The concept of
social banking is being given a quiet burial, if sectoral data is anything
to go by.
The direct exposure
of banks across the spectrum - public, private and foreign - to agriculture
and small scale industry (SSI) has come down considerably during the financial
The exposure of
foreign banks to exports also was pared significantly.
extended to the agriculture sector by public sector banks, as a percentage
of net bank credit went down to 11.8 per cent in 2000 from 13.6 per cent
Along with direct
credit to the agriculture sector, credit to SSIs seemed to have lost its
to the SSIs as a percentage of the net public sector bank credit provided
by the public sector banks went down from 17.5 per cent in 1998 to 15.6
per cent in 2000.
by private sector banks to agriculture and SSI too has declined substantially.
While credit extended
to the agriculture sector by private sector bank as a percentage of the
net private sector bank credit fell from 9.7 per cent to 9.1 per
cent, credit to the small scale industries by the private sector bank as
percentage of the net private sector bank credit declined from 20.6 per
cent in 1998 to 15.7 per cent in 2000.
For both the public
sector as well as the private sector groups, the exposure of other priority
sector advances, however, has gone up over the last few years.
sector advances, as a percentage of the net bank credit, have risen from
0.7 per cent in 1996 to 11 per cent in 2000 for public sector banks.
For private sector
banks, the figure went up from 10.6 per cent in 1998 to 13.9 per cent in
For the foreign
banks, all kind of priority sector lending exposure, whether it is export
credit or credit provided to small scale industries came down in the financial
year 2000 compared with the exposure in 1999.
as percentage of net bank credit extended by foreign banks came down to
22.5 per cent from 25 per cent, and their credit exposure to SSIs fell
from 11 per cent to 10.2 per cent.
: Business Standard