13 Chapter6

Chapter 6
Data Analysis
6.1 Introduction
6.2 Analytical Study of Development of Agriculture Sector
6.2.1. Age of Farmers
6.2.2. Classification of Gender of Farmers
6.2.3. Annual Income of Farmers
6.2.4. Education of Farmers
6.2.5. Background of Farmers
6.2.6. Nature of Farming
6.2.7. Land Holding of Farmers
6.2.8. Type of Land
6.2.9. Water Sources of Land
6.2.10. Supply of Water to Farmers
6.2.11. Crops (Cropping Pattern)
6.2.12. Crop Insurance
6.2.13. Crop Storage Infrastructure
6.2.14. Activities Allied to Agriculture
6.2.15. Techniques of Farming
6.2.16. Awareness among Farmers Regarding Central Bank of India
as a 'Lead Bank'
6.2.17. Schemes of Central Bank of India
6.2.18. Comparison of Central Bank of India with Other Banks
6.2.19. Source of Information about CBI
6.2.20. Reason of Selection of Central Bank of India
6.2.21. Behavior of Bank Executives
6.2.22. Amount of Loan
6.2.23. Purpose of Loan
6.2.24. Loan Sanctioning Process
6.2.25. Time Required for Loan Sanctioning Process
6.2.26. Sufficiency of Loan Amount
6.2.27. Utilization of Loan Amount
6.2.28. Repayment of Loan
6.2.29. Problems in Repayment
6.2.30. Regulation of Use of Loan Amount
6.2.31. Increase in Production (Annual Turnover)
6.2.32. Impact on Standard of Living
6.2.33. Contribution of CBI in Development of Agriculture Sector
6.2.34. Contribution of CBI in Development of Ahmednagar District
6.2.35. Infrastructural Facilities
6.4 Analytical Study of Development of Business Sector
6.3.1. Bank Branch wise classification of selected borrowers
6.3.2. Branch wise and Type of Enterprise wise Classification of
Borrowers (Business Sector - Factory Manufacturing)
6.3.3. Branch wise and Trading Activities wise Classification of
Borrowers (Business Sector - Trading)
6.3.4. Branch wise and Service wise Classification of Borrowers
(Business Sector - Services)
6.3.5. Age of Borrowers (Business Sector)
6.3.6. Gender of Borrowers
6.3.7. Annual Income of Borrowers
6.3.8. Education of Borrowers
6.3.9. Background of the Borrowers
6.3.10. Reason of Selection of Present Business
6.3.11. Type of Business
6.3.12. Technical Knowledge or Training
6.3.13. Financial Assistance Other Than Central Bank of India
6.3.14. Awareness Regarding 'Central Bank of India' as 'Lead Bank':
6.3.15. Knowledge of Schemes of Central Bank of India
6.3.16. Comparison of Central Bank of India With Other Banks
6.3.17. Source of Information About CBI
6.3.18. Reasons of Selection of Central Bank of India
6.3.21. Loan Sanction Process of Central Bank of India
6.3.22. Time Required For Loan Sanctioning Process
6.3.25. Problems in Repayment of Loan
6.3.27. Advantages of Schemes of Central Bank of India
6.3.28. Increase in Total Turnover and Production
6.3.30. Contribution of Central Bank of India in the development of
Business Sector
Ahmednagar District
6.4 Analysis of Bank Executives Questionnaires
6.4.1. Network of Central Bank of India in Ahmednagar
6.4.2. Area wise Classification and year of Establishment of
Selected Sample Branches of Central Bank of India in
Ahmednagar District
6.4.3. Human Resources (Employees)
6.4.4. Lack of Employees
6.4.5. ATM Facility
6.4.6. Distribution of Loan as per Priority Percentage
6.4.7. Maximum financed sector (2001-02 to 2010-11)
6.4.8. Problems Faced by Bank Executives, in implementing the
schemes
6.4.9. Loan Process of Central Bank of India
6.4.10. Regulation of Utilization of Loan Amount
6.4.11. Percentage of NPA
6.4.12. Experience About Repayment
6.4.12.1. Agriculture Sector
6.4.12.2. Business Sector
6.3.1. Experience about Loan Repayment of Loan by Male and
Female Borrowers
Chapter 6
Data Analysis
6.1. Introduction :
Nationalized Banks have played a very vital role in the
development of agriculture and business sector in urban and rural
area of Ahmednagar district. Since the district is basically village
oriented with a powerful agrarian economy; it is but natural that the
institutions set up to finance rural needs have a rural inclination. The
commercial banks operating in the district have a rural inclination.
Ahmednagar district is the largest of Maharashtra with geographical
area of 17413 sq. km spread over 14 blocks and 14 Tahsils. The
network of bank branch is also sizeable with 258 branches of
commercial banks and 295 branches of co-operative banks, are
catering to the needs of customers of the Ahmednagar district.
Central Bank of India has a wide network of 61 branch in

Ahmednagar district. Out of which, 44 branches are rural, 16 are
semi-urban and one branch is urban. It means rural area branches are
3 times as compared semi-urban branches. Hence, Central Bank of
India is giving maximum efforts in rural area through these branches
(specifically in agricultural sector.)
As per the data made available by Lead Bank Cell,

Ahmednagar and Central Bank of India, Regional Office, there are
61 branches of Central Bank of India in Ahmednagar District. The
sample for the study consisted of 12 branches (i.e. 20% of 61
branches) selected as convenient sample for in depth study. As
Ahmednagar district is geographically largest district, with variety of
Tahsils such as Urban, rural, Tribal, Irrigated (100%), Famine-
stricken. For sampling purpose, Ahmednagar district divided into
north and south zone. Six branches each, with variety of
geographical pattern were selected from North and South
Ahmednagar district. From north zone, Sangamner, Akole,
Shrirampur Tahsils showing Famine-stricken, Tribal and Irrigated
characteristics were selected respectively. From south zone,
Ahmednagar, Shrigonda, Parner were selected showing urban,
irrigated and famine-stricken characteristics. Akole, Kalas,
Shrirampur, Ukkalgaon, Sangamner, Ashwi, Ahmednagar, Nagapur,
Parner, Kanhur Pathar, Shrigonda, Belvandi etc. were the selected
sample of 12 bank branches.
All the 12 bank branch managers were contacted and due

appointment was taken to visit the branch whenever necessary, and
all managers were personally available for interview. The personal
interview was very informative.
Printed questionnaires were prepared for the borrowers.

From every bank branch, 30 borrowers were selected. From
Ahmednagar, Nagapur, Sangamner, Shrirampur, Parner, Akole
branches, 180 borrowers (30 x 6 branches) were selected which were
from business sector. And Shrigonda, Belvandi, Kalas, Kanhur
Pathar, Ashwi, Ukkalgaon etc., 180 borrowers (30 x 6 branches)
were selected who were from agriculture sector. The questionnaires
were distributed among these 360 borrowers and the doubts raised
regarding questionnaire were absolved immediately.
A suitable, personal interview schedule was structured for
this primary data collection. As a result of which, in addition to
structured questions, additional information was also readily
available.
This chapter aims at the detailed analysis of the information
collected through the questionnaire and personal interview.
6.2. Analytical Study of Development of Agriculture Sector :
Shrigonda, Belvandi, Kanhur Pathar, Kalas, Ashwi and

Ukkalgaon branches were the sample selected branches of Central
Bank of India. From these branches 30 borrowers each were selected
for agriculture sector (i.e. 180). All the borrowers were agriculturists.
From the above bank branches 180 agriculturists were

interviewed, and printed questionnaire was used for specific and
additional information.
The detailed analysis of the information collected through the

questionnaire and personal interviews is given below. It will show
the real picture of agriculture sector in Ahmednagar district.
6.2.1. Age of Farmers (Agriculturists) :
It is common in agriculture sector, that new generation

involved in farming at the early age because manpower (labour) is
essential requirement of farming. But, bank finance is available to
only those farmers, who have attained age of majority i.e. 18 yrs.
Age of sample agriculturists is given below.
Table 6.2.1
Age of farmers (At the time of interview)
Age No. of Respondents Percentage (%)
18 to 30 26 14.44
31 to 45 138 76.67
46 to 60 12 06.67
61 - Above 4 02.22
Source : Primary Data
Table shows,
1. Farmers of young age groups are involved in farming in a
large scale i.e. 91.11 percent. New generation introduced
in farming at a very young age.
2. There are only 2.22 percent farmers in 61 above age
group. After the 45 years of age, farmers handover the
charge to next generation.
6.2.2. Gender of Farmers :
It is a common belief that, a 'farmer' must be a 'male'. In

olden days, a person who have total rights to take decision regarding
family was 'Karta'. Generally the 'Karta' was a 'male', at the time of
male domination society. But now a days, the picture has completely
changed, females are neck and neck with the males in every sector
and agriculture sector is not an exception to this reality. This is an
attempt made to find out the exact statistics of men and women
involved in farming, which is given below -
Table No. 6.2.2
Gender of Farmers
Sex No. of Respondents Percentage (%)
Male 138 76.67

Female 42 23.33
42
Male
Femal
e
138
Table shows,
1. 76.67 percent of the farmers are male farmers and 23.33
percent are female farmers, with somewhat property.
2. The ratio of Male : Female is 3:1, but it is not
disappointing one. It means that, females are not just
shouldering the tasks involved in farming, but they are
also sharing and performing financial responsibilities of
farming.
3. It reveals that, young women are involved in farming.
Women are supporting their families for performing
agricultural activities not only physically but also through
sharing financial responsibilities. Most important
conclusion is, (society) males are accepting the rights of
women in the family maters, by admitting women as
partner in land holdings.
6.2.3. Annual Income of Farmers :
The annual income of farmers from their farming is shown

below. The lowest income group of farmers is upto Rs. 50,000/- and
the highest income group is Rs. 5,00,000/- and above.
Table No. 6.2.3
Annual Income of Farmers
Annual Income No. of Percentage

Respondents (percent)
upto 50,000 37 20.56

Rs. 50,000 to 1.5
62 34.44
lakh
Rs. 1.5 lakh to 3 lakh 55 30.56
Rs. 3 lakh to 5 lakh 18 10.00
Rs. 5 lakh and above 8 4.44
Total 180 100
The table shows,
1. Only 4.44 percent i.e. 8 farmers are from Rs. 5,00,000/-

and above income group. They are cultivating cash crops
like grapes, pomegranate, sugarcane and are from
irrigated area.
2. 10 percent i.e. 18 farmers are from Rs. 3,00,000/- to Rs.

5,00,000/- income group.
3. 30.56 percent i.e. 55 farmers are from middle group i.e.
Rs. 1,50,000/- to Rs. 3,00,000/- income group. These
farmers are producing traditional as well as cash crops.
4. Maximum no. of percentage is 34.44 percent i.e. 62

farmers from Rs. 50,000/- to Rs. 1,50,000/- income
group. These farmers are producing sugarcane and
vegetables.
5. 20.56 percent i.e. 37 farmers are from lowest income

group. These farmers are from famine-stricken region of
Ahmednagar district. These farmers are generally
producing grains, cereals, pulses and vegetables.
6.2.4. Education of Farmers :
Good education background and success in farming may not

be positively related. But, good educational background reveals,
educated farmers, techno savvy farming possibility, modern farming,
use of new technology in farming, new experiments in farming. The
statistics of education of farmers is as follows -
Table No. 6.2.4
Education of Farmers
Education No. of Percentage

upto 10th 71 39.50

10th to 12th 49 27.30
Graduate 37 22.00
Post Graduate
21 11.20
Highly qualified
Total 180 100.00
E P.G. 11.2
d
u
Graduate 22
c
a
t 10th to 12th 27.3 Percentage of Respondant
i
o
n upto 10th 39.5
0 10 20 30 40 50
No of Respondants
The table shows -

1. 39.50 percent farmers are in upto 10th education
group.27.30 percent farmers are 10th to 12th education
group.
2. 22.00 percent farmers are graduate.
3. Highly qualified farmers are less in number.
From above analysis, it reveals that, due to early entry in

farming sector farmers are not highly qualified, they have to stop
their education due to household responsibilities.
6.2.5. Background of Farmers :
In India, farming is not treated as a kind of business. It is

traditional and ancestral property and work to do. Hence, a least
number of percentage group is involved in farming for professional /
business view.
The background of farmers is given below.
Table No. 6.2.5
Background of Farmers
Background of No. of Percentage

Farmers Respondents (percent)
Traditional 172 95.56

Farming
Newly Started 08 04.44
Total 180 100.00
Table shows -
1. 95.56 percent respondents are involved in traditional
farming. In India, generally farmers never sold their land
and hand over it to next generation. So, farming is an
ancestral business.
2. 4.44 percent farmers have started the farming newly.
From above analysis it reveals that today also, farming is

viewed as an ancestral business.
6.2.6. Nature of Farming :
In India, generally joint family system seen in agricultural

sector. For agriculture large scale labour is required, which is
expensive. If joint family is doing farming, then to some extent
labour work can be done by the members of family.
The nature of farming is given in following table-
Table No. 6.2.6
Nature of Farming
Nature of Farming No. of Percentage

Individual 114 63.33

Contract 8 4.44
Joint Family 58 32.22
Total 180 100
Table shows -
1. 63.33 percent farmers are independent or individual.
2. 32.22 percent farmers are from joint family system.
3. 4.44 percent farmers have adopted contract farming
system and no one has corporate farming.
Large no. of farmers are individual. Joint family system is
popular to India. The farmers who have manpower but not having
land can contract with other farmers for farming on the basis of some
terms and conditions.
6.2.7. Land Holding of Farmers :
In India, 65 percent population is dependent on the agricultural

sector. But variety picture was seen in case of land holding of
farmers, in different states of the country. In Ahmednagar district,
land holding of farmers is not very low or high, it is medium. In case
of irrigated Tahsils land holding is low and in case of famine
stricken Tahsils land holding is high as compared to Irrigated.
The clear picture of land holding of farmers of Ahmednagar
District is given below.
Table No. 6.2.7
Land holding of Farmers
Land Holding No. of Percentage

upto 2.5 Acre 70 38.89

2.5 to 5.00 Acre 69 38.33
5.00 to 10.00 Acre 29 16.11
10.00 Acre and Above 12 06.67
Total 180 100.00
Table shows -
1. 38.89 percent farmers are holding upto 2.5 acre land and
38.33 percent farmers hold 2.5 to 5 acre land. It means,
maximum farmers land holding is low.
2. 16.11 percent farmers have 5 to 10 acres land.
3. Only 6.67 percent farmers hold more than 10 acre land.
In Ahmednagar district on an average land holding is low i.e. in

between 2.5 Acres to 5 Acres.
' In Ahmednagar district, there are 6.8 lakh farming families,

out of these 32.45 percent farmers are having less than 2 Acres land
holding, 57.89 percent farmers are having land holding between 2 to
10 Acres and 9.66 percent farmers have a land holding with more
than 10 Acres.' (www. Rainrays .com/topic/district-Ahmednagar)
6.2.8. Type of Land :
Ahmednagar district can be divided into three categories as

scarcity zone, plain zone and Ghat zone. Now a days with the help of
various scientific methods and techniques land is irrigated.
Table No. 6.2.8
Type of Land
Type of Land No. of Percentage

Irrigated 115 63.88

Non- Irrigated 65 36.11
Total 180 100.00
Table shows -
1. 63.88 percent farmers have irrigated land and 36.11
percent farmers have non-irrigated land.
2. Though the land is from drought prone zone but with the
help of irrigation techniques now it is irrigated one.
It reveals that, farmers from drought prone area or

scarcity zone are using technique, to irrigate their land. Hence,
large numbers of farmers are having irrigated land.
6.2.9. Water Sources of Land :
Ahmednagar district receives 566 mm rainfall. The major

rainfall received during month of June to September. Erratic nature
of rainfall affects the moisture contents in the soil, therefore,
maximum part of Ahmednagar district is known as drought prone
area.
The water sources of irrigated land is given below -
Table No. 6.2.9
Water Sources
Water Source No. of Percentage

Well / Tube Wells 112 62.22

River 22 24.44
Canal 07 3.89
Any two sources 39 21.67
Total 180 100
70
62.22
60
50
40
30 24.44
21.67 Percentage
20
10 3.89
0
Well River Canal Any Two
Sources
Table shows -
1. 62.22 percent farmers have well, as the only water source
for irrigation.
2. 24.44 percent farmers depends upon river for their
farming / irrigation.
3. 3.89 percent farmers depends on canals for water supply.
4. 21.67 percent farmers has selected any two options i.e.
well and river, well and canal, river and canal etc.
Hence, it reveals that, majority farmers are depending on
wells as the water source in Ahmednagar district.
6.2.10. Supply of Water to Farms :
Traditionally, channels were used to irrigate the farms. Various

techniques are invented such as, sprinklers, drip, pipeline, with the
help of which wastage of water can be controlled. But for small
farmers many times it may not be possible to introduce such
techniques in farming.
The picture of different methods of water supply used by
farmers is given below -
Table No. 6.2.10
Supply of Water to Farms
Method No. of Percentage

Borrowers (Percent)
Drip 35 19.44
Sprinklers 68 37.77
Supply of Water
by means of 77 42.77
channels
Total 180 100
Source : Primary data
19.44%
42.77% Drip
Sprinkler
By Channels
37.77%
Table shows -
1. 42.77 percent farmers are using the traditional method of
supply of water by means of channels. As the technical
methods like sprinklers, drip are costly so it may not be
possible for small farmers.
2. 37.77 percent farmers are using sprinklers for irrigation.
As sprinklers are useful for various types of crops (upto 2
to 3 feet height) hence, now a days various farmers are
using this method and water wastage can be controlled.
3. 19.44 percent farmers are using drip system for irrigation.
It reveals from above analysis that, large number of farmers

are using traditional method of irrigation. The percentage of
sprinkler users and drip irrigation users is also satisfactory.
6.2.11. Crops (Cropping Pattern) :
In Ahmednagar district crops varies as per climatic and

geographical conditions. In scarcity zone, due to average rainfall
major crops are wheat, cereals, pulses, sunflower, sugarcane. In
irrigated zone farmers are growing vegetables like tomato, goards,
fruits like pomegranate, grapes, sweet lime, sugarcane.
The picture of cropping pattern is given below.
Table No. 6.2.11
Cropping pattern
Crop Pattern No. of Percentage

