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CHAPTER V
SOCIAL BANKING AT SBH : PROBLEMS
AND PROSPECTS
250
CHAPTER – V
SOCIAL BANKING IN SBH : PROBLEMS AND PROSPECTS
Contents Page No
Introduction 206
Agricultural Sector
Growth 206
Challenges 208
Micro, Small and Medium Enterprises
Growth 211
Challenges 213
Rural Sector
Growth 214
Challenges 215
Credit-Deposit Ratio – Bank Group Wise 216
Non Performing Assets – Bank Group wise and Sector wise 218
Concept of Marginal Costing 225
Weighted average Interest earned and expended 225 – 226
Rural Branches in Nalgonda District 227
251
Problems of Social Banking 227
Prospects of Social Banking 229
Conclusion 230
References 238
252
CHAPTER V
SOCIAL BANKING AT SBH : PROBLEMS AND PROSPECTS
Introduction
In emerging economies, banks are more than mere agents of financial intermediation; they carry
the additional responsibility of leading financial sector development and of driving the
Government’s Social Agenda. In India the Public Sector Commercial Banks are carrying this
responsibility of achieving Social Agenda since nationalization and even before in the form of
Social Control. The Banks in India, particularly, Public Sector Banks have to comply with the
Priority Sector Lending norms, Branch expansion to the unbanked areas and providing the
banking services to the underprivileged (Financial Inclusion).
In this chapter it is proposed to understand the importance of Agriculture, Small & Medium
Enterprises and Rural Sector in terms of their contribution to the development of the economy
and also the problems / challenges these sectors are facing, for, these sectors form the major part
of Priority Sector (as per the definition of Priority Sector Lending).
The Credit-Deposit Ratio of the Banks – Group wise, the Non Performing Assets of the Banks –
Group wise and Sector Wise are also examined to understand the problems and prospects of
carrying Social Banking Activity by SBH.
The Concept of Marginal Costing is discussed and applied to the advances given to the
Agriculture and Small & Medium enterprises and other priority sectors to understand the net cost
or benefit of carrying Social Banking Activity by SBH.
The Problems and Prospects of Social Banking are also given.
Agricultural Sector
Agriculture has been a way of life and continues to be the single most important livelihood of the
masses. Indian Agriculture has registered growth over the period.
Growth
Agricultural policy focus in India across decades has been on self-sufficiency and self-reliance in
food grains production. Considerable progress has been made on this front. Food grains
production rose from 52 million tonnes in 1951-52 to 244.78 million tonnes in 2010-111. The
253
share of agriculture in real GDP has fallen given its lower growth rate relative to industry and
services as shown in Table 5.1. But, capital investment in the sector has shown improvement. As
a proportion of the value added by agriculture to GDP, Gross Capital Formation (GCF) in
agriculture and allied sectors rose to 20.1 per cent in 2010-11 from 13.5 per cent in 2004-05 at
2004-05 prices as shown in Table 5.22. This is definitely a positive trend. However, agricultural
sector has quite often fallen short of the Plan targets. During the period 1960-61 to 2010-11, food
grains production grew at a compounded annual growth rate (CAGR) of around 2 per cent3. In
fact, the Ninth and Tenth Five Year Plans witnessed agricultural sectoral growth rate of 2.44 per
cent and 2.30 per cent respectively compared to 4.72 per cent during Eighth Five Year Plan4.
During the current Five Year plan, agriculture growth is estimated at 3.28 per cent against a
target of 4 per cent5. The Approach Paper to the Twelfth Five Year Plan emphasises the need to
“redouble our efforts to ensure that 4.0 per cent average growth” is achieved during the Plan.
This requires incremental productivity gains and technology diffusion across regions.
Agriculture is critical from the income distribution perspective as it accounted for about 58 per
cent employment in the country according to Census 20016.Moreover this sector is a supplier of
food, fodder, and raw materials for a vast segment of Industry. Achieving minimum agricultural
growth is a pre-requisite for inclusive growth, reduction of poverty levels, development of the
rural economy and enhancing of farm incomes.
TABLE 5.1
SHARE OF AGRICULTURE IN GDP
Year % share in GDP
1960-61 47.6
1970-71 41.7
1980-81 35.7
1990-91 29.5
2000-01 22.3
2004-05 19.0
2005-06 18.3
2006-07 17.4
2007-08 16.8
2008-09 15.8
2010-11 14.4
2011-12 14.0
Source: Estimates taken from issues of Central Statistics Office (CSO)
254
TABLE 5.2
GCF IN AGRICULTURE AND ALLIED ACTIVITIES
(FIGURES IN CRORES AT 2004-05 PRICES)
Year Agriculture & Allied Activities GCF / GDP
in Agriculture & Allied Activities
GCF GDP
2004 – 05 76096 565426 13.5
2005 – 06 86604 594487 14.6
2006 – 07 92057 619190 14.9
2007 – 08 105741 655080 16.1
2008 – 09 127127 655689 19.4
2009 – 10 131139 662509 19.8
2010 – 11 142254 709103 20.1
Source: Economic Survey 2011-12 & Central Statistics Office
Challenges
Agriculture and allied sectors have made substantial progress in terms of production and
productivity since the beginning of the Planning process. The successive Five Year Plans have
emphasized growth in the agriculture sector, as a result of which foodgrains production reached a
record level of 244.78 million tonnes in 2010-117. However the Agricultural Sector has to
answer the following challenges:
The area under food grains has declined in the last three decades. This calls for speedy
improvement in yield in order to increase production through adequate investment in
research and development. In yield parameters, India is lagging behind global levels in
most crops. With very little growth in area and marginal growth in yields of many crops
during the last decade, increasing agricultural production remains a challenge. A holistic
approach, spanning agricultural R&D, dissemination of technology, and provision of
agricultural inputs such as quality seed, fertilizers, pesticides, and irrigation, would help
achieve higher levels of productivity.
Access of small and marginal farmers to formal sources of agricultural credit is still
inadequate, though the flow of agricultural credit has increased in the recent past.
Effective coordination and monitoring of ongoing agriculture and allied sectors
programmes need to be ensured for optimum results.
Indian farmers are mostly small and marginal farmers with small and fragmented
landholdings. The average farm size in the country has declined over the years. This
poses a challenge in terms of adoption of farm mechanization as well as generating
255
productive income from farm operation. Pooling of many landholdings may yield better
economies of scale, for which land laws for leasing with sufficient safeguards in place
should be considered.
Declining per capita availability of food grains has been a matter of major concern. For
ensuring nutritional security, it is not only important to increase per capita availability of
food grains but also to ensure that right quantities of food items are there in the food
basket of the common man. A thrust on horticulture products is required for enhancing
per capita availability of food items as well as ensuring nutritional security.
Indian agriculture is still dependent on the monsoon. This adds to the risks a farmer faces.
