Sample Project

A COMPARATIVE STUDY ON PRIORITY SECTOR LENDING OF PUBLIC
AND PRIVATE SECTOR BANKS

By
NAVINAA K.V. (121136030)
&
SEKARINI S. (121136042)
A PROJECT REPORT
Submitted to the
SCHOOL OF MANAGEMENT
Under the Guidance of
DR. J. SETHURAMAN
(Head – School of Management)
In partial fulfilment for the award of the degree of
BACHELOR OF COMMERCE (BFSI)
SASTRA DEEMED TO BE UNIVERSITY THANJAVUR
SCHOOL OF MANAGEMENT
SASTRA DEEMED TO BE UNIVERSITY
Shanmugha Arts, Science, Technology & Research Academy
(A University established under Section 3 of UGC Act, 1956)
Thirumalaisamudram, Thanjavur – 613 401
Tamil Nadu, INDIA
June, 2021
I
BONAFIDE CERTIFICATE
Certified that the project titled “A Study on the Priority Sector Lending in
different private sector and public sector banks.” is the bonafide work of Miss.
NAVINAA
K. V. (Reg. No. 121136030) & Miss. SEKARINI S. (Reg. No. 121136042)
who carried out the work under my supervision. Certified further that to the best
of my knowledge the work reported herein does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.
Signature of the Guide Signature of the Head - SOM
Submitted to the Viva Voice held on ……………………………
Internal Examiner External Examiner

DECLARATION
I hereby declare that the project entitled “A study on Priority Sector

Lending in different Private sector and Public sector Banks.” Submitted for
the B. Com (BFSI) Degree is my original work and the dissertation has not
formed the basis for award of any degree, associateship, fellowship, or any
other similar titles.
Place: 1. NAVINAA K.V.
(121136030)
Date: 2. SEKARINI S.
(121136042)
ACKNOWLEDGEMENT
Our heart is filled with gratitude to the God Almighty for empowering us with
courage, wisdom and strength to complete this project successfully. We give him
all the glory, honour, and praise.
We take this opportunity to acknowledge our deep sense of gratitude to our

honourable Dr. S. Vaidhyasubramaniam, Vice Chancellor, SASTRA Deemed
to be University, for having given us an opportunity to do this B. Com (BFSI)
programme.
We are extremely thankful to our beloved Dr. S. Swaminathan, Dean –

Planning and Development, SASTRA Deemed to be University, for giving
concrete support to this research work.
We are thankful to our beloved Dr. R. Chandramouli, Registrar, SASTRA

Deemed to be University, for vital support.
We express our heartfelt thanks to Dr. J. Sethuraman, Head – School of

Management, SASTRA Deemed to be University, who is also our project guide,
for his suggestions and assistance offered for completion of this project. It is our
pleasure to express our grateful thanks to sir for his immeasurable inspiration and
valuable guidance for completing this project successfully.
We would like to thank our beloved parents for helping us every aspect of
educational endeavour.
Last but not the least; we would like to express our sincere thanks to our
classmates and computer lab technicians in our department for successful
completion of this project
NAVINAA K.V. (121136030)
SEKARINI S. (121136042)
A STUDY ON PRIORITY SECTOR LENDING IN DIFFERENT
PRIVATE SECTOR AND PBLIC SECTOR BANKS
Student’s Name: Guide

Name
NAVINAA K.V. (121136030) Dr. SETHURAMAN J.
SEKARINI S. (121136042)
ABSTRACT
Indian Banks play an important role in economic growth and development of

country. A bank is a financial institution licensed to receive deposits and make
loans. In India there are several types of banks including Retail, Commercial and
Investment banks. The objective of the study is to analyse the performance of
Private sector banks and Public sector banks in Priority Sector Lending. Priority
sector refers to those sectors of the economy which may not get timely and
adequate credit and may be ignored because they are low income generating
sector. But for the overall and the holistic development of an economy and in the
country the progress of these sectors are important too and they have been given a
special status as PRIORITY SECTOR. In this study, we have selected five public
sector banks and private sector banks. The data for this study is collected from the
balance sheet of the annual report of each banks respectively. The study is
conducted to know the performance of selected banks through percentage
analysis (based on the amount lent to priority sector by each bank). The selected
private banks are HDFC bank, ICICI bank, Axis bank, Kotak Mahindra bank,
Federal bank and the selected public sector banks are Bank of Baroda, Bank of
India, Central bank of India, Canara bank and State bank of India. Time period
for the study is taken for 5 years from financial year 2015-2016 to 2019-2020.
Data collected for this study is purely secondary in nature and are collected from
the annual report of each banks.
Key words: Private banks, Public banks, priority sector lending, Annual report,
Balance sheet, Schedule 9, Percentage analysis.
Student’s Signature Guide’s Signature

TABLE OF CONTENTS
CHAPTER CONTENTS PAGE NO

Introduction
1.1 Introduction
1.2 Categories under PSL
1.3 Targets or Sub targets of PS
1.4 Scope of the Study
1.5 Statement of the problem
1.6 Objective of the study
1 1.7 Research methodology 1-9
1.8 Source of Data
1.9 Data collection
1.10 Secondary data
1.11 Data Analysis
1.12 Limitations of the study
1.13 Chapter schemes
Profiles of the study

2 2.1 Industry profile 10-15
2.2 Company profile
3 Literature Review 16-22
Data analysis and Interpretation
Tabulation of
4.1 Private banks
4.2 Public banks
4.3 Comparison of private
banks
4 4.4 Comparison of Public banks 23-68
4.5 Comparison of Public and
Private banks
Graphical representation of
4.6 Private banks
4.7 Public banks
4.8 Comparison of private
banks
4.9 Comparison of Public banks
4.10 Comparison of Public and
Private banks
Conclusions
5 5.1 Findings 69-71
5.2 Conclusions
5.3 Suggestions
6 Appendices 72-77
List of References
7 7.1 Annual reports of Banks 78-79
7.2 Reference Book
7.3 Reference Articles
LIST OF TABLES
SN. NO. TABLES PAGE NO

HDFC BANK
ICICI BANK
1 AXIS BANK 24-26
KOTAK MAHINDRA BANK
FEDERAL BANK
BANK OF BARODA
BANK OF INDIA
2 CENTRAL BANK OF INDIA 27-29
CANARA BANK
STATE BANK OF INDIA
3 Comparison of PRIVATE banks 29-32
4 Comparison of PUBLIC banks 32-35
5 Comparison of PRIVATE and 36-44
PUBLIC banks
LIST OF CHARTS AND GRAPHS
SN. NO. TABLES PAGE NO

HDFC BANK
ICICI BANK
1 AXIS BANK 44-46
KOTAK MAHINDRA BANK
FEDERAL BANK
BANK OF BARODA
BANK OF INDIA
2 CENTRAL BANK OF INDIA 47-59
CANARA BANK
STATE BANK OF INDIA
3 Comparison of PRIVATE banks 50-53
4 Comparison of PUBLIC banks 54-58
5 Comparison of PRIVATE and 58-68
PUBLIC banks
.
CHAPTER 1: INTRODUCTION
1
INTRODUCTION
1.1 INTRODUCTION
The nationalization of the 14 major commercial banks in July 1969 led to a

considerable reorientation of bank lending, especially to the priority sectors of the
economy, which had not previously received sufficient attention from the commercial
banks. It gave an impetus to the process of reallocation of banking resources to suit the
socio-economic needs of the country. There was a greater involvement of banks in
these and other socially desirable sectors. Moreover, institutional credit facilities at
reasonable rates of interest were extended to a large number of borrowers of small
means such as
 Small farmers
 Small-scale manufacturers
 Retail traders
 Road transport operators
 Small businessmen
 Professionals
 Self-employed persons
 Education.
One of the objectives of nationalization of 14 major commercial banks was to ensure

that no viable productive endeavor should falter for lack of credit support, irrespective
of the fact whether the borrower was big or small. Thus, the concept of priority sector
lending was evolved further to ensure that assistance from the banking system flowed
in an increasing measure to the vital sectors of the economy and according to national
priorities. There have been several changes in the composition of priority sector over
the years. At present, the priority sector broadly comprises agriculture, SSI and other
segments such as
 Small business
 Retail trade
 Small road and water transport operators
 Professional
 Self-employed persons
 Housing
 Education loans
 Micro credit
 Software
1.2 CATEGORIES UNDER PRIORITY SECTOR LENDING
AGRICULTURE
The activities covered under Agriculture are classified under three sub-categories viz.
Farm credit, Agriculture infrastructure and Ancillary activities. 18% of ANBC or Credit
Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. Within the
18% target for agriculture, a target of 8% of ANBC or Credit Equivalent Amount of
Off- Balance Sheet Exposure, whichever is higher is prescribed for Small and Marginal
Farmers.
MICRO, SMALL AND MEDIUM ENTERPRISES
For classification under priority sector, no limits are prescribed for bank loans
sanctioned to Micro, Small and Medium Enterprises engaged in the manufacture or
production of goods under any industry specified in the first schedule to the Industries
(Development and Regulation) Act, 1951 and as notified by the Government from time
to time. Bank loans to Micro, Small and Medium Enterprises engaged in providing or
rendering of services and defined in terms of investment in equipment under MSMED
Act, 2006, irrespective of loan limits, are eligible for classification under priority sector
EXPORT CREDIT
The RBI has been decided to enhance the sanctioned limit, for classification of
export credit under PSL, from Rs.25crore per borrower to Rs.40crore per borrower.
EDUCATION
Loans to individuals for educational purposes including vocational courses, Rs.1

million irrespective of the sanctioned amount are eligible for classification under
priority sector
HOUSING
Loans to individuals up to Rs.3.5 million in metropolitan centres (with population of
ten lakhs and above). Loans up to Rs.2.5 million in other centres for
purchase/construction of a dwelling unit per family, are eligible to be considered as
priority sector. The overall cost of the dwelling unit in the metropolitan centre and at
other centres does not exceed Rs.4.5 million and Rs.3 million, respectively. Housing
loans to banks’ own employees are not eligible for classification under priority sector.
SOCIAL INFRASTRUCTURE
Bank loans up to a limit of Rs.50 million per borrower for building social
infrastructure for activities namely schools, health care facilities, drinking water
facilities and sanitation facilities (including loans for construction/ refurbishment of
toilets and improvement in water facilities in the household) in Tier II to Tier VI
centres are eligible for classification under priority sector.
RENEWABLE ENERGY
Bank loans up to a limit of Rs.150 million to borrowers for purposes like solar based
power generators, biomass based power generators, wind mills, micro-hydel plants and
for non-conventional energy based public utilities viz. street lighting systems, and
remote village electrification are eligible to be classified under priority sector loans
under ‘Renewable Energy’. For individual households, the loan limit is Rs.1 million per
borrower.
OTHER WEAKER SECTIONS
 Small and Marginal Farmers

