Chapter-III PROFILE OF THE STUDY AREA AND THE BORROWERS OF THE PRIORITY SECTOR LOANS IN HAVERI DISTRICT The presentation in this chapter of the research study relates to providing of major socio-economic aspects of the study area viz., Haveri district and a brief profile of the socio-economic background of the borrowers of the priority sector loans provided by the selected commercial banks in Haveri district. The profiles of the study area and he borrowers of the bank credit under the priority sector loans provide a useful backdrop for the analysis of the thrust areas of the present research study. The major aspects covered in this chapter relate to 3.1 Geographical Location and Natural Resources 3.2 Demographic Features of Haveri District 3.3 Educational Status 3.4 Health and Family Welfare 3.5 Transport and Communication 3.6 Agriculture 3.7 Industrial Sector 3.8 Banking Network 3.9 Cooperation and Agricultural Marketing 3.1 Social Development and Organisation in Haveri District 3.11 Age Composition of Borrowers under Priority Sector Lendings by Commercial Banks 3.12 Sexwise Distribution of Borrowers
3.13 Educational Status of Borrowers 3.14 Religious Affiliation of Borrowers 3.15 Occupational Distribution of Borrowers 3.1 Geographical Location and Natural Resources Haveri district is in the northern part of Karnataka state and lies on the North Latitude 14-28 and 14-59 and East Longitude 75-7 and 75-38. The district is bordered by Dharwad and Gadag on the north, Davangere and Shimoga districts on the south, Uttara Kannda on the west and Bellary district on the east. The district is located in the interior part and has fertile black and red soil. The total geographical area of the district is 485156 hectares and accounts for 2.53 percent of the state s total area. There are four rivers draining the district viz., Varada, Kumudhwati, Dharma and Tungabhadra. The district does not have any mineral resources except sand and stone as building materials. The district has a total forest area of 47454 hectares and accounts for 1 percent of the total geographical area of the district. The distribution of land utilization in Haveri district is given in the following table 58
Percentage Sl. No. Table-3.1 Land Utilization in Haveri District Type of Land Percent of Total Land in the District 1 Forest 1 2 Non-agricultural land 7 3 Barren land 1 4 Permanent pastures 3 5 Trees and plants 1 6 Current follow land 2 7 Net sown area 75 8 Arable but not available for cultivation 1 9 Other follow land 1 Source: District Statistical Officer, Haveri District at a Glance, p. 28.A. 8 Land Utilization in Haveri District 7 6 5 4 3 2 1 Forest Nonagricultural land Barren land Permanent pastures Trees and plants Type of Land Current follow land Net sow n area Arable but Other follow not available land for cultivation Haveri district has two climatic zones viz. Malnad zone and Transitional zone. Hirekerur, Byadagi and parts of Shiggaon come under Malnad zone, Ranebennur, Haveri and Savanur come under 59
transitional zone. The normal annual rainfall of the district is 753 mm. 3.2 Demographic Features of Haveri District Haveri district had a total population of 14.39 lakhs constituting 2.72 percent of the total population of Karnataka state. Large majority of 79 percent of the district s population lives in rural areas as against the state s average of 69 percent. The density of population in Haveri district per square km is 298 which is slightly more than the state average of 275. The Scheduled Caste and Scheduled Tribe population in Haveri district constituted 12.18 percent and 8.83 percent of the total population respectively. The proportion of main workers and marginal workers to the population was 36.91 percent and 8.9 percent respectively. The literacy rate in Haveri district was 68.9 percent. The per capita income for the year 2-1 at current prices was Rs. 18252 and the net per capita income was Rs. 16213. The sex ratio in Haveri district has been 942 women for every 1 men. 3.3 Education Haveri district is well served by large number of schools and colleges. The following table provides the details. 6
