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CHAPTER IV
SOCIO-BANKING PROFILE
OF
KERALA STATE
Location
Kerala, the constituent State of India, is located on the Malabar Coast on
the southwestern side of the Indian peninsula. It is bordered by the States of
Karnataka to the north, Tamil Nadu to the east and south and by the Arabian Sea
to the west. The State of Kerala lies between the north latitudes 8º 18' and 12º 48'
and east longitude 74º 52' and 77º 22'.1
Formation of the State
The present State of Kerala was constituted on a linguistic basis under the
State Reorganisation Act in November 1956. Its boundaries were redrawn to
include most speakers of Malayalam; the State acquired its present name. The
Malabar and the Kasargod taluka of South Kanara were added to Travancore-
Cochin and the southern portion of the former Travancore-Cochin State was
attached to Tamil Nadu.
Physiography
Kerala may be divided into three geographical regions, viz. high land, low
lands and midlands. The high land slopes down from the Western Ghats, which
rises to an average height of 900 m with a number of peaks. This is the area of
major plantations like tea, coffee, rubber, cardamom and other spices.
The midlands lying between the mountains and low lands are made up of
undulating hills and valleys. This is an area of intensive cultivation. Cashew,
coconut, tapioca, banana, rice, spices, sugarcane and vegetables are grown in this
area.
The low lands or coastal area, which is made up of the river deltas,
backwaters and the shore of the Arabian Sea, is a land of coconuts and rice.
Fisheries and coir industries constitute the major industries of this area.
Kerala is a land of rivers and backwaters. Forty four rivers, forty one west
flowing and three east flowing cut across Kerala with their innumerable tributaries
and branches. The backwaters include lakes and ocean inlets, which stretch
irregularly along the coast.
The length of the State is about 580 kilometres and width varies from 32 to
120 kilometres. It has an area of 38,863 square kilometres; only about one per
cent of the total area of the country.2 Kerala is divided into fourteen districts. Its
capital is Thiruvananthapuram.
The Economy
Geographic and geologic factors seriously circumscribe Kerala’s economy.
The amount of arable land is deficient for the needs of the crowded population.
Agriculture is the State’s main economic activity. Commercial plantings on less
than half of the total land under cultivation earn a sizable amount of foreign
exchange, but have also necessitated the importation of food for local
consumption. Kerala’s principal cash yields are perennial areca nut, cashew nut,
coconut, coffee, tea, rubber and spices; the major food crops are rice, pulses and
tapioca. The forests yield valuable timbers such as ebony, rosewood, and teak, as
well as industrial raw materials such as bamboo, wood pulp, charcoal, gums, and
resins. Kerala ranks first among Indian States in fish production.3
Most of the population is unaffected by industrialisation. Unemployment is
acute, and a high level of education among the jobless accentuates the problem.
Traditional low-wage cottage industries, such as the processing of coconut fibers
and cashews or weaving, employ most of the workers. More than one-fourth of
Kerala’s workers provide services. Cottage industries employ about three-fifths of
Kerala’s industrial workers. Most of those employed by larger industrial
enterprises are engaged in food and textile processing. Kerala is also involved in
the major industrial production of chemicals, fertilizers, aluminium, etc.
Population
Kerala is the most densely populated State in India. According to 2001
census, the total population of the State is 3,18,38,619 that is 3.10 per cent of the
total population of India. The decennial growth rate of the population of the State
is 9.42 per cent, which is the lowest among the Indian States, as against 21.34 per
cent in the country as a whole. The density of population per square kilometre in
the State is 819 persons while it is 324 persons at the national level. Of the total
population, 1,54,68,664 are males and 1,63,69,955 are females. The sex ratio,
female per thousand males, of Kerala is 1058 and the all India average is 933.4
Kerala also has considerable ethnic diversity. The Malayali majority
belongs to the Dravidian group of early Indian people. There is a small population
of descendants of Indo-European migrants from the north. Certain hill tribes
exhibit affinities with the Negrito peoples of South-east Asia. Most Keralites are
Hindus, but there are also large Christians and Muslims and lesser Jains.5
Educationally, Kerala is India's most advanced State with a literacy rate of
90.92 per cent against the national average of 65.38 per cent.6 It is a highly
politicised region, but it has a long tradition of religious amity. Owing to the
former matrilineal system, women enjoy high social status and participate in all
walks of life.
Banking in Kerala
Long before independence, banking in Kerala (Travancore and Cochin)
was in a much more developed stage than most other States of the Indian Union.
