The availability and accessibility of formal credit to various sectors in the economy is crucial in sectoral development particularly in the new States. Telangana State emerged in 2014 after bifurcation from Andhra Pradesh. The present study analyzed the deposit mobilization from Telangana and credit to various sector in Telangana by SCBs during post bifurcation period. The study concludes that, credit flow in total credit of SCBs to Telangana is much higher than the share of deposits from Telangana. The studyexclusively observed substantial improvement in share of agricultural credit and personal loans to Telangana State in total agricultural credit and personal loans of SCBs. In contrast, the share of industrial credit to Telangana in total industrial credit of SCBs declined significantly during post bifurcation.

Telangana State, Scheduled Commercial banks, agricultural credit, industrial credit and persona loans.