Multivariate Analysis of Growth Variables of Agricultural Development Banks in Punjab

Abstract

 The Punjab State Co-operative agricultural  and rural development bank is playing an important role in  meeting long-term credit requirement of rural population in  the state. In this paper an attempt has been made to estimate  the impact of selected variables on ADBs’ advances for the  period of 1999-00 to 2012-13. The underlying objective is  to test empirically the selected variables, which have  significantly contributed towards ABDs’ loans in either  direction at 1% and 5% percent level of significance. It is  done in two sections, firstly for Punjab State Cooperative  Agricultural Development Bank and secondly for its  member banks i.e. Primary Cooperative Agricultural  Development Banks on the basis of selected variables.. In  PSCADB the loans and advances and all other varibles are  not correlated with profits. The matrix indicates that all  varibles are positively correlated with each other except  number of employees. The regression coefficient explains  that one unit increase in owned funds will increase the loans  and advances. In PADBs, the matrix indicats that all  varibles are positively correlated with each other except  number of employees. Membership is not correlated with  loans and advances. The regression coefficient explains that  one unit increase in borrowings will increase the loans and  advances.