Performance appraisal of regional rural banks - A study on Telangana Grameena Bank

Abstract

Banks play an important role in mobilization and allocation of resources in any country. Rural people in India are facing problems in the inadequate supply of credit. The major source of credit to rural households, particularly-low income working households, has been the informal sector. Informal sector advances loans at very high rates of interest; the terms and conditions attached to such loans have given rise to an elaborate structure of intimidation of both economic and non-economic conditions in rural population in India. Regional Rural Banks (RRBs) play a significant role in the development of rural areas in India by providing needed financial assistance to agriculture, trade, commerce, industry and other productive activities in the rural areas. Credit and other financial facilities are extended particularly to small and marginal farmers, agricultural laborers, artisans, and small entrepreneurs with a view to strengthening these activities in rural areas. The RRBS have more reached to the rural area of India, through their huge branch network. Telangana Grameena Bank (TGB) is one of the rural banks in Telangana state. The present study examines the performance of the TGB by analyzing the key performance indicators such as number of banks branches, deposits, advances, priority sector lending, profitability of the bank during the period of 10 years from 2006 – 2016.