The early banks in Kerala were concentrated in Tiruruvalla of Travancore and
Thrissur of Cochin. The first organized commercial bank in Kerala was formed in
1883 called the Travancore Bank. The other bank was Travancore Federal Bank,
which was started at Pathanamthitta in 1931, shifted to Alwaye in 1945 and
changed its name as Federal Bank in 1947. The Pala Central Bank and Parur
Central Bank were prominent during these days. Most of these banks were
combined banking business with non-banking business especially chitties.
The growth of banking in Cochin State followed the same trend as that in
Travancore. The first joint stock commercial bank in the Cochin State was started
in 1914. By the end of 1918 there were five such banks, the most prominent
among them being Chaladean Syrian Bank. Some other important banks that came
up after 1920 were the Catholic Syrian Bank (1920), the Dhanalekshmi Bank
(1927), the South Indian Bank (1929), the Cochin Nayar Bank (1929), the Mar
Aprem Bank (1934) and the Malabar Bank (1934). The number of banks
registered a fall after the Banking Regulation Act 1949, sometimes by merger and
sometimes as a result of failure.
Present Scenario of Commercial Banking
1. Branch Expansion
There has been a rapid branch expansion of commercial banks in India
since nationalisation. A comparative analysis of the banking developments of
India and Kerala is given in table 4.1. As per the table, the number of branches in
India grew from 8,262 in June 1969 to 65,908 in March 2001 showing an eight-
fold increase and this works to be an average of over 1801 new bank offices per
annum. In Kerala, the increase is from 601 to 3,279 recording a five-fold growth
and an average of over 83 branches per annum. From this it is evident that since
nationalisation, more impressive changes took place in the spread of bank
branches in India as well as in Kerala.
In June 1969, the average population served per bank office in the State
was 41,000 compared to the all India figure of 62,697. In March 2001, the average
population per bank office in the State is 9,710 and the national average is 15,583.
This indicates that Kerala is a better-banked State in India.
Table 4.1
Progress of Commercial Banking at a Glance
June 1969 March 2001 Particulars
India Kerala India Kerala
1. No. of branches 8,262 601 65,908 3,279
2. Deposits in (Rs. in crores) 4,646 152 950,705 45,238
3. Advances (Rs. in crores) 3,599 99 556,436 19,477
4. Credit Deposit ratio 77.5 64.7 58.53 43.05
5. Population per branch 62,697 41,000 15,583 9,710
6. Deposits per branch (Rs. in lakhs) 56.23 25.29 1,442.47 1,379.63
7. Advances per branch (Rs. in lakhs) 43.56 16.47 844.26 593.99
8. Per capita deposits (Rs.) 95 73 9,257 14,208
9. Per capita advances (Rs.) 69 51 5,418 6,117 Source: Compiled from Banking Statistics, RBI and Census Reports of India.
Per capita deposits and advances are indicators of banking developments.
At the all India level, during the period between June 1969 and March 2001, the
per capita deposits shot up from Rs. 95 to 9,257 and the per capita advances from
Rs. 69 to 5,418. In Kerala, the increases were from Rs. 73 to 14,208 and from
Rs. 51 to 6,117 respectively. The high per capita deposits and advances point to
the improved banking habits of the people of Kerala and also enhanced
performance of banks in the State.
The rural banking scenario from June 1969 to March 2001is shown in table
4.2. During the period between June 1969 and March 2001 conspicuous changes
took place in the territorial spread of bank branches, the shift being pronounced in
favour of areas designated as rural.
Table 4.2
Rural Banking Scenario from June 1969 to March 2001
India Kerala Month & Year Total
branches Rural
branches Per cent
Total branches
Rural branches
Per cent
June 1969 8,321 1,833 22.03 601 157 26.12
June 1980 32,412 14,818 45.72 2,152 843 39.17
March 1995 62,367 33,004 52.92 3,108 550 17.70
March 1998 64,218 32,878 51.20 3,165 346 10.93
March 2001 65,908 32,533 49.36 3,279 347 10.58 Source: Compiled from Basic Statistical Returns (Various Issues), RBI.
As per the table, the percentage of rural branches increased from 22.03 in
June 1969 to 49.36 in March 2001 at the all India level while in Kerala, the
percentage had declined from 26.12 in June 1969 to 10.58 in March 2001. It is
notable that there was a sharp decline in the number of rural branches from 843 to
347 from June 1980 to March 2001 in the State. The decline was due to the
transformation of rural areas into urban and for want of opening up of more
branches in rural areas.
