1. Title: “Bank Credit: Allocation and efficiency; with respect to Priority and
non priority sector lending by Indian Banks”
Dr. Madhuri Malhotra
Adjunct Profesor
Madras School of Economics
Gandhi Mandapam Road, Kottur,
Chennai 600015
Email: madhurimalhitra@gmail.com
Mobile: +91 9500075372
Abstract:
The paper attempts to analyse trend of Priority Sector Advances and of NPAs (Non Performing
Assets) in Public, Private and Foreign Banks in India during the last five years. In recent years, bank
lending to certain sectors, such as, agriculture, Small Scale Industries and weaker section, known as
Priority Sector was emphasized. Under these sectors, targets have been laid down from time to time,
with the aim of upliftment of these sectors and to bring about a balanced development of the country.
An important phenomenon here is to examine the relationship between lending to priority sector and
the degree of nonperforming assets in banks. Is there any relationship between the two? It is
important to investigate whether the level of NPAs or NPLs (Non performing lending) in priority
sector is higher or lower than NPAs of other sectors of the economy in public Sector Banks as
compared to Private Sector Banks, this issue is being discussed in this paper.
JEL Code: E50; E58
Key words: Bank Credit, Priority sector, Private, public banks.