SOCIAL BANKING
  • 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 year 1999-2000.
  • The exposure of foreign banks to exports also was pared significantly.
  • Direct credit 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 in 1997. 
  • Along with direct credit to the agriculture sector, credit to SSIs seemed to have lost its importance.
  • Credit extended 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.
  • Credit extended 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.
  • Other priority 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 2000.
  • 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.
  • Export credit 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. 
Courtesy : Business Standard