District-wise distribution of all scheduled commercial bank offices in
Kerala is exposed in table 4.3.
Table 4.3
District-Wise Distribution of All Scheduled Commercial Bank Offices in
Kerala
Districts
No. of branchesas on July 1969
No. of branches as on March 2001
Population per branch as on March 2001
Thiruvananthapuram 53 335 9,656
Kollam 41 191 13,529
Pathanamthitta - 217 5,675
Alapuzha 48 219 9,613
Kottayam 55 264 7,397
Idukki - 100 11,286
Ernakulam 142 481 6,442
Thrissur 106 357 8,335
Palakkad 57 249 10,510
Malappuram - 210 17,284
Kozhikode 50 249 11,560
Wayanad - 72 10,925
Kannur 49 211 11,433
Kasaragod - 124 9,704
Total 601 3279 9,710 Source: Compiled from Banking Statistics, RBI and Census Report of India 2001
As per the table, Ernakulam district had the highest number of branches
and the least in Wayanad district. But the population served per branch reveals
that Pathanamthitta is the well-banked district serving 5,675 persons per branch
and Malappuram, the under-banked district in the State with 17,284 persons.
2. Deposit Mobilisation
The period since nationalisation of banks has seen a phenomenal increase
in the deposit resources of commercial banks in India. Table 4.4 shows that
deposits have grown up from Rs. 4,646 crores in June 1969 to Rs. 9,50,705 cores
in March 2001 recording a compound growth rate of 18.25 per cent
Table 4.4
Progress in Deposit Mobilisation of all Scheduled Commercial Banks
Deposits in India Deposits in Kerala Year
Rs. in crores Rs. in crores Percentage to all India
June 1969 4,646 152 3.27
June 1975 12,637 407 3.22
December 1980 36,997 1,455 3.93
March 1990 1,84,961 6,555 3.54
March 1995 3,86,859 17,401 4.50
March 1998 5,98,485 27,201 4.54
March 2001 9,50,705 45,238 4.76
Compound growth rate 18.25 19.65 - Source: Compiled from Banking Statistics (Various Issues), RBI.
Deposits of commercial banks in Kerala recorded a remarkable increase
from Rs. 152 crores to Rs. 45,238 crores during the reference period showing a
growth rate of 19.65 per cent. The share of Kerala to all India in June 1969 was
3.27 per cent and it increased to 4.76 per cent in March 2001.
As per table 4.5, the average amount of deposits per bank office in India
shot up from Rs. 56 lakhs to Rs. 1,442 lakhs between June 1969 and March 2001
showing a compound growth rate of 10.77 per cent.
Table 4.5
Average Amount of Deposits per Bank Office
Average amount of deposits per bank office (Rupees in lakhs) Month &Year
India Kerala Percentage to all India
June 1969 56 28 50.00
June 1974 64 32 50.00
June 1979 95 54 56.84
June 1984 143 101 70.63
March 1990 284 226 79.58
March 1995 688 565 82.12
March 1998 932 859 92.17
March 2001 1,442 1,380 95.70 Compound growth rate 10.77 13.06 -
Source: Compiled from Banking Statistics (Various Issues), RBI
During the same period in Kerala, it had increased from Rs. 28 lakhs to Rs.
1,380 lakhs with a growth rate of 13.06 per cent. It is a credible achievement that
the share of deposit per office in Kerala to the all India average increased from 50
to 95.70 per cent during the study period. This again illustrates that the people of
Kerala is having better banking habits compared to the national level.
A remarkable feature of the banking development during the post
nationalisation period has been the major thrust of banks into rural areas, which
were devoid of any banking facilities. Branch expansion has aided in spreading
banking habits as well as in mobilising deposits. As a result deposits mobilised by
the all scheduled commercial banks from rural areas have rose from Rs. 145
crores in June 1969 to Rs. 1,39,427 crores in March 2001 at the national level as
disclosed by table 4.6.
