Abstract

A CRITICAL ANALYSIS OF THE LOANS AND ADVANCES OF THE PUBLIC SECTOR BANKS IN INDIA

Dr. S. Rajamohan, Mr. D. Durairaj

Volume: 5 Issue: 2 2015

Abstract:

The loans and advances granted by the public sector banks (PSBs) are highly beneficial to individuals, firms, companies, industrial concerns and so on. The growth and diversification of business activities are effected to a large extent through bank financing. The purpose of loans and advances granted by the banks help in meeting short-term and long term financial needs. The public sector banks have played a crucial role in the development of the business world by way of loans and advances. Loans and advances can be arranged from PSBs in keeping with the flexibility in business operations. The amount raised as loan may be repaid within a short period to suit the convenience of the borrower. Loans and advances from banks are found to be ‘economical’ for traders and businessmen, because banks charge a reasonable rate of interest on such loans and advances. The interest charged by banks is regulated by the Reserve Bank of India (RBI). But it generally does not interfere with the other bank operation. Bank loans are found to be convenient as far as the repayment is concerned. The PSBs include the nationalized banks (NBs) and the SBI and its associate banks (SBI and Its Asso. Banks)

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