Penetration and Growth of Banking in Punjab during Post Reforms Era

Abstract

The present paper is related to penetration and progress of public sector and private sector banks in Punjab. For the purpose of study secondary data has been collected from Statistical Abstract of Punjab, Agenda Paper on State Level Bankers’ Committee Meetings, District Credit Plans for various districts related to various years; and various web sites. The period from 1990-91 to 2007-08 has been chosen for the study. The scope of study covers the data of public and private sector banks in Punjab. It is found from the study that the both the type of banks grew drastically after banking sector reforms but the branches, deposits and advances of private sector banks increased at a faster rate than that of public sector banks. The share of rural branches in total branches of both the public and private sector banks decreased during the study period. Also, the disparity in growth of deposits and advances of private sector banks was greater than that of public sector banks. Deposits and advances of both the type of banks were distributed unevenly in different districts of Punjab. The tendency for deposits and advances in banks was found to be higher in developed districts than backward districts. The volume of business of public sector banks was more in rural and semi-urban areas while that of private sector banks was more in urban areas. The credit-deposit ratio of public sector banks presented a more dismal picture than private sector banks in Punjab. It is suggested to increase the attention of both the public and private sector banks on rural masses. Keywords: Banks, Public sector, Private Sector, Punjab

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