Sanctions and disbursals by institutions in 1997-98 stood at Rs 81,589 crore and Rs 53,832 crore, indicating a growth of 49.3 per cent and 26.2 per cent over 1996-97, according to an IDBI report on development banking in India for 1997-98 released on Friday.

Within the infrastructure sector, electricity generation was the biggest recipient of funds, accounting for almost 66.3 per cent of the net sanctions. Other industries accounting for substantial portion of these sanctions include services, chemicals and chemical products, basic metals and the textiles sector.

The report covers the operation of all institutions in the country at the national and state level, including those of the five all India development banks (IDBI, IFCI, ICICI Ltd., SIDBI and the IIBI), the three specialised institutions(RCTC, TDICI and TFCI) and 18 state-finance corporations.

The largest share (38.4 per cent) in sanctions to this sector was by the IDBI, followed by ICICI (34.9 per cent), IFCI (19.6 per cent), LIC (2.4 per cent) and SIDBI (2 per cent).

An IDBI release said that the sanctions by five AIDBs alone increased by 58.8 per cent to Rs 70,258 crore, while that by the three SFIs increased by a mere 2.5 per cent only, totalling to Rs 359 crore.

Among state-level institutions, the SFCs actually recorded a decline in sanctions, while 28 state industrial development corporations (SIDCs) registered a marginal growth, the report said.

A major portion (86.1 per cent) of sanctions by all institutions during this period too was accounted for by AIDBs, and this includes resource support to other institutions by IDBI and SIDBI. In fact, the IDBI alone accounted for nearly 45.1 per cent of the total sanctions in this period, the report said.

As far as state-wise distribution of FI sanctions in 1997-98 is concerned,Maharashtra claimed the highest share (21.4 per cent) in sanctions, followed by Gujarat (16.4 per cent) and Tamil Nadu (9.2 per cent). Overall the bulk of financial institutions' sanctions was claimed by the private sector, constituting 84.6 per cent of the total (amounting to Rs. 67,637 crore).

With the gradual blurring of the traditional divide in the operational domain of the financial institutions and the banks, the institutions are expanding their range of products and services to address emerging corporate needs and are now diversifying into newer areas, which in some cases were the exclusive business segment of commercial banks, the report said.