Performance of regional rural banks in Haryana: By taking selective indicators

Pages: 127-133
Ritika Sharma (Department of Economics, Maharshi Dayanand University, Rohtak, Haryana)

Rural Banking plays a significant role in rural economy by catering to the growing needs of rural sector. Rural banking is required to meet the credit needs of rural economy for financing agriculture and allied activities, rural infrastructure and poverty alleviation programme meant for the weaker sections of the rural population. In country like India where large part of population still living in rural sector, development of rural economy is very important and rural banking plays a major role. Rural Banking System in India is comprised of Co-operatives banks, the rural branches of Commercial Banks and Regional Rural Banks. Under this paper performance Regional Rural Bank in Haryana is discussed by taking certain variables such as deposit mobilization, deposit per branch, advances outstanding, advances per branch, total business, productivity per employee, productivity per branch, investment, investment per branch, recovery in per cent, resources mobilization, and profitability performance. Time period of the study is from year 2005-06 to 2012-13 and based on secondary data collected from annual reports of RRBs in Haryana and some measures are suggested that the banks should simplify and standardize their procedure for scrutinizing loan applications and documentation formalities with a view to reducing the number of required documents and all RRBs must adopt a uniform money lending policy, The farmers should be educated for the proper utilization of loans through strong extension machinery so that defaults in recovery can be avoided, The willful defaulters responsible for maintaining overdues should be forced to repay the loans and should be dealt with strictly etc.