Mohandas, MRoy ThomasKAU2019-02-132019-02-131991170249http://krishikosh.egranth.ac.in/handle/1/5810094872PGThe reduction of glaring inter-regional and inter-sectoral imbalances in banking development had been one of the prime concerns of planners and policy makers in India. For this purpose a variety of policy measures were introduced by the government of India and RBI since the nationalization of 14 major commercial banks in 1969. This study was undertaken to examine the extent and pattern of inter-district and inter-sectoral disparities in banking development in all the eleven districts of Kerala existing in 1973. Data relating to the districts of Pathanamthitta, Wayanad and Kasargod which came into existence after 1975 were allocated to those districts which covered these areas on a pro-rata basis. The study was primarily based on secondary data collected from the Basic Statistical Returns relating to banks published by the RBI. The study covered all scheduled commercial banks including Regional Rural Banks for the period from 1973 to 1988. The inter-temporal coefficient of variation and disparity ratio were worked out from the time series data to understand the trend in inter-district and inter- sectoral disparities during the study period. The computation of component scores from the ranks of each district during each year of the study period in respect of the determinants helped to understand the relative position of each district in the selected indicators. The districts were classified according to percentage achievement of each district compared to the state mean with respect to each of the indicators in order to find out the extent of disparity for three selected years viz. 1973, 1980 and 1988. The path correlation is computed to examine the relative role of the selected factors contributing to inter- district disparities. The coefficient of variation and disparity ratio in respect of all the indicators except credit- deposit ratio and per capita industrial advances exhibited a declining trend in inter- district and inter- sectoral disparities during the study period. In respect of these two indicators there was no clear trend. At the same time, the coefficient of variation and disparity ratio were significantly higher in respect of the indicators of inter- sectoral disparities compared to the inter- district disparities. Among the determinants of inter- district disparities the highest coefficient of variation and disparity ratio were observed in the case of per capita credit. On the other hand the disparity was seen to be the lowest in credit- deposit ratio. At the same time, the per capita industrial advances showed the highest variation in respect of inter- sectoral disparities, while the other indicators exhibited more or less same pattern of variation. Since Ernakulam district had uniformly the highest ranking in respect of all the indicators, it had the highest composite score among all the districts in the state. On the other hand Malappuram, Idukki and Palghat had lowest rankings during the whole reference period. The performance of Kottayam and Trivandrum were better than the state average while Cannanore had a composite score below the state average. Alleppey, Quilon, Thichur and Kozhikode exhibited more or less average performance. However, the districts below and above the state average did not form homogeneous groups and much deviation had been observed from the state average. For instance, the performance of Malappuram and Idukki in respect of most of the indicators were even less than 50 per cent of the state average whereas it was invariably more than 75 per cent of the state mean in Ernakulam district. Among the determinants of inter- district disparities, density of population, per capita gross cropped area, per capita income and work participation rate were found to be more significant in terms of high positive correlation. At the same time it may be noted that all the determinants were significantly correlated with dependent variable in all the districts. Comparatively low value of residuals testify the validity of the selection of independent variables. The trends in inter- district disparities broadly supports the trends in regional disparities brought by certain studies at the national level by Subhas K. Basu (1973), Sing V. K and Pandey U. K. (1983), Balakrishnan (1987) and Chippa M. L. (1988). Thus it may be concluded from the available evidences that though the inter- district disparities in banking development in Kerala had been declining, certain degree of imbalances still persist more due to the effects of infrastructural and sectoral disparities. The existing disparity can be minimized by adopting a planned strategy of regional development. The recent policy initiatives like decentralized planning at the district level, revival of three-tier Panchayati Raj institutions and the adoption of Service Area Approach to rural lending can play a vital role in eliminating the present level of disparities both in development as well as in banking development.ennullThesis