Canara Bank has been providing credit support to Government Sponsored Schemes. However, poor recovery of such loans has caused concern to the Bank. AFC’s study aimed at identifying factors influencing repayment and recovery performance under various Government Sponsored Schemes viz., PMRY, SGSY, SJSRY and SLRS. The objective was to understand major causes and factors influencing low recovery. The study covered 50 branches of the Bank in 11 circles spread over Karnataka, Tamil Nadu, Kerala and Uttar Pradesh comprising 883 individual borrowers and 141 Self Help Groups in 542 villages.

The study has identified major factors influencing recovery behaviour and performance of the individual schemes and suggested measures to address these issues for improved recovery in Government Sponsored Schemes.