Problems and Prospects of Priority Sector Lending

Abstract

After the nationalization priority sector lending has become an important components of national agenda. As per RBI directive commercial banks advised to grant 40% of their total advances to barrowers in the priority sectors. Priority sector lending refers to those sectors of the economy which may not get in timely and adequate crediting in absence of this special dispensation. Typically, theseare small value loans to farmers for agriculture and allied activities, micro and small enterprises, poor people for education and other low income groups and weaker section. This paper provides a platform to understand the problems and prospects of priority sector lending in state bank of India inBhdravathi. The study has used both primary and secondary data. The collected data are represented by using tables and analysis was done by using percentage analysis.