The dependency of the Indian farmer on the monsoon has to be reduced largely by
increasing the irrigation facilities. Climate change and extreme weather conditions
impacting agriculture; there is need to devise insurance schemes linked to indices of
various vulnerability parameters. The insurance policy framework needs to be dynamic,
incorporating the perspectives of the insured, insurers, and public policy so that it covers
a large section of population.
Storage capacity is a major problem facing the country. Adequate storage facility would
help reduce post-harvest losses. Adoption of modern farm implements and tools
especially by small farmers is still low because of their lack of resources. This, in turn,
hampers the development of the agriculture sector. Addressing infrastructure
requirements in the agriculture sector, especially storage, communication, roads, and
markets should be a priority. Public private partnership models can be of help in ensuring
faster development of these requirements which are of vital importance for the growth of
the agriculture sector.
Another area for improvement is the generation of real-time market intelligence and also
agricultural market reforms. Enhancing the returns farmers get on their production is
essential for incentivizing them to produce more. Farmers need to realize the market price
for their produce. Setting up of efficient supply chains is essential not only for ensuring
adequate supplies of essential items at reasonable prices but also so that producers get
adequately compensated. Linking farmers to the market is, therefore, very important. The
successful experience of cooperatives in the milk sector in managing the supply chain and
256
providing remunerative prices to the producers may be emulated in the case of agricultural
products.
The level of secondary food processing in India is very low compared to many western
countries. With increasing income and population, demand for processed food is likely
to increase. It is necessary to cater to this changing demand and at the same time enhance
the income of farmers. So far the focus in food management has been on cereals, mainly
rice and wheat. However, the demand for processed food is expected to increase.
Investment in food processing, cold chains, handling, and packaging of processed food
needs encouragement.
There has been substantial increase in the Minimum Support Prices of various crops over
the last few years. This is considered necessary for incentivizing farmers to increase
production and productivity. At the same time, the MSP signals the floor price for the
produce which, in turn, has the potential of increasing prices. Addressing the welfare of
agricultural producers and consumers simultaneously poses a challenge. Further, inability
of a large number of small and marginal farmers to directly access the agriculture market
puts a question mark on increases in MSP actually benefiting such farmers. Record
procurement of rice and wheat in the last few years has helped build up the buffer stock
and strategic reserve of wheat and rice. There is, however, a huge cost involved in the
process, in the form of food subsidy. The issue of efficient food stocks management and
offloading of stocks in time needs urgent attention.
The challenges of the agriculture sector, therefore needs comprehensive and coordinated efforts
directed at improving farm production and productivity of food grains as well as high value
crops, developing rural infrastructure, renewing thrust on the irrigation sector, strengthening
marketing infrastructure, and supporting investment in R&D with due emphasis on
environmental considerations. These efforts will in time rejuvenate agricultural sector and bring
about inclusive growth of the economy. Banks, particularly Public Sector Banks, have to
definitely assume their role and contribute towards the development of the agricultural sector.
257
Micro, Small and Medium Enterprises (MSMEs)
The Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in the economic and
social development of the country, often acting as a nursery of entrepreneurship. They also play
a key role in the development of the economy with their effective, efficient, flexible and
innovative entrepreneurial spirit. The MSME sector contributes significantly to the country’s
manufacturing output, employment and exports and is credited with generating the highest
employment growth as well as accounting for a major share of industrial production and exports.
In India MSMEs play an essential role in the overall industrial economy of the country. In recent
years, the MSME sector has consistently registered higher growth rate compared with the overall
industrial sector. With its agility and dynamism, the sector has shown admirable innovativeness
and adaptability to survive the recent economic downturn and recession.
The MSME sector in India is highly heterogeneous in terms of the size of the enterprises, variety
of products and services, and levels of technology. The sector not only plays a critical role in
providing employment opportunities at comparatively lower capital cost than large industries but
also helps in industrialisation of rural and backward areas, reducing regional imbalances and
assuring more equitable distribution of national income and wealth. MSMEs complement large
industries as ancillary units and contribute enormously to the socioeconomic development of the
country.
Growth
The following are the highlights of the MSME sector
MSMEs account for about 45% of India’s manufacturing output.
MSMEs account for about 40% of India’s total exports.
The sector is projected to employ about 73 millionn people in more than 31 million units
spread across the country.
MSMEs manufacture more than 6,000 products ranging from traditional to high tech
items.
For FY11, total production coming from MSME sector was projected at ` 10,957.6
billion, an increase of more than 11% over the previous year8.
258
The following are the contributions of the MSME sector:
MSMEs outperform GDP and Index of Industrial Production growth rates
MSMEs have outperformed IIP and GDP growth rates in the past five years. The domestic
MSME sector has outpaced industrial and GDP growth. During FY12, total production of
MSMEs was projected to grow at 11.48% compared to industrial and GDP growth of 8.2% and
8.4% respectively. In FY11, total production of MSMEs was equivalent to about 14.28% of
India’s GDP (at current market prices). The total production of MSMEs for FY11 was ` 10,957.6
bn (at 2001-02 prices). Between FY07 and FY11, the sector’s total production grew at a CAGR
of 11.5%, clearly indicating the substantial contribution of MSMEs to the Indian economy9.
Fixed investment and employment in MSME segment registered mutual growth
Productivity of the MSME sector has been improving tremendously with fixed investment and
employment growing consistently in the past couple of years. This is a direct indication of the
efforts in the sector to integrate the work force with technological enhancements to increase
production. Fixed investment in the MSME sector between FY07 and FY11 has grown at
11.48% CAGR and employment grew more than 5% y-o-y10
.
PSBs remain the largest lenders to MSMEs
The MSME sector has been accorded high priority in the industrial policy owing to its vital role
in the economy. During FY11, the total outstanding credit by banks to MSMEs in India stood at `
4,859.43 bn, and has grown at a CAGR of 39.8% during FY07-FY11. Among bank categories,
public and private sector banks have registered impressive growth of 35.28% and 36.14% in
MSE lending in FY11. However, Public Sector Banks (PSBs) account for a major share
compared to private and foreign banks. During FY11, total priority sector advances by PSBs
grew by 19.1% y-o-y to ` 10,286.15 bn, as against ` 8,637.77 bn in FY10. Total advances
provided by the PSBs to the MSE sector for FY11 grew by 35.3% y-o-y to ` 3,766.25 bn.
Advances to MSE formed around 37% of the total priority sector advances of PSBs, versus the
32% share during FY10. Moreover, the share of MSE credit to net bank credit stood at 9.9 % in
2011 against 13.4% in 201011
.
259
Challenges
A dynamic global economic scenario has thrown up various opportunities and challenges to the
MSME sector in India. On the one hand, numerous opportunities have opened up for this sector
to enhance productivity and look at new national and international markets. On the other hand,
these opportunities compel the MSMEs to upgrade their competences to contend with
competition since obsolescence is rapid with new products being launched at an incredible pace
and are available worldwide in a short time. The following are the challenges faced by the
MSME sector.