Grains 11 6.11
Fruits 22 12.22
Vegetables 56 31.11
Sugarcane and
35 19.44
Cotton
More than one crop 56 31.11
Total 180 100
60 56 56
50
40 35
30
22
20
11
10 No. of Respondants
Table shows -
1. 31.11 percent farmers are producing vegetables as land
holding proportion in Ahmednagar district is low, hence
farmers are growing vegetables which are of limited time
period and profit margin is greater than any other crop.
Tomato, Onion, Goard, Brinjal, Green Peas, Cauliflower,
Cabbage such vegetables are grown by the farmers.
2. 31.11 percent farmers have selected more than one
option. Grain and fruits (22), Fruits, sugarcane and cotton
(17), Sugarcane, cotton and vegetables (22), Grains, oil
seeds, vegetables, sugarcane and cotton (12). Due to
irrigation facility farmers are growing various types of
crops.
3. 19.44 percent farmers are producing sugarcane and
cotton. Actually cotton is not traditional crop of
Ahmednagar district. But in last few years, farmers from
scarcity zone as well as irrigated zone is interested in
growing cotton.
4. 12.22 percent farmers are growing fruits like Grapes,
pomegranate, sweet lime, watermelon etc. Now a days
with the help of irrigation techniques and advanced
fertilizers, pesticides farmers are growing such expensive
crops.
5. 6.11 percent farmers are producing grains i.e. wheat,
jawar, bajra and other items. As land holding is very low
so it is profitable to grow cash crops like vegetables /
sugarcane / fruits etc. instead of grains.
It reveals that, in Ahmednagar district farmers are diverting

towards the cash crops, because such crops are more beneficial.
6.2.12. Crop Insurance :
In Indian agricultural sector, farmers are not aware about the

concept insurance of crop. Many times, they have to face problems
due to natural calamity or disasters, o absorb the shock of such
problems crop insurance is the best option. But it may not possible in
case of traditional crops like grains, vegetables. It is possible only in
case of sugarcane, pomegranate, grapes and cash crops.
The information of farmers having crop insurance is given
below -
Table No. 6.2.12
Crop Insurance
Crop Insurance No. of Percentage

No 94 52.22
Yes 86 47.78
Total 180 100
Table shows -
1. 52.22 percent farmers don't have crop insurance.
Generally these farmers are grain, cotton, vegetables
producers.
2. 47.78 percent farmers are having crop insurance. These
farmers are producing fruits like grapes, pomegranate,
sweet lime and sugarcane.
The durations of grain, vegetables are 6 or 2 or 3 months. So,

many time it is not possible for following crop insurance
procedure.
In case of fruits, duration of fruit farms is 5-10 years. Hence
heavy investment is there for fruit farms. So such farmers are
having crop insurance.
6.2.13. Crop Storage Infrastructure :
In Agricultural sector, crop storage facility is important,

because without such facility farmers may have to sale his crop at
lower prices. Many time, due to lack of storage facility farmers are
selling their crops at current rates which are not fair. The percentage
of farmers having crop storage facility is shown in Table 6.2.13
Table No. 6.2.13
Crop Storage Infrastructure
No. of Percentage
Yes 110 61.11

No 70 38.89
Total 180 100
39%
Yes
No
61%
Table shows -
1. 61.11 percent farmers have crop storage facility with
them and 38.89 percent farmers don't have crop storage
facility.
2. It reveals that, various farmers have crop storage facility
in their own house, farm, shed. Crops like onion, grain,
pulses, potato storage is essential till prices increased
upto a profitable level. Such storage should be
scientifically constructed one, so that the crop can be
preserved with its original quality.
6.2.14. Activities Allied to Agriculture :
Farmers can establish various activities to agriculture such as

Dairy, Poultry, Goat farming, for which farmers can use the
agricultural resources like land, water, feed, electricity. Now a days
such activities are giving a large scale returns to the owners.
Following is the picture of farmers who are having such
activities.
Table No. 6.2.14
Activities Allied to Agriculture
Allied Activities No. of Percentage

Poultry 6 3.33
Dairy 143 79.44
Goat Farming 9 5.00
Other 10 5.56
Multiple 12 6.67
Total 180 100
160
140
120
100
80
40
20
0
Poultry Dairy Goat Other Multiple
Farming
Table shows -
1. 79.44 percent farmers are having Dairy, 3.33 percent
farmers have Poultry, 5 percent farmers have Goat
farming activity with agriculture. 5.56 percent farmers
have other activities.
2. 6.67 percent farmers have multiple activities like Poultry
and Dairy, Dairy and Goat farming, Poultry and Goat
farming.
It reveals that, Dairy activity is now the most important
economic pursuit of farmers after agriculture in Ahmednagar
district. No. of co-operative Dairy Society, adequate no. of
vehicles for transportation of milk, milk processing plants
adequacy are the major reasons behind development of Dairy
activity in Ahmednagar district. Due to recession in last few years
in Poultry business, it is not developed in a large scale in
Ahmednagar district and Goat farming is not viewed as
professional or profit motive view in Ahmednagar district.
6.2.15. Techniques of Farming :
Today traditional methods and equipments are replaced by

modern techniques and equipments. Modern instruments are
effective and having high efficiency, with the help of which
production (yield) can be increased to large scale. Following is the
percentage of farmers, using traditional and modern techniques.
Table No. 6.2.15
Techniques of Farming
Technique of Farming No. of Percentage

Modern 124 68.89
Total 180 100
Table shows -
1. 68.89 percent farmers are using modern techniques of
farming such as - Tractors, Electric Motors, Drip,
Sprinklers, Machinery to prepare crops.
2. 31.11 percent farmers are not using modern techniques,
they are using traditional methods to do farming.
It is observed that, the traditional crops like sugarcane,

grains, pulses, cereals and oilseeds, modern instruments and
techniques are effective but introducing these instruments is not
affordable for small farmers so he adopt traditional methods.
In case of crops like fruits, vegetable and other cash crops

etc. medium or high financial capacity farmers are involved so,
for them it is possible to use modern methods and techniques like
Green House, Poly-house, Drip/Sprinkler, Tractors or such
vehicles and instruments etc.
6.2.16. Awareness among Farmers Regarding Central Bank of

India as a 'Lead Bank'
Central Bank of India is a lead Bank of Ahmednagar district.

The schemes of government are implemented by and through this
lead bank. Priorities are suggested to every bank branches for issuing
loan to different sectors. But it may happen, that the farmers may be
ignorant about such scheme. Following is the picture of awareness
among farmers regarding Central Bank of India.
Table No. 6.2.16
Awareness Among Farmers Regarding Central Bank of India
as 'Lead Bank'
Awareness No. of Percentage

Yes 169 93.89

No 11 6.11
Total 180 100
6%
Yes
No
94%
Table shows -
1. 93.89 percent farmers are aware about the lead bank
scheme, and 6.11 percent farmers don't have any idea
regarding Central Bank of India as lead bank.
2. In rural area, many villages have Central Bank of India as
the only nationalized bank and scheme, programs,
information broadcasted by bank executives spread
quickly by mouth publicity. Hence maximum farmers
know the position of Central Bank of India.
The needful is always searching for the solution, so
farmers always want capital (finance) for development is always
in search of loans facilities so, he is aware about the schemes of
the banks.
6.2.17. Schemes of Central Bank of India :
As Central Bank of India is a lead bank it always introduce and

implements various schemes for priority as well as non priority
sectors. Following is the percentage of farmers familiar to these
schemes.
Table No. 6.2.17
Percentage of Farmers Familiar to Schemes
Idea about schemes No. of Percentage

of CBI Respondents (percent)
Yes 169 93.89
No 11 6.11
Total 180 100
Table shows -
1. 93.89 percent farmers are familiar with the different
schemes of Central Bank of India
2. 6.11 percent farmers are not familiar to the schemes of
Central Bank of India.
In rural area, where only one or two banks are in the village,
it's very easy for manager and also for farmers to ask for
information regarding schemes which are beneficial to
agricultural sector.
6.2.18. Comparison of CBI with Other Banks :
In rural area, generally only one or two banks (one nationalized

and other co-operatives) are there. In semi-urban or urban area it
may be possible to compare the nationalized bank with other banks.
Table No. 6.2.18
Comparison of CBI with Other Banks
Comparison made No. of Percentage

between Lead Bank Respondents (percent)
and Others
Yes 81 45
No 99 55
Total 180 100
45%
Yes
No
55%
Table shows -
1. 55 percent farmers never compare Central Bank of India
with other banks.
2. 45 percent farmers have compared Central Bank of India
with the available options, before taking loan.
The rate of interest charged, mode of repayment, mortgage

system, loan procedure, are the important factors which one can
compare with other options. Co-operative banks, private money
lenders and co-operative societies are the options available to
farmers in rural area. The 45 percent is satisfactory percentage of
farmers who are aware about such comparative study of Banking
options.
6.2.19. Source of Information about Central Bank of India :
In rural area, banks executives have to broadcast the

information regarding various schemes of banks through responsible
persons like Sarpanch, Gramsevak or visitors. The farmers can get
such information easily due to mouth publicity. Following are the
sources of Information about Central Bank of India.
Table No. 6.2.19
Sources of Information about Central Bank of India
Source of Information No. of Percentage

Relatives 121 67.22

Gram Panchayat 33 18.33
Panchayat Samiti 13 07.22
Zilha Parishad 02 01.11
Advertisement 11 06.12
Total 180 100.00
Table shows -
1. 67.22 percent farmers (121) get the information about
banks through their relatives. As in rural area, farmers
have a network of relatives in the same village.
2. 18.33 percent farmers get the information from Gram
Panchayat Office, 7.22 percent from Panchayat Samiti,
6.12 percent from Advertisement and 1.11 percent from
Zilha Parishad.
3. In rural area, to visit to bank is a daily routine of farmers.

After every one/two days they are visiting to bank hence
relatives and advertisement by bank executives and Gram
Panchayat Office are the important sources of
information of Central Bank of India.
6.2.20. Reasons of Selection of Central Bank of India :
In rural area, it is generally observed that farmers are selecting

nationalized banks instead of co-operative societies and private
money lenders because farmer get trapped in the clutches of private
money lenders and co-operative societies. Following are the reasons
of selection of Central Bank of India.
Table No. 6.2.20

Reasons of Selection of Central Bank of India
Reason of Selection of No. of Percentage

CBI Respondents (percent)
Close to you 30 16.67

Bank Executives are
16 8.89
Familiar
Lead Bank 126 70.00
Reputation 8 4.44
Total 180 100
4%
17%
Close to you
Bank executives are

9%
familiar
Lead Bank
Reputation
70%
Table shows -
1. 70 percent farmers have selected Central Bank of India
because it is a Lead Bank of Ahmednagar district. As a
Lead Bank it provides various scheme to farmers.
2. 16.67 percent farmers says that, it is close to them. Day to
day visit to bank to complete banking procedure, it is
convenient for farmer to select the nearer bank.
3. 8.89 percent farmers are familiar with the bank
executives, hence they selected Central Bank of India
4. 4.44 percent farmers have selected Central Bank of India
because of its reputation.
It's very difficult to a farmer to follow the banking procedure
of loan sanction in his busy schedule. So selection of nearer bank
is better option.
6.2.21. Behavior of Bank Executives :
Banking services are closely associated with the behavior of

Bank Executives. It depends on the attitude of Bank Executives.
Many times, attitude of Bank Executives may become hurdle in
banking services.
Table No. 6.2.21
Behavior of Bank Executives
Behavior of Bank No. of Percentage

Executives Respondents (percent)
Co-operative 169 93.89

Non Co-operative 4 2.22
Rude 3 1.67
Negligence 4 2.22
Total 180 100
Table shows -
1. As per opinion of 93.89 percent farmers bank executives
are co-operative..
2. As per experience of 4.44 percent farmers officers of CBI
are not co-operative.
3. 1.67 percent farmers says that, bank executives are rude
in nature.
It reveals that, 94 percent farmers feels that, bank executives

are co-operative, helping, providing guidance, whenever
necessary. The farmers are satisfied with the behavior of bank
executives.
6.2.22. Amount of Loan :
Guidelines are issued by the high authorities to bank managers

regarding minimum and maximum amount of loan. CBI's branch
managers can sanction maximum Rs. 25 lakh loan. These executives
have to find out potential amongst the farmers and decide the amount
of loan as per the potential capacity. Following is the classification
of loan amounts issued to farmers.
Table No. 6.2.22
Classification of Loan Amount Issued to Farmers
Amount of Loan No. of Percentage

upto 50,000 50 27.78

50,000 to 1.5 lakh 81 45.00
1.5 lakh to 3 lakh 38 21.11
3 lakh and above 11 6.11
Total 180 100
Table shows -
1. 45 percent farmers are from to 2nd group i.e. Rs. 50,000/-
to Rs. 1,50,000/- loan amount.
2. 27.78 percent farmers are from to 1st group i.e. upto Rs.
50,000/- loan amount.
3. 21.11 percent farmers are from to 3rd group i.e. Rs.
1,50,000/- to Rs. 3,00,000/- loan amount.
4. 6.11 percent farmers are belonging to highest loan
amount 4th group i.e. Rs. 3,00,000/- and above.
The amount of loan depends on the potential of beneficiary,

mortgage, reason, type of crop, repayment capacity. The farmers
from irrigated land area have high level investment in
agriculture, so they have large amount of loan and farmers from
non-irrigated or dry area are having small scale loans.
6.2.23. Purpose of Loan :
Agriculturist are not getting income frequently like

businessman or employee. Once or twice in a year, he is getting
income from his crop (after sale of the crop). Hence for all his
annual expenses and agricultural investment he has to use his
savings or search for the finance. The bank executives are issuing
loans, but the demand should be fair and worth. Following are the
purposes for what farmers have taken the loans.
Table No. 6.2.23
Purpose of Loan
Purpose of Loan No. of percent

Respondents Percentage
Crop Loan 64 35.56

Purchase Cattles 40 22.22
Dug Well / Tube
25 13.88
Well
Pipeline 24 13.34
Construction of
20 11.11
Shed
Poultry 7 3.89
Total 180 100
4%
11% Crop loan

36%
13% Cattles
Well
14% Pipeline
22% Shed Construction
Poultry
Table shows -
1. 35.56 percent farmers have taken loan for 'Crop Loan'
which is agriculture activity.
2. 64.44 percent farmers have taken loan for non
non-
agricultural activities viz. dairy, poultry, well/tube well,
pipeline, shed.
Maximum farmers are borrowing loans for the crop. In such

crop loans farmer can utilize the amount fro crop as per his
criteria.
Dairy activity is now most important economic pursuit of

farmers after agriculture in Ahmednagar district. Hence dairy
activity loan is the second purpose of loan. Well / tube well,
pipeline, construction of crop storage shed are the essential
requirement of farmers. Poultry is also important allied activity of
agriculture but, it need spe
special
cial attention and heavy investment.
6.2.24. Loan Sanctioning Process of Central Bank of India :
In case of nationalized banks, farmers, who want to borrow

loan, have to follow the prescribed procedure which farmer may feel
difficult or complicated. But such process is essential for bank
executives, for assurance of repayment. Following are the remarks of
farmers regarding loan sanction process.
Table No. 6.2.24
Remarks of Farmers Regarding Loan Sanction Process
Loan Sanction Process No. of Percentage

Complicated 4 2.22
Easy 137 76.11
Proper 38 21.11
Time Consuming 1 0.56
Total 180 100
Table shows -
1. 76.11 percent farmers experience that loan sanction
process of Central Bank of India is simple and easy to
understand.
2. 21.11 percent farmers feel that, procedure is proper,
means bank executives should compel borrowers to
follow the procedure.
3. 2.22 percent farmers feel that, it is complicated. The
documents to be attached, signature of guarantor, no
objection certificates and documents of land for
hypothecation, English language, various types of
certificates may take time to collect.
4. 0.56 percent farmers experience that, process is time
consuming.
The borrower should be reliable, the provided documents
must be authentic, so for such purpose bank executive has to
compel some documents or process to farmers but it is a
procedure of banking practice.
6.2.25. Time Required for Loan Sanctioning Process :
In agriculture sector, loans are of two types. Agriculture Loan

and Cash Credit. In case of Cash Credit, if loan proposal is
sanctioned, then it only require to renew every year. Following are
the figures of time required for loan sanction.
Table No. 6.2.25
Time Required For Loan Sanction
Sanctioning Process No. of Percentage

Duration Respondents (percent)
15 Days 95 52.78
1 Month 77 42.78
More than 1 Month 8 4.44
Total 180 100
Table shows -
1. As per opinion of 42.78 percent farmers the loan was
sanctioned in one month.
2. 52.78 percent farmers experienced that, loan was
sanctioned within 15 days.
3. 4.44 percent farmers says that, loan was sanction process
required more than one month.
It indicates that, the time required for loan sanction may

varies as per the nature of application and compliances of the
proposal. It is completely authority of Branch Manager to check
and scrutinize the documents of loan application proposal.
6.2.26. Sufficiency of Loan Amount :
Many time, it happens that sanctioned amount is less than

required amount. In such case, farmers may face problems.
Following is the summary of farmers opinion regarding sufficiency
of loan amount.
Table No. 6.2.26
Sufficiency of Loan Amount
Sufficiency of Loan No. of Percentage

