PERFORMANCE EVALUATION OF REGIONAL RURAL BANKS (RRBS) IN RAJASTHAN

Regional Rural Banks were set up under the arrangement of a statute proclaimed on the 26th September 1975 and the RRB Act, 1976 with a target to guarantee adequate institutional credit acknowledgment for farming and other provincial divisions. Regional rural banks play an important role in agriculture and rural development of Rajasthan. Regional rural banks have reached more in rural areas of Rajasthan through their vast network. The achievement of provincial credit in Rajasthan depends to a great extent on their money related quality. RRBs are the major financing institutions at the rural level; they pay special attention to the credit needs of small farmers, artisans and agricultural workers. Currently, most of the regional rural banks are confronting overdue, recovery, non-performing assets and other problems. In Rajasthan, two regional rural banks are functioning. Therefore, a comparative study of the financial performance of RRBs in Rajasthan is necessary. This paper attempts to analyze the comparison of financial performance of Regional Rural Banks in Rajasthan as on 31 March 2018. The study is based on secondary data collected from annual reports of NABARD, RBI and RRBs. An analytical research design of the main performance indicator analysis in the current study such as number of districts covered, branches, deposits, loans, investment, recovery and productivity.  The study concludes that Baroda Rajasthan Kshatriya Gramin Bank (BRKGB) is the largest bank in Rajasthan in district coverage and branch network, but Rajasthan Marudhara Gramin Bank (RMGB) has lower productivity than Baroda Rajasthan Kshatriya Gramin Bank BRKGB.

 

KEYWORDS: Regional Rural Banks, Institutional Credit, NABARD, RBI, RRBs, RMGB, BRKGB.


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