First, the pattern of funding from banks is predominantly to the urban and metropolitan sectors which account for the overwhelming share of credit. The share of metropolitan areas, in fact, has risen further in the current decade, with that of rural and urban areas declining (Table 6).
12  BIS Review 36/2008  Table 6: Population group-wise outstanding credit of commercial banks (Per cent to total) Population March 2001 Group Rural 10.1 Semi urban 11.5 Urban 16.8 Metropolitan 61.6 Memo: Amount (Rupees billion) All India 5564  March 2005  March 2006  9.2 11.3 16.4 63.1  8.4 10.0 16.4 65.3  March 2007 7.9 9.7 16.2 66.1  11578  15175  19496  Source: Reserve Bank of India  Second, the pattern of funding by the banks remains skewed towards larger firms.