Performance Evaluation of Karnataka Vikas Grameena Bank towards Priority Sector Lending in Karnataka

Abstract

<div><p><em>Rural Banking in India refers to a set up of financial institutions for the economic improvement of rural poor in rural areas. The Karnataka Vikas Grameena Bank is the one of the leading RRBs in Karnataka and has occupied an unique place in the multiagency approach applied to provide agricultural and rural credit in rural areas of Karnataka. </em><em>The KVG Bank has the front runner in catering to the needs of the farmers, traders, rural artisans, Professionals, self-employed, contractors and all other sections of the society.</em></p><p><em>In this paper an attempt is made to evaluate the role of the Karnataka Vikas Grameena Bank towards priority sector lending in Karnataka, through the parameters like disbursement of loan to various priority sectors like Agriculture, allied Activities, SSI units and Trade or Services. The study reported that,</em> <em>the KVG Bank has provided highest loan to agriculture as compare to other sector of the rural area and playing the significant role towards the development of agriculture sector. Further it is noted that the priority sector advances of the bank to allied activities is insignificant reflecting its utter negligence of allied activities.</em></p></div>