Table-3.2 Educational Facilities in Haveri District Sl.No. Institutions Number 1 Primary (Lower) Schools 569 2 Primary (Higher) Schools 86 3 High Schools 329 4 PU Colleges 95 5 Degree Colleges 3 6 Polytechnic Colleges 3 7 Engineering Colleges 2 8 Medical Colleges 1 Libraries 9 GP Libraries 211 1 Branch Libraries 1 11 Slum Area Libraries 19 Source: District Statistical Officer, Haveri District at a Glance 29-1. 9 Educational Facilities in Haveri District 8 7 6 5 4 3 2 1 Primary (Lower) Schools Primary (Higher) Schools High Schools PU Colleges Degree Colleges Polytechnic Colleges Engineering Colleges Medical Colleges Institutions & Libraries GP Libraries Branch Libraries Slum Area Libraries 61
3.4 Health and Family Welfare The district has large number of hospitals in private and public sector organisations. There are 78 allopathic hospitals, 16 hospitals of Indian system of medicine, 8 private hospitals, 6 taluka hospitals, 5 community health centres, 64 primary health centres, 37 primary health subcentres, 423 drug shops and 1 blood bank in Haveri district. 3.5 Transport and Communication The district is served by a network of roads and railway lines and a very large number of varied types of vehicles have been providing services to different type of users. The following table provides the details. Table-3.3 Transport and Communications Sl.No. Facility Kilometres 1 National Highway 11. 2 State Highway 588.21 3 Major District Roads 1884.91 4 Other District Roads 2.6 5 Village Roads 4821.6 6 TDB Roads - 7 Panchayat Roads - Total Roads 7416.32 8 Railway Line : Broad-gauge 99. 9 Post Offices 258 1 Panchayat Mobile Service Centres 1 11 Telephone Exchanges 56 12 Telephones 2898 13 Public Telephone Booths 4753 Souce: Ibid., p. 51-53. 62
There are 8967 Motorcycles, 4514 Cars, 48 Cabs, 4114 Auto Rickshaws, 159 Maxi Cabs, 6843 Goods Vehicles and 21853 Other Vehicles in Haveri district. The total number of vehicles is 12793. 3.6 Agriculture Haveri district is predominantly agricultural oriented. The total sown area in the district is 433469 hectares. The net area sown is 366971 hectares and the area sown more than once is 66498 hectares. The district has an area of 75186 hectares of irrigated land. Of this, 5878 hectares of land is irrigated by canals 9349 hectares by tanks, 42342 hectares by borewells, 391 hectares by lift irrigation and 17226 hectares by other sources of irrigation. The main cereals grown in Haveri district are Paddy, Jowar, Maize and Ragi. The important cash crops grown in the district are Groundnut, Chillies and Cotton. The cropping intensity in the district is 129%. The irrigated area as a percentage to Net Sown Area formed 16.99 percent, Cereals occupied 5.18 percent of the Gross Sown Area. Similarly Pulses occupied 7.6 percent, Oilseeds occupied 7.45 percent and Cotton occupied 18.54 percent of Gross Sown Area. Land Holding Small and marginal land holdings (upto 2 ha.) formed 66.68 percent of the total holdings in Haveri district, while holdings between 2 to 4 hectares constitute 23.83 percent of the total number of land holdings. The number of holdings between 4-1 hectares constituted 8.5 percent of the total number of holdings. Large holdings (more than 1 ha.) constituted.98 percent of the total number of holdings. 63
3.7 Industrial Sector Haveri district has large number of factories in different sectors viz., Engineering (233), Chemicals (2) and Others (462). There is one Sugar Cooperate Factory at Sangur, Haveri. Another one is planned to be established in Hirekerur block. The Karnataka State Small Industries Development Corporation has formulated industrial estates at Ranebennur, Haveri, Shiggaon and Hirekerur. Development of industrial estates is under progress at Savanur, Byadagi and Haveri. Industrial sheds are offered on lease-cum-sale basis. Infrastructural facilities like water, power, etc., are ensured for industrial production in these estates. A total number of 8786 industrial units were registered with an investment of Rs. 155.44 crore employing 3351 persons. These units are engaged in varied activities such as food processing, textiles, furniture, leather chemicals, metals, paper printing, plastic, minerals, machine, tools, transport, etc. 3.8 Banking Network The district has 133 branches of different banks functioning in the district. The average population per branch is 113 which is less than the state average of 1135. Central Banks accounted for 47 percent of the total branches, Rural branches accounted for 53 percent of the total number of bank branches and the balance 43 percent of the branches are semi-urban. Karnatak Vikas Grameen Banks is having 51 branches in Haveri district of which 43 are rural branches and 8 semi-urban branches. The Karnatak Central Cooperative Bank Ltd. has 11 branches of which 3 are rural branches 64
