Banking and finance in Punjab makes one save resources more effectively which in turn raises the income of the saver as well as the borrower at the same time. If a state does not own a proper system of banking and finance the money saved would not give substantial return and there may be numerous risk factors. Banking and finance of a state is the key to its prospect and growth. The more investment a state makes, the more will be its industrial as well as its technological upliftment.
For a steady state economy, an efficient system of banking and finance machinery is essential. There are some salient features which can make this sector more efficient:
The banking and finance of Punjab serves as a bridge between the highly organized financial institutions and highly unorganized private savers. This strengthens the basis of the financial market.
The banking and finance of Punjab rest on the following banks:
The ratio of the credit deposit is the index of the economic development of a state. For some obvious reasons, this ratio in Punjab is low as compared to all India level. This thereby indicates that the state of Punjab is doing well and also that it should try harder and harder to improve the condition of its banking and finance. Scheduled commercial banks are offering direct as well as indirect loans to the agriculture sector.
