A comparative analysis of bank group-wise agricultural loan recovery performance in Haryana

Abstract

One of the most important components of any programme for agricultural development is agricultural finance. In India, access to rural credit is still limited. Scheduled commercial banks (SCBs) take the lead role to assisting farmers to provide the required credit for agriculture inputs. In several bank groups in India and Haryana, the issue of overdue loans is a major worry since it hinders the recycling of money and makes the lending institution less profitable. In this study, the recovery performance of SCBs in four distinct bank groups such as public, regional rural banks (RRBs), private, and cooperative banks in Haryana is examined. The findings demonstrate that public sector banks have performed better in credit recovery, while cooperative banks have poorly performed. Therefore, appropriate policies are needed to maintain the viability of all SCBs and guarantee a sufficient and timely flow of credit to agriculture sector.