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.