DEVELOPMENT BANKING-Rapid Growth

Rapid Growth THE quantitative expansion of development banking in the eighties has been impressive. According to the IDBI's 'Report on Development Banking in India' for the year 1988-89, assistance sanctioned and disbursed by all the financial institutions recorded an average annual growth of 24.8 per cent and 23,8 per cent respectively during the eighties. In 1988-89 the sanctions crossed the Rs 14,000 crore mark and aggregated Rs 14,202.7 crore thus registering an increase of 54.9 per cent over the previous year. Disbursements during the year rose by 33.3 per cent and amounted to Rs 9,051.2 crore. Aggregate assistance sanctioned and disbursed up to the end of March 1989 stood at Rs 63,763.4 crore and Rs 46,055.5 crore respectively. Notwithstanding the increasing amounts raised by companies through equity shares and debentures/ their dependence on the term-lending institutions continues to grow.