A STUDY ON UTILIZATION, OVERDUES AND FINANCING ASPECTS OF AGRICULTURAL CREDIT OF A NATIONALISED BANK IN ANAND DISTRICT
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Date
1998
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AAU, Anand
Abstract
The present study was carried out in the Anand district of Gujarat state with the objectives to study the extent of Bank finance utilization, sources of funds for recovery of loans, overdues, position and its reasons, and financing aspects under agricultural schemes of Bank of Baroda (BOB). A sample of 120 borrowers were selected from the two branches, i.e. Amul Dairy branch (Anand) and Borsad Branch (Borsad) of Bank of Baroda (BOB). The number of borrowers selected for the study were 60, consisted of 20 small, 20 medium and 20 large farmers from each branch of BOB. Regression analysis, simple average and percentage were used as analytical tools. The average loan per borrower came to Rs. 55.48 and Rs. 62.34 thousand from Amul Dairy branch and Borsad branchy respectively. On an average,about 85 to 86 per cent of total available credit was utilized for productive purpose by selected borrowers of the both the branch of BOB. Agricultural loans were provided for different purpose, among them, most of the borrowers had taken crop loan followed by tractor loan and buffalo loan from both the branches of BOB. Majority of repayment of loans were made by sale of farm produce. About 42.25 and 39.44 per cent of total repayers of Amul Dairy and Borsad branch respectively, repaid their loans by selling farm produce. Percentage of overdues to demand was maximum in small farmers,followed by medium and large farmers in case of Amul Dairy branch, while in case of Borsad branch it was also maximum in small farmers but minimum in medium farmers. The average amount of overdues per defaulter for Amul Dairy and Borsad branch borrower were Rs. 39.47 and Rs. 45.10 thousand respectively. Regression analysis for the factors affecting the overdues, indicated that the size of holding had negative relationship and unproductive use of loan per borrower had positive relationship with amount of overdues. Further, it was revealed by the analysis that the size of holding and unproductive use of loan per borrower are the main cause for the overdues in case of selected borrowers. In case of Amul Dairy branch, the recovery percentage was very less under I.R.D.P. scheme and the highest under indirect Agril. loan during 1996-97. While in case of Borsad Branch, Recovery percentage under I.R.D.P. scheme was higher as compare to Amul Dairy branch but minimum among different schemes. The cent percent recovery was found in indirect agricultural loan in both the branches of BOB. Percentage of achievement was more than cent percent in both the branches.
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Keywords
Agricultural Economics, Agriculture, A Study