A Study of Priority Sector Lending by State Bank of India

Priority sector lending is a scheme directed s per Government of India. As per RBI directive, commercial banks advised to granting 40% of their total advances to borrowers in the priority sectors. Priority means to give preference and privilege. Priority sector lending refers to those sectors of the economy which may not grow in prudent and satisfactory crediting in absence of this special dispensation. Typically, these are small value loans to farmers for agriculture and allied activities, micro and small enterprises, poor people for education and other low- income groups and weaker section. This paper provides a platform to understand the problems and prospects of priority sector lending in state bank of India in Bhadravathi. The study has used both primary and secondary data. The data collected is embodied by using tables and analysis was done by using percentage analysis and statistical tool like X2 test is also used.