Corporate Loan Strategies By Public Sector And Private Sector Banks In India

The paper aims at to study the market segments and target market strategies for corporate loans adopted by the Public Sector and Private Sector banks in India. The study has been conducted in banks operating in the states of Punjab, Haryana and Union Territory of Chandigarh. Total 10 leading banks considered for the purpose of study out of which 5 are from public sector and 5 from private sector.  Out of total sample of 500 bank officials, 250 comprised from each sector bank. The data  was collected from respondents who are presently handling banking services through structured questionnaire. Weighted Average method is used to determine the relative significance of one variable over the others as perceived by the respondents. The findings of study reveal that maximum disbursement of Manufacturing Loan, Agri-based Business loan, Fixed Assets loan, Working Capital loan and Business Administration Loan is made in favour of Large Corporate Sector, followed by Small and Medium Enterprises and the least disbursement is made in favour of Govt. Institutions. For Start-up Business loan, maximum disbursement is made in favour of Small and Medium Businesses, followed by Large Corporate Sector and the minimum disbursement is made to the Govt. Institutions.  The results of study may be useful for bank officials, corporate sector, financial consultants and researcher working in the area of banking and financial sector.