Banking Sector Reforms and Achievement of Priority Sector Targets By Scheduled Commercial Banks

Abstract

The research is made to know the banking sector reforms and its impact on priority newlinesector lending by commercial banks. The study is based on Narsahimam committee newlinerecommendation as 40 percent of priority sector advances in commercial banks. Target and newlinesub target for the deployment of credit such as 40.00 percent for domestic banks and 32.00 newlinepercent for foreign banks was fixed for priority sector lending out of their total advances. newlineThe study shows that commercial banks have not attained the remarkable progress and newlineachieved their targets of priority sectors. This study has made an attempt to highlight these newlineproblems and suggested some measures for the improvement. The recommends for the newlinequality services by the banks. It also states that bank schemes should reach the deserving newlinegroup of the society. Provision also to be taken by the Government to sanction more credit newlineunder the priority sector lending in future. newline