 Artisans, village and cottage industries where individual credit limits do not
exceed Rs.0.1 million
 Beneficiaries under Government Sponsored Schemes NRLM, NULM and
SRMS.
 Scheduled Castes and Scheduled Tribes
 Beneficiaries of Differential Rate of Interest (DRI) scheme
 Self Help Groups
 Distressed farmers indebted to non-institutional lenders
 Distressed persons other than farmers, with loan amount not exceeding Rs.0.1
million per borrower to prepay their debt to non-institutional lenders
 Individual women beneficiaries up to Rs.0.1 million per borrower
 Persons with disabilities Overdraft limit to PMJDY account holder upto Rs.
10,000 with age limit of 18-65 years
 Minority communities as may be notified by Government of India from time to
time
1.3 TARGETS OR SUB TARGETS OF PRIORITY SECTOR
The targets and sub-targets set under priority sector lending, to be computed on the
basis of the ANBC/ CEOBE as applicable as on the corresponding date of the
preceding year, are as under:
Categories Domestic Foreign banks Regional Rural Small Finance

commercial with less than Banks Banks
banks except 20 branches
RBI and SFB
and foreign
banks with 20
branches and
above
Total Priority 40% of ANBC 40% of ANBC 75% of ANBC 75% of ANBC
Sector or CEOBE or CEOBE or CEOBE or CEOBE
whichever is whichever is whichever is whichever is
higher higher higher higher
32% - exports
8% - other PSL
Agriculture 18% of ANBC Not applicable 18% of ANBC 18% of ANBC
or CEOBE or CEOBE or CEOBE
whichever is whichever is whichever is
higher higher higher
10% - SMF 10% - SMF 10% - SMF
Micro 7.5% of ANBC Not applicable 7.5% of ANBC 7.5% of ANBC
Enterprises or CEOBE or CEOBE or CEOBE
whichever is whichever is whichever is
Advances to 12% of ANBC Not applicable 12% of ANBC 12% of ANBC

weaker or CEOBE or CEOBE or CEOBE
sections whichever is whichever is whichever is
The Targets for lending SMF and other weaker sections shall be revised upwards
from Accounting Year 20221-2022 as follows
Existing 2020-2021 2021-2022 2022-2023 2023-2024

Targets
Priority Sector 45% 50% 60% 75%
lending
Small and 8% 9% 9.5% 10%
Marginal
Farmers
Weaker 10% 11% 11.5% 12%
Sections
1.4 SCOPE OF THE STUDY
The scope of a study explains the extent to which the research area will be explored
in the work and specifies the parameters within the study will be operating. This study
is based on the information that is collected from the Annual Report of the selected
banks. This study covers the trend of lending by the selected banks and interpret
whether it increasing or decreasing.
1.5 STATEMENT OF THE PROBLEM
The point of investigation that is explored in this research is priority sector lending in
top five private sector banks and public sector banks for the past five years. Priority
Sector Lending is an important role given by the (RBI) to the banks for providing a
specified portion of the bank lending to few specific sectors like agriculture and allied
activities, micro and small enterprises, poor people for housing, students for education
and other low income groups and weaker sections. This study focuses on the
comparison of priority sector lending between private sector banks, between public
sector banks and between public and private sector banks.
1.6 OBJECTIVES OF THE STUDY
The following are the significance objectives of the study
1. The main objective of this study is to know and compare the Priority Sector
Lending Advances in different private sector banks and public sector banks.
2. To find out the total Priority sector lending in each banks for the past five
years and to check the trend whether it is increasing or decreasing
3. To identify the key services provided by banks to lower income groups and
weaker section through priority sector lending
4. To identify what are the different type of schemes of advances provided by
banks to the weaker section
5. To identify and analyse what type of loans are preferred by the customers in
large proportion
6. To identify the guidelines of the Priority Sector Loa
1.7 RESEARCH METHODOLOGY
This Research is based on Associational Research that is nothing but a casual

comparison between advances given by the selected banks. The main part of this
research is only through Secondary data which is obtained from Internet. As the topic is
wholly dependent on the data which has been collected from the previous years there is
no interference of any respondents in present
1.8 SOURCE OF DATA
This study is based on Secondary data. The information required for this study is
collected from the Annual Report of the selected Public sector banks and Private sector
banks. This study covers the information of Priority sector advances given to the lower
section people and also the loan limit given to each sub category of the priority sector
lending.
1.9 DATA COLLECTION
The study is mainly based on the secondary data which has been collected through the
source on Internet. For this study five public sector banks and five private sector banks
has been selected and the data for the past five years have been collected. The data is
collected from the Annual report for the accounting year i.e. The data are sourced from
the balance sheet, total advances, priority sector lending and the lending rate of each
sub category.
1.10 SECONDARY DATA
Secondary data is nothing but sourcing and collecting the data that has already been
collected by the Government and published documents. So in our study the leading
helpful data is the data that has been obtained from the Annual Reports.
1.11 DATA ANALYSIS
Analysis of data from private sector banks and public sector banks through
percentage analysis for the comparison of priority sector advances extended by the
banks.
1.12 LIMITATIONS OF THE STUDY
The following are main limitations of the study
1. As it is only with Secondary data there is no interaction with the public about
the priority sector lending in current times.
2. The data are general and vague that may not really help in decision making.
3. The information and data may not be accurate as it is obtained from the
existing ones.
1.13 CHAPTER SCHEMES
CHAPTER 1: INTRODUCTION
This chapter deals with the Introduction and Research design. The Research design
comprises of the introduction, objectives of the study, scope of the study, research
methodology, sources and collection of data, data analysis and its tools and limitations
of the study.
CHAPTER 2: BANKING PROFILE

This chapter deals with the detailed information of the categories of the priority
sector lending, their loan rates and the information about the selected top five public
sector and private sector banks.
CHAPTER 3: LITERATURE REVIEW
This chapter enhances us to know about different literature review and its relevant
concepts.
CHAPTER 4: ANALYSIS AND INTERPRETATION
This chapter deals with analysis and interpretation of data that has been collected
from different bank with different tools.
CHAPTER 5: FINDINGS AND CONCLUSIONS
This chapter enables us to know about the finding from analysis and interpretations,
suggests the best one and gives the conclusion.
CHAPTER 2: PROFILES OF THE STUDY
PROFILES
2.1 INDUSTRY PROFILES
Bank means accepting deposits and lending loans. We can classify banks based on
various categories. In this study, we classified banks into two main categories:
 PRIVATE SECTOR BANKS

 PUBLIC SECTOR BANKS
PRIVATE SECTOR BANKS
Banks whose greater part of the equity is held by private shareholders and entities
rather than government is known as private sector banks. Banks which are operated
before globalisation (1991) are known as old generations private sector banks. Banks
which are operated after globalisation (1991) is known as new generation private sector
banks
PUBLIC SECTOR BANKS
Public sector banks are those banks whose more than 50% share holdings lies with
the central or state government. These banks are listed on stock exchange. In the Indian
banking system, PSB’s are the largest categories of banks and emanated before
independence. Over 70% of the market share in the Indian banking sector is dominated
by the PSB’s. These are classified into two groups i.e. Nationalised banks and State
banks
2.2 COMPANY PROFILES
TOP FIVE PRIVATE SECTOR BANKS AND PUBLIC SECTOR BANKS
PRIVATE SECTOR BANKS PUBLIC SECTOR BANKS

HDFC BANK BANK OF BARODA
ICICI BANK BANK OF INDIA
AXIS BANK CENTRAL BANK OF INDIA
KOTAK MAHINDRA BANK CANARA BANK
FEDERAL BANK STATE BANK OF INDIA
2.2.1 HDFC BANK
A subsidiary of the Housing Development Finance Corporation, HDFC Bank was

incorporated in 1994, with its registered office in Mumbai, Maharashtra. As of 30
June 2019, the Bank's distribution network was at 5,500 branches across 2,764 cities.
The bank also installed 430,000 Point of Sale terminals and issued 23,570,000 debit
cards and 12 million credit cards in 2017. HDFC Bank provides a number of products
and services including wholesale banking, retail banking, treasury, auto loans, two-
wheeler loans, personal loans, loans against property, consumer durable loan, lifestyle
loan and credit cards. Along with Payzapp and SmartBUY
2.2.2 ICICI BANK
ICICI Bank was established by the Industrial Credit and Investment Corporation
of India (ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994
in Vadodara. ICICI Bank Limited is an Indian Development finance institution with
its registered office in Vadodara, Gujarat and corporate office in Mumbai,
Maharashtra. It offers a wide range of banking products and financial services for
corporate and retail customers through a variety of delivery channels and specialised
subsidiaries in the areas of investment banking, venture capital and asset management.
The bank has a network of 5,275 branches and 15,589 ATMs across India and has a
presence in 17 countries. ICICI Bank offers products and services such as online money
transfers, tracking services, current accounts, savings accounts, time deposits, recurring
deposits, mortgages, loans, automated lockers, credit cards, prepaid cards, debit cards
and digital wallets called ICICI pockets.
2.2.3 AXIS BANK
The bank was founded in December 1993 as UTI Bank, opening its registered office
in Ahmedabad and a corporate office in Mumbai. The bank was promoted jointly by the
Administrator of the Unit Trust of India (UTI), Life Insurance Corporation of
India (LIC), General Insurance Corporation, National Insurance Company, The New
India Assurance Company, The Oriental Insurance Corporation and United India
Insurance Company. The first branch was inaugurated on 2 April 1994
in Ahmedabad by Manmohan Singh, then finance minister of India. Services are Retail
banking, corporate banking and International banking
2.2.4 KOTAK MAHINDRA BANK
In 1985, Uday Kotak founded what later became an Indian financial services
conglomerate. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the group's
flagship company, received a banking licence from the Reserve Bank of India. With
this, KMFL became the first non-banking finance company in India to be converted
into a bank. Services and Products offered by Kotak Mahindra bank are Bank business
loan, Bank car loan, Credit card, Debt card, Bank education loan, Bank gold loan, Bank
home loan, Loan against property, etc.
2.2.5 FEDERAL BANK
The Federal Bank Limited (the erstwhile Travancore Federal Bank Limited) was
incorporated with an authorised capital of ₹5,000 at Nedumpuram, a place
near Thiruvalla in Central Travancore on 23 April 1931 under the Travancore
Companies Act. It started business of auction-chitty and other banking transactions
connected with agriculture and industry. The bank name was named Federal Bank
Limited on 2 December 1949, after completing the formalities of Banking Regulation
Act, 1949. Between 1963 and 1970, Federal Bank took over Chalakudy Public Bank
(est. 20 July 1929 in Chalakudy), Cochin Union Bank (est. 1963) in Thrissur, Alleppey
Bank (est 1964; Alappuzha), St. George Union Bank (est. 1965) in Puthenpally, and
Marthandam Commercial Bank (est. 1968) in Thiruvananthapuram. In 1970, Federal
Bank became a scheduled commercial bank and came out with its initial public offering
in 1994. As of all the banks Federal bank also provides all kind of products and services
such as Business loan, Car loan, Debit and Credit card, Gold loan, etc.
2.2.6 BANK OF BARODA
The bank was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III
on 20 July 1908. The bank, along with 13 other major commercial banks of India, was
nationalised on 19 July 1969, by the Government of India and has been designated as a
profit-making public sector undertaking (PSU). Bank of Baroda is one of India’s largest
banks with a strong domestic presence spanning 8,965 branches and 12,087 ATMs and
Cash Recyclers supported by self-service channels. The Bank has a significant
international presence with a network of 99 overseas offices spanning 20 countries.
2.2.7 BANK OF INDIA
Bank of India was founded on 7th September, 1906 by a group of eminent