Amount as per Project Respondents (percent)
Yes 162 90
No 18 10
Total 180 100
Table shows -
1. 90 percent farmers are satisfied with the amount

sanctioned.
2. 10 percent farmers are not satisfied with the sanctioned
amount.
The reason behind short sanction is like over estimated

proposal, reliability of proposal, provision is not given for the
proposal demand, mortgage is not sufficient hence bankers are
sanctioning short amount of loan.
6.2.27. Utilization of Loan Amount :

If the sanctioned loan amount is not utilized properly, then
borrower may face problem of shortage of finance in future. Hence
amount of loan should be utilize properly for the same purpose.
Table No. 6.2.27
Utilization of Loan Amount
Utilization of Loan No. of Percentage

Amount Respondents (percent)
For the Same Purpose 168 93.33

For Other Purpose 12 6.67
Total 180 100
7%
For the Same Purpose

For the other Purpose
93%
Table shows -
1. 93.33 percent borrowers are utilizing the loan amount for
the same purpose.
2. 6.67 percent borrowers are not utilizing the loan amount
properly. They diversify the loan for other purpose.
In case of agriculturists, mis-utilization of loan amount is

highly possible because strict supervision and control of bank is
not possible. Maximum borrowers are diversifying the amount.
6.2.28. Repayment of Loan :
As per guidelines of RBI, banks should charge interest on

yearly basis and installments of loans should be on yearly basis.
Table No. 6.2.28

Repayment of Loan
Repayment of Loan No. of Percentage

Regular 168 93.33

Irregular 12 6.67
Total 180 100
Table shows -
1. 93.33 percent farmers are repaying the loan installments
regularly.
2. 6.67 percent farmers are not regular in repayment of loan.
In last few years, farmers are facing problems like shortage

of rainfall, worst climate, calamities, fluctuating rates for
production. Hence it may not be possible to repay the loan
installments. But, above table shows that 93.33 percent farmers
are regular in repayment of loan.
6.2.29. Problems in Repayment :
Agriculturists are facing various problems like worst climatic

conditions, unfair rates, black marketing practices, short rainfall,
electricity problems etc. In such condition, its difficult for
agriculturist to survive in worst conditions.
Table No. 6.2.29
Problems in Repayment
Problem in Payment No. of Percentage

Yes 34 18.89
No 146 81.11
Total 180 100
Table shows -
1. 81.11 percent borrowers are not facing any problem in
repayment and they arrange repayment of loan regularly.
2. 18.89 percent borrowers are facing problems in

repayment. Natural calamity, low prices for agri product
are causes of defaulted borrowers.
6.2.30. Regulation of Use of Loan Amount :
Bank executives are responsible for misutilisation of loan

amount by the borrower. So it is responsibility of bank executives to
observe and advice the borrowers, for proper utilization of borrowed
amount. Executives can frame his own criteria to regulate the
utilization of the loan amount such as issue amount in specific
installment and after intervals of work done, observe keenly the
transactions etc.
Table No. 6.2.30

Regulation of Use of Loan Amount
Bank Executive No. of Percentage

Regulate the use of Respondents (percent
percent)
Loan Amount by
Always Visits 90 50
Enquires to others 3 1.67
Enquires to Local
1 0.56
Leaders
Enquires to
71 39.44
Beneficiary
More than One 14 7.78
Total 180 100
14
Always Visits
90 Enquires others
71
Enquires to Local Leaders
Enquires to Beneficiary
More than one
13
Table shows -
1. 50 percent farmers says that, bank executives always
visits to the farmer site and observe the progress and
utilization of loan amount.
2. As per opinion of 39.44 percent farmers, bank executives
always enquires to beneficiary (borrowers) regarding
progress of the project.
3. 7.78 percent ffarmers
armers have selected more than one option.
Always visits and enquires to others (3), enquires to local
leaders and beneficiary (5), always visits and enquires to
beneficiary (6)
4. 1.67 percent farmers says that bank executives enquires
to others.
to local leaders.
Bank has fixed the responsibility of recovery of loan to the

respective bank manager. So he is personally responsible. Hence
the bank manager has to adopt different methods to regulation of
the loan amount so that amount will be used properly and it will
give better results to borrower.
6.2.31. Increase in Production (Annual Turnover) Due to

Financial Assistance of the CBI :
Financial assistance provided by bank plays vital role in

agriculturist's life just like blood in human body. Without financial
assistance farmers are helpless and can't rotate their annual working.
Following are the percentage of statistics regarding whether financial
assistance increased farmer's annual production or not.
Table No. 6.2.31
Increase in Production (Annual Turnover) Due to Financial
Assistance of the CBI
Increase in Production / No. of Percentage

Turnover Respondents (percent)
Yes 174 96.66

No 6 03.34
Total 180 100.00
3%
Yes
No
97%
Table shows -
1. Financial assistance is useful to 96.66 percent of
agricultural borrower. Production and productivity of
land is increased.
2. Only 3.34 percent farmer's agricultural production was
not increased. But diversification of loan is the main
reason.
Various farmers says that, the financial assistance was for

infrastructural development of their farm such as - construction of
crop storage house for agricultural products, to dig the well / tube
well, pipeline, dairy etc. Hence, the amount invested in above is
fruitful indirectly in increase in annual crop production. Due to
well, tube well, pipeline problem of water source was solved.
Due to crop storage problem of stock of crop (onion, grain) was
solved. Due to dairy construction farmer's daily income
increased.
6.2.32. Impact on Standard of Living :
The level of standard of living of farmers is one of the

important criteria. In order to know the impact of bank loan to
farmers, in improving the standard of living, some simple questions
were asked to borrowers. The responses of farmers are presented in
following table-
Table No. 6.2.32
Impact on Standard of Living of Farmers
Indicators No. of Percentage
Cement
137 76.11
House Concrete
Tiled roof /
43 23.88
Tin roof
Two
176 97.77
Wheeler
Vehicles
Four
79 43.88
Wheeler
Modern Agriculture
172 95.55
Equipment
Debit Card (ATM) 167 92.77
Mobile Phone 174 96.66
Consumer Durables 128 71.11
Increase in Annual Income 172 95.55
200 176 172 167 174 172
180
160 137
140 128
120
100 79
80
60 43
40
0
Mobile
Cement Concrete…
Tile Roof House
Four Wheeler
Agri. Equipments
Debit Card
Increase in Annual…
Two Wheeler
Consumer Durables
Table reveals that -
1. 76.11 percent farmers have cement concrete house, 71.11
percent are having consumer durables.
2. 97.77 percent farmers have two wheelers, 95.55 percent
avail modern agriculture equipment, 92.77 percent
beneficiaries have ATM card, 96.66 percent have mobile
phone and 95.55 percent farmers have accepted that there
is increase in annual income. It shows improvement in
standard of living of farmers.
6.2.33. Contribution of Central Bank in Development of

Agriculture Sector :
As a Lead Bank of Ahmednagar district, Central Bank of India

is implementing various schemes of Central Government for the
agriculturists. For last 40 years, Central Bank of India is working as
Lead Bank of Ahmednagar district.
Table No. 6.2.33
Contribution of Central Bank in Development of Agriculture
Sector
Problem in Repayment No. of Percentage

Yes 168 93.33

No 12 06.67
Total 180 100.00
Table shows -
1. 93.33 percent farmers (168) feels that, Central Bank of
India is contributing in the development of Agricultural
sector.
2. 6.67 percent farmers (12) feels that, Central Bank of India
is not contributing in the development of Agricultural
sector.
It reveals from the above that,

a) Central Bank of India is working as Lead Bank of
Ahmednagar district for last 40 years. It provides
financial assistance to farmers, artisans, agriculturists
etc. continuously for last 40 years.
b) 93.33 percent farmers feels that Central Bank's role is
very vital in Agricultural development of Ahmednagar
district.

Ahmednagar District :
Ahmednagar district is largest district of Maharashtra with

geographical area of 17048 sq. km., spread over 14 blocks and 14
Tahsil. The network of Central Bank of India is of 61 branches,
all over the Ahmednagar district, which is the largest network.
The Ahmednagar district is agriculture oriented district. 6.8 lakh
families are farming families in Ahmednagar district.
(www.census 2011.co.in)
Table No. 6.2.34
Contribution of Central Bank in Development of
Ahmednagar District

Yes 168 93.33

No 12 06.67
Total 180 100.00
Table shows -
1. 93.33 percent farmers (168) says that, Central Bank of
India is contributing in the development of Ahmednagar
district.
2. 6.67 percent farmers (12) says that Central Bank of India
is not contributing in the development of Ahmednagar
district.
It reveals that,
a) 93 percent farmers feels that, it is Central Bank of
India's contribution in the development of
Ahmednagar district.
b) Central Bank of India is financing in various sectors
of society like Agriculture, Industry, Business,
Trading etc.
For last 40 years continuously bank is providing finance to
the farmers, artisans, youth, entrepreneurs etc. Hence it's
bank's contribution in the development of Ahmednagar
district.
6.2.35. Infrastructural Facilities :
The development can be measured with few indicators like

road, water, electricity, education facility, health care
facility. It show social-economic growth of any village. It
was asked to borrowers that, which facilities are available in
their town.
Table No. 6.2.35
Infrastructural Facilities
Sr. Infrastructure Facilities No. of Percentage

No. Respondents (percent)
1. Road Facility 173 96.11

2. Water Facility 169 93.88
3. Electricity 180 100
Primary 180 100
Secondary and
141 78.33
4. Education HSC
Higher
63 35
Education
Health Public 122 67.77
5. Care
Facility Private 180 100
Table shows -
1. Basic infrastructural facilities like electricity, primary
education and private health care facility is available to
all the sample borrowers.
2. 96.11 percent borrowers have approach road and 93.88

percent borrowers have water facility.
3. Public Health Care facility is available to only 67.77

percent borrowers. Higher Education Institutes are
approachable to only 35 percent borrowers.
Chapter 6
Data Analysis
6.4 Introduction
6.4 Analytical Study of Development of Agriculture Sector
6.3.1. Age of Farmers
6.3.2. Classification of Gender of Farmers
6.3.3. Annual Income of Farmers
6.3.4. Education of Farmers
6.3.5. Background of Farmers
6.3.6. Nature of Farming
6.3.7. Land Holding of Farmers
6.3.8. Type of Land
6.3.9. Water Sources of Land
6.3.10. Supply of Water to Farmers
6.3.11. Crops (Cropping Pattern)
6.3.12. Crop Insurance
6.3.13. Crop Storage Infrastructure
6.3.14. Activities Allied to Agriculture
6.3.15. Techniques of Farming
6.3.16. Awareness among Farmers Regarding Central Bank of India
as a 'Lead Bank'
6.3.17. Schemes of Central Bank of India
6.3.18. Comparison of Central Bank of India with Other Banks
6.3.19. Source of Information about CBI
6.3.20. Reason of Selection of Central Bank of India
6.3.23. Purpose of Loan
6.3.24. Loan Sanctioning Process
6.3.25. Time Required for Loan Sanctioning Process
6.3.28. Repayment of Loan
6.3.29. Problems in Repayment
6.3.31. Increase in Production (Annual Turnover)
6.3.33. Contribution of CBI in Development of Agriculture Sector
6.3.34. Contribution of CBI in Development of Ahmednagar District
6.3.35. Infrastructural Facilities
6.4 Analytical Study of Development of Business Sector
6.3.1. Bank Branch wise classification of selected borrowers
6.3.2. Branch wise and Type of Enterprise wise Classification of
Borrowers (Business Sector - Factory Manufacturing)
6.3.3. Branch wise and Trading Activities wise Classification of
Borrowers (Business Sector - Trading)
6.3.4. Branch wise and Service wise Classification of Borrowers
(Business Sector - Services)
6.3.5. Age of Borrowers (Business Sector)
6.3.6. Gender of Borrowers
6.3.7. Annual Income of Borrowers
6.3.8. Education of Borrowers
6.3.9. Background of the Borrowers
6.3.10. Reason of Selection of Present Business
6.3.11. Type of Business
6.3.12. Technical Knowledge or Training
6.3.13. Financial Assistance Other Than Central Bank of India
6.3.14. Awareness Regarding 'Central Bank of India' as 'Lead Bank':
6.3.15. Knowledge of Schemes of Central Bank of India
6.3.16. Comparison of Central Bank of India With Other Banks
6.3.17. Source of Information About CBI
6.3.18. Reasons of Selection of Central Bank of India
6.3.21. Loan Sanction Process of Central Bank of India
6.3.22. Time Required For Loan Sanctioning Process
6.3.25. Problems in Repayment of Loan
6.3.27. Advantages of Schemes of Central Bank of India
6.3.28. Increase in Total Turnover and Production
Business Sector
Ahmednagar District
6.4 Analysis of Bank Executives Questionnaires
6.3.1. Network of Central Bank of India in Ahmednagar
6.3.2. Area wise Classification and year of Establishment of
Ahmednagar District
6.3.3. Human Resources (Employees)
6.3.4. Lack of Employees
6.3.5. ATM Facility
6.3.6. Distribution of Loan as per Priority Percentage
6.3.7. Maximum financed sector (2001-02 to 2010-11)
6.3.8. Problems Faced by Bank Executives, in implementing the
schemes
6.3.9. Loan Process of Central Bank of India
6.3.10. Regulation of Utilization of Loan Amount
6.3.11. Percentage of NPA
6.3.12. Experience About Repayment
6.4.12.1. Agriculture Sector
6.4.12.2. Business Sector
Female Borrowers
Chapter 6
Data Analysis
6.3. Introduction :
Nationalized Banks have played a very vital role in the
development of agriculture and business sector in urban and rural
area of Ahmednagar district. Since the district is basically village
oriented with a powerful agrarian economy; it is but natural that the
institutions set up to finance rural needs have a rural inclination. The
commercial banks operating in the district have a rural inclination.
Ahmednagar district is the largest of Maharashtra with geographical
area of 17413 sq. km spread over 14 blocks and 14 Tahsils. The
network of bank branch is also sizeable with 258 branches of
commercial banks and 295 branches of co-operative banks, are
catering to the needs of customers of the Ahmednagar district.
Central Bank of India has a wide network of 61 branch in

Ahmednagar district. Out of which, 44 branches are rural, 16 are
semi-urban and one branch is urban. It means rural area branches are
3 times as compared semi-urban branches. Hence, Central Bank of
India is giving maximum efforts in rural area through these branches
(specifically in agricultural sector.)
As per the data made available by Lead Bank Cell,

Ahmednagar and Central Bank of India, Regional Office, there are
61 branches of Central Bank of India in Ahmednagar District. The
sample for the study consisted of 12 branches (i.e. 20% of 61
branches) selected as convenient sample for in depth study. As
Ahmednagar district is geographically largest district, with variety of
Tahsils such as Urban, rural, Tribal, Irrigated (100%), Famine-
stricken. For sampling purpose, Ahmednagar district divided into
north and south zone. Six branches each, with variety of
geographical pattern were selected from North and South
Ahmednagar district. From north zone, Sangamner, Akole,
Shrirampur Tahsils showing Famine-stricken, Tribal and Irrigated
characteristics were selected respectively. From south zone,
Ahmednagar, Shrigonda, Parner were selected showing urban,
irrigated and famine-stricken characteristics. Akole, Kalas,
Shrirampur, Ukkalgaon, Sangamner, Ashwi, Ahmednagar, Nagapur,
Parner, Kanhur Pathar, Shrigonda, Belvandi etc. were the selected
sample of 12 bank branches.
All the 12 bank branch managers were contacted and due

appointment was taken to visit the branch whenever necessary, and
all managers were personally available for interview. The personal
interview was very informative.
Printed questionnaires were prepared for the borrowers.

From every bank branch, 30 borrowers were selected. From
Ahmednagar, Nagapur, Sangamner, Shrirampur, Parner, Akole
branches, 180 borrowers (30 x 6 branches) were selected which were
from business sector. And Shrigonda, Belvandi, Kalas, Kanhur
Pathar, Ashwi, Ukkalgaon etc., 180 borrowers (30 x 6 branches)
were selected who were from agriculture sector. The questionnaires
were distributed among these 360 borrowers and the doubts raised
regarding questionnaire were absolved immediately.
A suitable, personal interview schedule was structured for
this primary data collection. As a result of which, in addition to
structured questions, additional information was also readily
available.
This chapter aims at the detailed analysis of the information
collected through the questionnaire and personal interview.
6.4. Analytical Study of Development of Agriculture Sector :
Shrigonda, Belvandi, Kanhur Pathar, Kalas, Ashwi and

Ukkalgaon branches were the sample selected branches of Central
Bank of India. From these branches 30 borrowers each were selected
for agriculture sector (i.e. 180). All the borrowers were agriculturists.
From the above bank branches 180 agriculturists were

interviewed, and printed questionnaire was used for specific and
additional information.

questionnaire and personal interviews is given below. It will show
the real picture of agriculture sector in Ahmednagar district.
6.4.1. Age of Farmers (Agriculturists) :
It is common in agriculture sector, that new generation

involved in farming at the early age because manpower (labour) is
essential requirement of farming. But, bank finance is available to
only those farmers, who have attained age of majority i.e. 18 yrs.
Age of sample agriculturists is given below.
Table 6.2.1
Age of farmers (At the time of interview)
Age No. of Respondents Percentage (%)
18 to 30 26 14.44
31 to 45 138 76.67
46 to 60 12 06.67
61 - Above 4 02.22
Table shows,
1. Farmers of young age groups are involved in farming in a
large scale i.e. 91.11 percent. New generation introduced
in farming at a very young age.
2. There are only 2.22 percent farmers in 61 above age
group. After the 45 years of age, farmers handover the
charge to next generation.
6.4.2. Gender of Farmers :
It is a common belief that, a 'farmer' must be a 'male'. In

olden days, a person who have total rights to take decision regarding
family was 'Karta'. Generally the 'Karta' was a 'male', at the time of
male domination society. But now a days, the picture has completely
changed, females are neck and neck with the males in every sector
and agriculture sector is not an exception to this reality. This is an
attempt made to find out the exact statistics of men and women
involved in farming, which is given below -
Table No. 6.2.2
Gender of Farmers
Sex No. of Respondents Percentage (%)
Male 138 76.67

Female 42 23.33
42
Male
Femal
e
138
Table shows,
1. 76.67 percent of the farmers are male farmers and 23.33
percent are female farmers, with somewhat property.
2. The ratio of Male : Female is 3:1, but it is not
disappointing one. It means that, females are not just
shouldering the tasks involved in farming, but they are
also sharing and performing financial responsibilities of
farming.
3. It reveals that, young women are involved in farming.
Women are supporting their families for performing
agricultural activities not only physically but also through
sharing financial responsibilities. Most important
conclusion is, (society) males are accepting the rights of
women in the family maters, by admitting women as
partner in land holdings.
6.4.3. Annual Income of Farmers :
The annual income of farmers from their farming is shown

below. The lowest income group of farmers is upto Rs. 50,000/- and
the highest income group is Rs. 5,00,000/- and above.
Table No. 6.2.3
Annual Income of Farmers

upto 50,000 37 20.56

Rs. 50,000 to 1.5
62 34.44
lakh
Rs. 1.5 lakh to 3 lakh 55 30.56
Rs. 5 lakh and above 8 4.44
Total 180 100
The table shows,
6. Only 4.44 percent i.e. 8 farmers are from Rs. 5,00,000/-

and above income group. They are cultivating cash crops
like grapes, pomegranate, sugarcane and are from
irrigated area.
7. 10 percent i.e. 18 farmers are from Rs. 3,00,000/- to Rs.

