Commercial Banking Development: A Study

The present study endeavours to examine the extent to which the commercial banks in Himachal Pradesh have been successful in achieving the objectives underlying bank nationalization. The analysis has been carried out in the light of the basic banking parameters of branch expansion, deposit mobilization and credit deployment. In order to measure the growth of banking, linear growth rates have been calculated. The extent of inter district disparities with respect to the selected banking indicators have been analysed with the help of co-efficient of variation and Herfindahl Index. Further in order to find out the level of banking development and extent of variations with respect to all the indicators taken together, the composite indices of banking development have been constructed with the help of Z-sum technique and principle components analysis. Finally, on the basis of the values of composite scores of banking development, all the districts of Himachal Pradesh have been categorized as highly-banked, moderately banked, low-banked and very low-banked. The book will serve as a good text material for the students of banking. It can also be useful to teachers, research scholars, bankers and policy makers alike.