businessmen from Mumbai. The Bank was under private ownership and control till July
1969 when it was nationalised along with 13 other banks. The Bank has over 5000
branches in India spread over all states/ union territories including specialized branches.
These branches are controlled through 55 Zonal Offices and 8 NBG Offices. There are
60 branches/ offices and 5 Subsidaries and 1 joint venture abroad. Presently Bank has
overseas presence in 18 foreign countries spread over 5 continents – with 52 offices
including 4 Subsidiaries, 1 Representative Office and 1 Joint Venture, at key banking
and financial centres viz., Tokyo, Singapore, Hong Kong, London, Paris and New
York.
2.2.8 CENTRAL BANK OF INDIA
Among the Public Sector Banks, Central Bank of India can be truly described as an
All India Bank, due to distribution of its large network in all 29 States as also in 6 out
of 7 Union Territories in India. Central Bank of India holds a very prominent place
among the Public Sector Banks on account of its network of 4659 Branches, 1
Extension counters, along with 10 Satellite Offices (as on February 2019) at various
centres throughout the length and breadth of the country.
2.2.9 CANARA BANK
Canara Bank occupies a premier position in the comity of Indian banks. Over the
years, the Bank has been scaling up its market position to emerge as a major 'Financial
Conglomerate' with as many as ten subsidiaries/sponsored institutions/joint ventures in
India and abroad. As at December 2020, the Amalgamated Canara Bank services over
10.90 crore customers through a network of 10491 branches and 12973 ATMs spread
across all Indian states and Union Territories.
2.2.10 STATE BANK OF INDIA
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public
Sector Banking and Financial services statutory body headquartered in Mumbai. The
rich heritage and legacy of over 200 years.SBI, the largest Indian Bank with 1/4th
market share, serves over 44cr customers through its vast network of over 22,000
branches, 58,500 ATMs, 66,000 BC outlets, with an undeterred focus on innovation,
and customer centricity, which stems from the core values of the Bank - Service,
Transparency, Ethics, Politeness and Sustainability. The Bank has successfully
diversified businesses through its 11 subsidiaries; SBI General Insurance, SBI Life
Insurance, SBI Mutual Fund, SBI Card It has spread its presence globally and operates
across time zones through 233 offices in 32 foreign countries.
CHAPTER 3: LITERATURE REVIEW
JAYNAL UD-DIN AHMED 1 The priority sector lending is mainly intended to ensure
that the assistance from the banking system to those sectors of the economy which has
not received adequate support of institutional finance. The attainment of the socio
economic priorities of the government like growth of agriculture, promotion of small
entrepreneurs and development of backward area etc is the major responsibility of
commercial banks. The small entrepreneurs and farmers are continued to be both credit
and demand constraints. Thus, it can be observed that the demand for funds for priority
sector viz., small entrepreneurs and agricultural sector is enormous.
R. K. UPPAL2 An enunciation of the need to channelize the flow of credit to certain

sectors of the economy, known as the priority sectors, in the largest interest of the
country, can be traced to the Reserve Bank’s credit policy for the year 1967 - 1968. The
government initiated measures for social control over banks in 1967 - 1968 with a view
to securing a better adaptation of the banking system to the needs of economic planning
and it is playing a more active role in aiding sectors like agriculture and small scale
industries (SSIs). The present study is an attempt to study the priority sector advances
by the public, private and foreign bank groups. This study is based on the parameters
like lending to priority sector by public, private sector and foreign bank groups, targets
achieved by public, private sector and foreign bank group NPAs (Non-performing
assets), while lending to priority sector. The paper also throw light on the problems or
issues which arise due to priority sector advances and also suggest some strategies to
sought out these issues.
1
Ahmed, J.U. 2005, Bank Financing of Small Scale Industries: A Diagnostic
Evaluation, Ahmed (ed.) Industrialization in North Eastern Region, Mittal Publications,
New Delhi
2
Chhimpa J (2002). “Incremental NPA: Stem that Inflow”, Vinimaya, 23
3
Dr. M. SYED IBRAHIM The main goal of establishing Regional Rural Banks in
India is to provide credit to the rural people who are not economically strong enough,
especially the small and marginal farmers, artisans, agricultural labourers and even
small entrepreneurs. The present study is a modest attempt to make an appraisal of the
rural credit structure and the role played by RRBs in the development of rural economy.
The objective of this paper is to analyse the rural credit and the role played by the
RRBs in the priority and non-priority sector landings. The study is diagnostic and
exploratory in nature and makes use of secondary data. The study finds and concludes
that RRBs in India has significantly improved rural economy
4
Dr. G NAGARAJAN, N. SATHYANARAYANA AND A. ASIF ALI The
Government of India through the instrument of Reserve Bank of India (RBI) mandates
certain type of lending on the Banks operating in India irrespective of their origin. RBI
sets targets in terms of percentage (of total money lent by the Banks) to be lent to
certain sectors, which in RBI's perception would not have had access to organized
lending market or could not afford to pay the interest at the commercial rate. This type
of lending is called Priority Sector Lending
5
RAJARAM DASGUPTA It was in 1972 that a definition of the priority sector for
lending was first made. Following the Narasimham Committee recommendations, there
have been moves made to dilute this definition. However, the priority sector appears as
nothing more than several diverse items clubbed together. This paper advocates a new
approach to priority sector lending, suggesting among other things the reduction of
mandatory credit to a larger number of sectors and sections, including marginal
farmers, cottage industries, small trade and services and low income housing;
incentives to improve credit flow to small-scale industries and food crop agriculture as
well as temporary credit to assure credit to new industries and new professions by the
non-poor section.
3
Avkiran, N.K. 1999. The Evidence of Efficiency Gains: The role of mergers and the
benefits to the public. Journal of Banking and Finance 23, 991-1013.
4
Gupta, S. P., Statistical Methods, New Delhi, Sultan Chand & Sons., 2008
5
Rajaram Dasgupta, Economic and Political Weekly, Vol. 37, No. 41 (Oct. 12-18, 2002),
6
SHARMA D.N. (2012) Priority sector lending is undoubtedly one of the most
appreciable reforms initiated by Government of India to ensure the betterment of
lagging and deprived groups of society. As per the directives of RBI all scheduled
commercial banks from public as well as private sector are hereby under compulsion to
lend at least 40 per cent of Adjusted Net Bank Credit or credit equivalent amount of Off
Balance Sheet Exposures (whichever is higher) to priority sectors. Although all Indian
bank, irrespective to their ownership, are supposed to share the responsibility of
uplifting needy section equally yet the actual scenario does not portray the same.
SHABBIR N. (2013).7 The present paper mainly analyses the trend of PSAs by Public,
Private and Foreign Banks from 1969 to 2011. After nationalisation of the Banks
directed lending to certain sectors, such as, Agriculture, SSIs and weaker section and
others, collectively known as Priority Sector was emphasized. Under this Sectoral and
Sub- sectoral targets have been laid down from time to time, with the aim of upliftment
of these sectors and to bring about a balanced development of the country. The
comparative analysis of main categories of SCBs has been carried out to find out
whether the aims of the policy have been met. If not, what are the gaps and how these
lacunae can be overcome.
KUMAR P & KUMAR S (2016) 8 Priority sector lending is still and will continue to
be an important focus and area of concern of all the commercial banks in the near
future because of hard socio-economic realities of the Indian economy. The main
objective of the paper is to analyse the level and structure of priority sector lending in
India during the 21st century. The entire study is based upon secondary data, collected
from the various relevant issues published by. The behaviour of inter-year disparities in
priority sector lending is explained with the help of co-efficient of variation. The
performance of public and private sector banks in priority sector lending has been
compared with t-test.
6
Sharma, D. N. (2012). Lending to priority sector in India: a study of public and private
banks. Paradigm, 16(1), 11-17.
7
Shabbir, N. (2013). Bankwise priority sector lending in India. International Journal of
Marketing and Technology, 3(12), 199.
8
Kumar, P., & Kumar, S. (2016). Priority Sector Lending in India by Public and Private
Sector Banks: A Comparative Analysis. MUDRA: Journal of Finance and Accounting
9
PANDA S. K., PANDA G. P. & SWAIN A. K. (2017) Compulsory sanctioning
credit or priority sector lending is part of the regulatory framework for commercial
banks/ financial institutions in many countries, both developing and developed.
However, compliance and lending effectiveness of such programs may be determined
by a number of factors.The present paper aims at examining the patterns of priority
sector lending by banks, with a view to identifying the factors which determine this
lending. The results indicate gaps in patterns of the sect oral target compliance by
different bank groups, along with the lending preferences and challenges faced by
banks in such lending. It also identifies bank-specific characteristics like the nature of
ownership, size, performance, etc., which have a significant impact on the priority
sector lending patterns. Based on its findings, the paper offers policy suggestions for
improving the effectiveness of priority sector lending program.
10
TIWARI S. (2017) the nationalisation of banks in 1969, financial inclusion became
one of the major goals of inclusive growth which was followed by a series of banking
sector reforms during decades of 1990s and later in 2000s. Agriculture, micro and small
scale enterprises, weaker sections of society, education and export credit were
categorised as priority sector by the RBI and 40% of the ANBC or advances given by
the scheduled commercial banks were specifically kept reserved for serving the
financing needs of these sectors known as priority sector lending. The present paper is
an attempt to critically review the performance of the PSL in India with a focus on
analysing the sectoral performance coupled with the assessment of problems of NPAs
caused by the PSLs with particular reference to Scheduled Commercial Banks (SCBs).
9
Panda, S. K., Panda, G. P., & Swain, A. K. (2017). Determinants of Priority Sector
Lending of Indian Public Sector Banks: An Econometric Analysis. International Journal
of Research-GRANTHAALAYAH, 5(7), 461-473.
10
Tiwari, S. (2017). Performance of Priority Sector Lending in India: A Critical
Review. LBS Journal of Management & Research, 15(1), 23-33.
BHANDARI M. (2019) 11 RBI has assigned a significant role to the commercial banks
of providing Priority sector lending (PSL) to the few specified sectors. In a developing
country like India, Mandatory sanctioning of Credit or Priority sector lending (PSL) is a
part of regulatory framework for the Commercial Banks. These sectors are the deprived
sections of the economy, popularly known as Priority sector. Banks play an important
role in creation of credit. So, at the time of allocation of credit, they need to lend a
specified portion of the credit to the Priority sector. The present study focuses on the
structure of Public sector banks, Private sector banks and foreign banks in India and to
what extent these banks have successful in implementing the policies of RBI regarding
the Priority sector lending (PSL).
12
BANO N. & SHARMA M. (2020) The banking sector plays a vital role in the
development of the economy and the role of bank credit in economic development
cannot be neglected. For removal of poverty and equitable distribution of income,
various credit arrangements have been arranged by RBI off and on and one of them is
Priority Sector Lending. In Priority Sector Lending, credit is given to those sectors
which are creditworthy and contribute to the national product of an economy but not
able to perform well due to lack of finance. Priority sector includes agriculture,
MSMEs, educational loans, housing loans, export credit, social infrastructure, small
business, and weaker sections of the society, etc. RBI issues various guidelines from
time to time to do the financial inclusion in these sectors, in the same line, new
guidelines have been issued by RBI on September 4, 2020.
11
Bhandari M. (2019) Utilisation of Priority Sector Lending (PSL)-An Analysis of
Commercial Banks. European Journal of Business and Social Sciences, 7(4), 1171-
1176.
12
Bano, N., & Sharma, M. (2020). Priority sector lending in India: Revisiting the issue
under new guidelines of RBI. IJAR, 6(12), 394-398
KADIWALA K. A. A 13 Commercial banks have advised to grant at least 40% of their
total advance to borrowers in the priority sector. The priority sector lending is mainly
intended to ensure that the assistance from the banking system to those sectors of the
economy which has not received adequate support of institutional finance. This
research paper is explaining the performance of the commercial bank in priority sector
lending. In this research secondary data have been used. This research analysed by
statistical tool like F- test (ANOVA). Major finding of the research is that priority
sector lending by sample banks have failed to reach the target which given by RBI
during the study period.
14
MUKESH R. Banking sector plays a pivotal role in the development of an
economy. Like any other organization, banks also required to follow ethics and social
responsibility since the environment in which they operate are subject to changes. Mass
banking driven by pro-poor policies was a positive outcome of the nationalization of
banks in India. Additionally, thrust was given to branch expansion, particularly in rural
and semiurban areas. Special focus has given to the small and medium scale industries
for promoting equitable development. Small scale industries are one of the best
employment providers in India and they need special care in priority sector lending.
15
Dr. KAMLESH S. DAVE A bank is an institution which accepts deposits from the
public as well as lends money to the public. From the definition itself it is clear that one
of the primary functions of a bank is lending of money. The main source of income of a
banking institution is the interest from their clients. Income of interest is generated by
lending the money to the public by various means and technically it is known as loans
and advances in finance industry.
13
Kadiwala, K. A. A Study on Priority Sector Lending by Public Sector Banks and
Private Sector Banks in India.
14
MUKESH, R. NEW ECONOMIC POLICY AND PRIORITY SECTOR LENDING.
15
Dave, D. K. (2016). A Study of Priority Sector Lending for Selected Public Sector
Banks of India. IJRAR-International Journal of Research and Analytical Reviews, 3(3),
84-86.
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
4.1 TABULATION OF THE DATAS OF TOP 5 PRIVATE BANK’S PRIORITY
SECTOR LENDING
This part is the study about the private sector bank’s role in priority sector lending
based on the data collected in previous last 5 years
Below is the table showing the data from the ANNUAL REPORT of each private
bank. The collected data are: The total of the balance sheet, Total Advances from
Schedule 9 of the Balance sheet and Priority sector lending from Total Advances for
the past 5 years
4.1.1 HDFC BANK
ACCOUNTING BALANCE TOTAL PRIORITY