5,00,000/- income group.
8. 30.56 percent i.e. 55 farmers are from middle group i.e.
Rs. 1,50,000/- to Rs. 3,00,000/- income group. These
farmers are producing traditional as well as cash crops.
9. Maximum no. of percentage is 34.44 percent i.e. 62

farmers from Rs. 50,000/- to Rs. 1,50,000/- income
group. These farmers are producing sugarcane and
vegetables.
10. 20.56 percent i.e. 37 farmers are from lowest income

group. These farmers are from famine-stricken region of
Ahmednagar district. These farmers are generally
producing grains, cereals, pulses and vegetables.
6.4.4. Education of Farmers :
Good education background and success in farming may not

be positively related. But, good educational background reveals,
educated farmers, techno savvy farming possibility, modern farming,
use of new technology in farming, new experiments in farming. The
statistics of education of farmers is as follows -
Table No. 6.2.4
Education of Farmers
Education No. of Percentage

upto 10th 71 39.50

10th to 12th 49 27.30
Graduate 37 22.00
Post Graduate
21 11.20
Highly qualified
Total 180 100.00
E P.G. 11.2
d
u
Graduate 22
c
a
t 10th to 12th 27.3 Percentage of Respondant
i
o
n upto 10th 39.5
0 10 20 30 40 50
No of Respondants
The table shows -

4. 39.50 percent farmers are in upto 10th education
group.27.30 percent farmers are 10th to 12th education
group.
5. 22.00 percent farmers are graduate.
6. Highly qualified farmers are less in number.
From above analysis, it reveals that, due to early entry in

farming sector farmers are not highly qualified, they have to stop
their education due to household responsibilities.
6.4.5. Background of Farmers :
In India, farming is not treated as a kind of business. It is

traditional and ancestral property and work to do. Hence, a least
number of percentage group is involved in farming for professional /
business view.
The background of farmers is given below.
Table No. 6.2.5
Background of Farmers

Farmers Respondents (percent)

Farming
Total 180 100.00
Table shows -
3. 95.56 percent respondents are involved in traditional
farming. In India, generally farmers never sold their land
and hand over it to next generation. So, farming is an
ancestral business.
4. 4.44 percent farmers have started the farming newly.
From above analysis it reveals that today also, farming is

viewed as an ancestral business.
6.4.6. Nature of Farming :
In India, generally joint family system seen in agricultural

sector. For agriculture large scale labour is required, which is
expensive. If joint family is doing farming, then to some extent
labour work can be done by the members of family.
The nature of farming is given in following table-
Table No. 6.2.6
Nature of Farming
Nature of Farming No. of Percentage


Contract 8 4.44
Joint Family 58 32.22
Total 180 100
Table shows -
1. 63.33 percent farmers are independent or individual.
2. 32.22 percent farmers are from joint family system.
3. 4.44 percent farmers have adopted contract farming
system and no one has corporate farming.
Large no. of farmers are individual. Joint family system is
popular to India. The farmers who have manpower but not having
land can contract with other farmers for farming on the basis of some
terms and conditions.
6.4.7. Land Holding of Farmers :
In India, 65 percent population is dependent on the agricultural

sector. But variety picture was seen in case of land holding of
farmers, in different states of the country. In Ahmednagar district,
land holding of farmers is not very low or high, it is medium. In case
of irrigated Tahsils land holding is low and in case of famine
stricken Tahsils land holding is high as compared to Irrigated.
The clear picture of land holding of farmers of Ahmednagar
District is given below.
Table No. 6.2.7
Land holding of Farmers
Land Holding No. of Percentage

upto 2.5 Acre 70 38.89

2.5 to 5.00 Acre 69 38.33
5.00 to 10.00 Acre 29 16.11
10.00 Acre and Above 12 06.67
Total 180 100.00
Table shows -
4. 38.89 percent farmers are holding upto 2.5 acre land and
38.33 percent farmers hold 2.5 to 5 acre land. It means,
maximum farmers land holding is low.
5. 16.11 percent farmers have 5 to 10 acres land.
6. Only 6.67 percent farmers hold more than 10 acre land.
In Ahmednagar district on an average land holding is low i.e. in

between 2.5 Acres to 5 Acres.
' In Ahmednagar district, there are 6.8 lakh farming families,

out of these 32.45 percent farmers are having less than 2 Acres land
holding, 57.89 percent farmers are having land holding between 2 to
10 Acres and 9.66 percent farmers have a land holding with more
than 10 Acres.' (www. Rainrays .com/topic/district-Ahmednagar)
6.4.8. Type of Land :
Ahmednagar district can be divided into three categories as

scarcity zone, plain zone and Ghat zone. Now a days with the help of
various scientific methods and techniques land is irrigated.
Table No. 6.2.8
Type of Land
Type of Land No. of Percentage

Irrigated 115 63.88

Non- Irrigated 65 36.11
Total 180 100.00
Table shows -
3. 63.88 percent farmers have irrigated land and 36.11
percent farmers have non-irrigated land.
4. Though the land is from drought prone zone but with the
help of irrigation techniques now it is irrigated one.
It reveals that, farmers from drought prone area or

scarcity zone are using technique, to irrigate their land. Hence,
large numbers of farmers are having irrigated land.
6.4.9. Water Sources of Land :
Ahmednagar district receives 566 mm rainfall. The major

rainfall received during month of June to September. Erratic nature
of rainfall affects the moisture contents in the soil, therefore,
maximum part of Ahmednagar district is known as drought prone
area.
The water sources of irrigated land is given below -
Table No. 6.2.9
Water Sources
Water Source No. of Percentage

Well / Tube Wells 112 62.22

River 22 24.44
Canal 07 3.89
Any two sources 39 21.67
Total 180 100
70
62.22
60
50
40
30 24.44
21.67 Percentage
20
10 3.89
0
Well River Canal Any Two
Sources
Table shows -
5. 62.22 percent farmers have well, as the only water source
for irrigation.
6. 24.44 percent farmers depends upon river for their
farming / irrigation.
7. 3.89 percent farmers depends on canals for water supply.
8. 21.67 percent farmers has selected any two options i.e.
well and river, well and canal, river and canal etc.
Hence, it reveals that, majority farmers are depending on
wells as the water source in Ahmednagar district.
6.4.10. Supply of Water to Farms :
Traditionally, channels were used to irrigate the farms. Various

techniques are invented such as, sprinklers, drip, pipeline, with the
help of which wastage of water can be controlled. But for small
farmers many times it may not be possible to introduce such
techniques in farming.
The picture of different methods of water supply used by
farmers is given below -
Table No. 6.2.10
Supply of Water to Farms
Method No. of Percentage

Borrowers (Percent)
Drip 35 19.44
Sprinklers 68 37.77
Supply of Water
by means of 77 42.77
channels
Total 180 100
Source : Primary data
19.44%
42.77% Drip
Sprinkler
By Channels
37.77%
Table shows -
4. 42.77 percent farmers are using the traditional method of
supply of water by means of channels. As the technical
methods like sprinklers, drip are costly so it may not be
possible for small farmers.
5. 37.77 percent farmers are using sprinklers for irrigation.
As sprinklers are useful for various types of crops (upto 2
to 3 feet height) hence, now a days various farmers are
using this method and water wastage can be controlled.
6. 19.44 percent farmers are using drip system for irrigation.
It reveals from above analysis that, large number of farmers

are using traditional method of irrigation. The percentage of
sprinkler users and drip irrigation users is also satisfactory.
6.4.11. Crops (Cropping Pattern) :
In Ahmednagar district crops varies as per climatic and

geographical conditions. In scarcity zone, due to average rainfall
major crops are wheat, cereals, pulses, sunflower, sugarcane. In
irrigated zone farmers are growing vegetables like tomato, goards,
fruits like pomegranate, grapes, sweet lime, sugarcane.
The picture of cropping pattern is given below.
Table No. 6.2.11
Cropping pattern
Crop Pattern No. of Percentage

Grains 11 6.11
Fruits 22 12.22
Vegetables 56 31.11
Sugarcane and
35 19.44
Cotton
More than one crop 56 31.11
Total 180 100
60 56 56
50
40 35
30
22
20
11
Table shows -
6. 31.11 percent farmers are producing vegetables as land
holding proportion in Ahmednagar district is low, hence
farmers are growing vegetables which are of limited time
period and profit margin is greater than any other crop.
Tomato, Onion, Goard, Brinjal, Green Peas, Cauliflower,
Cabbage such vegetables are grown by the farmers.
7. 31.11 percent farmers have selected more than one
option. Grain and fruits (22), Fruits, sugarcane and cotton
(17), Sugarcane, cotton and vegetables (22), Grains, oil
seeds, vegetables, sugarcane and cotton (12). Due to
irrigation facility farmers are growing various types of
crops.
8. 19.44 percent farmers are producing sugarcane and
cotton. Actually cotton is not traditional crop of
Ahmednagar district. But in last few years, farmers from
scarcity zone as well as irrigated zone is interested in
growing cotton.
9. 12.22 percent farmers are growing fruits like Grapes,
pomegranate, sweet lime, watermelon etc. Now a days
with the help of irrigation techniques and advanced
fertilizers, pesticides farmers are growing such expensive
crops.
10. 6.11 percent farmers are producing grains i.e. wheat,
jawar, bajra and other items. As land holding is very low
so it is profitable to grow cash crops like vegetables /
sugarcane / fruits etc. instead of grains.
It reveals that, in Ahmednagar district farmers are diverting

towards the cash crops, because such crops are more beneficial.
6.4.12. Crop Insurance :
In Indian agricultural sector, farmers are not aware about the

concept insurance of crop. Many times, they have to face problems
due to natural calamity or disasters, o absorb the shock of such
problems crop insurance is the best option. But it may not possible in
case of traditional crops like grains, vegetables. It is possible only in
case of sugarcane, pomegranate, grapes and cash crops.
The information of farmers having crop insurance is given
below -
Table No. 6.2.12
Crop Insurance
Crop Insurance No. of Percentage

No 94 52.22
Yes 86 47.78
Total 180 100
Table shows -
3. 52.22 percent farmers don't have crop insurance.
Generally these farmers are grain, cotton, vegetables
producers.
4. 47.78 percent farmers are having crop insurance. These
farmers are producing fruits like grapes, pomegranate,
sweet lime and sugarcane.
The durations of grain, vegetables are 6 or 2 or 3 months. So,

many time it is not possible for following crop insurance
procedure.
In case of fruits, duration of fruit farms is 5-10 years. Hence
heavy investment is there for fruit farms. So such farmers are
having crop insurance.
6.4.13. Crop Storage Infrastructure :
In Agricultural sector, crop storage facility is important,

because without such facility farmers may have to sale his crop at
lower prices. Many time, due to lack of storage facility farmers are
selling their crops at current rates which are not fair. The percentage
of farmers having crop storage facility is shown in Table 6.2.13
Table No. 6.2.13
Crop Storage Infrastructure
No. of Percentage
Yes 110 61.11

No 70 38.89
Total 180 100
39%
Yes
No
61%
Table shows -
1. 61.11 percent farmers have crop storage facility with
them and 38.89 percent farmers don't have crop storage
facility.
2. It reveals that, various farmers have crop storage facility
in their own house, farm, shed. Crops like onion, grain,
pulses, potato storage is essential till prices increased
upto a profitable level. Such storage should be
scientifically constructed one, so that the crop can be
preserved with its original quality.
6.4.14. Activities Allied to Agriculture :
Farmers can establish various activities to agriculture such as

Dairy, Poultry, Goat farming, for which farmers can use the
agricultural resources like land, water, feed, electricity. Now a days
such activities are giving a large scale returns to the owners.
Following is the picture of farmers who are having such
activities.
Table No. 6.2.14
Activities Allied to Agriculture
Allied Activities No. of Percentage

Poultry 6 3.33
Dairy 143 79.44
Goat Farming 9 5.00
Other 10 5.56
Multiple 12 6.67
Total 180 100
160
140
120
100
80
40
20
0
Poultry Dairy Goat Other Multiple
Farming
Table shows -
3. 79.44 percent farmers are having Dairy, 3.33 percent
farmers have Poultry, 5 percent farmers have Goat
farming activity with agriculture. 5.56 percent farmers
have other activities.
4. 6.67 percent farmers have multiple activities like Poultry
and Dairy, Dairy and Goat farming, Poultry and Goat
farming.
It reveals that, Dairy activity is now the most important
economic pursuit of farmers after agriculture in Ahmednagar
district. No. of co-operative Dairy Society, adequate no. of
vehicles for transportation of milk, milk processing plants
adequacy are the major reasons behind development of Dairy
activity in Ahmednagar district. Due to recession in last few years
in Poultry business, it is not developed in a large scale in
Ahmednagar district and Goat farming is not viewed as
professional or profit motive view in Ahmednagar district.
6.4.15. Techniques of Farming :
Today traditional methods and equipments are replaced by

modern techniques and equipments. Modern instruments are
effective and having high efficiency, with the help of which
production (yield) can be increased to large scale. Following is the
percentage of farmers, using traditional and modern techniques.
Table No. 6.2.15
Techniques of Farming
Technique of Farming No. of Percentage

Modern 124 68.89
Total 180 100
Table shows -
1. 68.89 percent farmers are using modern techniques of
farming such as - Tractors, Electric Motors, Drip,
Sprinklers, Machinery to prepare crops.
2. 31.11 percent farmers are not using modern techniques,
they are using traditional methods to do farming.
It is observed that, the traditional crops like sugarcane,

grains, pulses, cereals and oilseeds, modern instruments and
techniques are effective but introducing these instruments is not
affordable for small farmers so he adopt traditional methods.
In case of crops like fruits, vegetable and other cash crops

etc. medium or high financial capacity farmers are involved so,
for them it is possible to use modern methods and techniques like
Green House, Poly-house, Drip/Sprinkler, Tractors or such
vehicles and instruments etc.
6.4.16. Awareness among Farmers Regarding Central Bank of

India as a 'Lead Bank'
Central Bank of India is a lead Bank of Ahmednagar district.

The schemes of government are implemented by and through this
lead bank. Priorities are suggested to every bank branches for issuing
loan to different sectors. But it may happen, that the farmers may be
ignorant about such scheme. Following is the picture of awareness
among farmers regarding Central Bank of India.
Table No. 6.2.16
Awareness Among Farmers Regarding Central Bank of India
as 'Lead Bank'
Awareness No. of Percentage

Yes 169 93.89

No 11 6.11
Total 180 100
6%
Yes
No
94%
Table shows -
3. 93.89 percent farmers are aware about the lead bank
scheme, and 6.11 percent farmers don't have any idea
regarding Central Bank of India as lead bank.
4. In rural area, many villages have Central Bank of India as
the only nationalized bank and scheme, programs,
information broadcasted by bank executives spread
quickly by mouth publicity. Hence maximum farmers
know the position of Central Bank of India.
The needful is always searching for the solution, so
farmers always want capital (finance) for development is always
in search of loans facilities so, he is aware about the schemes of
the banks.
6.4.17. Schemes of Central Bank of India :
As Central Bank of India is a lead bank it always introduce and

implements various schemes for priority as well as non priority
sectors. Following is the percentage of farmers familiar to these
schemes.
Table No. 6.2.17
Percentage of Farmers Familiar to Schemes
Idea about schemes No. of Percentage

of CBI Respondents (percent)
Yes 169 93.89
No 11 6.11
Total 180 100
Table shows -
3. 93.89 percent farmers are familiar with the different
schemes of Central Bank of India
4. 6.11 percent farmers are not familiar to the schemes of
In rural area, where only one or two banks are in the village,
it's very easy for manager and also for farmers to ask for
information regarding schemes which are beneficial to
agricultural sector.
6.4.18. Comparison of CBI with Other Banks :
In rural area, generally only one or two banks (one nationalized

and other co-operatives) are there. In semi-urban or urban area it
may be possible to compare the nationalized bank with other banks.
Table No. 6.2.18
Comparison of CBI with Other Banks
Comparison made No. of Percentage

between Lead Bank Respondents (percent)
and Others
Yes 81 45
No 99 55
Total 180 100
45%
Yes
No
55%
Table shows -
3. 55 percent farmers never compare Central Bank of India
with other banks.
4. 45 percent farmers have compared Central Bank of India
with the available options, before taking loan.
The rate of interest charged, mode of repayment, mortgage

system, loan procedure, are the important factors which one can
compare with other options. Co-operative banks, private money
lenders and co-operative societies are the options available to
farmers in rural area. The 45 percent is satisfactory percentage of
farmers who are aware about such comparative study of Banking
options.
6.4.19. Source of Information about Central Bank of India :
In rural area, banks executives have to broadcast the

information regarding various schemes of banks through responsible
persons like Sarpanch, Gramsevak or visitors. The farmers can get
such information easily due to mouth publicity. Following are the
sources of Information about Central Bank of India.
Table No. 6.2.19
Sources of Information about Central Bank of India

Relatives 121 67.22

Gram Panchayat 33 18.33
Panchayat Samiti 13 07.22
Zilha Parishad 02 01.11
Total 180 100.00
Table shows -
4. 67.22 percent farmers (121) get the information about
banks through their relatives. As in rural area, farmers
have a network of relatives in the same village.
5. 18.33 percent farmers get the information from Gram
Panchayat Office, 7.22 percent from Panchayat Samiti,
6.12 percent from Advertisement and 1.11 percent from
Zilha Parishad.
6. In rural area, to visit to bank is a daily routine of farmers.