Table 4.6
Rural Bank Deposit of all Scheduled Commercial Banks
India Kerala
Month & Year Rural deposits inRs. crores
Percentage to total deposit
Rural deposit
Rs. crores
Percentage to its total
deposit
Percentage to all India
rural depositJune 1969 145 3.12 13 8.55 8.97
June 1974 836 7.80 57 16.8 6.82
June 1979 3,053 10.60 189 16.9 6.19
December 1985 11,722 13.60 249 7.27 2.12
March 1995 57,399 14.84 1,403 8.06 2.44
March 1998 86,483 14.45 1,385 5.09 1.60
March 2001 139,427 14.67 2,299 5.08 1.65 Compound growth rate 24.15 - 17.70 - -
Source: Compiled from Banking Statistics (Various Issues), RBI
The share of rural bank deposits in the total deposits of banks was just 3.12
per cent in June 1969 and it had reached 14.67 per cent in March 2001. The
percentage of rural deposits to its total deposits in Kerala increased from 8.55 per
cent in June 1969 to 16.9 per cent in June 1979 and declined sharply to 5.08 per
cent in March 2001. The rural deposits in Kerala recorded a compound growth
rate of 17.70 per cent while it was 24.15 per cent at the all India level. The share
of rural deposits in Kerala to total rural deposits was 8.97 per cent in June 1969
and harshly declined to 1.65 per cent in March 2001. This is due to the fast
urbanisation nature of Kerala.
The district-wise analysis of deposits shown in table 4.7 discloses that bulk
of the deposits i.e. Rs. 7,675 crores came from Ernakulam district which is about
16.97 per cent of the total of Kerala and the least, Rs. 240 crores came from
Wayanad district, which is only 0.53 per cent of the State as on March 2001. Even
though Ernakulam is a highly advanced banking district, its compound growth
rate of deposit is only 18.48 per cent, which is lower than the State average of
20.35 during the period from June 1969 to March 2001.
Malappuram district recorded the highest compound growth rate of 25.07
per cent in the State with regard to deposit mobilisation and Wayanad recorded
the least growth rate of 17.32 per cent. Pathanamthitta district is having the
maximum deposits of Rs. 22.66 crores per branch and the deposit per branch of
Wayanad is Rs. 3.33 crores, which is the least in the State as on March 2001.
Table 4.7
District-Wise Distribution of Deposits of all Scheduled Commercial Banks
(Rupees in crores)
June 1969 December 1985 March 2001
Districts Deposit
Per-cent to total
Deposit
Per-cent to total
Deposit
Per-cent to total
Deposit per
branch
Compound growth rate in per cent
Thiruvananthapuram 24 15.79 507 14.81 6,860 15.16 20.48 20.19
Kollam 9.4 6.18 224 6.55 2,787 6.16 14.59 20.33
Pathanamthitta - - 358 10.46 4,917 10.87 22.66 18.74
Alapuzha 12.20 8.02 234 6.84 3,290 7.27 15.02 19.96
Kottayam 11.71 7.70 260 7.60 3,425 7.57 12.97 20.28
Idukki 1.60 1.05 31 0.91 442 0.98 4.42 20.06
Ernakulam 41.68 27.42 581 16.97 7,675 16.97 15.96 18.48
Thrissur 20.23 13.31 421 12.30 5,661 12.51 15.86 20.11
Palakkad 11.41 7.51 199 5.81 2,059 4.55 8.27 18.41
Malappuram 2.25 1.48 139 4.06 2,184 4.83 10.40 25.07
Kozhikode 8.05 5.30 188 5.49 2,346 5.19 9.42 20.27
Wayanad - - 21 0.61 240 0.53 3.33 17.32
Kannur 9.49 6.24 201 5.87 2,525 5.58 11.97 19.91
Kasaragod - - 59 1.72 827 1.83 6.67 18.90
All kerala 152.02 100.00 3,423 100.00 45,238 100.00 13.80 20.35 Source: Compiled from Banking Statistics (Various Issues), RBI.
3. Credit Deployment
During the past three decades, some significant changes have taken place
in the pattern of credit deployment by all scheduled commercial banks. As per
table 4.8, the total credit deployment of all scheduled commercial banks in India
had increased from Rs. 3,599 crores to Rs. 556,436 crores between June 1969 and
March 2001 and the compound growth rate is 17.21 per cent. During the same
period, the credit extended by banks in the State grew from Rs. 99 crores to Rs.
19,477 crores recording a compound growth rate of 18.10 per cent.
Table 4.8
Credit Deployment by all Scheduled Commercial Banks
Credit deployment (Amount in Rs.crores)
C D ratio (In percentage) Month & Year
India Kerala India Kerala
June 1969 3,599 99 77.50 64.70
Dec 1975 10,073 317 73.46 77.89
Dec 1980 24,760 983 66.92 67.56
Dec 1985 53,162 2,171 61.87 61.96
Mar 1990 1,21,984 4,136 65.95 63.09
Mar 1995 2,11,560 7,659 54.69 44.01
Mar 1998 3,24,079 12,045 54.15 44.28
Mar 2001 5,56,436 19,477 58.53 43.05
Compound growth rate 17.21 18.10 - - Source: Compiled from Banking Statistics (Various Issues), RBI.
