Performance of loans and advances of commercial banks in india-An analysis

The Indian banking system is significantly different from those of other nations because of the country’s unique geographical, social and economic characteristics. The banking system has had to serve the objectives of economic policies enunciated in successive five year plans, particularly concerning equitable distribution of income, balanced regional economic growth and the elimination of private sector monopolies in trade and industry. About 92 % of the country’s banking segment is under the state control while balance comprises private sector and foreign banks. The banking sector has been assigned the role of providing financial support to the economic sectors such as agriculture, small scale industries, exports etc. In this paper, an effort has been made to analyze the performance of loans and advances of the commercial banks in India with special reference to the four groups of banks such as State Bank of India and its subsidiaries, Nationalized Banks, Foreign Banks and other Scheduled Commercial Banks The study is diagnostic and exploratory in nature and makes use of secondary data. The study finds and concludes that the above mentioned banks have significantly improved their performance in terms of loans and advances.