YEAR SHEET TOTAL ADVANCES SECTOR
(Rs) (Rs) LENDING
(Rs)
2019-2020 15,305,112,589 9,937,028,781 2,541,995,300
2018-2019 12,445,406,906 8,194,012,162 2,174,223,445
2017-2018 10,639,343,234 7,000,338,363 1,765,302,486
2016-2017 8,638,401,917 5,854,809,871 1,646,022,483
2015-2016 7,088,455,651 4,872,902,172 1,427,201,985
4.1.2 ICICI BANK

(Rs) (Rs) LENDING
(Rs)
2019-2020 10,983,651,492 6,452,899,697 1,909,002,118
2018-2019 9,644,591,478 5,866,465,827 1,696,365,965
2017-2018 8,791,891,613 5,668,542,198 929,701,682
2016-2017 7,717,914,460 4,642,320,842 1,065,527,064
2015-2016 7,206,951,047 4,937,291,077 924,348,694
4.1.3 AXIS BANK

(Rs) (Rs) LENDING
(Rs)
2019-2020 9,151,648,101 5,714,241,564 1,438,593,307
2018-2019 8,009,965,310 4,947,979,721 1,188,930,411
2017-2018 6,913,295,799 4,396,503,045 986,081,073
2016-2017 6,014,676,703 3,730,693,495 938,737,979
2015-2016 5,254,676,181 3,387,731,229 816,013,439

(Rs) (Rs) LENDING
(Rs)
2019-2020 4,431,727,117 2,498,789,578 733,388,522
2018-2019 3,951,712,481 2,434,619,939 722,728,549
2017-2018 3,377,204,737 2,059,973,244 592,840,270
2016-2017 2,761,875,587 1,511,249,109 487,109,122
2015-2016 2,408,035,759 1,447,928,152 413,449,029
4.1.5 FEDERAL BANK

(Rs) (Rs) LENDING
(Rs)
2019-2020 1,806,380,469 1,222,679,148 296,524,927
2018-2019 1,593,399,947 1,102,229,537 300,456,563
2017-2018 1,383,139,542 930,108,877 365,327,553
2016-2017 1,149,769,323 740,862,295 201,355,767
2015-2016 914,300,300 580,901,448 185,293,996
4.1.6 TABLE SHOWING THE PRIORITY SECTOR LENDING BY TOP 5
PRIVATE SECTOR BANKS FOR THE PAST 5 YEARS
Below is the table showing the PRIORITY SECTOR LENDING of the selected
FIVE PRIVATE SECTOR BANKS for the past 5 years
BANKS PRIORITY SECTOR LENDING

ACCOUNTING YEAR
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
HDFC 2,541,995,300 2,174,223,445 1,765,302,486 1,646,022,483 1,427,201,985
BANK
ICICI BANK 1,909,002,118 1,696,365,965 929,701,682 1,065,527,064 924,348,694
AXIS BANK 1,438,593,307 1,188,930,411 986,081,073 938,737,979 816,012,439
KOTAK 733,388,522 722,728,549 592,840,270 487,109,122 413,449,029

MAHINDRA
BANK
FEDERAL 296,524,927 300,456,563 265,327,553 201,355,767 185,293,996
BANK
4.2 TABULATION OF THE DATA OF TOP 5 PRIVATE BANK’S PRIORITY

SECTOR LENDING
This part is the study about the private sector bank’s role in priority sector lending
based on the data collected in previous last 5 years
Below is the table showing the data from the ANNUAL REPORT of BANK OF
each public bank. The collected data are: The total of the balance sheet, Total Advances
from Schedule 9 of the Balance sheet and Priority sector lending from Total Advances
for the past 5 years

(Rs) (Rs) LENDING
(Rs)
2019-2020 11,579,155,151 6,901,207,340 1,953,165,351
2018-2019 7,809,874,049 4,688,187,362 1,299,690,318
2017-2018 7,199,997,716 3,242,385,002 1,129,898,142
2016-2017 6,948,754,235 2,775,237,361 1,040,766,509
2015-2016 6,713,764,769 2,632,683,832 921,780,169
(000’S OMITTED)
4.2.2 BANK OF INDIA

(Rs) (Rs) LENDING
(Rs)
2019-2020 6,569,954,817 3,188,239,964 1,125,757,202
2018-2019 6,252,228,437 2,930,517,426 1,121,314,154
2017-2018 6,095,748,260 3,413,801,866 1,015,893,551
2016-2017 6,263,092,666 3,664,816,671 954,638,291
2015-2016 6,099,139,267 3,591,889,592 918,603,215
(AMT IN 000’S)
4.2.3 CENTAL BANK OF INDIA

(Rs) (Rs) LENDING
(Rs)
2019-2020 3,564,358,573 1,511,008,778 734,915,379
2018-2019 3,307,176,639 1,465,253,606 774,650,563
2017-2018 3,262,252,754 1,565,421,771 783,546,358
2016-2017 3,334,019,442 139,387,698 692,204,013
2015-2016 3,054,660,996 1,800,095,880 756,054,399
(000’S OMITTED)
4.2.4 CANARA BANK

(Rs) (Rs) LENDING
(Rs)
2019-2020 7238747453 4321752048 1877188374
2018-2019 6947666905 4277272684 1794327618
2017-2018 6168861048 3820745789 1578809420
2016-2017 5835194435 3423201417 1367188028
2015-2016 5829607783 3031064565 1249520990
(AMT IN 000’S)

(Rs) (Rs) LENDING
(Rs)
2019-2020 39513939180 19691804766 5266758735
2018-2019 36809142489 18848794677 5207297750
2017-2018 34547519966 16366077903 4483589560
2016-2017 27059663041 2775237361 3412575006
2015-2016 22590630328 2632683832 3285514999
(000’S OMITTED)
4.2.6 TABLE SHOWING THE PRIORITY SECTOR LENDING BY TOP 5

PUBLIC SECTOR BANKS FOR THE PAST 5 YEARS
Below is the table showing the PRIORITY SECTOR LENDING of the selected
FIVE PUBLIC SECTOR BANKS for the past 5 years
BANKS PRIORITY SECTOR LENDING

ACCOUNTING YEAR
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
BANK OF 1953165351 1299690318 1129898142 1040766509 921780169
BARODA
BANK OF 1125757202 1121314154 1015893551 954638291 918603215
INDIA
CENTRAL 734915379 774650563 783546353 692204013 756054399
BANK OF
INDIA
CANARA 1877188379 1794327618 1578809420 1367188028 1249520990
BANK
STATE 5266758735 5207297760 4483589560 341257500 3285514999
BNK OF
INDIA
4.3 TABLE SHOWING COMPARISON OF DATA BETWEEN THE PRIVATE
BANKS
4.3.1 COMPARISON BETWEEN HDFC BANK AND ICICI BANK
ACCOUNTING PRIORITY SECTOR LENDING

YEAR/BANKS HDFC BANK ICICI BANK
2019-2020 2,541,995,300 1,909,002,118
2018-2019 2,174,223,445 1,696,365,965
2017-2018 1,765,302,486 929,701,682
2016-2017 1,646,022,483 1,065,527,064
2015-2016 1,427,201,985 924,348,694
4.3.2 COMPARISON BETWEEN HDFC BANK AND AXIS BANK

YEAR/BANKS HDFC BANK AXIS BANK
2019-2020 2,541,995,300 1,438,593,307
2018-2019 2,174,223,445 1,188,930,411
2017-2018 1,765,302,486 986,081,073
2016-2017 1,646,022,483 938,737,979
2015-2016 1,427,201,985 816,013,439
4.3.3 COMPARISON BETWEEN HDFC AND KOTAK MAHINDRA BANK

YEAR/BANKS HDFC BANK KOTAK MAHINDRA
BANK
2019-2020 2,541,995,300 733,388,522
2018-2019 2,174,223,445 722,728,549
2017-2018 1,765,302,486 592,840,270
2016-2017 1,646,022,483 487,109,122
2015-2016 1,427,201,985 413,449,029
4.3.4 COMPARISON BETWEEN HDFC BANK AND FEDERAL BANK

YEAR/BANKS HDFC BANK FEDERAL BANK
2019-2020 2,541,995,300 296,524,927
2018-2019 2,174,223,445 300,456,563
2017-2018 1,765,302,486 365,327,553
2016-2017 1,646,022,483 201,355,767
2015-2016 1,427,201,985 185,293,996
4.3.5 COMPARISON BETWEEN ICICI BANK AND AXIS BANK

YEAR/BANKS ICICI BANK AXIS BANK
2019-2020 1,909,002,118 1,438,593,307
2018-2019 1,696,365,965 1,188,930,411
2017-2018 929,701,682 986,081,073
2016-2017 1,065,527,064 938,737,979
2015-2016 924,348,694 816,013,439
4.3.6 COMPARISON BETWEEN ICICI BANK AND KOTAK MAHINDRA
BANK

YEAR/BANKS ICICI BANK KOTAK MAHINDRA
BANK
2019-2020 1,909,002,118 733,388,522
2018-2019 1,696,365,965 722,728,549
2017-2018 929,701,682 592,840,270
2016-2017 1,065,527,064 487,109,122
2015-2016 924,348,694 413,449,029
4.3.7 COMPARISON BETWEEN ICICI BANK AND FEDERAL BANK

YEAR/BANKS ICICI BANK FEDERAL BANK
2019-2020 1,909,002,118 296,524,927
2018-2019 1,696,365,965 300,456,563
2017-2018 929,701,682 365,327,553
2016-2017 1,065,527,064 201,355,767
2015-2016 924,348,694 185,293,996
4.3.8 COMPARISON BETWEEN AXIS BANK AND KOTAK MAHINDRA

BANK

YEAR/BANKS AXIS BANK KOTAK MAHINDRA
BANK
2019-2020 1,438,593,307 733,388,522
2018-2019 1,188,930,411 722,728,549
2017-2018 986,081,073 592,840,270
2016-2017 938,737,979 487,109,122
2015-2016 816,013,439 413,449,029
4.3.9 COMPARISON BETWEEN AXIS BANK AND FEDERAL BANK

YEAR/BANKS AXIS BANK FEDERAL BANK
2019-2020 1,438,593,307 296,524,927
2018-2019 1,188,930,411 300,456,563
2017-2018 986,081,073 365,327,553
2016-2017 938,737,979 201,355,767
2015-2016 816,013,439 185,293,996
4.3.10 COMPARISON BETWEEN KOTAK MAHINDRA BANK AND

FEDERAL BANK

YEAR/BANKS KOTAK MAHINDRA FEDERAL BANK
BANK
2019-2020 733,388,522 296,524,927
2018-2019 722,728,549 300,456,563
2017-2018 592,840,270 365,327,553
2016-2017 487,109,122 201,355,767
2015-2016 413,449,029 185,293,996
4.4 COMPARISON OF DATA BETWEEN THE PUBLIC BANKS
4.4.1 COMPARISON BETWEEN BANK OF BARODA AND BANK OF INDIA