Lack of availability of adequate and timely credit
High cost of credit
Collateral requirements
Limited access to equity capital
Procurement of raw material at a competitive cost
Problems of storage, designing, packaging and product display
Lack of access to global markets
Inadequate infrastructure facilities, including power, water, roads
Low technology levels and lack of access to modern technology
Lack of skilled manpower for manufacturing, services, marketing, etc
Multiplicity of labour laws and complicated procedures associated with compliance of such
laws
Despite the various challenges it has been facing, the MSME sector has shown admirable
innovation, adaptability and resilience to survive the recent economic downturn and recession.
Hence Banks also should provide the requisite support to the MSME sector by giving innovative
services.
Rural Sector
Recently, the rural sector (including agriculture) is being seen as a potential source of domestic
demand, a recognition that is even shaping the marketing strategies of entrepreneurs wishing to
widen the demand for goods & services.
260
Growth
Rural India is not solely about agriculture anymore and has made a transition from thatched- roof
houses and muddy roads to factories and cell phones, says a study by Credit Suisse. Rural India
has become less dependent on the erratic Indian monsoon and has been linked to the national
economic cycles to which it was more or less immune thus far, it said. Since 1999-2000, per
capita GDP in rural areas has grown at a 150 basis points faster rate than in urban India, contrary
to the trend seen in other emerging economies where urban productivity growth is higher than in
rural12
. While 69 per cent of Indian population is still "rural", not all of it means backwards. The
transition from agriculture to industry and services has been very rapid in rural India over the
past decade.
Rural India is no longer an agrarian economy exposed to the vicissitudes of an erratic monsoon.
All agriculture is rural by definition, but the converse is no longer true. Agriculture is now only
about one-fourth of rural GDP --- from being close to half a decade back.13
In rural India, manufacturing is booming as almost 75 per cent of the new factories during the
last decade came up there, contributing to 70 per cent of all new manufacturing jobs created. As
a result, manufacturing GDP in rural India witnessed an 18 per cent CAGR during 1999-09, and
is now 55 per cent of India's manufacturing GDP. Growth in services employment is equally
robust. In rural India, jobs are switching away from agriculture. In 1978, around 81 per cent of
rural males considered agriculture as their primary job. This ratio fell to 67 per cent in FY05 and
55 per cent in FY10. The trend is similar for female rural employment as well, it added14
.
Indian villages are growing larger, merging together and are moving away from agriculture, and
thus being classified as towns. This trend is clearly visible in the sharp increase in the number of
'census towns' in the 2011 census. The number of census towns has increased three times in a
decade. Census towns are habitats that are not statutory towns; they have no municipal body, but
given population density and employment characteristics, they are classified as towns. Therefore
consumption will continue to skew towards lower price points and "rural urbanisation" themes.
The "new urban" consumption categories like two-wheelers, building materials/paints, media,
tobacco, footwear, healthcare, personal products with low price points (like toothpaste) are thus
likely to see sustained growth.
261
Challenges
The following challenges are to be addressed for achieving growth in the Rural Areas:
Prevalence of Acute Poverty: The number of poor people in India, according to the
country’s Eleventh National Development Plan, amounts to more than 300 million. The
country has been successful in reducing the proportion of poor people from about 55 per cent
in 1973 to about 27 per cent in 2004. But almost one third of the country’s population of
more than 1.1 billion continues to live below the poverty line, and a large proportion of poor
people live in rural areas. Poverty remains a chronic condition for almost 30 per cent of
India’s rural population. The incidence of rural poverty has declined somewhat over the past
three decades as a result of rural to urban migration. (Source: IFAD)
A major cause of poverty among India’s rural people, both individuals and communities,
is lack of access to productive assets and financial resources.
High levels of illiteracy,
inadequate health care and
extremely limited access to social services
Microenterprise development, which could generate income and enable poor people to
improve their living conditions, has only recently become a focus of the government.
Migration of Youth to Urban Areas in search for livelihood.
Women in general are the most disadvantaged people in Indian society, though their status
varies significantly according to their social and ethnic backgrounds. Women are
particularly vulnerable in the rural areas, because of twin causes of illiteracy and poverty.
Credit-Deposit Ratio – Bank Group Wise
‘Credit-Deposit ratio’ is the proportion of loan-assets created by the banks from the deposits
received. Higher credit-deposit ratio may be understood as an indicator of optimum utilisation of
the funds by the Banks and vice-versa.
Table 5.3 shows the Bank group wise Credit-Deposit ratio (inclusive of the credit given to the
Priority Sector) for the period 1998-99 to 2011-12. The CD ratio of the Foreign Banks is the
highest, except for the year 2009-10, followed by the private Sector Banks. The CD ratio of the
262
Public Sector Banks is lowest of the three groups throughout the period. Also, it is lower than
the industry average throughout the period.
Hence the Public Sector Banks have funds at their disposal which can be used for lending to
Priority Sectors instead of holding idle funds. This contributes to the development of these
sectors and ultimately contributes to the economic development of the nation and the Banks can
increase their profits by increasing their business.
TABLE 5.3
CREDIT DEPOSIT RATIO BANK GROUP WISE
Year Public Sector Banks Private Sector Banks Foreign Banks All Scheduled Banks
Deposits Advances CD
ratio Deposits Advances CD
ratio Deposits Advances CD
ratio Deposits Advances CD
ratio
1998-99 636810 296959 46.63 86855 42789 49.26 47463 29253 61.63 771128 369001 47.85
1999-00 737312 352109 47.76 113669 55742 49.04 49324 35617 72.21 900305 443468 49.26
2000-01 859462 414989 48.28 136635 68111 49.85 59290 43051 72.61 1055387 526151 49.85
2001-02 968749 480680 49.62 169440 116430 68.71 64510 48632 75.39 1202699 645742 53.69
2002-03 1079167 548436 50.82 207173 138948 67.07 69313 52167 75.26 1355653 739551 54.55
2003-04 1226837 632739 51.57 268549 170895 63.64 79756 60507 75.87 1575142 864141 54.86
2004-05 1436540 854214 59.46 314629 221303 70.34 86389 75318 87.18 1837558 1150835 62.63
2005-06 1622481 1106128 68.18 428251 312873 73.06 113744 97554 85.77 2164476 1516555 70.07
2006-07 1994199 1440146 72.22 551987 414751 75.14 150749 126338 83.81 2696935 1981235 73.46
2007-08 2453867 1797504 73.25 675073 518402 76.79 191113 161132 84.31 3320053 2477038 74.61
2008-09 3112748 2260156 72.61 736379 575336 78.13 214077 165415 77.27 4063204 3000907 73.86
2009-10 3691802 2,701,300 73.17 822801 632494 76.87 237853 163260 68.64 4752456 3497054 73.58
2010-11 4372985 3305632 75.59 1002759 797534 79.53 240689 195539 81.24 5616433 4298705 76.54
2011-12 5002000 3878300 77.53 1174600 966400 82.27 277100 229800 82.93 6453700 5074500 78.63
Source: Compiled from various issues of Reserve Bank Trends and Progress
Table 5.4 shows the credit deposit ratio of State Bank of Hyderabad and State Bank Group. The
CD ratio of the State Bank of Hyderabad is lower than the CD ratio of the State Bank Group i.e,
it is lower than the industry average within the group and it is also lower than the CD ratio of all
the Scheduled Banks for the period 1998-99 to 2011-12. However the SBH has registered an
overall growth in the CD Ratio. SBH has to use the available funds optimally by lending more,
thus improving its profitability. This opportunity should be used by the SBH and the Bank
263
should be proactive in lending to the Priority Sectors for the mutual benefit. For, these sectors
are suffering because of lack of credit and SBH is having idle funds at its disposal.