The CD ratio had declined over the years from 77.50 per cent in June 1969
to 58.53 per cent in March 2001 at the all India level and of Kerala got reduced
from 64.70 to 43.05 per cent. This reveals that the credit deployment is done at a
lower pace in the State. Figure 4.1 shows the comparison of CD ratio of the State
with the national level.
Figure 4.1 CD ratio - A Comparison
77.5
64.7
58.53
43.05
0
10
20
30
40
50
60
70
80
Per
cent
1969 2001Year
india kerala
As shown in table 4.9, the bank credit in rural areas of India shot up from
Rs. 54 crores in June 1969 to Rs. 56,016 crores by March 2001 registering a
compound growth rate of 24.45 per cent over a period of 32 years. Its share in the
total bank credit also recorded a remarkable progress from 1.50 per cent to 10.07
per cent. But rural credit in Kerala had grown up from Rs. 4 crores to Rs. 1,265
crores recording a compound growth rate of 19.88 per cent. Even though the share
of rural credit in the total bank credit increased from 4.04 to 6.49 per cent between
June1969 and March 2001, the State’s share in the rural lending as a percentage of
all India declined from 7.41 to 2.26 per cent.
Table 4.9
Rural Bank Lending From June 1969 to March 2001
All India Kerala
Month & Year Rural
lending (in Rs. crores)
Percentage to total lending
Rural lending (in Rs. crores)
Percentage to its total
Percentage to all India
Jun 1969 54 1.50 4 4.04 7.41
Dec 1975 608 6.03 47 14.83 7.73
Dec 1980 2,642 10.67 147 14.95 5.56
Dec 1985 7,489 14.09 190 8.96 2.54
Jun 1991 18,861 14.50 385 8.40 2.04
Mar 1995 28,183 13.32 750 9.79 2.66
Mar 1998 36,697 11.32 795 6.60 2.17
Mar 2001 56,016 10.07 1265 6.49 2.26 Compound growth rate 24.45 19.88
Source: Compiled from Basic Statistical Returns (Various Issues), RBI.
District-wise distribution of bank credit is analysed to identify the share of
each district in the total bank lending from June 1973 to March 2001. As per table
4.10, the districts Thiruvananthapuram, Kottayam, Idukki, Thrissur, Palakkad and
Malappuram recorded higher growth rates than the State average.
Table 4.10
District-Wise Distribution of Bank Credit
(Rupees in crores)
June 1973 December 1985 March 2001
Districts Credit
Per cent to
total
Credit
Per cent to
total
Credit
Per cent to
total
Credit per
branch
Compoundgrowth rate
Thiruvananthapuram 24 12 308 14.52 2,845 14.61 8.49 18.77
Kollam 28 14 202 9.52 1,431 7.35 7.49 15.23
Pathanamthitta - - 59 2.78 698 3.58 3.22 17.59
Alapuzha 13 6.5 125 5.89 1,111 5.70 5.07 17.38
Kottayam 12 6 151 7.12 1,367 7.02 5.18 18.61
Idukki 1 0.5 37 1.75 392 2.01 3.92 24.01
Ernakulam 70 35 523 24.66 5,118 26.28 10.64 16.73
Thrissur 15 7.5 177 8.35 1,589 8.16 4.45 18.30
Palakkad 6 3 103 4.86 938 4.82 3.77 19.97
Malappuram 3 1.5 88 4.15 803 4.12 3.82 22.31
Kozhikode 15 7.5 152 7.17 1,413 7.25 5.67 17.80
Wayanad - - 44 2.07 385 1.98 5.35 15.28
Kannur 13 6.5 104 4.90 971 4.98 4.61 16.82
Kasaragod - - 48 2.26 416 2.14 3.35 15.21
All kerala 200 100 2,121 100 1,94,77 100 5.94 17.94 Source: Compiled from Banking Statistics (Various Issues), RBI
The table also exhibits that total credit and credit per branch are the highest
in Ernakulam district throughout the period. But the growth rate of credit is 16.73
per cent in the district and it is less than the State average of 17.94 during the
period. The growth rate is the lowest in Kasaragod district with 15.21 per cent and
the highest in Idukki with 24.01 per cent. The credit per branch is the lowest in
Pathanamthitta district, though the deposit per branch is the highest as per
table 4.7.