After every one/two days they are visiting to bank hence
relatives and advertisement by bank executives and Gram
Panchayat Office are the important sources of
information of Central Bank of India.
In rural area, it is generally observed that farmers are selecting

nationalized banks instead of co-operative societies and private
money lenders because farmer get trapped in the clutches of private
money lenders and co-operative societies. Following are the reasons
of selection of Central Bank of India.
Table No. 6.2.20

Reasons of Selection of Central Bank of India
Reason of Selection of No. of Percentage

CBI Respondents (percent)
Close to you 30 16.67

Bank Executives are
16 8.89
Familiar
Lead Bank 126 70.00
Reputation 8 4.44
Total 180 100
4%
17%
Close to you
Bank executives are

9%
familiar
Lead Bank
Reputation
70%
Table shows -
5. 70 percent farmers have selected Central Bank of India
because it is a Lead Bank of Ahmednagar district. As a
Lead Bank it provides various scheme to farmers.
6. 16.67 percent farmers says that, it is close to them. Day to
day visit to bank to complete banking procedure, it is
convenient for farmer to select the nearer bank.
7. 8.89 percent farmers are familiar with the bank
executives, hence they selected Central Bank of India
8. 4.44 percent farmers have selected Central Bank of India
because of its reputation.
It's very difficult to a farmer to follow the banking procedure
of loan sanction in his busy schedule. So selection of nearer bank
is better option.

Bank Executives. It depends on the attitude of Bank Executives.
Many times, attitude of Bank Executives may become hurdle in
banking services.
Table No. 6.2.21
Behavior of Bank No. of Percentage

Executives Respondents (percent)

Rude 3 1.67
Negligence 4 2.22
Total 180 100
Table shows -
4. As per opinion of 93.89 percent farmers bank executives
are co-operative..
5. As per experience of 4.44 percent farmers officers of CBI
are not co-operative.
6. 1.67 percent farmers says that, bank executives are rude
in nature.
It reveals that, 94 percent farmers feels that, bank executives

are co-operative, helping, providing guidance, whenever
necessary. The farmers are satisfied with the behavior of bank
executives.
Guidelines are issued by the high authorities to bank managers

regarding minimum and maximum amount of loan. CBI's branch
managers can sanction maximum Rs. 25 lakh loan. These executives
have to find out potential amongst the farmers and decide the amount
of loan as per the potential capacity. Following is the classification
of loan amounts issued to farmers.
Table No. 6.2.22
Classification of Loan Amount Issued to Farmers
Amount of Loan No. of Percentage

upto 50,000 50 27.78

50,000 to 1.5 lakh 81 45.00
1.5 lakh to 3 lakh 38 21.11
3 lakh and above 11 6.11
Total 180 100
Table shows -
5. 45 percent farmers are from to 2nd group i.e. Rs. 50,000/-
to Rs. 1,50,000/- loan amount.
6. 27.78 percent farmers are from to 1st group i.e. upto Rs.
50,000/- loan amount.
7. 21.11 percent farmers are from to 3rd group i.e. Rs.
1,50,000/- to Rs. 3,00,000/- loan amount.
8. 6.11 percent farmers are belonging to highest loan
amount 4th group i.e. Rs. 3,00,000/- and above.
The amount of loan depends on the potential of beneficiary,

mortgage, reason, type of crop, repayment capacity. The farmers
from irrigated land area have high level investment in
agriculture, so they have large amount of loan and farmers from
non-irrigated or dry area are having small scale loans.
6.4.23. Purpose of Loan :
Agriculturist are not getting income frequently like

businessman or employee. Once or twice in a year, he is getting
income from his crop (after sale of the crop). Hence for all his
annual expenses and agricultural investment he has to use his
savings or search for the finance. The bank executives are issuing
loans, but the demand should be fair and worth. Following are the
purposes for what farmers have taken the loans.
Table No. 6.2.23
Purpose of Loan
Purpose of Loan No. of percent

Respondents Percentage
Crop Loan 64 35.56

Purchase Cattles 40 22.22
Dug Well / Tube
25 13.88
Well
Pipeline 24 13.34
Construction of
20 11.11
Shed
Poultry 7 3.89
Total 180 100
4%
11% Crop loan

36%
13% Cattles
Well
14% Pipeline
22% Shed Construction
Poultry
Table shows -
3. 35.56 percent farmers have taken loan for 'Crop Loan'
which is agriculture activity.
4. 64.44 percent farmers have taken loan for non
non-
agricultural activities viz. dairy, poultry, well/tube well,
pipeline, shed.
Maximum farmers are borrowing loans for the crop. In such

crop loans farmer can utilize the amount fro crop as per his
criteria.
Dairy activity is now most important economic pursuit of

farmers after agriculture
agriculture in Ahmednagar district. Hence dairy
activity loan is the second purpose of loan. Well / tube well,
pipeline, construction of crop storage shed are the essential
requirement of farmers. Poultry is also important allied activity of
agriculture but, it need special attention and heavy investment.
6.4.24. Loan Sanctioning Process of Central Bank of India :
In case of nationalized banks, farmers, who want to borrow

loan, have to follow the prescribed procedure which farmer may feel
difficult or complicated. But such process is essential for bank
executives, for assurance of repayment. Following are the remarks of
farmers regarding loan sanction process.
Table No. 6.2.24
Remarks of Farmers Regarding Loan Sanction Process
Loan Sanction Process No. of Percentage

Complicated 4 2.22
Easy 137 76.11
Proper 38 21.11
Time Consuming 1 0.56
Total 180 100
Table shows -
5. 76.11 percent farmers experience that loan sanction
process of Central Bank of India is simple and easy to
understand.
6. 21.11 percent farmers feel that, procedure is proper,
means bank executives should compel borrowers to
follow the procedure.
7. 2.22 percent farmers feel that, it is complicated. The
documents to be attached, signature of guarantor, no
objection certificates and documents of land for
hypothecation, English language, various types of
certificates may take time to collect.
8. 0.56 percent farmers experience that, process is time
consuming.
The borrower should be reliable, the provided documents
must be authentic, so for such purpose bank executive has to
compel some documents or process to farmers but it is a
procedure of banking practice.
6.4.25. Time Required for Loan Sanctioning Process :
In agriculture sector, loans are of two types. Agriculture Loan

and Cash Credit. In case of Cash Credit, if loan proposal is
sanctioned, then it only require to renew every year. Following are
the figures of time required for loan sanction.
Table No. 6.2.25
Time Required For Loan Sanction
Sanctioning Process No. of Percentage

Duration Respondents (percent)
15 Days 95 52.78
1 Month 77 42.78
Total 180 100
Table shows -
4. As per opinion of 42.78 percent farmers the loan was
sanctioned in one month.
5. 52.78 percent farmers experienced that, loan was
sanctioned within 15 days.
6. 4.44 percent farmers says that, loan was sanction process
required more than one month.
It indicates that, the time required for loan sanction may

varies as per the nature of application and compliances of the
proposal. It is completely authority of Branch Manager to check
and scrutinize the documents of loan application proposal.
Many time, it happens that sanctioned amount is less than

required amount. In such case, farmers may face problems.
Following is the summary of farmers opinion regarding sufficiency
of loan amount.
Table No. 6.2.26
Sufficiency of Loan No. of Percentage

Amount as per Project Respondents (percent)
Yes 162 90
No 18 10
Total 180 100
Table shows -
3. 90 percent farmers are satisfied with the amount

sanctioned.
4. 10 percent farmers are not satisfied with the sanctioned
amount.
The reason behind short sanction is like over estimated

proposal, reliability of proposal, provision is not given for the
proposal demand, mortgage is not sufficient hence bankers are
sanctioning short amount of loan.
If the sanctioned loan amount is not utilized properly, then

borrower may face problem of shortage of finance in future. Hence
amount of loan should be utilize properly for the same purpose.
Table No. 6.2.27
Utilization of Loan No. of Percentage

Amount Respondents (percent)
For the Same Purpose 168 93.33

For Other Purpose 12 6.67
Total 180 100
7%
For the Same Purpose

For the other Purpose
93%
Table shows -
3. 93.33 percent borrowers are utilizing the loan amount for
the same purpose.
4. 6.67 percent borrowers are not utilizing the loan amount
properly. They diversify the loan for other purpose.
In case of agriculturists, mis-utilization of loan amount is
highly possible because strict supervision and control of bank is
not possible. Maximum borrowers are diversifying the amount.
6.4.28. Repayment of Loan :
As per guidelines of RBI, banks should charge interest on

yearly basis and installments of loans should be on yearly basis.
Table No. 6.2.28

Repayment of Loan
Repayment of Loan No. of Percentage

Regular 168 93.33

Irregular 12 6.67
Total 180 100
Table shows -
3. 93.33 percent farmers are repaying the loan installments
regularly.
4. 6.67 percent farmers are not regular in repayment of loan.
In last few years, farmers are facing problems like shortage

of rainfall, worst climate, calamities, fluctuating rates for
production. Hence it may not be possible to repay the loan
installments. But, above table shows that 93.33 percent farmers
are regular in repayment of loan.
6.4.29. Problems in Repayment :
Agriculturists are facing various problems like worst climatic

conditions, unfair rates, black marketing practices, short rainfall,
electricity problems etc. In such condition, its difficult for
agriculturist to survive in worst conditions.
Table No. 6.2.29

Problems in Repayment
Problem in Payment No. of Percentage

Yes 34 18.89
No 146 81.11
Total 180 100
Table shows -
3. 81.11 percent borrowers are not facing any problem in
repayment and they arrange repayment of loan regularly.
4. 18.89 percent borrowers are facing problems in

repayment. Natural calamity, low prices for agri product
are causes of defaulted borrowers.
Bank executives are responsible for misutilisation of loan

amount by the borrower. So it is responsibility of bank executives to
observe and advice the borrowers, for proper utilization of borrowed
amount. Executives can frame his own criteria to regulate the
utilization of the loan amount such as issue amount in specific
installment and after intervals of work done, observe keenly the
transactions etc.
Table No. 6.2.30
Bank Executive No. of Percentage

Regulate the use of Respondents (percent
percent)
Loan Amount by
Always Visits 90 50
Enquires to Local
1 0.56
Leaders
Enquires to
71 39.44
Beneficiary
More than One 14 7.78
Total 180 100
14
Always Visits
90 Enquires others
71
Enquires to Local Leaders
Enquires to Beneficiary
More than one
13
Table shows -
6. 50 percent farmers says that, bank executives always
visits to the farmer site and observe the progress and
utilization of loan amount.
7. As per opinion of 39.44 percent farmers, bank executives
always enquires to beneficiary (borrowers) regarding
progress of the project.
8. 7.78 percent farmers have selected more than one option.
Always visits and enquires to others (3), enquires to local
leaders and beneficiary (5), always visits and enquires to
beneficiary (6)
to others.
to local leaders.
Bank has fixed the responsibility of recovery of loan to the

respective bank manager. So he is personally responsible. Hence
the bank manager has to adopt different methods to regulation of
the loan amount so that amount will be used properly and it will
give better results to borrower.
6.4.31. Increase in Production (Annual Turnover) Due to

Financial Assistance of the CBI :
Financial assistance provided by bank plays vital role in

agriculturist's life just like blood in human body. Without financial
assistance farmers are helpless and can't rotate their annual working.
Following are the percentage of statistics regarding whether financial
assistance increased farmer's annual production or not.
Table No. 6.2.31
Increase in Production (Annual Turnover) Due to Financial
Assistance of the CBI
Increase in Production / No. of Percentage

Turnover Respondents (percent)
Yes 174 96.66

No 6 03.34
Total 180 100.00
3%
Yes
No
97%
Table shows -
3. Financial assistance is useful to 96.66 percent of
agricultural borrower. Production and productivity of
land is increased.
4. Only 3.34 percent farmer's agricultural production was
not increased. But diversification of loan is the main
reason.
Various farmers says that, the financial assistance was for

infrastructural development of their farm such as - construction of
crop storage house for agricultural products, to dig the well / tube
well, pipeline, dairy etc. Hence, the amount invested in above is
fruitful indirectly in increase in annual crop production. Due to
well, tube well, pipeline problem of water source was solved.
Due to crop storage problem of stock of crop (onion, grain) was
solved. Due to dairy construction farmer's daily income
increased.
The level of standard of living of farmers is one of the

important criteria. In order to know the impact of bank loan to
farmers, in improving the standard of living, some simple questions
were asked to borrowers. The responses of farmers are presented in
following table-
Table No. 6.2.32
Impact on Standard of Living of Farmers
Indicators No. of Percentage
Cement
137 76.11
House Concrete
Tiled roof /
43 23.88
Tin roof
Two
176 97.77
Wheeler
Vehicles
Four
79 43.88
Wheeler
Modern Agriculture
172 95.55
Equipment
Debit Card (ATM) 167 92.77
Mobile Phone 174 96.66
Increase in Annual Income 172 95.55
200 176 172 167 174 172
180
160 137
140 128
120
100 79
80
60 43
40
0
Mobile
Cement Concrete…
Tile Roof House
Four Wheeler
Agri. Equipments
Debit Card
Increase in Annual…
Two Wheeler
Consumer Durables
Table reveals that -
1. 76.11 percent farmers have cement concrete house, 71.11
percent are having consumer durables.
2. 97.77 percent farmers have two wheelers, 95.55 percent
avail modern agriculture equipment, 92.77 percent
beneficiaries have ATM card, 96.66 percent have mobile
phone and 95.55 percent farmers have accepted that there
is increase in annual income. It shows improvement in
standard of living of farmers.

Agriculture Sector :
As a Lead Bank of Ahmednagar district, Central Bank of India

is implementing various schemes of Central Government for the
agriculturists. For last 40 years, Central Bank of India is working as
Lead Bank of Ahmednagar district.
Table No. 6.2.33
Contribution of Central Bank in Development of Agriculture
Sector

Yes 168 93.33

No 12 06.67
Total 180 100.00
Table shows -
3. 93.33 percent farmers (168) feels that, Central Bank of
India is contributing in the development of Agricultural
sector.
4. 6.67 percent farmers (12) feels that, Central Bank of India
is not contributing in the development of Agricultural
sector.

c) Central Bank of India is working as Lead Bank of
Ahmednagar district for last 40 years. It provides
financial assistance to farmers, artisans, agriculturists
etc. continuously for last 40 years.
d) 93.33 percent farmers feels that Central Bank's role is
very vital in Agricultural development of Ahmednagar
district.