TABLE 5.4
CREDIT DEPOSIT RATIO OF SBH AND STATE BANK GROUP (Rs. In Crores)
Year SBH SBG Deposits
Deposits Advances C-D
Ratio
Deposits Advances C-D
Ratio
1956 24 7 29.17 NA NA -
1969 58 52 89.66 NA NA -
1970 65 50 76.92 NA NA -
1975 155 105 67.74 NA NA -
1980 462 267 57.79 8701 -
1985 1128 630 55.85 29796 18955 63.62
1990 2434 1394 57.27 56825 42038 73.98
1991 2598 1651 63.55 61810 49030 79.32
1992 3179 1906 59.96 75864 53535 70.57
2000 12527.02 6080.91 48.54 256,288.02 129,252.76 50.43
2001 14841.86 7091.49 47.78 312,117.50 150,390.52 48.18
2002 17402.75 8422.58 48.40 351,072.79 164,537.26 46.87
2003 20598.94 9662.6 46.91 391,886.36 189,203.88 48.28
2004 25310.72 11813.68 46.67 432,890.61 220,515.80 50.94
2005 28929.52 15599.74 53.92 505,649.41 284,753.97 56.31
2006 34024.6 20863.02 61.32 542,409.12 371,519.93 68.49
2007 41502.67 28109.25 67.73 633,474.60 482,269.67 76.13
2008 50108.3 35848.75 71.54 773,875 593,722 76.72
2009 62448.91 43679.17 69.94 1,007,042 739,606 73.44
2010 72970.72 53040.07 72.69 NA NA NA
2011 88627.87 64720.31 73.02 NA NA NA
2012 98731.91 77052.31 78.04 NA NA NA
Source: Compiled from various annual reports and records of State Bank of Hyderabad
Non Performing Assets – Bank Group And Sector Wise
The Non Performing Assets of the Banks – Group wise and Sector Wise are compared.
The table 5.5 shows the Non Performing Assets of Public Sector Commercial Banks – sector
wise. From the table it is clear that the percentage of the Non Performing Assets to the
Advances of the Public Sector Banks for the Priority Sector Lending has decreased from 26.25
per cent in the Financial Year 1996-97 to 4.97 per cent in the Financial Year 2011- 12 and for the
264
non priority sector lending it has decreased from 20.61 per cent to 2.95 per cent for the same
period. This can be attributed to the Efficient Credit management of the Banks.
The percentage of the NPAs to Advances is calculated by dividing NPAs arising out of the
Priority Sector or Non Priority Sector Advances by the total Advances of that category.
% of NPAs of Priority Sector = NPAs arising out of Priority Sector Advances
Total Priority Sector Advances
% of NPAs of Non Priority Sector = NPAs arising out Non Priority Sector Advances
Total Non Priority Sector Advances
Table 5.6 shows the Non Performing Assets of the Private Sector Banks sector wise. The
percentage of the Non Performing Assets to the advances given by the Private Sector Banks to
the Priority Sector has decreased from 8.51 per cent for Financial Year 2000 - 01 to 1.78 per cent
in the Financial Year 2011-12. For the Non Priority Sector it has decreased from 12.30 per cent
to 3.00 per cent for the same period. As against the general understanding or belief, the NPAs as
a percentage to the Advances for Non Priority Sector are higher when compared to the NPAs as
a percentage to the Advances for the Priority Sector throughout the period.
265
TABLE 5.5
NON PERFORMING ASSETS OF PUBLIC SECTOR COMMERCIAL BANKS -
SECTOR-WISE
(Amt in Rs.
Crores)
Priority Sector Non Priority Sector
Total
NPAs
Year NPA's
Advances
% of
NPA's to
Advances
Per
cent
to
total
NPA's NPA's Advances
% of
NPA's to
Advances
%
to
total
NPA's Amount
1997 20774 79,131 26.25 47.70 22802 110632 20.61 49.00 43577
1998 21284 91,319 23.31 46.40 24369 127148 19.24 50.60 45653
1999 22606 107,200 21.09 43.70 29104 139237 19.83 53.40 51710
2000 23715 127,807 18.56 44.50 29579 165328 20.9 53.50 53294
2001 24156 146,546 16.48 45.43 29018 194259 14.94 51.35 53174
2002 25139 171,484 14.66 44.49 31367 222732 14.08 53.54 56506
2003 24938 199,786 12.48 47.23 27869 285131 9.77 50.72 52807
2004 23840 244,456 9.75 47.54 26308 316223 8.32 51.24 50148
2005 23397 310,093 7.55 49.05 24299 407715 5.96 50.00 47696
2006 22374 401,410 5.57 54.07 19004 607931 3.13 45.11 41378
2007 22954 409,748 5.60 59.46 15648 606996 2.58 39.27 38602
2008 25287 521,376 4.85 63.62 14462 791914 1.83 35.63 39749
2009 24318 610,450 3.98 55.20 19724 755210 2.61 43.70 44042
2010 30848 863,777 3.57 53.80 26453 1212610 2.18 45.30 57301
2011 41245 1,028,615 4.01 58.10 29803 1461978 2.05 41.90 71047
2012 56200 1,130,700 4.97 50.00 56300 1908800 2.95 50.00 112500
Source: Compiled from various issues of Reserve Bank Trends and Progress
266
TABLE 5.6
NON PERFORMING ASSETS OF PRIVATE SECTOR BANKS - SECTOR WISE
(Rs. In Crores)
Priority Sector Non Priority Sector
Total
NPAs
Year NPA's ADVANCES
% of
NPA's to
Advances
%
to
total
NPA's NPA's ADVANCES
% of
NPA's to
Advances
%
to
total
NPA's Amount
1997 NA 8832 NA NA NA 12605 NA NA NA
1998 NA 11614 NA NA NA 16782 NA NA NA
1999 NA 14155 NA NA NA 20036 NA NA NA
2000 NA 18019 NA NA NA 28542 NA NA NA
2001 1835 21567 8.51 28.62 4576 37199 12.30 69.45 6410
2002 2546 25709 9.90 21.82 9121 37149 24.55 77.91 11667
2003 2445 36705 6.66 20.61 9421 45964 20.50 78.60 11866
2004 2482 48920 5.07 23.97 7870 54505 14.44 75.30 10352
2005 2188 69886 3.13 24.87 6611 90403 7.31 74.65 8800
2006 2284 106566 2.14 29.17 5545 142420 3.89 70.78 7829
2007 2884 144549 1.99 31.22 6355 192395 3.30 68.75 9239
2008 3419 164068 1.79 26.34 9558 179170 5.33 73.66 12976
2009 3640 190207 1.91 21.60 13247 216218 6.13 78.00 16887
2010 4792 214669 2.23 27.60 12592 254041 4.96 72.40 17384
2011 4823 248828 1.93 26.80 13147 285138 4.61 73.20 17971
2012 5100 286400 1.78 27.9 13200 440504 3.00 72.10 18300
Source: Compiled from various issues of Reserve Bank Trends and Progress
Table 5.7 shows the Non Performing assets and its percentage to the advances of the Foreign
Banks sector wise. The Percentage of Non Performing Assets to the Advances of the Foreign
Banks for the Priority Sector has increased from 0.87 per cent in the FY2007 to 1.72 per cent in
267
the year 2011. For the non priority sector lending the percentage of the non performing assets to
advances has increased from 2.81 per cent to 3.93 per cent. The Priority sector lending
Nonperforming assets percentage to advances is lesser than the non priority sector lending
throughout the period.
