10-11-2012, 03:23 PM
GROWTH OF REGIONAL RURAL BANKS
GROWTH OF REGIONAL RURAL.pptx (Size: 368.73 KB / Downloads: 68)
INTRODUCTION
To echo the thoughts of C.K. Prahlad, the “bottom of the pyramid” segments will be the growth drivers of the future – this is certainly being borne out by the market revolution that is taking place in India’s villages.
The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) in meeting the needs of rural areas.
OBJECTIVES
To study the growth of RRB’s in India.
To study the present situation of RRB’s in India.
To study the factors that influences the performance of RRB’s.
SCOPE
The present study is based on regional rural banks in India. In the study an effort has been made to check the growth of regional rural banks in India.
The scope of study after the research would be that the regional rural banks which adopted the effective factors for growth are in sound position today and are influencing the other RRBs also.
LITRERATURE REVIEW
Misra (2002) explains in “The Performance of Regional Rural Banks (RRBs) in India. An attempt is made to enquire as to factors that influence the performance of the RRBs and the role-played by the sponsor banks.
Sathye Milind (Nov 2003) examined the measures of the productive efficiency of regional rural banks in a developing country, that is, India. The study recommends that the existing policy of reducing non-performing assets and rationalization of staff and branches may be continued to obtain efficiency gains.
FINDINGS
The investments of RRBs have significant impact on profitability. One unit change in investment causes .894 time changes in the operating profit of Regional Rural banks in India respectively.
The advances,deposits and assets of RRBs have insignificant impact on profitability of rural sector banks. These variables have significant impact on profitability of Regional rural banks in India. But in all cases one unit change in these variables are able to explain very little change in profitability of respective banks.