Abstract

Most of Indian farmers live near the edge of famine especially the vulnerability is more among small and marginal farmers. There is the multitude of such ‘distress’ or unproductive loans. The sources of institutional credit are rural co-operatives, commercial banks in India and Tamil Nadu. The objective of the paper is to examine the agriculture credit and banking sector in Tamil Nadu. The secondary data has collecting from Trend and Progress of Banking India, District Potential Credit Linkage Plans (PLPs) and State Level Banker Committee (SLBC). The paper is divided into five sections. The first section is introductory in nature; it contains the background, objectives. The second section describes review of literature. Third section was deals with data base and methodology analyses. The fourth section examines the results and discussion and lastly provides the summary and conclusions.

The percentage share of agriculture credit by commercial banks in the state is shows as 20 percent (Rs. 174404 crore) during March ended 2019. The percentage shares of agriculture credit by nationalized banks are issued 56 percent of total agriculture credit. Followed by private banks are issued 24 percent of credit and 13 percent credit issued by State Bank of India. Nationalized banks, Private Banks and State Bank of India are issued the credit worth of Rs. 98040, crore, Rs. 41040 crore and Rs. 22292 crore respectively. The percentage share of agriculture by Canara Bank, Indian Bank and SBI are recorded single largest issuer of Rs. 29407 crore, Rs. 25982 crore and Rs. 22292 crore, respectively. On other hand, Punjab and Sindhi Bank, Dena Bank and Bank of Maharashtra are recorded lowest issue of credit to the farmers.

Keywords: Agriculture credit; Banking sector; Farmers; Institutional credit; Tamil Nadu

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