• KUMAR NAYAN
• DR.SAVITRI KUMARI

Abstract The research intent to cover the priority sector lending frame work in operation internationally and the customized model implemented in India with focus on directed lending and the effectiveness of the model. The research covers the broader spectrum of credit need, access to credit, utilization of credit and benefit of credit on the rural beneficiaries. It focuses on the social objective of providing credit to the population which are devoid of mainstream credit access. It also focuses on the viability gap funding and not for profit business models. The current study is an attempt to find out the various factors that justify the performance of commercial banking in Bihar. In this study secondary data was used and the sample size of the study was from 2010 to 2015. Formal financial sectors in most developing economies serve only a minority, often no more than 20 – 30 percent of the population. Most households do not have access to even basic financial services. A majority of those who do not have access are concentrated in low-income categories. Even those low-income households who have access to finance are underserved both in terms of quantity and quality of products and services. Access to finance is not a magic bullet capable of lifting poor people out of poverty. However, there is consensus that better access can play a potentially key role in inclusive growth and development. The origin of priority sector prescriptions for banks in India can be traced to the Credit Policy for the year 1967-68, wherein it was emphasised that commercial banks should increase their involvement in the financing of priority sectors, viz., agriculture, exports and small-scale industries, as a matter of urgency. The policy was initiated because of the severe imbalance which had developed in the economy in the preceding two years. However, the description of the priority sector was formalized in 1972 on the basis of the report submitted by the Informal Study Group on Statistics relating to advances to the Priority Sectors constituted by Reserve Bank in May 1971.On the basis of this report, Reserve Bank prescribed a modified return for reporting priority sector advances and certain guidelines were issued in this connection in February 1972, indicating the scope of the items to be included under various categories of priority sector. The overall credit growth in India has been of a high order, the expansion of agricultural credit and credit to small-scale industries sector has not kept pace with it. Retail credit, which is growing from a very low base, has expanded rapidly. While consumption-led growth can help improve the growth rates in the economy, it would also result in increasing risks. The credit utilisation which in-turn impact the overall economic growth has to be mapped to understand whether same is being influenced by socio-economic up liftmen. The research tries to narrate the peculiar pattern of directed credit delivery prevailing in the Patna district

"Bank Credit by Commercial Banks in India: with special reference to Bihar", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 5, page no.525-531, MAY-2018, Available :http://www.jetir.org/papers/JETIR1805687.pdf

"Bank Credit by Commercial Banks in India: with special reference to Bihar", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 5, page no. pp525-531, MAY-2018, Available at : http://www.jetir.org/papers/JETIR1805687.pdf