Ahmednagar district is largest district of Maharashtra with

geographical area of 17048 sq. km., spread over 14 blocks and 14
Tahsil. The network of Central Bank of India is of 61 branches,
all over the Ahmednagar district, which is the largest network.
The Ahmednagar district is agriculture oriented district. 6.8 lakh
families are farming families in Ahmednagar district.
(www.census 2011.co.in)
Table No. 6.2.34
Contribution of Central Bank in Development of
Ahmednagar District

Yes 168 93.33

No 12 06.67
Total 180 100.00
Table shows -
3. 93.33 percent farmers (168) says that, Central Bank of
India is contributing in the development of Ahmednagar
district.
4. 6.67 percent farmers (12) says that Central Bank of India
is not contributing in the development of Ahmednagar
district.
It reveals that,
c) 93 percent farmers feels that, it is Central Bank of
India's contribution in the development of
Ahmednagar district.
d) Central Bank of India is financing in various sectors
of society like Agriculture, Industry, Business,
Trading etc.
For last 40 years continuously bank is providing finance to
the farmers, artisans, youth, entrepreneurs etc. Hence it's
bank's contribution in the development of Ahmednagar
district.
6.4.35. Infrastructural Facilities :
The development can be measured with few indicators like

road, water, electricity, education facility, health care
facility. It show social-economic growth of any village. It
was asked to borrowers that, which facilities are available in
their town.
Table No. 6.2.35
Infrastructural Facilities
Sr. Infrastructure Facilities No. of Percentage

No. Respondents (percent)
1. Road Facility 173 96.11

2. Water Facility 169 93.88
3. Electricity 180 100
Primary 180 100
Secondary and
141 78.33
4. Education HSC
Higher
63 35
Education
Health Public 122 67.77
5. Care
Facility Private 180 100
Table shows -
1. Basic infrastructural facilities like electricity, primary
education and private health care facility is available to
all the sample borrowers.
2. 96.11 percent borrowers have approach road and 93.88

percent borrowers have water facility.
3. Public Health Care facility is available to only 67.77

percent borrowers. Higher Education Institutes are
approachable to only 35 percent borrowers.
6.4 Analytical Study of Development of Business :
A business is a wide term. A business is also known as

enterprise or firm, or an organization engaged in the trade of goods,
services, manufacturing or production. Hence, for simple selection
three factors of 'business' concept was considered are - Trading,
Services, Factory (manufacturing)
Ahmednagar, Nagapur MIDC, Parner, Akole, Shrirampur,

Sangamner branches were the sample selected braches of Central
Bank of India, as Business sector borrowers were selected from
above sample branches. 30 borrowers were selected from each of the
above branch i.e. 180 borrowers. All the borrowers were
interviewed, structured questionnaire was used for specific &
additional information. Questions and descriptions other than
questionnaire was also asked at the time of interview, to clear the
doubts.

questionnaire & personal interviews is given below.
6.3.1. Bank Branch wise Classification of Selected Borrowers :
Business concept is wide and can be describe as, an

organization engaged in trade of goods, services, manufacturing,
production etc. Industry, trading and services are three different
classes of business concept. Classification of business and borrowers
as per six branches is as given below -
Table 6.3.1
Classification of Business Sector Borrowers
Branch
S'angamner
Shrirampur
Business Total &
Nagapur
A'Nagar
Parner
Akole
Activity Percent
10 18 5 2 2 2 39
Factory
(21.66)
Trading 16 10 19 24 25 24 118
(Shop) (65.55)
4 2 6 4 3 4 23
Services
(12.79)
Total 30 30 30 30 30 30 180
Table shows that,

1. 21.66 percent borrowers are belonging to 'Factory' or
industry. These are from different branches such as
Ahmednagar 10, Nagapur 18, Sangamner 5, Shrirampur
2, Parner 2, Akole 2. Ahmednagar and Nagapur are
industrialization area so 10 units & 18 units were selected
from this area respectively.
2. 65.55 percent borrowers are belonging to Trading
activity. These are Ahmednagar 16, Nagapur 10,
Sangamner 19, Shrirampur 24, Parner 25, Akole 24. It
includes medical stores, electronics stores, stationary,
glossary shops, cloth stores, shoe mart, xerox-STD-
lamination
3. 12.79 percent borrowers are belonging to service
activities. These are situated at Ahmednagar 4, Nagapur
2, Sangamner 6, Shrirampur 4, Parner 3, Akole 4. It
includes hotels, tour-travels, beauty parlors, saloon,
tailoring shop, photo studio, cyber cafe.
6.3.2. Branch wise and Type of Enterprisewise Classification of
Borrowers (Factory Manufacturing) :
Out of 180 borrowers 39 borrowers are from factory /
manufacturing category. The classification of the borrowers are
given in following Table 6.3.2
Table 6.3.2
Branch wise and Type of Enterprisewise Classification of
Borrowers (Factory / Manufacturing Category)
Branch
Shrirampur
Sangamner
Manufacturers
Nagapur
A'Nagar
Total
Parner
Akole
(Factory)
1. Chemical Industries 1 1 - 2 - - 4
2. Metal Industry 1 1 - - - - 2
3. Plastic Raw Material - - 1 - - - 1
4. Food Products 1 2 - - - - 3
5. Dairy Products 1 - - - - 1 2
6. Engg. & Jobwork 2 4 - - - - 6
7. Stationary
- 1 1 - - - 2
Manufacturing
8. Automobiles
1 1 - - - - 2
Manufacturing
9. Tyre Remoulding - 1 1 - - - 2
10. Battery
- 1 1 - - - 2
Manufacturing
11. Backery Products - 1 1 - 1 - 3
12. Stone Crusher - - - - - 1 1
13. Fabrication & Steel
1 1 - - - - 2
Furniture
14. Poultry - - - - 1 - 1
15. Edible Oil Industry 1 1 - - - - 2
16. Electricals &
1 3 - - - - 4
Electronics
Total 10 18 5 2 2 2 39
Table shows that,
The factory units are classified into 16 categories. Table 6.3.2
reveals that, borrowers are from, Electricals & Electronics (4),
Engineering & Job work (6), Chemicals (4), Food Products (3),
Backery Products (3), Metal Industries (2), Dairy (2), Stationary
Manufacturers (2), Automobiles manufacturers (2), Tyre
Remoulding & Rubbers (2), Battery Manufacturers (2), Fabrication
& Steel Furniture (2), Edible Oil (2), Raw Material Industry (1),
Stone Crusher (1), Poultry (1) etc. borrowers are from variety of
factory units.
Nagapur branch of Central Bank of India is located at MIDC

area. Hence, 18 borrowers were available. 10 borrowers are from
Ahmednagar branch, Sangamner branch five borrowers (factory
owners) were available. Shrirampur, Parner, Akole branch 2
borrowers each were available for the interview.
It concludes that, Sangamner, Shrirampur, Parner and Akole are

branches where there is scope for Industrial. These are the semiurban
branches of Central Bank of India. Ahmednagar branch is Urban
branch and Nagapur is industrial zone branch. Hence these branches
have sufficient Industrial finance.
6.3.3. Branchwise and Trading Activitieswise Classification of

Borrowers (Business Sector - Trading) :
Out of 180 borrowers of Business sector, 118 borrowers are

from Trading activity. All the 118 borrowers were personally
available for interview. The classification of borrowers are given in
following table -
Table 6.3.3
Branchwise and Trading Activitieswise Classification of
Borrowers (Trading)
Branch
Shrirampur
Sangamner
Trading Activity Total
Nagapur
A'Nagar
Parner
Akole
1. Cloth Stores 2 - 1 2 2 4 11
2. Foot Wares 1 1 1 1 3 2 9
3. Grocery Shop 2 1 1 - 3 2 9
4. Automobile &
- 2 1 - - 1 4
Spare parts
5. Medical stores &
2 2 - 3 2 2 11
Chemists
6. Book Sellers &
1 - 2 - 1 2 6
Sationary
7. Agro Agency &
- - 2 2 2 3 9
Fertilizers
8. General &
1 - - 2 2 1 6
Domestic Retailers
9. Building Material &
1 2 2 3 2 2 12
Hardware
10. Mobile Shoppee 1 1 2 1 1 1 7
11. Electricals &
1 1 - 2 2 - 6
Electronics
12. Sweets 1 - - 1 1 1 4
13. Fruits &
- - - 2 - - 2
Vegetables
14. Jwellery (Sarafi) - - - - 2 - 2
15. Sports Equipments 1 - 1 1 - - 3
16. Computers &
1 - 2 1 - - 4
Accessories
17. Colour - - 1 - - - 1
18. Oil Depo 1 - 1 - - - 2
19. Utensils - - - - 2 1 3
20. Glass - - 1 1 - 1 3
21. Furniture - - 1 2 - 1 4
Total 16 10 19 24 25 24 118
Table shows that,
The trading units are classified into 21 Trading activities. Table

6.3.3 reveals that, borrowers are from Building Material & Hardware
(12), Medical Stores (11), Cloth Stores (11), Footwares (9), Grocery
(9), Agro Agency & Fertilizers (9), Mobile Shopee (7), Book Seller
& Stationary (6), General & Domestic Retailers (6), Electricals (6),
Automobiles & Spareparts (4), Sweets (4), Computers &
Accessories (4), Furniture (4), Sports Equipments (3), Utensils (3),
Glass (3), Fruits & Vegetables (2), Jwellery (2), Oil Depo (2), Color
(1).
Branch wise classification reveals that, Ahmednagar branch

belongs 16 trading units, Nagapur (10), Sangamner (19), Shrirampur
(24), Parner (25), Akole (24) trading activities.
6.3.4. Branchwise and Servicewise Classification of Borrowers

(Services) :
Out of total 180 borrowers, 23 borrowers are from services

activities. The classification of these borrowers as per the branch and
activity is given below -
Table 6.3.4
Branchwise and Servicewise Classification of Borrowers
(Services)
Branch
Shrirampur
Sangamner
Service Category Total
Nagapur
A'Nagar
Parner
Akole
1. Hotels 2 2 1 1 1 1 8
2. Hospitals - - 1 - - - 1
3. Cyber Café &
- - 1 - - - 1
Computer Repairing
4. Garage,Servicing
- - 1 1 1 1 4
Center
5. Xerox, Printer,
- - 1 1 1 1 4
Lamination
6. Share Brokers 1 - - - - - 1
7. Laundry & Dry
- - 1 1 - - 2
Cleaning
8. Multiplex 1 - - - - - 1
9. Petrol Pump - - - - - 1 1
Total 4 2 6 4 3 4 23
Table shows that,

The total 23 borrowers are classified into 9 categories of
services. These borrowers are from different services such as -
Hotels (8), Hospital (1), Cyber Café & Computer Repairing (1),
Garage & Servicing Center (4), Xerox, Printers & Lamination (4),
Share Brokers (1), Laundry & Dry Cleaners (2), Multiplex (1), Petrol
Pump (1). Maximum services are Hotels, Garages & Servicing
Center, Xerox, Printers & Lamination.
These above services are from the jurisdiction of following
branches of Central Bank of India. Ahmednagar (4), Nagapur (2),
Sangamner (6), Shrirampur (4), Parner (3), Akole (4).
6.3.5. Age of Borrowers (Business Sector) :
Youngsters are interested in establishing their own business

instead of jobs. Business is a challenging sector where entrepreneurs
should be ready for risks. Hence, age of the proprietor is vital
important factor. Age of the sample businessman is given below -
Table 6.3.5
Age of Borrowers (At the time of interview)
Age No. of Percentage (%)

Respondents
18 to 30 56 31.11
31 to 45 68 37.77
46 to 60 43 23.88
61 - Above 13 7.22
Table shows that,

1. 37.77 percent borrowers are from middle age group i.e.
31-45 years.
2. 31.11 percent borrowers are belonging to young age
group i.e. 18-30 years.
3. 23.88 percent borrowers are belonging to the '46-60
years' age group.
4. Only 7.22 percent borrowers are belonging to the '61
years & above' age group.
It reveals that, maximum no. of age group is 31-45 years. In this
age period working capacity of human being is at peak. Hence, large
number of borrowers are from this age group. As business sector is
risky sector, so senior citizens of the age '61-above' are less in
numbers. The young age group i.e. '18-30 years' is also showing
satisfactory number of person, which reveals that, youth is interested
in business sector.
6.3.6. Gender of Borrowers :
In business sector, everyone has to face cut-throat competition,

risk, challenges etc. for many years, this sector was male dominated.
But, in last few years large number of women are introducing in
business sector and proving themselves as good businessmen.
Table 6.3.6
Gender of Borrowers
Sex No. of Percentage (%)

Respondents
Male 158 87.77

Female 22 12.22
Table shows that,

1. 87.77 percent borrowers are male.
2. 12.22 percent borrowers are female.
It reveals from the statistics that, today also business sector
is occupied by male members by near about 88 percent. 12.22
percent borrowers are female. These females are from trading
sector e.g. medical shop, stationary, general store, glossary shop
and fruits & vegetables.
6.3.7. Annual Income of Borrowers :
Annual income of borrowers from their business is shown

below. This classification includes low income group is upto Rs.
1,50,000/- and highest income group is Rs. 5 lakh & above.
Table 6.3.7
Annual Income of Borrowers

Respondents (%)
upto 1,50,000 33 18.33

Rs. 1,50,000 to 3
77 42.77
lakh
Rs. 5 lakh & above 19 10.55
Total 180 100
Table shows that,

1. 18.33 percent borrowers are belonging to 'upto Rs.
1,50,000/-' income group. These businesses are small
trading units.
2. 42.77 percent borrowers belongs to 'Rs. 1,50,000/- to Rs.
3 lakh' income group. It includes small factories, trading
units & services. This is the largest income group of the
sample.
3. 28.33 percent borrowers belongs to 'Rs. 3 lakh to Rs. 5
lakh' income group. It includes small scale industries,
services & large trading units etc.
4. 10.55 percent borrowers belongs to 'Rs. 5 lakh & above'
income group. It includes large industries, services.
6.3.8. Education of Borrowers :
Good educational background and business is positively related.

Education indicates confidence among entrepreneurs. Sometimes,
education is essential in respect of business. Classification of
education of borrowers is as follows -
Table 6.3.8
Education of Borrowers
Education No. of Percentage (%)

Respondents
upto 10th 67 37.22

10th to 12th 21 11.66
Graduate 42 23.33
Post Graduate/
50 27.77
Highly qualified
Total 180 100
P.G.
Graduate
No. of Respondants
10th to 12th
upto 10th
0 20 40 60 80
Table shows that,
1. 37.22 percent borrowers belongs to upto 10th education
group. This group is largest group. It includes traders,
shopkeepers, services.
2. 11.66 percent borrowers belongs to 11th & 12th education
group. This group is smallest group. It includes traders &
entrepreneurs.
3. 27.77 percent borrowers belongs to post graduate or
highly qualified group. This group includes industrialists,
services, traders.
4. 23.33 percent borrowers belongs to graduate education
group. It includes factory owners, traders, services,
shopkeepers etc.
It reveals that, few businesses like medical stores,

engineering industry, chemical industry requires technical
knowledge.
6.3.9. Background of the Borrowers :
Many times, business transferred from one generation to next
generation. The ancestral property and business is transferred to next
generation. Classification of background of borrowers is given below
-
Table 6.3.9
Background of Borrowers

Business Respondants (%)
Traditional Business 58 32.22

Total 180 100
Table shows that,
1. 67.78 percent borrowers has newly started business.
2. 32.22 percent borrowers merged into traditional business.
It reveals from the table that, maximum number of

businesses are newly started units. Only 32 percent businesses are
traditional, transmitted from one generation to other generation.
6.3.10. Reason of Selection of Present Business :
Entrepreneurs enter in business for various reasons. Many

times, entrepreneurs select their family business & want to face new
challenges. The various reasons are shown below -
Table 6.3.10
Reasons of Selecting Present Business
Reasons of Selecting No. of Percentage

Present Business Respondants (%)
1. Family Business 58 32.22

2. Unemployment 62 34.44
3. Deliberately 38 21.11
4. Forced By
17 9.44
Circumstances
5. Other 5 2.77
Total 180 100.00
40 34.44
35 32.22
No. of Respondants
30
25 21.11
20
15 9.44
10
5 2.77
Forced
Other
Unemployment
Deliberately
Family Business
Reasons
Table shows,
1. 34.44 percent borrowers were unemployed, hence sarted
their own business.
2. 32.22 percent borrowers entered in their traditional
business line.
3. 21.11 percent borrowers had deliberately accepted this
profession. They want to face new challenges.
4. 9.44 percent borrowers had forced by circumstances in
the present business.
5. 2.77 percent borrowers have other reasons like family
problem, financial problem, lack of job opportunity.
It reveals that, 34.44% personnel have choose the present

business because of unemployment, lack of job opportunities &
they do not have family business background. 32.22% have
entered in traditional business line. 21.11% have deliberately
accepted this profession. It means, being born in business family
is not necessary condition for becoming a businessman.
6.3.11. Type of Business :
There are different types of businesses. Individually run

business, partnership, joint family business. The classification of
types of business is given below -
Table 6.3.11
Type of Business
Type of Business No. of Percentage

Respondents (%)

Partnership 17 9.45
Joint Family Business 59 32.78
Total 180 100
Table shows,
1. 57.77 percent borrowers run Individual Business.
Independently they are running trading, manufacturing
and service units.
2. 32.78 percent borrowers are in Joint Family Business.
3. 9.45 percent borrowers are in the Partnership Units.
It reveals that, 57.77% entrepreneurs are doing their business
Independently. 32.78% borrowers are in Joint Family Business.
Generally traditional businesses are joint family businesses.
9.45% are Partnership Units, these are belonging to Industrial
Units.
6.3.12. Technical Knowledge or Training :
Various institutes like Centre for Entrepreneur Development

(CED), District Industrial Centre (DIC) are providing Technical
knowledge to the entrepreneurs. Following is the statistics
whether, borrowers have taken any formal training or not -
Table 6.3.12
Technical Knowledge / Training
Technical Knowledge No. of Percentage

or Training Respondants (%)
Yes 147 81.66

No 33 18.34
Total 180 100
18%
Yes
No
82%
Table shows,
1. 81.66 percent borrowers have taken Technical (Scientific)
knowledge of the business enterprise.
2. 18.34 percent borrowers have not taken any kind of
technical knowledge.
It reveals that, 81.66 percent borrowers have taken formal

training of business. It is very satisfactory picture because it
means entrepreneurs entering in business are not vague. They
have specific vision to perform in business.
6.3.13. Financial Assistance Other Than Central Bank of India :
Financial Assistance is of vital importance in business activity.

It is like blood circulation in human body. Entrepreneurs have to
borrow fund from various sources of finance. Other sources used by
entrepreneurs are given below.
Table 6.3.13
Financial Assistance Other Than CBI
Categories No. of Percentage

Respondents (%)
Other Banks 73 40.56

Private Money Lenders 03 1.66
Co-operative Societies 87 48.34
No 17 9.44
Total 180 100
Table shows,
1. 48.34 percent borrowers have borrowed loan from co-
operative societies.
2. 40.56 percent borrowers have borrowed loan from other
nationalized banks.
3. 9.44 percent borrowers have borrowed loan.
4. 1.66 percent borrowers have borrowed loan from private
money lenders.
It reveals that, other than Central Bank of India the

borrowers has to go for other banks, co-operative societies &
private money lenders.
6.3.14. Awareness Regarding 'Central Bank of India' as 'Lead
Bank':
Central Bank of India is a Lead Bank of Ahmednagar district.