and the balance of 8 are semi-urban branches. There are 7 branches of KSCARD bank in the district. The Karnatak Finance Corporation is functioning in the district. There are a number of Urban Cooperative Bank braches in Haveri district. Sl. No. Type of Institution Table-3.4 Banking Network in Haveri District Total Number of Branches Urban Number of Branches Semi- Urban 1 State Bank Group of which 16-11 5 a) State Bank of India 1-8 2 b) State Bank of Mysore 6-3 3 2 Commercial Banks of which 47-27 2 a) Public Sector 37-18 19 b) Private Sector 1-9 2 3 KVG Bank (RRB) 51-8 43 4 Cooperative 18-15 3 5 KSFC 1-1 - Source: Vijaya Bank : Haveri District Credit Plan 21-11. Rural 6 Banking Network in Haveri District 5 4 3 2 1 State Bank Group of w hich Commercial Banks of w hich KVG Bank (RRB) Cooperative KSFC Type of Institution 65
3.9 Cooperation and Agricultural Marketing Haveri district has a large number of Cooperative societies in agriculture, dairy units, housing and others. The following table provides the details. Table-3.5 Cooperative Societies in Haveri District Sl.No. Type of Societies Number 1 Agricultural Societies 229 2 Milk Cooperatives 256 3 Housing Cooperatives 21 4 Marketing Societies 7 5 Others 294 Total 87 6 Number of Members 37524 Source: District Statistical Officer, Haveri Haveri District at a Glance, 29-1. 35 Cooperative Societies in Haveri District 3 25 2 15 1 5 Agricultural Societies Milk Cooperatives Housing Cooperatives Marketing Societies Others Type of Socities 66
Agricultural Marketing in Haveri District The district is predominantly agricultural oriented. There are 19 Regulated Markets for the promotion of marketing of agricultural produce of the farmers. The following table provides the details. Table-3.6 Regulated Markets in Haveri District Sl.No. Taluka Main Market Sub Market Total 1 Byadagi 1 2 3 2 Hangal 1 1 2 3 Haveri 1 2 3 4 Hirekerur 1 2 3 5 Ranebennur 1 2 3 6 Savanur 1 2 3 7 Shiggaon 1 1 2 Total 7 12 19 Source: Ibid., p. 49. Regulated Markets in Haveri District 2 1.8 1.6 1.4 1.2 1.8.6.4.2 Byadagi Hangal Haveri Hirekerur Ranebennur Savanur Shiggaon Taluka 67
3.1 Social Development and Organisations in Haveri District The district has made rapid strides in some areas of social development. There are 1776 Yuvak Mandals and 119 Yuvati Mandals in Haveri district. The district has 1978 old age pensioners, 18819 disability pensioners, 43325 widow pensioners and 5159 maternity allowance beneficiaries. Haveri district has large number of Stree Shakti Sanghas. There are 426 Stree Shakti Sanghas which have a total number of 1456 SC women members and 8845 ST women members. The total number of women in these Sanghas was 67834. The district has 1687 Anganwadi centres. A total number of 426 Stree Shakti Sanghas have started saving with a total amount of Rs. 268 lakhs as on 31-321. A total number of 2678 Stree Shakti Groups have availed of Bank loans. The Government has released Rs. 215.76 lakhs as Revolving Fund to these Stree Shakti Groups. 3.11 Age Composition of Borrowers under Priority Sector Lending by Commercial Banks The field survey has revealed a broad trend of younger age group of borrowers under the priority sector lending by the commercial banks covered by the study in Haveri district. The following table provides the details of the age composition of borrowers. 68
Percentage Table-3.7 Age Composition of Borrowers Sl.No. Age Class Frequency % 1 2-29 22 14.67 2 3-39 87 58. 3 4-49 38 25.33 4 5-59 3 2. Grand Total 15 1. Source: Field Survey Age Composition of Borrowers 6 5 4 3 2 1 2-29 3-39 4-49 5-59 Age Class The details in the above table indicate the maximum number of 87 respondent borrowers (58%) under priority sector lendings by the commercial banks belong to the younger age group of 3-39 years. Further 22 respondent borrowers constituting 14.67 percent belonged to a still younger age group of 2-29 years. Thus a total of 72.67 percent of the 15 respondent borrowers belonged to the young group of entrepreneurs who availed of the priority sector loans from the commercial banks in the study area. However a good number of 38 respondent borrowers representing 25.33 percent belonged to the advanced age group of 4-49 years. A very small number of 3 69
