Commercial Banks and Economic Empowerment of Depressed Classes: A Case Study of Mysore District

Abstract

In India banking system provides a unique example of blending harmoniously commercial banking with social banking. The conversion of class banking in to mass banking during the last two decades or more can be described as a correction of historical distortion. The traditional myth of banking industry based on profitability, liquidity and safety has given way to public utility. The big leaf of social control to social ownership of commercial banks brought about a social bank revolution in our country. An important landmark of social banking has been a shift from credit-worthiness of the borrower to credit worthiness of project and from security-oriented lending to purpose-oriented lending. Branch expansion programme in the places hitherto unbanked and liberal lending to designated priority sector and weaker sections of society and coverage of a large number of small borrowers through specially designed social banking measures, schemes and programmes are achievements of which the banking industry could jointly be proud. Therefore, it is high time to make an empirical evaluation of the various commercial banking schemes, aimed at generation of additional employment and income, and thus alleviation of the rural poverty, so that the various lacunae could be identified and the commercial banking (social banking) movement could be made more meaningful and be strengthened in the light of experience. An attempt is made in this paper to analyse the role of Commercial Banks in advancing the depressed classes of the society in Mysore District.