The Govt. schemes are implemented by lead bank. Priorities are
suggested to every bank executives for issuing loan to different
sectors. The number of proprietors who are aware about Lead Bank
position of Central Bank of India is given below-
Table 6.3.14
Awareness Regarding CBI as Lead Bank
Awareness of Lead No. of Percentage

Bank Scheme Respondents (%)
Yes 103 57.22

No 77 42.78
Total 180 100
43%
Yes
No
57%
Table shows,
1. 57.22 percent borrowers are aware about Central Bank of
India that it is Lead Bank of Ahmednagar district.
2. 42.78 percent borrowers are not aware about Lead Bank
position of Central Bank of India.
It reveals that, large number of businessmen are aware about

Lead Bank scheme, but the percentage of unaware businessmen
are disappointing.
6.3.15. Knowledge of Schemes of Central Bank of India :
As a Lead Bank of Ahmednagar district Central Bank of India ,
always implement schemes for priority and non-priority sectors.
Following is the percentage of borrowers which are familiar with
schemes of the bank.
Table 6.3.15
Knowledge of Schemes of CBI
Information of No. of Percentage

Schemes of CBI Respondents (%)
Yes 123 68.33

No 57 31.67
Total 180 100
Table shows,
1. 68.33 percent borrowers are familiar with the different
schemes of Central Bank of India.
2. 31.67 percent borrowers are not familiar with the
different schemes of Central Bank of India.
6.3.16. Comparison of Central Bank of India With Other Banks :
In semi-urban and urban area, banking & finance services
are available in a large scale. One can compare such institutes
with each other. Following is the percentage of borrowers, who
have compared Central Bank of India with other banking options
Table 6.3.16
Comparison of CBI With Other Banks
Comparison with No. of Respondents Percentage (%)

Other Banks
Yes 123 68.33

No 57 31.67
Total 180 100
Table shows,
1. 68.33 percent borrowers has compared Central Bank of
India with other financial Institutions.
2. 31.67 percent borrowers has not compared with any other
banking option.
It reveals that, in case of banking, rate of interest, mode of

payment, rules & regulations, mortgage, loan procedure are
important factors on which one can study comparatively, with
consideration of other options.
6.3.17. Source of Information About Central Bank of India :
In Urban & Semi-urban area, its responsibility of bank

executives to broadcast the information regarding various schemes
of bank through advertisement, posters, banners, old borrowers ,
workshops etc. The following is the percentage of different sources
of information.
Table 6.3.17
Source of Information About CBI

Respondents (%)
Same Businessman 107 59.44

Relatives 38 21.11
Other 06 3.33
Total 180 100
Table shows,
1. 59.44 percent borrowers got the information about
Central Bank of India through professional colleagues.
2. 21.11 percent borrowers aware about the bank through
relatives.
3. 16.12 percent borrowers know about the bank through
advertisement.
4. 3.33 percent borrowers got the information from other
sources.
It reveals that, Needful is always searching for solutions,

many times, professional colleagues can solve such problems
because, same profession person are facing similar problems.
It is common tendency of customer, that search for profitable

option. Banking sector customers are also showing the same
characteristics. The percentage of reasons of selection of Central
Bank of India is as given below -
Table 6.3.18
Reasons of Selection of CBI
Categories No. of Percentage

Respondents (%)
It is close to you 21 11.67

Bank Executives are
09 5.00
Familiar
Bank is Lead Bank 67 37.22
Reputation of CBI 83 46.11
Total 180 100
12% 5% Close to you
46%
Bank Executives are
Famliar
37% Lead Bank
Reputation
Table shows,
1. As per opinion of 46.11 percent borrowers CBI is reputed
bank, hence they have selected Central Bank of India.
2. 37.22 percent borrowers have selected Central Bank of
India because it is a Lead Bank of Ahmednagar district.
3. 11.67 percent borrowers have selected because the bank
is close to borrower's place.
4. 5 percent borrowers have selected because Bank
Executives are familiar.
Customers are searching for reputed services. Hence various
borrowers have selected the first option, i.e. reputation of Bank.
Lead Bank is the second reason behind selection of the bank.

bank executives. The services depends on the attitude of the bank
executives.
Table 6.3.19
Behavior No. of Percentage

Respondents (%)

Rude 02 1.11
Negligence 03 1.66
Total 180 100
Table shows -
1. As per opinion of 92.23 percent borrowers, bank
executives are co-operative in nature.
2. 7.77 percent borrowers says that, bank executives are not
co-operative, rude & negligent.
It indicates that, 92.23% borrowers are satisfied with the
behavior of the bank executives.
As per the guidelines and priorities, Bank managers are issuing

loan to customers. Generally, branch managers can issue upto Rs. 25
lakh loan. The amount of loan is depend on the potential associated
with the customer. The classification of loan amount is issued to
customers is given below -
Table 6.3.20
Amount of Loan
Loan Amount (Rs.) No. of Percentage

Respondents (%)
50,000 - 2 Lakh 73 40.56

2 Lakh - 5 Lakh 22 12.22
5 Lakh to 10 Lakh 58 32.22
10 lakh - 25 Lakh 21 11.66
25 Lakh and above 06 03.34
Total 180 100.00
Table shows -
1. 40.56 percent borrowers belonging to the 1st group i.e.
Rs. 50,000/- to Rs. 2 lakh. This group is of small traders,
shop keepers, small factory units, services etc.
2. 12.22 percent borrowers belongs to the Rs. 2 lakh to 5
lakh group. It includes medium scale traders, services like
hotels & medium scale manufacturing units.
3. 32.22 percent borrowers belongs to Rs. 5 lakh to Rs. 10
lakh group it includes high investment trading units,
services, factory units.
4. 11.66 percent borrowers belongs to Rs 10 lakh - 25 lakh
group it includes, services and manufacturing units.
5. Large scale factories & manufacturing units are in Rs. 25
lakh & above group.
It reveals that, the amount of loan depends on the potential
associated with the project. If the business is of small nature, amount
of loan is limited. If business is large scale then amount is increasing
as per requirement of business.
6.3.21. Loan Sanction Process of Central Bank of India :
Borrowers has to follow prescribed procedure to borrowers

loan from the bank. Sometimes, the process may be complicated or
time consuming. Following are the remarks of borrowers regarding
Central Bank of India's Loan Sanction Process.
Table 6.3.21
Loan Sanction Process
Sanction Process No. of Percentage

Respondents (%)
Complicated 7 3.88
Easy 95 52.77
Proper 65 36.11
Time consuming 13 7.24
Total 180 100
Table shows -
1. 52.77 percent of borrowers experienced, the loan sanction
process is easy & simple.
2. 36.11 percent of borrowers feels that, the loan sanction
process is proper and every borrower should follow the
procedure.
3. 11.12 percent borrowers feels that, the loan sanction
process is complicated and time consuming.
It reveals that, 88.88 percent borrowers are satisfied and
happy with the loan sanction process of Central Bank of India.
6.3.22. Time Required For Loan Sanctioning Process :
Bank executives compel borrowers to follow prescribed

procedure of loan application. Due to formalities, it may be possible
that, documentation will take some time. In case of Cash Credit,
credit once sanctioned to borrower will only renew every year.
Table 6.3.22
Time Required For Loan Sanctioning Process
Duration No. of Percentage

Respondents (%)
15 Days 140 77.77

1 Month 27 15.00
Total 180 100
Table shows -
..22.1.1. 77.77 percent borrowers experienced that, the
loan was sanctioned in 15 days.
..22.1.2. 15.00 percent borrowers required one month
time period.
..22.1.3. 7.23 percent borrowers says that more than one
month's time was required to sanction the loan.
It reveals that, maximum proposals were sanctioned in 15

days, if any query or if document is required it may take one month
or more than one month time.
Bank executives can change the amount of loan, if it is over

estimated. Following is the percentage of borrowers satisfied with
sanctioned loan amount.
Table 6.3.23
Sufficiency of No. of Percentage (%)

Loan Amount Respondents
Yes 124 68.88

No 56 31.11
Total 180 100
Table shows -
1. 68.88 percent borrowers are satisfied with the sanctioned
loan amount.
2. 31.11 percent borrowers says that, sanctioned amount is
not sufficient.
It reveals that, 68.88 percent borrowers are satisfied with the

amount which was sanctioned by the bank executives.
Bank executives has to observe the utilization of amount of

loan. They issue the amount in installments to purchase of
machinery, raw material, installation of plant, marketing and
distribution and working capital etc. Borrowers can utilize the
amount for any other purpose if it is not regulated by bank
executives.
Table 6.3.24
Utilization No. of Percentage

Respondents (%)
For the same purpose 173 96.11

For other purpose 07 3.89
Total 180 100

4%
For the same Purpose

For other Purpose
96%
Table shows -
1. 96.11 percent borrowers are using the loan amount
properly.
2. 3.89 percent borrowers diverting the amount of loan.
96 percent borrowers are using the amount properly. They

are not diverting the amount for other activities. So, it is easy for
bank executives to observe the utilization of loan amount.
6.3.25. Problems in Repayment of Loan :
Borrowers may face problems in repayment of loan. If business

is facing losses continuously, in such condition borrower can face
problems in repayment of loan.
Table 6.3.25
Problems in Repayment of Loan
Problem No. of Percentage

Respondents (%)
Yes 13 7.23
No 167 92.77
Total 180 100
Table shows -
1. 92.77 percent borrowers are not facing problems in
repayment of loan and regularly repaying the loan.
2. 7.23 percent borrowers are facing problems in repayment
of loan.
Businessmen, which are not facing problems in repayment of

loan are 92.77 percent. That means various businesses are in running
conditions and are regularly repaying the installments.
Bank executives are advising borrowers for proper

utilization of amount of loan. The amount is issued in installments.
After utilization of 1st installment bank executives visit the site and
after satisfactory results issue the next installments.
Table 6.3.26
Regulation of Use of No. of Percentage

Loan Amount Respondents (%)
Always visits 169 93.88

Enquires to local leaders 03 1.67
Enquires to beneficiary 06 3.33
Total 180 100
Table shows -
1. 93.88 percent borrowers says that, bank executives
always visits to the site or place of borrowers to regulate
the loan amount utilization.
2. 6.12 percent borrowers says that, bank executives
enquires to borrowers, to local leaders, to others
regarding progress of business.
Maximum borrowers are saying that, Bank Executives are

visiting to business (site/place) always to see the progress or
enquires to the responsible persons regarding progress of the
business.
6.3.27. Advantages of Schemes of Central Bank of India :
Central Bank of India is Lead Bank of Ahmednagar district, it

implements various schemes for priority and non-priority sectors. To
enhance, industrialization it finance to business sector. It finance to
trading, manufacturing, services activities.
Table 6.3.27
Advantages of Schemes of CBI
Advantages of Schemes of No. of Percentage

CBI Respondents (%)
Yes 133 73.88

No 10 5.55
Improvement is
37 20.50
necessary
Total 180 100
Table shows -
1. 73.88 percent borrowers feels that, schemes implemented
by Central Bank of India regarding business is useful and
advantageous to entrepreneurs.
2. As per opinion of 20.50 percent borrowers, improvement
in working of Central Bank of India is necessary.
3. 5.55 percent borrowers feels that, schemes of Central
Bank of India are not useful.
Various borrowers are satisfied with the programs

implemented by Central Bank of India and 20.5 percent feels that
improvement is necessary.
6.3.28. Increase in Total Turnover and Production due to

Financial Assistance of Central Bank of India :
Central Bank of India is providing finance for installation of

plant & machinery, to purchase raw material, working capital etc. It
is essential for survival & development of business.
Table 6.3.28
Increase in Total Turnover and Production due to
Financial Assistance of CBI
Increase in Turnover No. of Percentage

due to Financial Asst. Respondents (%)
of CBI
Yes 173 96.12

No 07 3.88
Total 180 100
Table shows -
1. 96.12 percent borrowers says that, their total turnover &
production is increased due to financial assistance of
2. Total turnover & production of 3.88 percent borrowers is
not increased.
The main objective of banking services is to enhance &

insist entrepreneurial environment of business sector. 96.12
percent borrowers are saying that turnover & production is
increased means bank's objective is fulfilled.
The level of standard of living of borrowers is considered as one

of the important criteria. In order to know the impact of bank loan to
businessmen on improving the standard of living, description of
improvement was asked to the borrowers like vehicles, wealth, assets
, club membership, mobile phone, ATM card, credit card, consumer
durables, better housing condition & foreign tours.
Table 6.3.29
Impact on Standard of Living
Improvement No. of Percentage

Indicators Respondents (%)
Vehicles 179 99.44

Club Membership 89 49.44
Mobile Phone 180 100
Debit Card 177 98.33
Credit Card 168 93.33
Increase in Wealth 168 93.33
Better Housing
173 96.11
Condition
Good No. of Assets. 163 90.55
Foreign Tours 29 16.11
200 179 180 177 168 176 168 173
180 163
R 160
e 140
120 89
s 100
N 80
p 60
o 29
o 40
. 20
n 0
d
Mobile
Debit Card
Credit Card
Consumer Durables
Increase in Wealth
Foreign Tours
Column3
Vehicles
Club Membership
Better Housing…
Good No of Assets
o
a
f
n
t
s
Indicators
Table reveals that,

100 percent borrowers have mobile phone, 99.44 percent
have vehicles, 98.33 percent have ATM cards, 97.77 percent have
consumer durables, 96.11 percent are saying that they have better
housing condition, 93.33 percent have credit cards and increase in
wealth, 90.55 percent are accepting that there are good no. of assets.
6.3.30. Contribution of Central Bank of India in the Development

of Business Sector :
Success of business is considered as development of the sector.

Hence working or running business are the criteria of success of
business sector. It was asked to the borrowers to give their opinion
regarding Central Bank's contribution.
Table 6.3.30
Contribution of CBI in the Development of Business
Sector
Contribution of
CBI in No. of
Percentage (%)
development of Respondents
Business Sector
Yes 169 93.88

No 11 6.11
Total 180 100
Table shows -
1. As per opinion of 93.88 percent borrowers, it is Central
Bank of India has contributed in the development of
Business Sector.
2. 6.11 percent borrowers says that, Central Bank of India is
not contributing in the development of Business Sector.
Borrowers have given following opinions :
a. Central Bank of India insist entrepreneurs to start
business with banks finance.
b. Businesses which are in working condition, Central
Bank of India encourage to develop its coverage
area and provides finance.
c. Central Bank of India solve problems of
businessmen at any moment if it is within reach of
the bank.
d. Central Bank of India provides loan for different
reasons of businessmen.
Above all opinions says that bank is contributing in the
development of Business Sector.
6.3.31. Contribution of Central Bank of India in the Development

of Ahmednagar District :
Geographically Ahmednagar district is largest district of

Maharashtra State, spread over 14 blocks & 14 tahasils. There are 61
branches of Central Bank of India which is the largest network.
Since, 1970, Central Bank of India is working in the district.
Table 6.3.31
Contribution of CBI in the Development of
Ahmednagar District
Contribution of CBI in
No. of Percentage
development of
Respondents (%)
Ahmednagar District
Yes 178 98.88

No 02 1.12
Total 180 100
Table shows -
1. 98.88% borrowers feels that, Central Bank of India is
contributing in development of Ahmednagar district.
2. Since, 1970 Central Bank of India is financing to various
sectors like Agriculture, Business.
3. The successful businesses agricultural development,
modern techniques used by farmers denotes the
development of Ahmednagar district.
6.4 Analysis of Bank Executives Questionnaires :
For study purpose, 20% branches (i.e. 12 branches) of Central

Bank of India was selected. Six branches from south Ahmednagar
i.e. Ahmednagar, Nagapur, Shrigonda, Belvandi, Parner & Kanhur
pathar and six branches from North Ahmednagar district i.e. Akole,
Sangamner, Kalas, Ashwi, Shrirampur & Ukkalgaon were selected.
All the branch managers of all above 12 branches were

contacted and due appointment was taken. For interview structured
questionnaire was used. The personal interviews were very
informative and lively. Whatever doubts raised regarding the
branches or borrowers were absolved immediately. This chapter
aims at the detailed analysis of the information collected through
questionnaire and interviews of 12 branch managers.
6.3.1. Network of Central Bank of India in Ahmednagar :
The commercial banks operating in the district have wide

network of branches catering to the needs of district. Urban branches
cover Ahmednagar city, semi-urban branches are at Taluka places
and rural branches are in villages. In Ahmednagar district there are
14 blocks. The blockwise classification of branches of Central Bank
of India is given below -
Table 6.4.1
Blockwise Network of Branches of CBI in Ahmednagar
District
Sr. Name of Name of Branches No. of

No. Block Branches
Ahmednagar, M.I.D.C.,
1 Ahmednagar Ruichattisi, Chichondi Patil, 06
Dehere, Walki
Akole, Shendi, Ganore, Kalas
2 Akole Bk, Kotul, Rumbhodi, 07
Samsherpur
3 Jamkhed Jamkhed, Patoda, Kharda 03
4 Karjan Chapadgaon, Siddhatek 02
5 Kopargaon Kopargaon, Sahjanandnagar 02
6 Newasa Newasa, Chanda 02
Parner, Vadzire, Nighoj, Supa,
7 Parner 07
Alkuti, Kanhur Pathar, Palshi
Pathardi, Kharwandi Kasar,
8 Pathardi 04
Shiral Chichondi, Tisgaon
Rahuri, Baragaon Nandur,
9 Rahuri 04
Shrishivajinagar, Vambori
Sangamner, Deogaon,
10 Sangamner Dolasane, Ashwi, Pemgiri, 06
Sakur
Shevgaon, Bodhegaon, Shahar
11 Shevgaon 03
Takli
Shrigonda, Tandali dumala,
Pimpalgaon Pisa, Kolgaon,
12 Shrigonda 08
Belwandi, Mandavgaon,
Deodaithan, Madhevadgaon
Shrirampur, Ukkalgaon,
13 Shrirampur 03
Khandala
Shirdi, Kolhar, Ganesh Nagar,
14 Rahata 04
PMT Loni
Total 61
Source : Credit Plan of Central Bank of India , Ahmednagar 2011-12,
pp. 16,17
It is clear from the Table that,
1. Central Bank of India, Lead Bank of Ahmednagar district
has the largest number of branches i.e. 61 branches.
2. Shrigonda block is having maximum branches i.e. 8
branches. Shrigonda block branches are agricultural
branches and the area is irrigated.
3. Parner and Akole blocks have 7 branches each.
4. Ahmednagar & Sangamer blocks have 6 branches.
5. Pathardi, Rahuri, Rahata blocks have 4 branches each.
6. Jamkhed, Shevgaon, Shrirampur blocks have 3 branches
each.
7. Karjat, Kopargaon, Newasa blocks have 2 branches each.