Percentage respondent borrowers (2%) belonged to old age group of 5-59 years. The young age composition of borrowers indicates that the commercial banks involved in priority sector lending have been encouraging entrepreneurship among the younger generation of entrepreneurs through the priority sector lendings. 3.12 Sexwise Distribution of Borrowers Priority sector lendings by commercial banks in the study area have largely been availed of by male borrowers. A small number of female borrowers too have availed of the loans. The following table provides the details. Table-3.8 Sexwise Distribution of Borrowers Sl.No. Gender Nos. % 1 Male 142 94.67 2 Female 8 5.33 Grand Total 15 1. Source: Field Survey Sexwise Distribution of Borrowers 1 9 8 7 6 5 4 3 2 1 Male Gender Female 7
It is evident from the details in the above table that maximum number of 142 borrowers constituting 94.67 percent of the total belonged to male category. However a small number of 8 borrowers accounting for 5.33 percent were females. Obviously entrepreneurship in the present social context is largely concentrated among the male population. Hence larger number of male entrepreneurs availed of the schemes of the Government for obtaining bank credit. Priority sector lending is aimed at encouraging selected sectors to develop along with other organised sectors. It is also encouraging that a few female entrepreneurs have been coming forward in availing of such facilities provided by the banks and the Government. 3.13 Educational Status of Borrowers The study has revealed that the borrowers of the priority sector lending had a better educational level as majority of them had secondary, SSLC and PUC level education. The following table provides the details of the educational status of the 15 respondent borrowers of priority sector lendings. Table-3.9 Educational Status of Borrowers Sl.No. Education Nos. % 1 Primary 5 3.33 2 Secondary 19 12.67 3 SSLC 59 39.33 4 PUC 67 44.67 Grand Total 15 1. Source: Field Survey 71
Percentage Educational Status of Borrowers 45 4 35 3 25 2 15 1 5 Primary Secondary SSLC PUC Education It is evident from the details in the above table that a small number of 5 borrowers accounting for 3.33 percent had only primary level education. A good number of 19 respondent borrowers constituting 12.67 percent possessed secondary level education and a large number of 59 borrowers accounting for 39.33 percent had education upto SSLC. Maximum number of 67 borrowers representing 44.67 percent had PUC level education. Thus the educational status of the borrowers under the priority sector loaning by the commercial banks in the study area was moderately good level of education. Level of education has its implications for proper management of business and financial resources 3.14 Religious Affiliation of Borrowers The religious affiliation of borrowers of priority sector loans by the commercial banks in the study area, largely reflect the population 72
Percentage trends in the region. The following table provides the details of the religious affiliation of the borrowers of priority sector loans. Table-3.1 Religious Affiliation of Borrowers Sl.No. Religion Nos. % 1 Hindu 129 86. 2 Muslim 1 6.67 3 Christian 11 7.33 Grand Total 15 1. Source: Field Survey Religious Affiliation of Borrowers 9 8 7 6 5 4 3 2 1 Hindu Muslim Christian Religion Maximum number of 129 respondent borrowers of priority sector loans constituting 86 percent of the total belonged to Hindu religion. Borrowers belonging to Muslim religion were 1 accounting for 6.67 percent. There were 11 Christians accounting for 7.33 percent who had borrowed priority sector loans. The religious affiliation of the borrowers obviously is in tune with the broad division of the local population on religious basis. Hindus constituting the maximum 73