4. Priority Sector Lending
Priority sector lending is an active instrument in our financial policy, which
aims to restore sectoral balance within the credit disbursement and to channel the
credit to weaker sections within these sectors. As shown in table 4.11 the share of
designated priority sectors of all scheduled banks in India had improved from 14
per cent of advances in June 1969 to 33.05 per cent in March 2001. In terms of
amount covered, the rise is from Rs. 504 crores to Rs. 1,54,414 crores with a
compound growth rate of 19.76 per cent. In Kerala the amount of priority sector
advances raised from Rs. 21 crores to Rs. 8,894 crores between June 1969 and
March 2001 with a growth rate of 20.99 per cent. The share of priority sector
advances of all scheduled banks in Kerala had improved from 27.60 per cent of
advances in June 1969 to 46.37 per cent in March 2001. In June 1969, the State
accounted for 4.17 per cent of the total priority sector lending and in March 2001,
it has increased to 5.76 per cent. Figure 4.2 shows the priority sector lending
percentages of all scheduled commercial banks in Kerala and India from June
1969 to March 2001.
Figure 4.2 Bank credit to priority sectors for Kerala and India
(In percentage)
0
10
20
30
40
50
60
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
Year
Per
cent
India Kerala
Table 4.11
Bank Credit to Priority Sector from 1969 to March 2001
India Kerala
Month &Year Advances to
priority sector in Rs.
crores
Percentage to advances
Advances to priority
sector in Rs. crores
Percentage to advances
Percentage of Kerala’s share
in all India
June 1969 504 14.00 21 27.60 4.17
March 1981 9,444 35.60 490 40.16 5.19
March 1986 22,844 41.00 1,277 50.47 5.59
March 1991 44,572 33.33 1,995 43.01 4.48
March 1992 47,318 33.27 2,126 42.49 4.49
March 1993 51,739 34.40 2,335 40.13 4.51
March 1994 59,097 36.50 2,591 40.22 4.38
March 1995 69,209 33.70 3,407 44.48 4.92
March 1996 80,831 32.80 3,994 44.57 4.94
March 1997 93,807 34.80 4,539 42.96 4.84
March 1998 1,08,905 34.60 5,214 43.29 4.79
March 1999 1,26,309 35.30 5,997 44.17 4.75
March 2000 1,31,827 33.10 6,840 42.91 5.19
March 2001 1,54,414 33.05 8,894 46.37 5.76 Compound growth rate 19.76 - 20.99 - -
Source: Compiled from Banking Statistics provided by RBI and SLBC
Mann-Whitney test has been used to analyse whether there is any
significant difference between the growth rates of deposits, advances and priority
sector advances of all scheduled commercial banks at the State and national
levels. Growth rates of deposits, advances and priority sector advances are
compared between March 1992 and 2001. The following null hypotheses were
framed for the study.
H1. There is no significant difference between the growth rates of
deposits at the State and national levels.
H2. There is no significant difference between the growth rates of
advances at the State and national levels.
H3. There is no significant difference between the growth rates of priority
sector advances at the State and national levels.
To test the hypotheses, T values were calculated for growth rates of
deposits, advances and priority sector advances and are given in table 4.12
Table 4.12
Growth Rates of Deposits, Advances and Priority Sector Advances:
Mann-Whitney Test
(Level of significance 0.05)
Growth rate Calculated value (T) Table value (W) Result
1. Deposits 63 < 24 or > 76 Accept H1
2. Advances 51 < 24 or > 76 Accept H2
3. Priority sector advances 52 < 24 or >76 Accept H3
The results of Mann-Whitney test confirm that there is no significant
difference between the growth rates of deposits, advances and priority sector
advances at the State and national levels. Hence the hypotheses H1, H2 and H3 are
accepted. It is concluded that, in deposit mobilisation, credit deployment and
advancing to the priority sectors, the performance of all scheduled commercial
banks in the State equals with the national level performance.
FOOT NOTES
1. Encyclopedia Britannica 2001 Deluxe Edition (C D Rom), Britannica.com India
Pvt. Ltd, New Delhi, 2001. 2. Ibid. 3. Ibid. 4. Census Reports of India 2001, Government of India, New Delhi, 2001. 5. Encyclopedia Britannica 2001 Deluxe Edition (C D Rom), Britannica.com India
Pvt. Ltd, New Delhi, 2001. 6. Census Reports of India 2001, Government of India, New Delhi, 2001.