A well functioning financial system is essential for a vibrant and advancing economy. All the sectors of the economy need an equitable quantum of credit for a balanced development. The structural pattern of credit flow would indeed determinate the direction of growth of the economy. Agriculture sector of India need special attention from the financial institutions as majority of the rural population depends on agriculture for employment. The Industrial sector which has advanced over the years have received substantial quantum of credit for its growth. The service sector evolution needs support from the banking system to enhance its employment prospects. The priority sector initiatives of the Reserve Bank of India were able to reap some fruits but more needs to be done it this stream to uplift the weaker sectors.

KEYWORDS: Agriculture, Credit, Financial Institutions, Growth, Priority Sector.