number obviously were the largest group borrowing priority sector loans. However Christians who constitute lesser number compared to Muslims were more in number as borrowers of priority sector loans from the commercial banks in the study area. 3.15 Occupational Distribution of Borrowers of Priority Sector Loans Occupational distribution of borrowers of priority sector loan provided by the six commercial banks in the study area is largely oriented towards those involved in agriculture. Agriculture is one of the major components of priority sectors as per the Government stipulations for advancing loans by the banking institutions. The study area of Haveri district is highly agricultural oriented. Hence there is predominance of agriculturists in the occupational structure of the people in the area. Borrowers belonging to dairy units, transport operators and those involved in business also account for a sizeable number who have obtained priority sector loans from the six commercial banks in the study area. The following table provides the details of the occupational distribution of borrowers of priority sector loans. 74
Table-3.11 Occupational Distribution of Borrowers Sl.No. Occupation Nos. % 1 Agriculture 69 46. 2 Business 16 1.67 3 Carpenter 1.67 4 Dairy 2 13.33 5 Furniture Dealer 3 2. 6 Guzari Business 1.67 7 Hotel 1.67 8 Ice-cream Parlour 1.67 9 Laundry 1.67 1 Petty Shop 1.67 11 Poultry 3 2. 12 Provision Stores 1.67 13 Repairs of Tractors 1.67 14 Retailer 3 2. 15 Retailer in Cement 2 1.33 16 SRTO 4 2.67 17 Stationary Stores 1.67 18 Teacher 1.67 19 Timer Merchant 2 1.33 2 Tractor Repairs 1.67 21 Transport Service 17 11.33 Grand Total 15 1. Source: Field Survey 75
Percentage Occupational Distribution of Borrowers 5 45 4 35 3 25 2 15 1 5 Agriculture Business Carpenter Dairy Furniture Dealer Guzari Business Hotel Ice-cream Parlour Laundry Petty Shop Poultry Provision Stores Repairs of Tractors Retailer Retailer in Cement SRTO Stationary Stores Teacher Timer Merchant Tractor Repairs Transport Service Occupation 76
The details in the above table indicate the predominant share of agriculturists in the priority sector loans provided by the commercial banks. Maximum number of 69 borrowers (46%) belonged to agricultural occupation. A good number of 2 borrowers of priority loans were involved in dairy business. They accounted for 13.33 percent of the total number of borrowers. Transport operators numbering 17 (11.33%) accounted for the third largest number of borrowers of priority sector loans followed by 16 businessmen (1.67%) borrowing priority sector loan stood fourth in terms of number of borrowers based on occupations. A large number of borrowers of priority sector loans from the commercial banks belonged to different occupations viz., Future SRTO (4), Future Dealers (3), Retailers (3), Poultry Farmers (3), Cement Retailers (2), Timber Merchants (2), Carpenter (1), Guzari Business (1), Hotel (1), Ice-cream Parlour (1), Vision Store (1), Repairs of Tractor (1), Stationary Store (1), Teacher (1). The details of the distribution of borrowers of priority sector loans indicate the wide coverage of borrowers belonging to different occupational groups. 77
Percentage Sl. No. Classification of Holdings DISTRICT PROFILE TABLES Table-3.12 Distribution of Land Holding Nos. Holding % to Total Ha. Area % to Total 1 <= 1 Ha 64297 32 3556 1 2 >1 to <= 2 Ha 72117 36 14261 27 3 >2 Ha 648 32 2419 63 Total 2422 1 381667 1 Source: Field Survey Distribution of Land Holding 7 6 5 4 3 2 1 <= 1 Ha >1 to <= 2 Ha >2 Ha Holding Area Table-3.13 Demographic Profile (in ) Sl.No. Category Total Male Female Rural Urban 1 Population 1439116 74696 698647 11496 2992 2 Scheduled Caste 17536 918 85252 152348 2311 3 Scheduled Tribe 127163 65498 61665 115826 11337 4 Literacy (%) 68 78 57 5 BPL 31464 253131 57333 Source: Field Survey 78
Table-3.14 Infrastructure Relating to Health and Sanitation Sl.No. Infrastructure Nos. 1 Anganwadis 1572 2 Primary Health Centres 48 3 Primary Health Sub-centres 37 4 Dispensaries 26 5 Hospitals 9 6 Hospital Beds 384 Source: Field Survey Infrastructure Relating to Health and Sanitation 16 14 12 1 8 6 4 2 Anganwadis Primary Health Centres Primary Health Sub-centres Dispensaries Hospitals Hospital Beds Table-3.15 Infrastructure for Storage and Marketing Sl.No. Infrastructure Nos. 1 Rural/Urban Mandi 12 2 Wholesale Market 7 3 Godown 25 4 Cold Storage 14 Source: Field Survey 79
Infrastructure for Storage and Marketing 3 25 2 15 1 5 Rural/Urban Mandi Wholesale Market Godown Cold Storage Infrastructure Table-3.16 Infrastructure for Transport Sl.No. Infrastructure Nos. / Kms. 1 Length of Pucca Road (Km) 636 2 Length of Railway Line (Km) 11 3 Public Transport Vehicles 427 4 Good Transport Vehicles 2569 Source: Field Survey 8