that are part of strategic policy initiatives. This article aims at discussing the Guidelines of the Central Bank of India(RBI) and the credit allocation by scheduled commercial banks of India to various sectors of the economy.

Keywords


Credit Allocation, Indian Commercial Bank, Bank Credit, Credit Growth, Sectoral Deployment.

References