YEAR/BANKS BANK OF BARODA BANK OF INDIA
2019-2020 1,953,165,351 1,125,757,202
2018-2019 1,299,690,318 1,121,314,154
2017-2018 1,129,898,142 1,015,893,551
2016-2017 1,040,766,509 954,638,291
2015-2016 921,780,169 918,603,215
4.4.2 COMPARISON BETWEEN BANK OF BARODA AND CENTRAL BANK

YEAR/BANKS BANK OF BARODA CENTRAL BANK OF
INDIA
2019-2020 1,953,165,351 734,915,379
2018-2019 1,299,690,318 774,650,563
2017-2018 1,129,898,142 783,546,358
2016-2017 1,040,766,509 692,204,013
2015-2016 921,780,169 756,054,399
4.4.3 COMPARISON BETWEEN BANK OF BARODA AND CANARA BANK

YEAR/BANKS BANK OF BARODA CANARA BANK
2019-2020 1,953,165,351 1,877,188,374
2018-2019 1,299,690,318 1,794,327,618
2017-2018 1,129,898,142 1,578,809,420
2016-2017 1,040,766,509 1,367,188,028
2015-2016 921,780,169 1,249,520,990
4.4.4 COMPARISON BETWEEN BANK OF BARODA AND STATE BANK OF

INDIA

YEAR/BANKS BANK OF BARODA STATE BANK OF
INDIA
2019-2020 1,953,165,351 5,266,758,735
2018-2019 1,299,690,318 5,207,297,750
2017-2018 1,129,898,142 4,483,589,560
2016-2017 1,040,766,509 3,412,575,006
2015-2016 921,780,169 3,285,514,999
4.4.5 COMPARISON BETWEEN BANK OF INDIA AND CENTRAL BANK OF
INDIA

YEAR/BANKS BANK OF INDIA CENTRAL BANK OF
INDIA
2019-2020 1,125,757,202 734,915,379
2018-2019 1,121,314,154 774,650,563
2017-2018 1,015,893,551 783,546,358
2016-2017 954,638,291 692,204,013
2015-2016 918,603,215 756,054,399
4.4.6 COMPARISON BETWEEN BANK OF INDIA AND CANARA BANK

YEAR/BANKS BANK OF INDIA CANARA BANK
2019-2020 1,125,757,202 1,877,188,374
2018-2019 1,121,314,154 1,794,327,618
2017-2018 1,015,893,551 1,578,809,420
2016-2017 954,638,291 1,367,188,028
2015-2016 918,603,215 1,249,520,990
4.4.7 COMPARISON BETWEEN BANK OF INDIA AND STATE BANK OF

INDIA

YEAR/BANKS BANK OF INDIA STATE BANK OF
INDIA
2019-2020 1,125,757,202 5,266,758,735
2018-2019 1,121,314,154 5,207,297,750
2017-2018 1,015,893,551 4,483,589,560
2016-2017 954,638,291 3,412,575,006
2015-2016 918,603,215 3,285,514,999
4.4.8 COMPARISON BETWEEN CENTRAL BANK OF INDIA AND CANARA
BANK

YEAR/BANKS CENTRAL BANK OF CANARA BANK
INDIA
2019-2020 734,915,379 1,877,188,374
2018-2019 774,650,563 1,794,327,618
2017-2018 783,546,358 1,578,809,420
2016-2017 692,204,013 1,367,188,028
2015-2016 756,054,399 1,249,520,990
4.4.9 COMPARISON BETWEEN CENTRAL BANK AND STATE BANK

YEAR/BANKS CENTRAL BANK OF STATE BANK OF
INDIA INDIA
2019-2020 734,915,379 5,266,758,735
2018-2019 774,650,563 5,207,297,750
2017-2018 783,546,358 4,483,589,560
2016-2017 692,204,013 3,412,575,006
2015-2016 756,054,399 3,285,514,999
4.4.10 COMPARISON BETWEEN CANARA BANK AND STATE BANK OF

INDIA

YEAR/BANKS CANARA BANK STATE BANK OF
INDIA
2019-2020 1,877,188,374 5,266,758,735
2018-2019 1,794,327,618 5,207,297,750
2017-2018 1,578,809,420 4,483,589,560
2016-2017 1,367,188,028 3,412,575,006
2015-2016 1,249,520,990 3,285,514,999
4.5 COMPARISON OF DATA BETWEEN PRIVATE BANKS AND PUBLIC
BANKS
4.5.1 COMPARISON BETWEEN HDFC BANK AND BANK OF BARODA

YEAR/BANKS HDFC BANK BANK OF BARODA
2019-2020 2,541,995,300 1,953,165,351
2018-2019 2,174,223,445 1,299,690,318
2017-2018 1,765,302,486 1,129,898,142
2016-2017 1,646,022,483 1,040,766,509
2015-2016 1,427,201,985 921,780,169
4.5.2 COMPARISON BETWEEN HDFC BANK AND BANK OF INDIA

YEAR/BANKS HDFC BANK BANK OF INDIA
2019-2020 2,541,995,300 1,877,188,374
2018-2019 2,174,223,445 1,794,327,618
2017-2018 1,765,302,486 1,578,809,420
2016-2017 1,646,022,483 1,367,188,028
2015-2016 1,427,201,985 1,249,520,990
4.5.3 COMPARISON BETWEEN HDFC BANK AND CENTRAL BANK

YEAR/BANKS HDFC BANK CENTRAL BANK OF
INDIA
2019-2020 2,541,995,300 734,915,379
2018-2019 2,174,223,445 774,650,563
2017-2018 1,765,302,486 783,546,358
2016-2017 1,646,022,483 692,204,013
2015-2016 1,427,201,985 756,054,399
4.5.4 COMPARISON BETWEEN HDFC BANK AND CANARA BANK

YEAR/BANKS HDFC BANK CANARA BANK
2019-2020 2,541,995,300 1,877,188,374
2018-2019 2,174,223,445 1,794,327,618
2017-2018 1,765,302,486 1,578,809,420
2016-2017 1,646,022,483 1,367,188,028
2015-2016 1,427,201,985 1,249,520,990
4.5.5 COMPARISON BETWEEN HDFC BANK AND STATE BANK OF INDIA

YEAR/BANKS HDFC BANK STATE BANK OF
INDIA
2019-2020 2,541,995,300 5,266,758,735
2018-2019 2,174,223,445 5,207,297,750
2017-2018 1,765,302,486 4,483,589,560
2016-2017 1,646,022,483 3,412,575,006
2015-2016 1,427,201,985 3,285,514,999
4.5.6 COMPARISON BETWEEN ICICI BANK AND BANK OF BARODA

YEAR/BANKS ICICI BANK BANK OF BARODA
2019-2020 1,909,002,118 1,953,165,351
2018-2019 1,696,365,965 1,299,690,318
2017-2018 929,701,682 1,129,898,142
2016-2017 1,065,527,064 1,040,766,509
2015-2016 924,348,694 921,780,169
4.5.7 COMPARISON BETWEEN ICICI BANK AND BANK OF INDIA

YEAR/BANKS ICICI BANK BANK OF INDIA
2019-2020 1,909,002,118 1,125,757,202
2018-2019 1,696,365,965 1,121,314,154
2017-2018 929,701,682 1,015,893,551
2016-2017 1,065,527,064 954,638,291
2015-2016 924,348,694 918,603,215
4.5.8 COMPARISON BETWEEN ICICI BANK AND CENTRAL BANK OF

INDIA

YEAR/BANKS ICICI BANK CENTRAL BANK OF
INDIA
1,909,002,118 734,915,379
2019-2020
2018-2019 1,696,365,965 774,650,563
2017-2018 929,701,682 783,546,358
2016-2017 1,065,527,064 692,204,013
2015-2016 924,348,694 756,054,399
4.5.9 COMPARISON BETWEEN ICICI BANK AND CANARA BANK

YEAR/BANKS ICICI BANK CANARA BANK
2019-2020 1,909,002,118 1877188374
2018-2019 1,696,365,965 1794327618
2017-2018 929,701,682 1578809420
2016-2017 1,065,527,064 1367188028
2015-2016 924,348,694 1249520990
4.5.10 COMPARISON BETWEEN ICICI BANK AND STATE BANK OF INDIA

YEAR/BANKS ICICI BANK STATE BANK OF
INDIA
2019-2020 1,909,002,118 5266758735
2018-2019 1,696,365,965 5207297750
2017-2018 929,701,682 4483589560
2016-2017 1,065,527,064 3412575006
2015-2016 924,348,694 3285514999
4.5.11 COMPARISON BETWEEN AXIS BANK AND BANK OF BARODA

YEAR/BANKS AXIS BANK BANK OF BARODA
2019-2020 1,438,593,307 1,953,165,351
2018-2019 1,188,930,411 1,299,690,318
2017-2018 986,081,073 1,129,898,142
2016-2017 938,737,979 1,040,766,509
2015-2016 816,013,439 921,780,169
4.5.12 COMPARISON BETWEEN AXIS BANK AND BANK OF INDIA

YEAR/BANKS AXIS BANK BANK OF INDIA
2019-2020 1,438,593,307 1,125,757,202
2018-2019 1,188,930,411 1,121,314,154
2017-2018 986,081,073 1,015,893,551
2016-2017 938,737,979 954,638,291
2015-2016 816,013,439 918,603,215
4.5.13 COMPARISON BETWEEN AXIS BANK AND CENTRAL BANK OF
INDIA

YEAR/BANKS AXIS BANK CENTRAL BANK OF
INDIA
2019-2020 1,438,593,307 734,915,379
2018-2019 1,188,930,411 774,650,563
2017-2018 986,081,073 783,546,358
2016-2017 938,737,979 692,204,013
2015-2016 816,013,439 756,054,399
4.5.14 COMPARISON BETWEEN AXIS BANK AND CANARA BANK

YEAR/BANKS AXIS BANK CANARA BANK
2019-2020 1,438,593,307 1877188374
2018-2019 1,188,930,411 1794327618
2017-2018 986,081,073 1578809420
2016-2017 938,737,979 1367188028
2015-2016 816,013,439 1249520990
4.5.15 COMPARISON BETWEEN AXIS BANK AND STATE BANK OF INDIA

YEAR/BANKS AXIS BANK STATE BANK OF
INDIA
2019-2020 1,438,593,307 5266758735
2018-2019 1,188,930,411 5207297750
2017-2018 986,081,073 4483589560
2016-2017 938,737,979 3412575006
2015-2016 816,013,439 3285514999
4.5.16 COMPARISON BETWEEN KOTAK MAHINDRA BANK AND BANK
OF BARODA

YEAR/BANKS KOTAK MAHINDRA BANK OF BARODA
BANK
2019-2020 733,388,522 1,953,165,351
2018-2019 722,728,549 1,299,690,318
2017-2018 592,840,270 1,129,898,142
2016-2017 487,109,122 1,040,766,509
2015-2016 413,449,029 921,780,169
4.5.17 COMPARISON BETWEEN KOTAK MAHINDRA AND BANK OF INDIA

YEAR/BANKS KOTAK MAHINDRA BANK OF INDIA
BANK
2019-2020 733,388,522 1,125,757,202
2018-2019 722,728,549 1,121,314,154
2017-2018 592,840,270 1,015,893,551
2016-2017 487,109,122 954,638,291
2015-2016 413,449,029 918,603,215
4.5.18 COMPARISON BETWEEN KOTAK MAHINDRA BANK AND