TABLE 5.7
NON PERFORMING ASSETS OF FOREIGN BANKS - SECTOR-WISE
(Rs. In Crores)
Priority Sector Non Priority Sector
Total
NPAs
Yr NPA's Advances
Percentage
of NPA's
to
Advances
Per
cent
to
total NPA's Advances
Percentage
of NPA's
to
Advances
Per
cent
to
total Amount
1997 NA 6139 NA NA NA 10145 NA NA NA
1998 NA 6940 NA NA NA 13293 NA NA NA
1999 NA 8270 NA NA NA 14081 NA NA NA
2000 NA 9699 NA NA NA 18012 NA NA NA
2001 NA 11835 NA NA NA 22974 NA NA NA
2002 NA 13414 NA NA NA 26039 NA NA NA
2003 NA 14848 NA NA NA 28951 NA NA NA
2004 NA 18276 NA NA NA 34241 NA NA NA
2005 NA NA NA NA NA NA NA NA NA
2006 NA NA NA NA NA NA NA NA NA
2007 331 37831 0.87 13.5 2120 75435 2.81 86.50 2451
2008 402 50254 0.80 12.9 2712 76971 3.52 87.10 3114
2009 649 55483 1.17 9.1 6506 106275 6.12 90.90 7155
2010 1170 59960 1.95 16.4 5956 106596 5.59 83.60 7126
2011 1141 66527 1.72 22.5 3924 99791 3.93 77.50 5065
2012 NA 80500 NA NA NA
116322 NA NA NA
Source: Compiled from various issues of Reserve Bank Trends and Progress
268
Table 5.8 shows the Non Performing Assets of the State Bank of Hyderabad sector wise and its
percentage to the advances given. The percentage of the nonperforming assets to the Advances
has decreased from 15.27 per cent in FY2001 to 2.10 per cent in the FY2012 for the Priority
sector and it has registered a decrease from 13.56 per cent to 1.13 per cent for the Non Priority
Sector. The performance of the State Bank of Hyderabad in terms of the reduction of the
percentage of the Non Performing assets to the Advances is better than the Public Sector Banks
and the Private Sector Banks.
TABLE 5.8
NON PERFORMING ASSETS OF STATE BANK OF HYDERABAD - SECTOR-WISE
(Amount in Rs. Crores)
Priority Sector Non Priority Sector Total NPAs
Year NPA's ADVs
%of NPA's to Advances
% to
total NPA's NPA's ADVANCES
%of NPA's to Advances
% to
total NPA's Amt
1997 NA NA NA NA NA 2566 NA NA NA
1998 NA 1844 NA NA NA 2982 NA NA NA
1999 NA 2038 NA NA NA 3274 NA NA NA
2000 NA 2475 NA NA NA 3865 NA NA NA
2001 457.34 2995 15.27 42.53 618 4559 13.56 52.10 1075.00
2002 440.76 3514 12.54 49.05 458 5739 7.98 44.75 898.50
2003 377.96 3839 9.85 51.09 362 7201 5.03 42.97 739.80
2004 158.63 4803 3.30 22.94 533 9327 5.71 72.20 691.40
2005 194.61 6388 3.05 35.17 359 12512 2.87 64.83 553.30
2006 136.98 8390 1.63 30.23 316 16755 1.89 69.77 453.10
2007 162.33 11315 1.43 46.27 189 15477 1.22 53.73 350.80
2008 170.05 12869 1.32 54.51 142 20856 0.68 45.49 311.90
2009 214.00 15190 1.41 43.9 272 25944 1.05 56.10 486.00
2010 290.00 18148 1.60 44.9 356 29711 1.20 55.10 646.00
2011 411.00 23639 1.74 35.7 740 29710 2.49 64.30 562.27
2012 568.85 27088 2.10 56.7 433 38342 1.13 43.30 1001.95 Source: Compiled from various issues of Reserve Bank Trends and Progress
and annual reports of SBH
Thus, Sector-wise NPAs analysis shows that the NPAs in case of Priority Sector is less than Non
Priority Sectors in case of Private Sector Banks, both Indian and Foreign, whereas in case of
Public Sector Banks it is the other way. However, the CAGR of the decrease in the percentage
of the NPAs of the Priority sector is (12.61 per cent) and the CAGR of the decrease in the
269
percentage of the NPAs of the non priority sector is (8.53 per cent). Therefore it is an
encouraging trend.
Chart 5.1
Percentage of NPAs of Priority Sector Advances:
Indian Domestic Banks Group-Wise & SBH
Source: Compiled from various issues of Reserve Bank Trends and Progress
and annual reports of SBH
It can be observed from the Chart 5.1 that the Percentage of NPAs to Priority Sector Advances of
State Bank of Hyderabad are consistently lower than that of Public Sector Banks throughout the
period 2001 to 2012. It is almost on par with the Indian Private Sector Banks. This can be
attributed to the efficient management of the Advances by the SBH.
0
2
4
6
8
10
12
14
16
18
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Public Sector Banks
Indian Private Sector Banks
State Bank of Hyderabad
Y E A R
%
o
f
N
P
A
s
t
o
A
d
v
a
n
c
e
s
270
Chart 5.2
Percentage of NPAs of Non Priority Sector Advances:
Indian Domestic Banks Group-Wise & SBH
Source: Compiled from various issues of Reserve Bank Trends and Progress
and annual reports of SBH
Chart 5.2 shows that the Percentage of NPAs to Non Priority Sector Advances of State Bank of
Hyderabad are consistently lower than that of Public Sector Banks and Indian Private Sector
Banks throughout the period 2001 to 2012. This reflects the efficient management of Advances
by the SBH.
