Retail Financing by Commercial Banks in India (Report‪)‬

Abstract The credit given by commercial banks to the retail sector comprising housing loan, vehicle loan, consumer durable loan, credit card advances and personal loans during the period of financial deregulation, especially in early 2000 up to 2006 was pronounced. This work is an attempt to throw light on the distribution of various constituents of retail finance by commercial banks in different states of India and to examine the nexus between the volume of retail finance made by banks to different states and some of the selected macro variables. Due to this skewed nature of disbursal of bank finances all over India, no significant relationship could be arrived between 'state-wise total retail loans, consumer durable loans and vehicle loans' with 'state-wise macroeconomic aggregates such as per capita net state domestic product, level of education, level of industrialization and employment in the organized sector: Only in case of housing loans, there are significant impacts of the level of industrialization, per capita net state domestic product and level of education.