a. Lowest number of branches are at Karjat, Kopargaon,
Newasa blocks. There is large scope of branch
expansion. Kopargaon & Newasa are irrigated area so
Central Bank of India can concentrate towards these
blocks as future prospects.
b. In case of Shrirampur, Shevgaon, Jamkhed blocks
have 3 branches each. There is large scope of branch
expansion.
c. Shrigonda block is on the top position in number of
branches with 8 branches. Shrigonda branch is also of
special character that, Shrigonda branch is the first
rural branch of India after Nationalisation of Banks in
1969.
d. Parner & Akole are on second position, with network
of 7 branches each. These are drought affected and
Tribal blocks respectively.
e. Ahmednagar & Sangamner is on third position, with
network of 6 branches each. Ahmednagar is urban &
Sangamner is semiurban area.
6.3.2. Area-wise Classification and Year of Establishment of

For study, 12 branches were selected, 6 branches from North &

6 branches from South Ahmednagar district. These branches are
Urban, Semi-Urban and Rural area branches.
Table 6.4.2
Areawise Classification & Year of Establishment of
Selected Branches of CBI in Ahmednagar District
Sr. Name of Year Area Nature of Area

No. Branch of
Estb.
1 Ahmednagar 1970 Urban Civilized, urban area

2 Akole 1973 Semi-urban Tribal, Agricultural
3 Ashwi 1979 Rural Agricultural, irrigated
4 Belvandi 1986 Rural Agricultural, irrigated
5 Kalas 1982 Rural Agricultural, irrigated
Kanhur Drought affected,
6 1982 Rural
Pathar Agricultural
Nagapur
7 1979 Semi-urban Industrial area
M.I.D.C.
Drought affected,
8 Parner 1974 Semi-urban
Agricultural
9 Sangamner 1972 Semi-urban Civilized area
10 Shrigonda 1969 Semi-urban Agricultural, irrigated
Civilized, Agricultural,
11 Shrirampur 1973 Semi-urban
irrigated
12 Ukkalgaon 1980 Rural Agricultural, irrigated
Table indicates that,
1. Ahmednagar branch is the only Urban branch in the
district, Nagapur, Parner, Sangamner, Shrigonda,
Shrirampur are semi-urban branches and Ashwi,
Belvandi, Kalas Kanhur and Ukkalgaon are rural
branches of Central Bank of India in Ahmednagar
district.
2. As per the nature of category - Ahmednagar , Shrirampur
& Sangamner are civilized area branches Akole is tribal,
Parner & Kanhur Pathar are drought affected &
agriculture oriented branches.
It reveals that,
a. 80% sample selected branches are from semi-urban or
rural area.
b. Semi-urban area branches are at Taluka places, rural
area branches are at villages & Ahmednagar is the
only Urban branch.
c. Every selected branch is having its special
characteristic like Akole is tribal area branch, Nagapur
is Industrial branch, Ahmednagar is civilized area
branch, Parner-Kanhur are drought affected branches,
Sangamner-Shrirampur are civilized but semi-urban
branches and Ashwi, Belvandi, Kalas, Shrigonda,
Ukkalgaon are agricultural sector branches.
d. Shrigonda branch was 1st rural branch in India of
Central Bank of India established in 1969.
6.3.3. Human Resources (Employees):
Employees or human resources is the main pillar of any

organization. Without the efficient working of the employees,
organization can't play its role effectively. Hence, satisfied and
efficient employees are a type of (human) asset of any organization.
Following is the position of no. of employees of selected bank
branches of Central Bank of India.
Table 6.4.3
Classification of Employees of Selected Branches of CBI
in Ahmednagar District
Categories of Employees
Sr. Name of
Officers Total
No. Branch Substaff
(including Clerk
(Peon)
B.M.)
1 Ahmednagar 04 04 03 11
2 Akole 02 03 02 07
3 Ashwi 01 02 01 04
4 Belvandi 01 01 01 03
5 Kalas 01 01 01 03
Kanhur 01 03
6 01 01
Pathar
Nagapur 03 08
7 02 03
M.I.D.C.
8 Parner 02 02 01 05
9 Sangamner 02 03 02 07
10 Shrigonda 02 02 02 06
11 Shrirampur 02 03 02 07
12 Ukkalgaon 01 01 01 03
Total 19 26 20 67
Table shows that,
1. There are three categories of employees of branches viz.
officers (including Branch Manager), Clerk, Substaff
(peon) etc.
2. Ahmednagar branch is with the maximum employees i.e.
11 employees. Belvandi, Kalas, Kanhurpathar,
Ukkalgaon etc are the branches with minimum employees
3. Ashwi branch have 4 employees. Parner branch have 5
employees. Akole, Shrirampur, Sangamner branches have
7 employees & Nagapur MIDC branch have 8 employees.
3. As per requirement of branch, Manager can appoint
substaff on daily wages system.
It reveals from the discussion that,

a. In rural area, almost all branches have only 3
employees. Actually the requirement of these
branches is of 5 to 6 employees.
b. In branches situated at taluka places (semi-urban area)
no. of employees are 6 or 7. Actual requirement is of 7
or 8 employees.
c. Ahmednagar & Nagapur are large branches having 11
& 8 employees respectively. But the number of
employees should be increased as per requirement.
6.3.4. Lack of Employees :
Management, Managers and Employees are the three important

pillars of any organization, which perform decision making,
execution of work and completion or implementation of work
respectively. The quality of work done is depend on the efficiency of
employees. Hence, lack of employees may create serious problem to
any organization.
Table 6.4.4
Lack of Employees as Compared to Work
Lack of Employees % of Lack of
Sr.
Particulars as compared to Employees
No.
work
1 Yes 10 83.34
2 No 02 16.66
Total 12 100
Table shows that,
..4.1.1. 83.34 percent branch managers experienced
lack of employees as compared to work.
..4.1.2. 16.66 percent branch managers feel that, they
don't have any problem of lack of employees. These two
branches are semi-urban branches, having 8 and 5
employees working in it. These branches are from
Industrial and drought affected area branches
respectively.
6.3.5. ATM Facility :
In last few decades, Indian banking sector has witnessed

significant changes. Customers in urban or semi-urban area are
shifting their mode of banking transactions to electronic channels
such as ATMs, internet, mobile phones. Introduction of ATMs,
mobile banking, e-banking has changed Indian banking
functionally and structurally. Today, ATM counters are essential
requirement of every town and village also. Following is the
picture of selected branches providing ATM facility.
Table 6.4.5
ATM Facility
Providing ATM ATM

Sr. Name of the Facility installation
No. Branch work is in
Yes No progress
1 Ahmednagar √ - -
2 Akole - - √
3 Ashwi - √ -
4 Belvandi - √ -
5 Kalas - √ -
6 Kanhur Pathar - √ -
7 Nagapur M.I.D.C. - √ -
8 Parner - - √
9 Sangamner √ - -
10 Shrigonda - - √
11 Shrirampur √ - -
12 Ukkalgaon - √ -
Total (12) 03 06 03
It reveals that,
1. Ahmednagar, Sangamner and Shrirampur are populated
and civilized areas, hence there is requirement of ATM
which is fulfilled by the Central Bank of India.
2. Akole, Parner and Shrigonda are Taluka places, hence
ATM facility is essential in changing scenario. Hence,
Central Bank has sanctioned and installing ATM centers
shortly.
3. Ashwi, Belvandi, Kalas, Kanhur, Ukkalgaon are villages
and rural area. Number of accounts are not sufficient to
provide ATM center to these villages. Other bank's ATM
centers are available in the villages.
4. Nagapur is MIDC / Industrial area, where ATM of
Central Bank is not available.
5. ATM facility is available at 25 percent branches and
work in progress at 25 percent only.
6.3.6. Distribution of Loan as per Priority Percentage :
Percentage of priority and non priority sectors is given in the

annual credit plan of the Central Bank of India. Every branch has to
follow the orders of Regional office regarding priority and non
priority percentage. In case of few branches, manager can change the
percentage as per the potential associated to the area.
Table 6.4.6
Distribution of Loan as per Priority Percentage
Whether Loan
Sr. Distribution is as
Particulars Percentage
No. per Priority
Percentage
1 Yes 10 83.34%
2 No 2 16.66%
Total 12 100
It reveals that,
1. Ahmednagar branch is urban area branch and Nagapur is
industrial area branch where there is no demand from
agricultural sector. Hence financing to business, industry
and service sector.
2. 83.34 percent branches have adopted priority percentage
as per DCP & RBI guidelines.
6.3.7. Maximum Financed Sector (2001-02 to 2010-11) :
It is the policy of each branch to concentrate on a specific

sector, where there is potential. Hence, the branch executives
provide finance to potential sectors. If the branch is rural area
branch, then finance is to agricultural sector. Following is the picture
of all selected branches -
Table 6.4.7
Maximum Financed Sector (2001-02 to 2010-11)
Sr. Business &

Name of Branch Agriculture
No. Industry
1 Ahmednagar - √
2 Akole √ -
3 Ashwi √ -
4 Belvandi √ -
5 Kalas √ -
6 Kanhur Pathar √ -
7 Nagapur M.I.D.C. - √
8 Parner √ -
9 Sangamner √ -
10 Shrigonda √ -
11 Shrirampur √ -
12 Ukkalgaon √ -
Table shows that,
1. Ahmednagar and Nagapur are the branches who had
financed to Business and Industry in 10 years.
2. Akole, Parner, Shrigonda are purely agriculture sector
Taluka branches hence maximum financed sector in 10
years is Agriculture.
Sangamner & Shrirampur branches are developed
civilized area has financed to Services, Industries,
Businesses, Trading but maximum finance was given to
Agriculture sector.
3. Ashwi, Belvandi, Kalas, Kanhur, Ukkalgaon etc are the
village level branches had given maximum finance to
Agriculture sector.
6.3.8. Problems Faced by Bank Executives :
Various problems are faced by bank executives. These problems

are due to environment, facilities, area, services. Following is the
picture of problems faced by bank executives.
Table 6.4.8
Problems of Bank Executives
Sr. Problems Faced by

Particulars Percentage (%)
No. Bank Executives in
1 Yes 11 91.67%
2 No 01 8.33%
Total 12 100
Table shows,
1. 91.67 percent branch managers face various problems
like lack of education, literacy, lack of staff, loan
sanction, loan distribution, recovery, communication,
technology.
2. CBI is a 'Nationalized Bank', itself became problem in
loan recovery.
3. 8.33 percent branch managers are not facing any
problems.
6.3.9. Loan Process of Central Bank of India :
The loan process prescribed by the bank is mandatory for the

borrowers. Every borrower has to follow the procedure to get the
loan. Following is the opinions of bank managers regarding loan
process of Central Bank of India.
Table 6.4.9
Loan Process of CBI
Sr. How is the

No. Loan Process
1 Simple 11 91.67%
2 Complicated - -
Improvement is
3 01 8.33%
necessary
Total 12 100
Table shows,
1. 91.67 percent branch managers feels that, loan process is
simple & easy.
2. As per opinion of 8.33 percent branch managers,
improvement is necessary. The procedure should be
changed as per the requirement.
6.3.10. Regulation of Utilization of Loan Amount :
Branch managers are responsible for the utilization of the loan

amount by the borrowers. Managers can adopt various policies to
regulate the utilization of loan amount. It was asked to all managers
that, whether they are adopting any policies to regulate the utilization
of loan amount. The different answers given by the bank managers
are as follows -
1. Issue of loan amount in installments - Branch managers
are issuing loan amount in installments so that the
borrower utilize amount properly.
2. Visit to borrower and inspect the work done - Branch
managers always visits to borrowers to advice and
observe the work in progress.
3. Post inspection, for end use of loan, fixing of terms and
conditions for Agricultural and Business sectors.
6.3.11. Percentage of NPA :
In last few years, commercial banks are facing this common

problem i.e. NPA, Non-performing Assets. In case of Agricultural
finance, problem of NPA is greater than the finance to other sectors
like business because agriculturist is facing various problems like
natural calamity, climatic change, sudden decrease in crop prices.
Following are the percentage of NPA provided by the branch
managers.
Table 6.4.10
Percentage of NPA (as on interview date)
Sr.
Name of Branch Percentage of NPA
No.
1 Ahmednagar 8
2 Akole 4.50
3 Ashwi 0.66
4 Belvandi 3
5 Kalas 5
6 Kanhur Pathar 7
7 Nagapur M.I.D.C. 0
8 Parner 8.50
9 Sangamner 6
10 Shrigonda 8
11 Shrirampur 6
12 Ukkalgaon 4%
Table shows that,

1. Nagapur MIDC and Ashwi branches are showing lowest
NPA. It is clear that Nagapur branch received 100 percent
repayment of loan as per terms & conditions laid down.
2. NPA of Parner branch is highest.
3. NPA upto 4 to 5 percent is treated as normal situation.
However, in case of selected branches excluding Parner
and Shrigonda the situation is satisfactory.
6.3.12. Experience About Repayment :
A) Agriculture Sector -
In case of agriculture sector, borrowers are irregular in
repaying the loan amount. For Agriculturist, it is not possible to
repay the loan installments due to various problems.
Table 6.4.11
Experiences About Repayment (Agriculture Sector)
Tendency of
Sr.
Particulars Borrowers to Percentage
No.
repay Loan
1 Regular 5 41.66
2 Irregular 7 58.33
Total 12 100
Table shows that,
1. In Agriculture sector, 58.33 percent managers feels that
agriculture sector borrowers are irregular in loan
repayment.
2. 41.66 percent managers are of the opinion that,
agriculture sector borrowers are regular.
B) Business Sector
In case of Business sector, following is the clear picture of
repayment tendency of the businessmen.
Table 6.4.12
Experiences About Repayment (Business Sector)
Tendency of
Sr. professionals /
No. Traders regarding
repayment of Loan
1 Regular 11 91.66
2 Irregular 1 8.34
Total 12 100
Table shows that,

1. As per opinion of 91.66 percent branch managers,
Traders / Professionals / Businessmen are regular in
repayment of loan.
2. 8.34 percent branch managers says that Business sector
borrowers are irregular.
It reveals from above tables that,

a. In case of Business sector, it is easy to forfeit or to
attach liability to the mortgaged property (because, the
property is in the form of plot, building, house, vehicle
etc.) hence, Business sector borrowers are regular.
b. In case of Agriculture sector, it is difficult to forfeit or
attach liability to mortgaged property (i.e. land) hence,
Agriculture sector borrowers are irregular.
Female Borrowers :
It was asked to bank managers that, what was their
experience about repayment of loan by male and female
borrowers? And the experiences are given in percentage as
follows in table 6.4.17.
Table 6.4.13
Experiences about Repayment of Loan by Male and
Female Borrowers
Sr. Regular in Loan

No. Repayment
1 Male - -
2 Female 2 16.66
3 None of these 10 83.34
Total 12 100%
Source: Primary Data
Table 6.4.13 shows that,
1. 16.66 percent bank managers experienced that, Female
borrowers are regular in repayment of loan.
2. 83.34 percent bank managers says that, neither male nor
female borrowers are regular in repayment of loan.
It reveals from above discussion that, delay in repayment of
loan is tendency of borrowers and not of male / female. More than
83 percent managers says that, male as well as females are showing
the same tendency in repayment of loan.

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Chapter 6

Central Bank of India has a wide network of 61 branch in

As per the data made available by Lead Bank Cell,

All the 12 bank branch managers were contacted and due

Printed questionnaires were prepared for the borrowers.

6.2. Analytical Study of Development of Agriculture Sector :

Shrigonda, Belvandi, Kanhur Pathar, Kalas, Ashwi and

From the above bank branches 180 agriculturists were

The detailed analysis of the information collected through the

6.2.1. Age of Farmers (Agriculturists) :

It is common in agriculture sector, that new generation

Age No. of Respondents Percentage (%)

6.2.2. Gender of Farmers :

It is a common belief that, a 'farmer' must be a 'male'. In

Sex No. of Respondents Percentage (%)

Male 138 76.67

6.2.3. Annual Income of Farmers :

The annual income of farmers from their farming is shown

Annual Income No. of Percentage

upto 50,000 37 20.56

The table shows,

1. Only 4.44 percent i.e. 8 farmers are from Rs. 5,00,000/-

2. 10 percent i.e. 18 farmers are from Rs. 3,00,000/- to Rs.

4. Maximum no. of percentage is 34.44 percent i.e. 62

5. 20.56 percent i.e. 37 farmers are from lowest income

6.2.4. Education of Farmers :

Good education background and success in farming may not

Education No. of Percentage

upto 10th 71 39.50

The table shows -

From above analysis, it reveals that, due to early entry in

6.2.5. Background of Farmers :

In India, farming is not treated as a kind of business. It is

Background of No. of Percentage

Traditional 172 95.56

2. 4.44 percent farmers have started the farming newly.

From above analysis it reveals that today also, farming is

6.2.6. Nature of Farming :

In India, generally joint family system seen in agricultural

Nature of Farming No. of Percentage

Individual 114 63.33

6.2.7. Land Holding of Farmers :

In India, 65 percent population is dependent on the agricultural

Land Holding No. of Percentage

upto 2.5 Acre 70 38.89

In Ahmednagar district on an average land holding is low i.e. in

' In Ahmednagar district, there are 6.8 lakh farming families,

6.2.8. Type of Land :

Ahmednagar district can be divided into three categories as

Type of Land No. of Percentage

Irrigated 115 63.88

It reveals that, farmers from drought prone area or

6.2.9. Water Sources of Land :

Ahmednagar district receives 566 mm rainfall. The major

Water Source No. of Percentage

Well / Tube Wells 112 62.22

Traditionally, channels were used to irrigate the farms. Various

Method No. of Percentage

It reveals from above analysis that, large number of farmers

In Ahmednagar district crops varies as per climatic and

Crop Pattern No. of Percentage

It reveals that, in Ahmednagar district farmers are diverting