CENTRAL BANK OF INDIA

YEAR/BANKS KOTAK MAHINDRA CENTRAL BANK OF
BANK INDIA
2019-2020 733,388,522 734,915,379
2018-2019 722,728,549 774,650,563
2017-2018 592,840,270 783,546,358
2016-2017 487,109,122 692,204,013
2015-2016 413,449,029 756,054,399
4.5.19 COMPARISON BETWEEN KOTAK MAHINDRA BANK AND CANARA
BANK

YEAR/BANKS KOTAK MAHINDRA CANARA BANK
BANK
2019-2020 733,388,522 1877188374
2018-2019 722,728,549 1794327618
2017-2018 592,840,270 1578809420
2016-2017 487,109,122 1367188028
2015-2016 413,449,029 1249520990
4.5.20 COMPARISON BETWEEN KOTAK MAHINDRA AND STATE BANK

YEAR/BANKS KOTAK MAHINDRA STATE BANK OF
BANK INDIA
2019-2020 733,388,522 5266758735
2018-2019 722,728,549 5207297750
2017-2018 592,840,270 4483589560
2016-2017 487,109,122 3412575006
2015-2016 413,449,029 3285514999
4.5.21 COMPARISON BETWEEN FEDERAL BANK AND BANK OF BARODA

YEAR/BANKS FEDERAL BANK BANK OF BARODA
2019-2020 296,524,927 1,953,165,351
2018-2019 300,456,563 1,299,690,318
2017-2018 365,327,553 1,129,898,142
2016-2017 201,355,767 1,040,766,509
2015-2016 185,293,996 921,780,169
4.5.22 COMPARISON BETWEEN FEDRAL BANK AND BANK OF INDIA

YEAR/BANKS FEDERAL BANK BANK OF INDIA
2019-2020 296,524,927 1,125,757,202
2018-2019 300,456,563 1,121,314,154
2017-2018 365,327,553 1,015,893,551
2016-2017 201,355,767 954,638,291
2015-2016 185,293,996 918,603,215
4.5.23 COMPARISON BETWEEN FEDERAL BANK AND CENTRAL BANK

OF INDIA

YEAR/BANKS FEDERAL BANK CENTRAL BANK OF
INDIA
2019-2020 296,524,927 734,915,379
2018-2019 300,456,563 774,650,563
2017-2018 365,327,553 783,546,358
2016-2017 201,355,767 692,204,013
2015-2016 185,293,996 756,054,399
4.5.24 COMPARISON BETWEEN FEDERAL BANK AND CANARA BANK

YEAR/BANKS FEDERAL BANK CANARA BANK
2019-2020 296,524,927 1877188374
2018-2019 300,456,563 1794327618
2017-2018 365,327,553 1578809420
2016-2017 201,355,767 1367188028
2015-2016 185,293,996 1249520990
4.5.25 COMPARISON BETWEEN FEDERAL BANK AND STATE BANK OF
INDIA

YEAR/BANKS FEDERAL BANK STATE BANK OF
INDIA
2019-2020 296,524,927 5266758735
2018-2019 300,456,563 5207297750
2017-2018 365,327,553 4483589560
2016-2017 201,355,767 3412575006
2015-2016 185,293,996 3285514999
4.8 GRAPHICAL REPRESENTATION OF PRIVATE SECTOR BANKS
4.8.1 HDFC BANK
HDFC BANK
Millions
3,000
27%
2,500 23%
2,00018% 17%
15%
1,500
1,000
500
0
2019-20202018-20192017-20182016-20172015-2016
4.8.2 ICICI BANK
ICICI BANK
Millions
2,500
29%
2,000 26%
1,500
16%
14% 14%
1,000
500
0
2019-20202018-20192017-20182016-20172015-2016
4.8.3 AXIS BANK
AXIS BANK
2015-2016 15%
2016-2017 17%
2017-2018 18%
2018-2019 22%
2019-2020 27%
0 500 1,000 1,500

Millions
KOTAK MAHINDRA BANK
2015-2016 14%
2016-201717%
2017-201820%
2018-201925%
2019-202025%
0 200 400 600800

Millions
4.8.5 FEDERAL BANK
FEDERAL BANK
2019-2020
14% 22% 2018-2019
2017-2018
15% 2016-2017
2015-2016
22%
27%
4.9 GRAPHICAL REPRESENTATION OF THE PRIORITY SECTOR
LENDING BY TOP 5 PRIVATE BANKS FOR
THE PAST 5 YEARS
PRIVATE SECTOR BANKS
Millions
3,000 27%
2,500 23% 29%
2,000 26%18%17%
1,500 27% 15%
1,000 22% 16%17%
25% 14% 18% 14% 15%
500 25% 17%
0 22% 22% 20% 14%
27% 15%
14%
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016

ACCOUNTING YEAR
PRIORITY SECTOR LENDING
HDFC BANKICICI BANKAXIS BANKKOTAK MAHINDRA BANKFEDERAL BANK
ANALYSIS AND INTERPRETATION
Analysis of individual banks over 5 years (Stand-alone bank analysis)
From the graphs above, As the Priority Sector Lending rate is in increasing trend for
HDFC bank, AXIS bank and KOTAK MAHINDRA bank, they are said to be in
continuous growth trend.
For ICICI bank and FEDERAL bank the Priority Sector Lending rate is not in an
increasing trend and consists of ups and down in the percentage lended,
ICICI bank – In the year 2017-18 the percentage is decreased by 2% and from 2018-19
it started increasing.
FEDERAL bank – In the year 2018-19 the percentage is decreased by 5% and the same
percentage was maintained in the next year also.
Analysis of private bank in consolidated manner
Continuous growth trend Fluctuations in growth trend

HDFC bank ICICI bank
AXIS bank FEDERAL bank
KOTAK MAHINDRA bank
4.10 GRAPHICAL REPRESENTATION OF PUBLIC SECTOR BANKS
Millions BANK OF BARODA

30.78%
2000
1500 20.48%
17.81% 16.40% 14.53%
1000
500
0
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
4.10.2 BANK OF INDIA
BANK OF INDIA
2015-2016 17.88%
2016-2017 1859
2017-2018 19.78%
2018-2019 21.83%
2019-2020 21.92%
0 500 1000 1500

Millions
4.10.3 CENTRAL BANK OF INDIA
CENTRAL BANK OF INDIA

Millions
800
780 20.94%
760 20.70%
20.21%
740 19.64%
720
700
18.50%
680
660
640
2019-20202018-20192017-20182016-20172015-2016
4.10.4 CANARA BANK
CANARA BANK
2015-2016 15.88%
2016-2017 1.38%
2017-2018
2018-2019 20.07%
2019-2020 22.81%
23.86%
0 500 1000 15002000

MILLIONS
STATE BANK OF INDIA
15.17% 24.32%
15.76% 2019-2020
2018-2019
2017-2018
20.70% 24.05% 2016-2017
2015-2016
4.11 GRAPHICAL REPRESENTATION OF THE PRIORITY SECTOR

LENDING BY TOP 5 PUBLIC SECTOR BANKS FOR THE PAST 5 YEARS
PUBLIC SECTOR BANKS

Millions *
6000 24%24%
5000 23% 21%

23%
20% BANK OF
4000 22% 16% 21%
19% 20% 15% BARODA
17% 18% BANK OF INDIA
3000 16%
31% 23%
2000 20%20%19% 20% CENTRAL BANK
18%
18% 16% 15%
1000
0
2019-202018-192017-182016-172015-16
Analysis of individual banks over 5 years (Stand-alone bank analysis)
From the graphs above, As the Priority Sector Lending rate is in increasing trend for
BANK OF BARODA, BANK OF INDIA, CANARA BANK and STATE BANK OF
INDIA, they are said to be in continuous growth trend
For CENTRAL BANK OF INDIA, the Priority Sector Lending rate is not in an
increasing trend and consists of ups and down in the percentage lended,
CENTRAL BANK OF INDIA – In the 2016-17 the percentage is decreased by 2.44%

and then it started increasing from the next year.
Analysis of private bank in consolidated manner
Continuous growth trend Fluctuations in growth trend

BANK OF BARODA CENTRAL BANK OF INDIA
BANK OF INDIA
CANARA BANK
STATE BANK OF INDIA
4.12 GRAPHICAL REPRESENTATION OF COMPARISON OF DATA

BETWEEN PRIVATE BANKS
HDFC Vs ICICI
Millions
3,000
27%
2,500
23%
29%
2,000 26% 18%
17%
15%
1,500
16%
14% 14%
1,000
500
0
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING HDFC BANKPRIORITY SECTOR LENDING ICICI BANK

HDFC Vs AXIS
Millions
3,000
27%
2,500 23%
2,000 18%
17%
27%15%
1,50022%
18% 17%
15%
1,000
500
0
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING HDFC BANKPRIORITY SECTOR LENDING AXIS BANK
KOTAK MAHINDRA Vs HDFC

2015-2016 14%
15%
17%
2016-2017 17%
20%
2017-2018 18%
25%
2018-2019 23%
25%
2019-2020 27%
0 1,000 2,000 3,000

Millions
PRIORITY SECTOR LENDING KOTAK MAHINDRA BANK

PRIORITY SECTOR LENDING HDFC BANK
FEDERAL Vs HDFC
14%
2015-2016 15%
15%
2016-2017 17%
27%
2017-2018 18%
22%
2018-2019 23%
22%
2019-2020 27%
0 1,000 2,000 3,000

Millions
PRIORITY SECTOR LENDING FEDERAL BANKPRIORITY SECTOR LENDING HDFC BANK

AXIS Vs ICICI
Millions
4,000
3,500
3,000
2,500 27%
22%
2,000
1,500 18% 17%
15%
1,000 29% 26%
500 14% 16% 14%
0
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
PRIORITY SECTOR LENDING ICICI BANKPRIORITY SECTOR LENDING AXIS BANK
ICICI Vs KOTAK MAHINDRA

PRIORITY SECTOR LENDING ICICI BANK
Millions
2,500
29%
2,000 26%
1,500
16%
14% 14%
1,000 25% 25%
20%
17% 14%
500
0
2019-20202018-20192017-20182016-20172015-2016
FEDERAL Vs ICICI
Millions
2,500
22%
22%
2,000
29%
1,500 26% 27% 15%
14%
1,000
14% 16% 14%
500
0
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING FEDERAL BANK PRIORITY SECTOR LENDING ICICI BANK
AXIS Vs KOTAK MAHINDRA
Millions
1,600
27%
1,400
1,200
22%
1,000
800 18% 17%
600 15%
25% 25%
400 20%
200 17%
0 15%
0123456
PRIORITY SECTOR LENDING AXIS BANK

AXIS Vs FEDERAL
Millions
1,600
1,400 27%
1,200
22%
1,000 18% 17%
800
600 15%
400
200 22%
0
22% 27%
2019-2020 15% 14%
2018-2019 2017-2018 2016-2017 2015-2016
PRIORITY SECTOR LENDING AXIS BANKPRIORITY SECTOR LENDING FEDERAL BANK
KOTAK MAHINDRA Vs FEDERAL

25%25%
Millions
800
20%
700
17%
600
27%
500
400 14%
300
200 22% 22%
100 15% 14%
0
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING KOTAK MAHINDRA BANK PRIORITY SECTOR LENDING FEDERAL BANK
BANKS INCREASING TREND FLUCTUATING

TREND
HDFC Vs ICICI HDFC ICICI
HDFC Vs AXIS BOTH NIL
HDFC Vs KOTAK BOTH NIL
HDFC Vs FEDERAL HDFC FEDERAL
ICICI Vs AXIS AXIS ICICI
ICICI Vs KOTAK KOTAK ICICI
ICICI Vs FEDERAL NIL BOTH
AXIS Vs KOTAK BOTH NIL
AXIS Vs FEDERAL AXIS FEDERAL
KOTAK Vs FEDERAL KOTAK FEDERAL
Analysis of comparison between private banks
The performance among the private sector banks is classified as increasing trend and
fluctuating trend and created as a table above. The interpreted results are
1. Both banks in increasing trend when it is compared with: HDFC Vs AXIS,