0
5
10
15
20
25
30 20
01
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Public Sector Banks
Indian Private Sector Banks
State Bank of Hyderabad
Y E A R
%
o
f
N
P
A
s
t
o
A
d
v
a
n
c
e
s
271
The Concept of Marginal Costing
Marginal Cost is the addition to the total cost due to the production of one more unit of output
(can be understood as one more unit of Loan in case of Banking Services). According to
Chartered Institute of Management Accountants, England, Marginal Costing is “the
ascertainment of marginal costs and of the effect of changes of volume or type or output by
differentiating between fixed costs and variable costs….. In this method of costing only variable
costs (interest expended for borrowing funds) are charged to operations, processes or products
(Loans given) while fixed costs are written off against profits in the period in which they arise”.
Under the system of marginal costing only variable costs form part of product the cost because
only variable costs increase or decrease due to an increase or decrease in output. Therefore
marginal costing is also known as variable costing. Fixed costs are treated as period cost. Under
Marginal costing the entire fixed cost incurred during a particular period is charged to that period
only irrespective of quantity produced and sold.
Therefore according to Marginal Costing Principles the cost of borrowing or interest expended
only should be considered as variable cost. The operating expenses – like salaries of employees,
rent and rates etc - should be treated as fixed cost. The interest earned by way of giving
advances should be treated as income. The net interest i.,e., interest earned minus interest
expended should be treated as Contribution.
The following formulae are used for calculating Interest earned from Agricultural, SME& other
Priority Sector Advances., Weighted average interest expended and Contribution.
Contribution = Weighted average Interest earned – Weighted average interest expended
Weighted average Interest earned = Total interest earned on Agricultural Loans or SIB
Loans
Total Loans given for Agricultural Purposes or SIB
Loans
272
Weighted Average Interested Expended = Total Interest expended in a year
Total Deposits + Borrowings in a year
TABLE 5.9
WEIGHTED AVERAGE INTEREST EARNED AND EXPENDED
(Rs. In
Thousands)
Type of Advances Year % of Weighted
Average
Interest earned
% of Weighted
Average
Interest Expended
Contribution
%
Agricultural Advances 2010 4,20,164
= 8.02
52,40,280
5.74 2.28
2011 5,40,972
=
8.51 63,59,992
5.33 3.18
2012 7,74,164
=
9.83
78,78,423
6.95 2.88
SME And
Other Priority Sector
Advances
2010 3,17,728
=
10.48 30,32,392
5.74 4.74
2011 4,01,052
=
9.80
40,92,989
5.33 4.47
2012 6,11,868
=
12
50,99,508
6.95 5.05
Source: Records of Regional Office of State Bank of Hyderabad at Nalgonda
Table 5.9 shows the calculation of the weighted average interest rate earned from advances given
to the agricultural and SME & Priority Sector Advances by 54 Branches of SBH in the Nalgonda
District for the FY 2009-10 to 2011-12. The interest earned on the agricultural advances
registered an increasing tendency and increased from 8.02 per cent in Financial Year 2009-10 to
9.83 per cent in the Financial Year 2011-12. The interest earned on the SME & other Priority
273
Sector advances, though has dropped in the Financial Year 2010-11, has also increased from
10.48 percent in the Financial Year 2009-10 to 12 per cent in the Financial Year 2011-12. The
Interest expended by the SBH during the years 2009-10 to 2011-12 have increased from 5.74 per
cent (decreased in the year 2010-11 to 5.33 per cent) to 6.95 per cent. Thus Agricultural
Advances have positive Contribution of 2.28, 3.18 and 2.88 per cent respectively for the period.
The SME & Other Priority Sector Advances have a positive Contribution of 4.74, 4.47 and 5.05
per cent respectively for the period.
Rural Branches in Nalgonda District
Branch wise analysis of the 54 branches of SBH operating at the Mandals of the Nalgonda
District is shown in the tables 5.10 and 5.11. The Tables show the Advances given to the
Agriculture, Small & Medium enterprises and other priority sectors, the interest earned on these
advances for the three consecutive years i.e, 2009-10, 2010-11 and 2011-12. The Weighted
Average Contribution on the advances given to the agriculture and Small and Medium
enterprises and Other Priority Sectors is also calculated. And the Weighted Average
Contribution, for both Agriculture and SME & Priority Sectors is positive for all the three
consecutive years for the Branches operating in the Mandals of the Nalgonda District. Hence it
can be said that the Rural Branches are contributing to the Profits of the Bank. This stresses upon
the fact that Priority Sector Lending and the Rural Branches, as generally perceived, are not
always on the negative side.
Problems of Social Banking
The Problems for carrying Social Banking Activities can be summed up as follows:
1. Out of the total Priority Sector Lending a major portion (18 per cent out of total 40 per cent)
a major portion is towards agriculture which is carried on in rural areas. Therefore
beneficiaries of the Social Banking are mostly from the rural background with little or no
education. Therefore lack awareness regarding the products and services offered by the Bank
and about the formalities and procedures to be followed while availing the services. This is
posing a problem to reach the beneficiaries.
However, this problem is being tackled by the Bank by frequently organizing awareness
programmes.
274
2. The irregular repayments or the non-repayment of the loan instalments by the Rural
Customers due to crop failure or lack of awareness or political influence is a major problem
to the Bank as the Bank would be faced with a liquidity problem and low profits.
This problem is being overcome by the Bank by regular follow up of each case individually
and by constant counseling.
3. Another problem faced by the Bank is relating to the diversion of funds from the purpose for
which the loans are taken to non productive activities like celebrations, personal
consumption, medical expenses, repayment of earlier loans (mostly taken from money
lenders) taken etc.
Hence the field officers are making regular visits to the site for careful assessment and for
giving constant counseling.
4. The Loan taken for the purchase of Agricultural equipment / Live Stock is misutilised and
the detection of this by the Bank officials is posing a big challenge as the quality products
would be shown at the time of inspection and later are replaced with inferior quality.
Therefore the field officers are visiting the site on regular basis for instilling discipline
among the beneficiaries.
5. The Rural Beneficiaries are not able to access Technology based Products/Services offered
by the Bank. As per the Policy guidelines of the Reserve Bank of India the Bank/s are
implementing several programmes under Financial Inclusion for providing ICT Information
and Communication Technology) based products / services to the under privileged.
6. Agriculture mostly is dependent on the monsoons. Climate changes and weather conditions
impact agriculture. These factors are uncontrollable and add to the risk of a farmer and the
Banker.
