• Santosh Kumar Panda M.Com, ICWA (Inter), MBA, M.Phil, Lecturer in Costing, Government College of Engineering, Keonjhar, Odisha - 758002, India
  • Ganesh Prasad Panda M.Com, M.Phil, UGC JRF/ NET, Lecturer in Commerce, Sadhu Goureswar College, Kanikapada, Jajpur, Odisha - 755011, India
  • Dr. Anil Kumar Swain Associate Professor in Commerce, Head, PG Department of Commerce, Utkal University, Vanivihar, Bhubaneswar, Odisha – 751004, India



Priority Sector Lending, Financial Institutions, Agriculture, Public Sector Banks, Lending Preference

Abstract [English]

Compulsory sanctioning credit or priority sector lending (PSL) is part of the regulatory framework for commercial banks/ financial institutions in many countries, both developing and developed. However, compliance and lending effectiveness of such programs may be determined by a number of factors. This may be particularly so in developing countries, where availability of finance for the vulnerable sectors likes agriculture, small businesses, weaker sections, are scarce. The present paper aims at examining the patterns of priority sector lending by banks, with a view to identifying the factors which determine this lending The paper is based on an analysis of secondary data relating to priority sector lending (2006-07-2015-16) for the Public sector banks in India. The results indicate gaps in patterns of the sect oral target compliance by different bank groups, along with the lending preferences and challenges faced by banks in such lending. It also identifies bank-specific characteristics like the nature of ownership, size, performance, etc., which have a significant impact on the priority sector lending patterns. Based on its findings, the paper offers policy suggestions for improving the effectiveness of priority sector lending program.


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How to Cite

Kumar Panda, S., Prasad Panda, G., & Kumar Swain, A. (2017). DETERMINANTS OF PRIORITY SECTOR LENDING OF INDIAN PUBLIC SECTOR BANKS: AN ECONOMETRIC ANALYSIS. International Journal of Research -GRANTHAALAYAH, 5(7), 461–473.