HDFC Vs KOTAK MAHINDRA and AXIS Vs KOTAK
2. Both banks in fluctuating trend when it is compared with: ICICI Vs FEDERAL
From 1 and 2, the results are HDFC bank, AXIS bank, KOTAK MAHINDRA banks
are in increasing trend and said to be in continuous growth trend and ICICI bank &
FEDERAL bank are in fluctuating trend
Analysis of comparison in consolidated manner
CONTINUOUS GROWTH TREND FLUCTUATIONS IN GROWTH

TREND
HDFC Vs AXIS ICICI Vs FEDERAL
HDFC Vs KOTAK
AXIS Vs KOTAK
4.13 GRAPHICAL REPRESENTATION OF COMPARIOSN BETWEEN
PUBLIC BANKS
BANK OF BARODA Vs BANK OF INDIA

2015-2016 31% 22%
2016-2017 20% 22%
2017-2018 18% 20%
2018-2019 16% 19%
2019-2020
15% 18%
0 1,000 2,000 3,000 4,000

Millions
PRIORITY SECTOR LENDING BANK OF BARODA

PRIORITY SECTOR LENDING BANK OF INDIA
BANK OF BARODA VS CENTRAL

BANK OF INDIA
PRIORITY SECTOR LENDING BANK OF BARODA
PRIORITY SECTOR LENDING CENTRAL BANK OF INDIA 31%
2,000,000
Millions
1,500,000 20%
18% 16% 15%
1,000,000 20% 21% 21% 19% 20%
500,000
0
2019-20202018-20192017-20182016-20172015-2016
CANARA Vs BANK OF BARODA

Millions
4,500
4,000
3,500
3,000
24%
2,500
2,000
23%
1,500 20%
1,000 17%
16%
500
31%
0 20% 18% 16% 15%
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING CANARA BANK PRIORITY SECTOR LENDING BANK OF BARODA
BANK OF BARODA Vs STATE BANK OF INDIA
Millions
6,000,000
24% 24%
5,000,000 21%
4,000,000 16%
15%
3,000,000
31%
2,000,000 20% 18% 16% 15%
1,000,000
0
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING BANK OF BARODA PRIORITY SECTOR LENDING STATE BANK OF INDIA
BANK OF INDIA Vs CENTRAL BANK OF INDIA

Millions
22% 22%
1200 20%
19% 18%
1000
21% 21%
20% 19% 20%
800
600
400
200
0
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING BANK OF INDIA PRIORITY SECTOR LENDING CENTRAL BANK OF INDIA
BANK OF INDIA Vs CANARA BANK

2015-2016 18% 16%
2016-2017 19% 17%
2017-2018 20% 20%
2018-2019 22% 23%
2019-2020 22% 24%
0 1000 2000 3000 4000

Millions
PRIORITY SECTOR LENDING BANK OF INDIA

PRIORITY SECTOR LENDING CANARA BANK
STATE BANK OF INDIA Vs BANK OF INDIA
Millions
6000
5000 24% 24%

21%
4000 15%
16%
3000
22% 22% 20% 19%
2000 18%
0
1000
2019-20202018-20192017-20182016-20172015-2016
PRIORITY SECTOR LENDING BANK OF INDIA PRIORITY SECTOR LENDING STATE BANK OF INDIA
CENTRAL BANK OF INDIA Vs

CANARA BANK
Millions *
3000 24% 23%

20%
2500
17% 16%
2000
1500
20%
1000 21% 21% 19% 20%
500
0
2019-20202018-20192017-20182016-20172015-2016
STATE BANK OF INDIA Vs CENTRAL

BANK OF INDIA
15%
2015-2016
16% 20%
21% 19%
2017-2018
24% 21%
24% 21%
2019-2020 20%
0 2000 4000 6000

Millions *
PRIORITY SECTOR LENDING STATE BANK OF INDIA

PRIORITY SECTOR LENDING CENTRAL BANK OF INDIA
CANARA BANK Vs STATE BANK OF
INDIA
Millions *
6000 24% 24%

5000 21%
4000 16% 15%
3000
24% 23% 20%
2000 17% 16%
1000
0
2019-20202018-20192017-20182016-20172015-2016
CANARA BANK STATE BANK OF INDIA

TREND
BOB Vs BOI BOTH NIL
BOB Vs CBI BOB CBI
BOB Vs CANARA BOTH NIL
BOB Vs SBI BOTH NIL
BOI Vs CBI BOI CBI
BOI Vs CANARA BOTH NIL
BOI Vs SBI BOTH NIL
CBI Vs CANARA CANARA CBI
CBI Vs SBI SBI CBI
CANARA Vs SBI BOTH NIL
Analysis of comparison between public sector banks
The performance among the public sector banks is classified as increasing trend and
1. Both banks in increasing trend when it is compared with: BOB Vs BOI, BOB
Vs CANARA, BOB Vs SBI, BOI Vs CANARA, BOI Vs SBI, CANARA Vs
SBI
2. Bank in fluctuating trend when it is compared with: CENTRAL BANK OF
INDIA
From 1 and 2, the results are BANK OF BARODA, BANK OF INDIA, CANARA
BANK and STATE BANK OF INDIA are in increasing trend and said to be in
continuous growth trend and CENTRAL BANK OF INDIA is in fluctuating trend

TREND
BOB Vs BOI
BOB Vs CANARA
BOB Vs SBI NIL
BOI Vs CANARA
BOI Vs SBI
CANARA Vs SBI
4.14 GRAPHICAL REPRESENTATION OF THE COMPARISON OF DATA

BETWEEN PRIVATE BANK AND PUBLIC BANK
Millions*
5000
4500 HDFC BANK Vs BANK OF BARODA
4000
3500
3000
31%
20%
2500
18%
2000 16%
1500 15%
1000
500 27%
23%
0 18% 17% 15%
2019-20202018-20192017-20182016-20172015-2016
HDFC BANK BANK OF BARODA

Millions *
3000 HDFC BANK VS BANK OF INDIA
2500 27%
23%
2000 18% 17%
15%
1500 22% 22% 20% 19% 18%
1000
500
0
2019-20202018-20192017-20182016-20172015-2016
HDFC BANKBANK OF INDIA
HDFC BANK Vs CENTRAL BANK OF INDIA

Millions *
3000
27%
2500
23%
2000 18%
17%
15%
1500
1000 20% 21% 21% 20%

19%
500
0
2019-20202018-20192017-20182016-20172015-2016
HDFC BANKCENTRAL BANK OF INDIA
Millions *
3000
27%
HDFC Vs CANARA BANK
2500 23%
2000 24% 23% 18%

20% 17%
17% 15%
1500
16%
1000
500
0
2019-20202018-2019 2017-2018 2016-20172015-2016
HDFC BANK
CANARA BANK
HDFC BANK Vs STATE BANK OF INDIA
Millions *
9000
8000 24% 24%
7000
21%
6000
5000 16%
4000 15%
3000
2000 27% 23%
18% 17%
1000
0 15%
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
HDFC BANK STATE BANK OF INDIA
ICICI BANK Vs BANK OF BARODA

Millions *
5000
400031%
20%
3000
29% 18% 16%
2000 26%15%
14% 16%
1000 14%
0
2019-20202018-20192017-20182016-20172015-2016
ICICI BANK BANK OF BARODA
BANK OF NDIA Vs ICICI BANK

18%
2015-2016
14%
19%
2016-2017 16%
20%
2017-2018 14%
22%
2018-2019 26%
22%
2019-2020 29%
0 1000 2000
Millions *
BANK OF INDIAICICI BANK
CENTRAL BANK OF INDIA Vs ICICI BANK
20%
2015-2016
14%
19% 16%
2016-2017
2017-201821% 14%
2018-201921%
26%
20%
2019-2020 29%
0 500 1000 15002000

Millions *
CENTRAL BANK OF INDIAICICI BANK
Millions *
4000 ICICI
24%
BANK Vs CANARA BANK
3500
23%
3000
2500
2000 20% 17%
1500 16%
1000 29%
500 26%
0 16%
14%
14%
2019-2020 2018-2019 2017-20182016-20172015-2016

ICICI BANK CANARA BANK
STATE BANK OF INDIA Vs ICICI BANK

15%
2015-2016 14%
16%
2016-2017 16%
21%
2017-2018 14%
24%
2018-2019 26%
24%
2019-2020 29%
0 2000 4000 Millions * 6000
STATE BANK OF INDIA ICICI BANK

AXIS BANK Vs BANK OF BARODA
Millions *
4000
3500
3000
2500 31%
2000 20%
1500 18% 16% 15%
1000
27%
500 22% 18% 17% 15%
0
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
AXIS BANK BANK OF BARODA

Millions *
3000
AXIS BANK Vs BANK OF INDIA
2500 22%
22%
2000 20%
19%
18%
1500 27%
22%
18%
1000 17%
15%
500
0
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
AXIS BANK BANK OF INDIA

Millions *
2500
AXIS BANK Vs CENTRAL BANKOF INDIA
2000
20%
1500 21%
21%
19%
20%
1000
27%
22%
500 18% 17% 15%
0
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
AXIS BANK CENTRAL BANK OF INDIA

AXIS BANK Vs CANARA BANK
Millions *
2000 24% 23%
1800 20%
1600 27% 17
1400 22% 16%
1200 18% 17%
1000 15%
800
600
400
200
0
2019-20202018-20192017-20182016-20172015-2016
AXIS BANKCANARA BANK
AXIS BANK VS STATE BANK OF INDIA

Millions *
6000 24% 24%

5000 21%
4000 16% 15%
3000
2000
1000 27% 22% 18% 17%
0 15%
2019-20202018-20192017-20182016-20172015-2016
AXIS BANK STATE BANK OF INDIA
KOTAK MAHINDRA BANK Vs BANK OF

Millions *
3000 BARODA
250031%
20%
2000 18%
16%
1500
25% 25% 15%
1000 20%
17%
500 14%
0
2019-20202018-20192017-20182016-20172015-2016
KOTAK MAHINDRA BANK BANK OF BARODA

Millions *
3000
KOTAK MAHINDRA BANK VS BANK OF
2500
INDIA
2000
24% 23%
1500
20%
17%
1000 16%
500
25% 25% 20% 17% 14%
0
2019-20202018-20192017-20182016-20172015-2016
KOTAK MAHINDRA BANK BANK OF INDIA
CENTRAL BANK OF INDIA Vs KOTAK

MAHINDRA BANK
20%
2015-2016 14%
19%
2016-2017 17%
21%
2017-2018 20%
21%
2018-2019 25%
20%
2019-2020 25%
0 200 400 600 Millions * 800
CENTRAL BANK OF INDIAKOTAK MAHINDRA BANK
KOTAK MAHINDRA BANK Vs CANARA

Millions *
24%
23%BANK
2000
1800
20%
1600
1400 17%
16%
1200
1000
800 25% 25%
600 20%
17%
400 14%
200
0
2019-20202018-20192017-20182016-20172015-2016
KOTAK MAHINDRA BANK CANARA BANK

STATE BANK OF INDIA Vs KOTAK
MAHINDRA BANK
2015-2016 15%
14%
2016-2017 16%
17%
2017-2018 20% 21%
2018-2019 25% 24%
2019-2020 25% 24%
0200040006000
Millions *
STATE BANK OF INDIA KOTAK MAHINDRA BANK
FEDERAL BANK Vs BANK OF BARODA

31%
Millions *
2000
1500 20%
18% 16%
15%
1000
22% 22% 27%

500 15% 14%
0
2019-20202018-20192017-20182016-20172015-2016
FEDERAL BANK BANK OF BARODA
FEDERAL BANK Vs BANK OF INDIA

Millions *
1600
1400 22% 22%
20%
1200
19%
1000
800 18%
600
400
200
0 27%
22% 22%
15%
14%
2019-20202018-20192017-20182016-20172015-2016
FEDERAL BANK BANK OF INDIA

