Business Environment, 1st Edition by Pearson

Chapter 42: Commercial Banking | 549 |

The Economic Survey, 2007–08 identifi es the following factors for

this spurt in the bank credit:

(i) Since the public-sector banks still own approximately 71 per

cent of the assets of the banking system, they continue to play

a decisive role in responding to the dynamic changes in the

economic environment, ably guided by the RBI.

(ii) The policy initiatives of the Ministry of Finance and the RBI

to make the banking system address the needs for an inclusive

growth through measures such as (a) permitting the use of

appropriate agencies for credit delivery; (b) augmentation of

credit fl ow to agriculture and other priority sectors; (c) sim-

plifi cation of systems and procedures; (d) judicious use ...