An Evaluation of Agricultural Finance - A Study With Special Reference to Kaveri Grameena Bank

Abstract

Even today agriculture retains its importance in Indian globalised economy; about 70% of the population has been directly or indirectly depend on agricultural and its allied activities. The requirement agricultural credit has been increasing. The Indian sector banks have been experiencing a growth in profits, to retain the tempo the banks are more focusing on commercial lending by ignoring agricultural credit. But many drivers of profits of not sustainable in the long run, They should focus on key factors like diversified loan portfolio, CD ratio, Loans and advances healthy Internal risk management techniques by putting in place appropriated risk Measurement. Indian banking has witnessed tremendous changes in the wake of the new economic reforms ushered in the year 1992. The reforms have positively impacted on the banking system, which has become flexible, Competitive and efficient with better productivity. The winning strategies for them could be clear customer segmentation and product offerings focus on Cost efficiencies and entrepreneurial ability to face stiff competition. Reserve bank of India which is aims at financial stability through structural and regulatory measures. It envisages the new economic reforms in the banking sectors as those aimed at enhancing operational efficiency thorough completion and prudential norms. The new global banking environment influences the Indian banking sector to keep away for priority sector lending. The biggest challenge for the banks in India is efficient management of non-performing assets (NPA’s). So the study focuses to know what is the non-performing Assets are, and how they can handle to reduce loss. The present agricultural financing polices followed by public sector banks including RRBs are needs to be evaluated.