International Journal of Applied Research
Vol. 3, Issue 11, Part F (2017)
A performance analysis of various financial institutions with respect to priority sector lending (A case study of Jaipur district of Rajasthan)
Pratibha Naruka and Dr. Manju Yadav
This paper analyses and compares the performance of Financial Institutions in Priority Sector lending under Lead bank scheme with special reference to Jaipur District of Rajasthan. The analysis was made by the application of Kruskal–Wallis ‘H’ test to find out the difference among the financial institutions performance during the 11 years annual credit plan from 1st April 2006 to 31st March 2017 in relation to priority sector lending in Jaipur District. The result of the study is that there was a significant difference among the performance of financial institutions in lending to the Agricultural Sector, Micro, small and Medium Enterprises (MSME) and total Priority sector. However no significant difference was found in loan disbursement for the other priority sector. This result hints at lackluster performance of the regional rural banks, cooperative banks and other financial institutions vis-a-vis the commercial banks with regards to priority sector lending. The probable reasons for this could be limited ability to mobilize resources, Low Level of recovery, High cost of transaction, administered rate of interest structure, Government interference etc.
How to cite this article:
Pratibha Naruka and Dr. Manju Yadav. A performance analysis of various financial institutions with respect to priority sector lending (A case study of Jaipur district of Rajasthan). International Journal of Applied Research. 2017; 3(11): 363-367.