CENTRAL BANK OF INDIA Vs FEDERAL
BANK
2015-2016 14% 20%
2016-2017 15% 19%
2017-2018
27% 21%
2018-2019
21%
2019-2020 22% 20%
22%
400
0 200 600 800 1000
Millions *
CENTRAL BANK OF INDIA FEDERAL BANK
FEDERAL BANK Vs CANARA BANK

2015-2016 14% 16%
2016-2017 15% 17%
2017-2018 27% 20%
2018-2019 22% 23%
2019-2020 22% 24%
0 500 1000 1500 2000 2500

Millions *
FEDERAL BANK CANARA BANK
FEDERAL BANK Vs STATE BANK OF INDIA

Millions *
6000
24%24%
5000 21%
4000 16% 15%

3000
2000
1000
22% 22% 27% 15% 14%
0
2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
FEDERAL BANK STATE BANK OF INDIA


TREND
HDFC Vs BOB BOTH NIL
HDFC Vs BOI BOTH NIL
HDFC Vs CBI HDFC CBI
HDFC Vs CANARA BOTH NIL
HDFC Vs SBI BOTH NIL
ICICI Vs BOB BOB ICICI
ICICI Vs BOI BOI ICICI
ICICI Vs CBI NIL BOTH
ICICI Vs CANARA CANARA ICICI
ICICI Vs SBI SBI ICICI
AXIS Vs BOB BOTH NIL
AXIS Vs BOI BOTH NIL
AXIS Vs CBI AXIS CBI
AXIS Vs CANARA BOTH NIL
AXIS Vs SBI BOTH NIL
KOTAK Vs BOB BOTH NIL
KOTAK Vs BOI BOTH NIL
KOTAK Vs CBI KOTAK CBI
KOTAK Vs CANARA BOTH NIL
KOTAK Vs SBI BOTH NIL
FEDERAL Vs BOB BOB FEDERAL
FEDERAL Vs BOI BOI FEDERAL
FEDERAL Vs CBI NIL BOTH
FEDERAL Vs CANARA CANARA FEDERAL
FEDERAL Vs SBI SBI FEDERAL
Analysis of comparison between public sector banks and private sector banks
The performance among the public sector banks is classified as increasing trend and
1. Both banks in increasing trend when it is compared with: HDFC Vs BOB,
HDFC Vs BOI, HDFC Vs CANARA, HDFC Vs SBI, AXIS Vs BOB, AXIS Vs
BOI, AXIS Vs CANARA, AXIS Vs SBI, KOTAK Vs BOB, KOTAK Vs BOI,
KOTAK Vs CANARA and KOTAL Vs SBI.
2. Both Banks in fluctuating trend when it is compared with: ICICI Vs CBI,
FEDERAL Vs CBI.
From 1 and 2, the results are, HDFC BANK, AXIS BANK, KOTAK MAHINDRA
BANK, BANK OF BARODA, BANK OF INDIA, CANARA BANK and STATE
BANK OF INDIA are in increasing trend and said to be in continuous growth trend
and ICICI BANK, FEDERAL BANK and CENTRAL BANK OF INDIA is in
fluctuating trend

TREND
HDFC Vs BOB ICICI Vs CBI
HDFC Vs BOI FEDERAL Vs CBI

HDFC Vs CANARA
HDFC Vs SBI
AXIS Vs BOB
AXIS Vs BOI
AXIS Vs CANARA
AXIS Vs SBI
KOTAK Vs BOB
KOTAK Vs BOI
KOTAK Vs CANARA
KOTAK Vs SBI
CHAPTER 5: CONCLUSIONS
CONCLUSIONS
5.1 FINDINGS
Priority Sector Lending, Average Percentage by each banks for the past 5 years
PRIVATE BANK % PUBLIC BANK %

HDFC 37% Bank of Baroda 22%
ICICI 25% Bank of India 0.01%
Axis 21% Central bank 13%
Kotak 11% Canara 0.02%
Federal 5% State bank 65%
 In PRIVATE SECTOR, based on the amount lended, the highest lending bank
in priority sector lending is HDFC as it is around 37% and the lowest lending
bank in priority sector lending is FEDERAL as it is around 5%
 In PUBLIC SECTOR, based on the amount lended, the highest lending bank in
priority sector lending is STATE BANK OF INDIA as it is around 65% and the
lowest lending bank in priority sector lending is BANK OF INDIA as it is
around 0.01%
 Based on the percentage analysis of amount lended to priority sector, the private
banks which are in continuous growth trend are HDFC bank, AXIS bank and
KOTAK MAHINDRA bank and the private banks which are in fluctuating
growth trend are ICICI bank and FEDERAL bank.
 Based on the percentage analysis of amount lended to priority sector, the public
banks which are in continuous growth trend are BANK OF BARODA, BANK
OF INDIA, CANARA BANK and STATE BANK OF INDIA and the public
banks which are in fluctuating growth trend are CENTRAL BANK OF
INDIA.
 Total amount lended in priority sector lending by Private Sector banks and
Public Sector banks are 25,74,65,21,729 and 2,86,84,09,29,90,848 resp.,
 The bank which lends highest amount to priority sector lending in private sector
and public sector is HDFC bank and STATE BANK OF INDIA resp., which is
around 9,55,47,45,699 (37%) and 2,16,55,73,60,60,000 (65%).
 When compared with Private sector banks and Public sector banks, based on the
percentage analysis, the highest lending rate in priority sector lending is
advanced by PUBLIC SECTOR BANKS.
5.2 CONCLUSIONS
For this study, we have used Private sector banks and Public sector banks. We know
that in this service sector, it is difficult to quantify the output because it is intangible.
Hence, comparison between banks are used for measuring the percentage of amount
lended in priority sector lending. Based on the overall percentage analysis, this study
concludes that Public sector banks lends more than Private sector banks in Priority
Sector Lending. This statement is finalised through comparison between private banks,
public banks and private and public banks. Banks pay a key role in the development of
an economy, because they become prime source of money for people, especially during
times of economic boom or depression. A sound banking system mobilizes the small
and scattered savings of the community, and makes them available for investment in
productive enterprises.
5.3 SUGGESTIONS
 There should be equal participation of both Public sector and Private sector
banks helps to create a balanced banking environment and towards providing a
major contribution for promoting the county as an economically and socially
healthy one.
 Banks should follow the RBI norms from time to time.
 Private sector banks should pay attention on their functioning to compete with
Public sector banks
 As agriculture is the backbone of India, we suggest private banks to allocate
more advances to priority sector based on RBI norms.
 In today’s world the population of youngsters is increasing and the future of
India lies on the hands of Educated people, so we suggest an increase in the
amount allocated for Educational loans and there should be more awareness
about the loans to the rural area people.
CHAPTER 6: APPENDICES
CHAPTER 7: LIST OF REFERENCES
LIST OF REFERENCES
7.1 ANNUAL REPORTS OF BANKS

 https://www.hdfcbank.com/personal/about-us/investor-relations/annual-reports
 https://www.icicibank.com/aboutus/annual.page
 https://www.axisbank.com/shareholders-corner/shareholders-
information/annual-reports
 https://www.kotak.com/en/investor-relations/financial-results/annual-
reports.html
 https://www.federalbank.co.in/annual-reports
 https://www.canarabank.com
 https://www.centralbankofindia.co.in
 https://www.sbi.co.in/documents
 https://bankofbaroda.in
 https://bankofindia.co.in/pdf/ANNUAL_REPORT_20192.pdf
7.2 REFERENCE BOOK
 C. R. Kothari & Gaurav Garg (2019) “Research methodology: Methods

and Techniques”. (Fourth Revised Edition), New Age International
Publishers, New Delhi. 2.
7.3 REFERENCE ARTICLES
 Chintala, Balaji & Kumar, G. (2016). A Comparative Study on Financial

Performance of Selected Public & Private Sector Banks in India. Journal of
Commerce &Trade.11.89.
 Kajal Chaudhary and Monika Sharma (2011). Performance of Indian Public
Sector Banks and Private Sector Banks: A Comparative Study. International
journal of Innovation, Management and Technology, Vol.2, No.3, June 2011.
 Naresh Kedia (2016). Determinants of Profitability of Indian Public Sector
Banks: IRA-INTERNATIONAL JOURNAL OF MANAGEMENT &
SOCIAL SCIENCES, Vol.02, Issue 03.

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A COMPARATIVE STUDY ON PRIORITY SECTOR LENDING OF PUBLIC

AND PRIVATE SECTOR BANKS

In partial fulfilment for the award of the degree of

BACHELOR OF COMMERCE (BFSI)

SASTRA DEEMED TO BE UNIVERSITY THANJAVUR

SASTRA DEEMED TO BE UNIVERSITY

Shanmugha Arts, Science, Technology & Research Academy

(A University established under Section 3 of UGC Act, 1956)

Thirumalaisamudram, Thanjavur – 613 401

Tamil Nadu, INDIA

Signature of the Guide Signature of the Head - SOM

Submitted to the Viva Voice held on ……………………………

Internal Examiner External Examiner

I hereby declare that the project entitled “A study on Priority Sector

Place: 1. NAVINAA K.V.

We take this opportunity to acknowledge our deep sense of gratitude to our

We are extremely thankful to our beloved Dr. S. Swaminathan, Dean –

We are thankful to our beloved Dr. R. Chandramouli, Registrar, SASTRA

We express our heartfelt thanks to Dr. J. Sethuraman, Head – School of

NAVINAA K.V. (121136030)

Student’s Name: Guide

NAVINAA K.V. (121136030) Dr. SETHURAMAN J.

Indian Banks play an important role in economic growth and development of

Student’s Signature Guide’s Signature

CHAPTER CONTENTS PAGE NO

Profiles of the study

SN. NO. TABLES PAGE NO

SN. NO. TABLES PAGE NO

The nationalization of the 14 major commercial banks in July 1969 led to a

One of the objectives of nationalization of 14 major commercial banks was to ensure

1.2 CATEGORIES UNDER PRIORITY SECTOR LENDING

MICRO, SMALL AND MEDIUM ENTERPRISES

Loans to individuals for educational purposes including vocational courses, Rs.1

OTHER WEAKER SECTIONS

 Small and Marginal Farmers

1.3 TARGETS OR SUB TARGETS OF PRIORITY SECTOR

Categories Domestic Foreign banks Regional Rural Small Finance

Advances to 12% of ANBC Not applicable 12% of ANBC 12% of ANBC

Existing 2020-2021 2021-2022 2022-2023 2023-2024

1.4 SCOPE OF THE STUDY

1.5 STATEMENT OF THE PROBLEM

1.6 OBJECTIVES OF THE STUDY

The following are the significance objectives of the study

1.7 RESEARCH METHODOLOGY

This Research is based on Associational Research that is nothing but a casual

1.8 SOURCE OF DATA

1.10 SECONDARY DATA

1.11 DATA ANALYSIS

1.12 LIMITATIONS OF THE STUDY

The following are main limitations of the study

1.13 CHAPTER SCHEMES

CHAPTER 2: BANKING PROFILE

CHAPTER 3: LITERATURE REVIEW

CHAPTER 4: ANALYSIS AND INTERPRETATION

CHAPTER 5: FINDINGS AND CONCLUSIONS

2.1 INDUSTRY PROFILES

 PRIVATE SECTOR BANKS

PRIVATE SECTOR BANKS

PUBLIC SECTOR BANKS

TOP FIVE PRIVATE SECTOR BANKS AND PUBLIC SECTOR BANKS

PRIVATE SECTOR BANKS PUBLIC SECTOR BANKS

2.2.1 HDFC BANK