Author(s): A. Leema Roseline,J. Gayathri, M. Babu, G. Indhumathi, R. Brintha
Reserve Bank of India (RBI) insisted on all scheduled banks to provide a specified part of their lending to the sectors like agriculture, allied activities of agriculture, micro and small enterprises, housing, education and weaker section. This would meet the needs of the essential economic sectors. Lending to priority sector has created the fear of NPAs among the banks. Profitability of the banks has also been adversely affected by the priority sector advances, because of low rate of interest on the priority sector advances. The present study investigates the percentage on growth of priority sectors in India and accesses the targets and achievement relationship of each priority sectors by considering the sample of top five and least five banks in priority sector advances.