FARM FINANCING IN KOLAR DISTRICT BEFORE AND AFTER AMALGAMATION OF RRBs – A CASE STUDY OF PRAGATHI-KRISHNA GRAMEENA BANK

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Date
2016-12-14
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UNIVERSITY OF AGRICULTURAL SCIENCES GKVK, BENGALURU
Abstract
The present study was carried out in Kolar district of Karnataka State with the main objective of analyzing the compositional flow of credit and financial services provided to farm and non-farm economic activities by Pragathi-Krishna Grameena (PKG) Bank. Both primary and secondary data was collected and analyzed to achieve the objectives of the study. The results of the study revealed that after amalgamation of RRBs the agricultural gold loans and agricultural overdraft loans increased from 59 per cent to 72 per cent. Further, among investment loans medium-term loans have increased from 40 per cent to 66 per cent respectively due to better performance of RRBs after amalgamation. In the case of minority community loans, the Muslim community accounted for highest share in total loans disbursed. However, their share decreased from 72 per cent to 60 per cent after amalgamation due to low repayment. The bank accounts such as jandhan account, savings bank account, fixed and recurring accounts and coverage of beneficiaries under the crop insurance scheme have positively increased during the period after amalgamation. The recovery of loans also increased from 85 to 91 per cent after amalgamation. Hence, to sustain the increased flow of production, investment and priority sector loans and loans to weaker sections, banking system may have to focus on - linking of credit with marketing, recovery of loans, filling-up of vacant posts with professionals, improving the infrastructural facilities - both hard and soft facilities.
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