7. The Employees of the Bank do not posses complete knowledge of the activities taken up by
the Rural Customers, particularly the Farmers. Therefore they are finding it difficult to deal
with the rural customers.
Hence the Bank is implementing the Training Programmes to their employees to impart the
specific skills required to deal with Agriculture, Small and Medium Enterprises and such
other Priority Sectors.
275
Prospects of Social Banking
The following Prospects are available to the Banks for carrying out the Social Banking
Activities:
1. Agriculture, SMEs, Small Businesses and Rural Sector are showing promising growth
with the continuous effort put by Government and other organizations and Departments
since independence, and therefore lending and recovery of loans under Social Banking
would be encouraging. This activity should be seen as an investment for converting
marginal customer into actual customer even for the other (other than Social Banking
services like personal loans, vehicle loans etc) Services / Products offered by the Bank.
2. Non-Priority Sector market is reaching to saturation, competition, also, is intensifying,
resulting in decreasing spreads. Hence the Banks have to tread new markets.
Therefore the Priority Sectors (including Rural Sector) are potential markets throwing
open big opportunity.
3. There is a general feeling that lending under Social Banking would pose a problem for
the profitability of the Banks as the rate of interest on loans would be low compared to
the Non-Priority Sectors and hence are loss making. But contrary to this belief the study
proved that Priority Sector is making positive contribution towards profits of the Bank.
4. The implementation of the reforms is encouraging as banks are able to bring down their
non-performing assets sharply. The CAGR decrease in the NPAs of the Priority Sector is
higher than the CAGR decrease of the non Priority Sector Advances for the period 1997-
2012. Hence there is an ample scope for the deployment of the funds in the Priority
Sector.
5. The Credit Deposit Ratio of the Public Sector Banks in general and State Bank of
Hyderabad in particular is low when compared to the industry average. Instead of
holding idle funds the Bank can improve its profitability by lending under Social Banking
and contribute to the Economic Development of the country.
Conclusion
The Agriculture, Small & Medium Enterprises and the Rural sector which form the core of the
Social Banking are all having immense potential for growth. These sector/s as a whole are
positively contributing to the economy. However these sectors are facing many challenges.
276
With the kind of Policy support the Government/s are extending to these sectors would soon
overcome their challenges and would achieve their full potential.
The implementation of the reforms is encouraging as banks were able to bring down their non-
performing assets sharply. Capital position of banks also improved significantly. Competition
intensified during this phase as was reflected in the narrowing down of margins. Despite this,
however, banks slightly improved their profitability among others, due to increased volumes and
improvement in asset quality. Even for the Priority Sector Lending the Non Performing assets
have considerably reduced for all groups of the Banks – Public Sector, Private Sector, State Bank
Group and Foreign Banks. The asset quality for these advances also have shown improvement.
The State Bank of Hyderabad also has shown the improvement in the asset quality. The priority
Sector Advances have positively contributed to the incomes of the State Bank of Hyderabad for
the FY2010 to 2012. The Banks, particularly the Public Sector Banks, have enough liquidity as
CD ratio is less than 80 per cent.
The Commercial Banks, somehow, are not able to see the Agriculture or Small Business or other
Priority sectors as a profit making opportunity in spite of the positive contributions made by
these sectors to the GDP and the development of the economy. The Commercial Banks are
seeing the Priority sector lending and branch expansion to the unbanked areas as a mere
compliance function. This is evident from the fact that the priority sector lending is lingering
around the stipulated mark of 40 per cent for the Indian Banks and 32 per cent for the Foreign
Banks. With the liberalized policy for the branch expansion the CAGR of the Rural Branches
became negative. Despite all the attempts made by the Reserve Bank, the extent of financial
exclusion continued to be significant in India, when compared with some of the advanced as well
as developing countries.
Regulation can establish principles and lay down rules but the motivation to implement these
principles and rules in their true spirit is a matter of organizational culture. If banks see
adherence to regulation as a mere compliance function, and not as a culture building objective,
the ability of regulation to further social agenda can be quite restrictive. Therefore the
Managements of the Banks, particularly Public Sector Banks and the State Bank of Hyderabad,
have to design and implement principles to cater to the requirements of all the stakeholders. The
Commercial Banks have to come out with innovative products and services and out of the box
solutions to convert the potential of these sectors into real business.
277
STA
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5
1.5
2
2.5
2
1.3
9
2.3
6
3.0
9
0.7
4
1.8
2
2.0
6
2.4
1
3.2
9
2.4
6
1.5
5
3.0
7
1.9
2
2.0
9
1.7
8
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4
1.1
7
2.2
1
AD
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DIG
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13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
279
31
19
79
22
7
10
92
24
87
1 0
39
23
0
12
88
8
82
73
63
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34
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37
3
82
03
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31
56
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34
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81
0
51
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95
4
16
8
0
0
0
0
11
.96
10
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4
12
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###
###
8.7
1
6.2
8
6.1
9
6.8
2
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7
3.5
0
1.7
3
0.0
0
###
###
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###
5.0
1
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1.7
6
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7
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6
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3
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5
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###
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21
84
62
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20
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3
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71
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54
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1
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12
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12
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5.5
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4
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4
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0
###
###
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###
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9.0
9
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6
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/0!
6.7
9
6.7
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5
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9
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5
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29
89
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37
4 0
18
78
7
11
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32
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11
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7.6
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6.1
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8
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9
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33
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35
36
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38
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42
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280
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64
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8.0
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48
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54
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35
24
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55
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.
