Comparative Management Structure and Institutional Performance in Rural Banking Institutions (original) (raw)
2015
Regional Rural Banks are established under the provisions of an ordinance promulgated on the 26th September, 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. Reforms and mergers introduced by the Government of India in consultation with Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) in the years 1994-95 to 2005-06 have yielded positive results in respect of key performance indicators such as number of banks and branches, capital composition, deposits, loans, loans and the trend of investments. The objective of this paper is to investigate whether the merger/amalgamation of Regional Rural Banks in India, undertaken in 2005-06 has helped improve their performance. Several committees have emphasized the need to improve the performance of these banks which play an important role in the rural credit market in India. The study is diagnostic and exploratory in nature...
Financial Performance of Rural Banks in the Philippines: Application of Camels Model
International Journal of Research in Commerce and Management Studies
This study evaluated the financial performance of selected rural banks in the Philippines using the CAMELS model, namely: Capital Adequacy, Asset Quality, Management Efficiency, Earnings Capability, Liquidity, and Sensitivity to Market Risks. The study utilized secondary data of eighty (80) rural banks retrieved from the Bangko Sentral ng Pilipinas (BSP) website. Frequency and percentage were applied to answer the problem set of the study. There was a corresponding formula and criteria used to come up with the CAMELS rating. A rating of 5 corresponds to excellent performance, while a rating of 1 considers the poor performance of the rural bank involved. In general, the results of the CAMEL analysis indicate that sampled rural banks have excellent performance in both Capital Adequacy and Management Quality. They have satisfactory performance on Earnings Quality but poor performance in Asset Quality, Liquidity, and Sensitivity to Market Risk. Thus, the researcher concludes that all rural banks under study have provided ongoing competition in achieving their respective objectives as to financial performance.
Annals of the Alexandru Ioan Cuza University - Economics, 2017
This paper examines the credit risk and capital adequacy of the 567 rural banks in the Philippines to investigate how both variables affect bank profitability. Using the Arellano-Bond estimator, we found out that credit risk has a negative and statistically significant relationship with profitability. However, empirical analysis showed that capital adequacy has no significant impact on the profitability of rural banks in the Philippines. It is therefore necessary for the rural banks to examine more deeply if capital infusion would result in higher profitability than increasing debts. The study also implies that it is imperative for the banks to understand which risk factors have greater impact on their financial performance and use better risk-adjusted performance measurement to support their strategies. Rural banks should establish credit risk management that defines the process from initiation to approval of loans, taking into consideration the sound credit risk management practic...
Regional Rural Banks and Rural Development: A Case of Pragathi Krishna Gramin Bank
Shanlax International Journal of Economics, 2019
The rural banking is one of the important roles in rural development of our country, and the village economy is the backbone of the Indian economy. Without the development of the rural economy, the objective of economic planning cannot be achieved. Hence the Regional rural banks (RRBs) are plays a vital role in the rural development for the economy in India. The RRBs were established on October 2, 1975, with the main objective of a provisional credit to rural people who are not economically strong enough, especially the small farmers, artisans, agricultural laborers, and even small entrepreneurs. The present study is a modest attempt to rural credit structure and the role played by RRBs in the development of rural economy. The present research paper is designed in nature and makes use of secondary data. The relevant secondary data have been collected mainly through the articles, journals, books, and websites have been referred. This paper is to examine the rural credit structure in...
Russian Journal of Agricultural and Socio-Economic Sciences, 2020
This study aimed to examine the effect of macro-economy and market structure of the industry's performance of rural banks (BPR) in Southeast Sulawesi province using data quarter of the year 2011 to 2013, total population of 12 rural banks in Southeast Sulawesi. The data were analyzed using panel data by combining a cross-sectional data and time series. The theory used in this study is the Structure-Conduct-Performance (SCP) that proxy to Market concentration (MC) and Relative Efficiency (RE) which proxy to Market Share Deposits (MSD). The study found that (Market Concentration) lowered the performance of (BPR bank industry) and increasing Market Share Deposits improved the performance of BPR bank industry. Furthermore, large (MSD) and greater capital adequacy ratio (CAR), as well as Log to total assets (LTA) and the size of banks improved the performance of BPR bank industry. On the contrary, the market concentration, increasing liabilities to total assets (LTTA), growing non-Performing Loan (NPL) lowered the performance of BPR bank industry in Southeast Sulawesi. Furthermore, the level of LDR and (PIFL) was not able to improve the performance of BPR industry in Southeast Sulawesi Province. This indicates that many (BPR) banks operating during the study period were not efficient in the provision of loans in other words the majority of BPR banks operating in Southeast Sulawesi province were still in a loss position. KEY WORDS Structure conduct performance, relative efficiency theory, macroeconomic performance industrial rural bank, panel data analysis.
DYNAMICS OF PERFORMANCE OF REGIONAL RURAL BANKS – A LITERATURE REVIEW
ABSTRACT The present paper is an attempt to understand the various dynamics related to performance of Regional Rural Banks in the Indian banking scenario. In this direction 67 reviews have been undertaken and those pertaining to the research topic included in this paper. Secondary source is the collection of information. The objective of the paper to undertake the research on performance evaluation and its various internal dynamics more especially in the post-merger era.
A Comparative Study of Regional Rural Banks in Maharashtra State
— Regional rural Banks plays a vital role in the agriculture and rural development of Maharashtra. The RRBs have more reached to the rural area of Maharashtra, through their huge network. The success of rural credit in Maharashtra 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 Maharashtra, two RRBs are functioning. Therefore, it is necessary to comparative study of financial performance of RRBs in Maharashtra. This paper attempts to analyze the comparison of financial performance of RRBs in Maharashtra as on 31st March 2013. 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 Maharashtra Gramin Bank (MGB) is the largest bank of Maharashtra in district coverage and branch network but the productivity of Vidharbha Konkan Gramin Bank VKGB is low in comparison of Maharashtra Gramin Bank MGB.