Agriculture is inevitable for the economic growth of the country like India as about 65 percent of population is based on agriculture for the employment. Agriculture plays a significant role in Indian economy as it provides base for Industries and flourish the service sector. In Indian Financial system Banks performs the pivot role in providing agrifinance as the large branch network in rural sectors and having large finances. In the present study, an attempt is made to evaluate the financial performance of two public sector banks. The study is entirely based on secondary data collected for ten years from 2004 to 2013 for the banks under study. This study highlights the fact that the agrifinance provided by the banks increased significantly over the years in the period of study. This study examines the role of banks under the study in the area of agrifinance. In this way agricredit has been highlyeffective in increasing the socio-economic status of rural sector. Therefore, agricredithas to be continued and greater emphasis need to be placed on it. On the other hand, awell-structuredpolicies should be introduced into the system to avoid the misappropriation and variations of fundsespecially in rural sectors, so that it would not adversaly effect the overall growth of agriculture
Agrifiance, Economic growth, Indian Financia System