1
2
3
4
5
6
7
8
9
10
11
12
282
67
64
8
91
42
42
64
2
17
05
4
10
78
79
13
79
6
13
09
6
71
72
85
18
85
68
2
33
17
10
41
7
56
77
55
86
16
46
93
42
11
47
94
5
11
63
9
13
23
0
74
60
97
1
60
94
84
5
13
07
4
14
54
16
68
80
6
10
81
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26
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43
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36
3
52
9
17
54
5
43
6
46
29
12
31
15
65
11
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10
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14
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5
12
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12
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11
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12
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11
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12
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8.4
6
6.3
9
9.4
7
10
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10
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9.6
5
10
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11
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4.0
77
67
26
58
3.6
71
30
82
48
7.3
41
07
45
27
-1.9
95
15
06
98
5.1
69
13
34
74
3.5
89
28
67
5
5.7
86
71
35
4.2
88
14
83
55
5.7
40
77
24
82
5.0
29
17
88
24
6.0
13
52
12
54
1.5
07
32
93
65
-0.5
55
77
76
99
2.5
20
10
38
31
3.7
03
15
46
57
3.4
03
83
51
94
2.7
04
81
28
06
3.6
26
51
00
09
4.8
79
17
61
15
46
78
2
67
88
38
51
7
20
13
4
94
07
9
10
59
2
18
46
1
43
07
11
75
5
39
77
5
39
48
55
15
55
60
66
57
60
01
3
36
61
35
94
1
86
66
12
31
8
39
86
72
8
52
19
13
72
97
89
80
4
21
22
59
0
11
03
37
07
37
4
47
7
17
2
66
1
55
74
29
7
29
10
78
8
66
4
8.5
2
10
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13
.55
6.8
1
10
.41
7.5
9
11
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13
.70
9.3
8
9.3
2
9.4
7
8.6
5
3.0
9
9.9
3
9.2
9
8.1
1
8.1
0
9.0
9
5.3
9
2.8
8
5.0
8
7.9
1
1.1
7
4.7
7
1.9
5
5.8
5
8.0
6
3.7
4
3.6
8
3.8
3
3.0
1
-2.5
5
4.2
9
3.6
5
2.4
7
2.4
6
3.4
5
-0.2
5
45
35
6
55
49
49
88
8
22
57
1
72
82
4
78
65
23
51
3
71
82
99
08
44
67
8
64
72
34
62
67
27
59
78
55
43
4
34
42
27
19
6
68
40
64
85
37
05
61
1
35
39
21
25
74
77
83
7
26
21
88
7
10
89
45
91
45
9
42
3
62
5
67
4
50
73
29
7
14
42
76
3
74
8
8.1
7
11
.01
7.0
9
9.4
1
10
.27
10
.64
11
.15
12
.35
10
.99
10
.28
7.0
9
12
.22
9.2
9
11
.27
9.1
5
8.6
3
5.3
0
11
.15
11
.53
2.0
4
4.8
8
0.9
6
3.2
8
4.1
4
4.5
1
5.0
2
6.2
2
4.8
6
4.1
5
0.9
6
6.0
9
3.1
6
5.1
4
3.0
2
2.5
0
-0.8
3
5.0
2
5.4
0
AD
B S
UR
YAP
ET
NA
DIG
UD
EM
MO
THU
KU
R
AD
B M
IRYA
LA
GU
DA
NER
EDC
HER
LA
DO
ND
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AD
U
VA
ZIR
AB
AD
AD
B G
AD
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ALL
I
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HA
VO
LE
CH
ITYA
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ULA
PA
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AN
AN
THA
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PU
LIC
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LA
M D
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PA
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CH
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GU
ND
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AR
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DA
JAN
PA
HA
D
SHA
LIG
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RA
RA
M
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
283
15
65
89
20
15
07
18
86
79
8
52
54
93
38
7
35
53
79
27
66
33
38
17
1
13
70
4
44
74
1
54
5
27
35
48
4
17
68
0
18
34
6
20
84
2
22
93
86
25
5
90
90
30
8
80
5
73
1
44
88
17
44
40
95
8
10
8
9
37
0
11
.72
10
.34
12
.16
4.8
5
9.7
3
8.6
7
10
.16
11
.02
11
.76
12
.73
9.1
5
1.4
7
3.9
5
1.8
6
2.0
9
#DIV
/0!
4.7
66
02
09
21
3.3
93
06
50
05
5.2
07
42
22
57
-2.0
96
55
50
06
2.7
83
68
88
43
1.7
18
73
06
5
3.2
05
16
58
89
4.0
70
65
43
04
4.8
07
61
70
39
5.7
76
21
13
25
2.2
02
67
87
51
-5.4
82
11
00
92
-3.0
01
18
83
-5.0
90
49
58
68
-4.8
57
23
98
19
#DIV
/0!
12
45
82
10
69
80
16
01
79
8
96
2
61
44
8
22
38
56
02
41
43
21
91
9
37
24
38
35
0
0
0
0
0
13
78
1
11
75
1
16
47
29
12
8
63
91
19
4
51
9
53
5
85
5
22
11
1
0
0
0
0
0
11
.06
10
.98
10
.28
13
.31
10
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8.6
7
9.2
6
12
.91
3.9
0
0.5
9
2.8
9
#DIV
/0!
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/0!
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5.4
2
5.3
4
4.6
4
7.6
7
4.7
6
3.0
3
3.6
2
7.2
7
-1.7
4
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5
-2.7
5
#DIV
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/0!
#DIV
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10
43
90
10
13
05
11
35
92
1
79
0
48
52
4
75
6
34
66
34
42
0
0
0
0
0
0
0
0
76
13
90
79
12
90
98
10
9
23
34
16
95
7
0
0
0
0
0
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7.2
9
8.9
6
11
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13
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4.8
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2
2.7
4
0.2
0
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1.1
6
2.8
3
5.2
4
7.6
7
-1.3
2
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1
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9
-5.9
3
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PR
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MIR
YALG
UD
A
CO
LLEC
TOR
ATE
CO
MP
LEX
MA
ITH
RI W
OM
ENS
CO
LLEG
E
PO
CH
AM
PA
LLY
CH
OU
TUP
PA
L
KH
AM
MA
M X
RO
AD
- K
OD
AD
HA
LIA
DEV
ERK
ON
DA
RO
AD
AN
NEP
AR
THY
SAM
STH
AN
NA
RA
YAN
PU
R
KO
ND
A
MA
LLEP
ALL
Y
NH
RO
AD
SU
RYA
PET
SAG
AR
RO
AD
M
IRYA
LGU
DA
VEL
LAN
KI
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
284
0
0
0
0
0
0
0
50
99
50
8
0
0
0
0
0
0
0
61
18
68
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
12
.00
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
5.0
48
56
92
74
0
0
0
0
0
0
0
40
92
98
9
0
0
0
0
0
0
0
40
10
52
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
9.8
0
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
4.1
6
0
0
0
0
0
0
0
30
32
39
2
0
0
0
0
0
0
0
31
77
28
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
10
.48
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
#DIV
/0!
4.3
5
TAM
MA
RA
BA
ND
A P
ALE
M
Ag.
Mkt
.Yar
d-
AV
AN
THIP
UR
AM
N A
NN
AR
AM
DIR
SEN
CH
ERLA
KO
LAN
UP
AK
A
TALL
A
SIN
GA
RA
M
CH
INTA
LA
PA
LEM
Tota
l
48
49
50
51
52
53
54
285
References:
1. Estimates taken from issues of Central Statistics Office (CSO);
2. Economic survey 2011-12 – Agriculture;
3. Estimates taken from issues of Central Statistics Office (CSO);
4. Economic survey 2011-12 – Agriculture;
5. Economic survey 2011-12 – Agriculture;
6. Census 2001;
7. Economic survey 2011-12 – Agriculture;
8. Annual Report 2011-12 of Ministry of Micro, Small & Medium Enterprises, GOI;
9. Economic Survey 2011-12 – Industry;
10. Economic Survey 2011-12 – Industry;
11. Economic Survey 2011-12 – Finance & Markets;
12. PTI April 24, 2012;
13. Research Report authored by Research analysts Neelkanth Mishra and Ravi Shankar;
14. PTI April 24, 2012.
