An Evaluation of Commercial Bank Lending to the Agricultural Sector in The Kumaun Region: Performance, Challenges, and Impact on Borrowers
- Version
- Download 24
- File Size 552.66 KB
- File Count 1
- Create Date 14 February 2026
- Last Updated 14 February 2026
An Evaluation of Commercial Bank Lending to the Agricultural Sector in The Kumaun Region: Performance, Challenges, and Impact on Borrowers
ANSHU SHUKLA
RESEARCH SCHOLAR
NIILM UNIVERSITY KAITHAL
DR. DIVYA SAHU
PROFESSOR
SCHOOL OF COMMERCE AND MANGEMENT
NIILM UNIVERSITY KAITHAL
ABSTRACT
Agricultural finance plays a crucial role in strengthening rural economies and promoting inclusive growth. In India, commercial banks function as key institutions in implementing agricultural and priority sector lending policies framed by the Reserve Bank of India and the Government of India. The Kumaun region of Uttarakhand, characterized by hilly terrain, small landholdings, and subsistence farming, presents unique challenges in agricultural credit delivery. This study evaluates the performance of commercial banks in extending agricultural loans in the Kumaun region, with special reference to target achievement, implementation of District Credit Plans, and priority sector lending norms. It examines the challenges faced by banks in loan disbursement and recovery, as well as the difficulties experienced by
borrowers in accessing institutional credit. The study also analyzes sectoral trends in agricultural lending and assesses the socio-economic impact of bank credit on farmers’ income, productivity, and livelihood security. The research is based on both primary and secondary data. Primary data are collected from bank officials and agricultural borrowers across selected districts of Kumaun, while secondary data are obtained from annual reports, District Credit Plans, and banking statistics. Statistical tools such as percentage analysis, growth rates, and comparative performance indicators are employed to evaluate lending performance and impact. The findings are expected to reveal gaps between targeted and actual lending, operational constraints in scheme implementation, and the extent to which agricultural credit has contributed to regional agricultural development. The study provides policy suggestions to improve credit delivery mechanisms, enhance borrower accessibility, and strengthenthe effectiveness of priority sector lending in the Kumaun region.
Download