International Journal of Education and Management Studies

Ritika Sharma ¹

Affiliations
1 Department of Economics, Maharshi Dayanand University, Rohtak, Haryana, IN

Abstract

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 documentsand 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.

Keywords

Regional Rural Banks, Haryana Gramin Bank, Gurgaon Gramin Bank.

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Ritika Sharma ¹

Affiliations
1 Department of Economics, Maharshi Dayanand University, Rohtak, Haryana, IN

Abstract

This study analyzes the financial position of RRBs of Haryana. The financial analysis is the process of identifying the financial strengths and weaknesses of the organization by properly establishing a relationship between the items of balance sheet and profit and loss Account. It helps the concerned parties to form an opinion about the operating performance and financial position of the concerned to take suitable action to decide about the future course of action. The financial health of RRBs in Haryana has been evaluated with the help of ratio analysis. Accounting ratio is an arithmetical relationship between two accounting variables. Ratio analysis is study of relationship among the various factors in a business to judge the profitability, efficiency and financial soundness of the business and to locate the symptoms of weakness & strengths. The financial analysis is the process of identifying the financial strengths and weaknesses of the organization by properly establishing a relationship between the items of balance sheet and profit and loss Account. The financial health of RRBs (short term and long term financial position) in Haryana has been evaluated with the help of ratio analysis. The pre-merger period spans from year 2000-2001 to 2004-2005. The banks covered under this period include: Haryana Kshetriya Gramin Bank, Hisar Sirsa Kshetriya Gramin Bank, Ambala Kurukshetra Gramin Bank and Gurgaon Gramin bank. In case of Post-merger only two banks are left i.e. Haryana Gramin Bank and Gurgaon Gramin bank and time period of the study is from year 2005-06 to 2012-13.Again pre-merger and post-merger performance of RRBs in Haryana is taken into consideration by using these ratios: current ratio, debt-equity ratio, fixed assets to proprietor's funds, proprietary ratio, net profit ratio, operating ratio, return on shareholder's funds ratio and credit deposit ratio. By taking these above said ratios comparison among different Gramin banks of Haryana are made.

Keywords

Regional Rural Banks, Reserve Bank India, Credit Deposit Ratio.

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