International Journal of Economics, Commerce and Research (IJECR) 03/2013; 3(1):79-86.


Regional rural Banks plays a vital role in the agriculture and rural development of Chhattisgarh. The RRBs have more reached to the rural area of Chhattisgarh, through their huge network. The success of rural credit in Chhattisgarh is largely depends on their financial strength. RRBs are key financing institution at the rural level which shoulders responsibility of meeting credit needs of different types of agriculture credit in rural areas. At present, most of the regional rural banks are facing the problems of overdue, recovery, non performing assets and other problems. In Chhattisgarh three RRBs are functioning. Therefore, it is necessary to comparative study of financial performance of RRBs in Chhattisgarh. This paper attempts to analyze the comparison of financial performance of RRBs in Chhattisgarh as on 31 st March 2011. The study is based on secondary data collected form annual reports of NABARD, RBI and RRBs. An analytical research design of Key Performance Indicators Analysis such as number of district covered and branches, deposits, loans, loans, investments, recovery and productivity is followed in the present study. The study concludes that CGB is largest bank of Chhattisgarh in district coverage and branch network but the productivity of CGB is low in comparison of DRGB and SKGB.

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Available from: Anil Soni, Dec 03, 2014
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    ABSTRACT: This paper examines total factor productivity technical and scale efficiency changes in regional rural banks by using data from 192 banks for the period 1996 to 2002. Rural banks showed significant economies of scale in terms of assets and number of branches under each bank. Total factor productivity growth of rural banks was higher in profitability than in service provision during liberalisation. Banks located in economically developed as well as low banking density regions exhibited significantly higher productivity growth. Overall there is a convergence of efficiency of rural banks during the study period. Parent public sector banks have no influence on the efficiency and productivity growth of rural banks. There is a justification for opening new banks in low banking density regions as efficiency and productivity growth of rural banks in these areas are high. There is also a case for mergers and enlargement of the asset base and the number of branches under each rural bank.
    Economic and political weekly 01/2006; VOL 41:1079-1086. DOI:10.2139/ssrn.1537538
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    ABSTRACT: Since their inception, regional rural banks (RRBs) have taken deep roots and have become a sort of inseparable part of the rural credit structure in India. The financial viability of the RRBs has, however, been a matter of concern since the 1980s, just five years after their existence. A number of committees have gone into the issue of their financial viability and possible restructuring. This study follows a deductive approach. First the extent of the problem of the loss making RRBs has been studied to analyse if the problem is confined to some particular sponsor banks or States. Subsequently, an attempt is made to enquire as to factors that influence the performance of the RRBs and the role-played by the sponsor banks. The empirical analysis has been couched in terms of profit and loss making RRBs for a reasonably long (10-year) period to draw robust policy inferences.
  • Productivity Growth in Regional Rural Banks Report of the Working Group on Regional Rural Banks. . 1079-1085.