A Study on Investment of Tripura Gramin Bank (TGB): an Angle to Look Into Profitability

Puranjan Chakraborty Research scholar Department of Commerce Assam University, Silchar, Cachar, Assam, India, PIN-78011 Co-Author

Dr. Ram Chandra Das Assistant Professor Department of Commerce Assam University, Silchar, Cachar, Assam, India, PIN-788011.

Abstract:

Tripura Gramin Bank (TGB) is the only Regional Rural Bank operating in Tripura since it’s inception in 1976. TGB is the one of the eight Regional Rural Banks operating in the North East. TGB was introduced for economic development of rural areas of Tripura. The prime objective of this bank was amelioration of socioeconomic condition of rural people of Tripura. The present study is an attempt to examine the investment of the bank as an angle to look into profitability for a period ranging 2003-04 to 2016- 17.Secondary data is used from the published Annual Reports of TGB for the study period. Select parameters i.e. total SLR investment, total non-SLR investment, total priority sector lending, total non-priority sector lending, interest income from SLR investment, interest income from non-SLR investment, income on trading-SLR, income on trading-non-SLR. SLR investment again looked into investment in GOI securities and investment in Bond/Debentures. Non-SLR investment again looked into investment in Bonds /Debentures, investment in mutual funds, investment in share/equities. Select statistical tools i.e. CAGR, average, standard deviation, least square method; coefficient of determination is used to measure the status of investment and profitability of TGB. The study reveals that, during the study period the investment of TGB is increased and profitability is improved.

Key word: Investment, profitability socioeconomic, bond, GOI securities.

1.Introduction: The steps taken by Government of India towards economic development of the rural parts of the country has given birth of Regional Rural Bank (RRB) through promulgation of RRB Act 1976. In the entire North East eight RRBS are operating. Tripura Gramin Bank (TGB) with 144 branches is operating in Tripura since it’s inception in 1976. TGB is dedicated to amelioration of the socioeconomic condition of the rural people of Tripura. In the period of last 40 years many changes in the policy of the bank has taken place. Therefore, a study is required to examine the status of the investment of TGB as an angle to look into profitability. In this study 14 years data related to investment and profitability of TGB is collected from thepublished annual reports of TGB and select statistical tools i.e. CAGR, average, standard deviation, least square trend equation method, coefficient of determination are used to arrive at the findings of the study.

2.Review of Literature:

Ahmed (1992) has conducted a study with an objective to evaluate the performance and profitability of RRB in India. The study concluded that district wise performance of deposit mobilization, credit deployment, investment and hence the resulting profitability is uneven and performance of RRB is not improved. Desai (1983) has conducted a study with an objective of assessing the profitability performance through credit deployment in the light of agricultural credit and deposit mobilization and investment by RRB in India. The study revealed that, profitability performance through deposit mobilization and credit deployment in the rural area are not sound due to presence of commercial banks and cooperative banks. The findings of the study also claim that there is problem of demarcation of area of operation. Uddin (2003) has conducted a study with an objective to find out the working profitability performance of Regional Rural Bank in Uttarakhand. The study has revealed that profitability Performance of RRB in Uttarakhand is improved through proper deposit mobilization, credit deployment and branch expansion and investment. Sinha Roy (1994) has conducted a study on profitability performance of Regional Rural Banks in West Bengal. The study revealed that, Regional Rural Bank have rendered a commendable service in the rural economy of West Bengal through mobilizing rural savings doing an efficient credit deployment, investment and successful recovery with a good overall profitability performance. Geetha (2016) has conducted a study to measure profitability performance of Regional Rural Banks in Shimoga district. The study has concluded that, profitability performance of Krishna Pragati Gramina Bank is not appreciable.

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3.Research Objective: To examine the investment and resulting profitability of TGB during the study period.

4.Research Question:

Does the income from the investment and hence the profitability of TGB improved during the study period?

5.Research Design:

The present research is an empirical and explanatory type study.

6.Research Methodology:

The present study aimed to examine the investment and resulting profitability of Tripura Gramin Bank (TGB) for a period of 14 years from 2003-04 to 2016-17. Secondary data has been used to attain the objective. Data has been collected from the published Annual Reports of TGB.

The broad parameters used to analyze the investment are SLR investment, non-SLR investment priority sector lending, non-priority sector lending. SLR investment further looked into investment in GOI securities, Bond/Debentures and non-SLR investments further looked into Bonds/ Debentures, mutual fund, share/equity. Other parameters looked into are interest income from SLR investment, interest income from non-SLR investment, income on SLR trading, income on non-SLR trading, total income from SLR investment, total income from non-SLR investment, income from loans and advances, grand total income and net profit are also looked into for analysis.

To analyze the collected data for the above mentioned parameters, selected statistical measures i.e. mean, standard deviation, and compound annual growth rate (CAGR) have been used.

To witness the performance on investment and resulting profitability during the study period the straight line trend equation with respect to time has been used for annual growth rate of selected parameters under study. Formulae used in this study are as follows.

1 퐴푚표푢푛푡 푎푡 푡ℎ푒 푒푛푑 표푓 푠푡푢푑푦 푝푒푟𝑖표푑  퐶퐴퐺푅 = ( )푛 − 1 퐴푚표푢푛푡 푎푡 푡ℎ푒 푏푒푔𝑖푛𝑖푛푔 표푓 푠푡푢푑푦 푝푒푟𝑖표푑 Where, n= number of years

7. Limitation:

7.1 The study would focus on numerous aspects of investment and profitability of TGB. The operational area of the bank is Tripura state. Each area has it’s own locational, economic and other specificities. Therefore, the findings of the study need to be carefully interpreted for making any kind of generalization as it by and large reflects the situation specific to chosen bank and it’s operational area. 7.2 During the study numerous information, data are used from the published annual reports and as such it is subject to limitations that are inherent in a compiled statement itself.

8.Scope of the study:

The purpose of the study is to examine the status of investment and resulting profitability of TGB in Tripura State for the period 2003-04 to 2016-17. The scope of the enquiry has been confined to Tripura state jurisdiction of Tripura Gramin Bank.

9. Results and discussion:

9.1 Investment: Tripura Gramin Bank (TGB) invests it’s capital through statutory (SLR) and non-statutory (non-SLR) investment. Apart from this certain part of the total capital is deployed as credit through priority sector lending and non-priority sector lending.

9.2 Profitability: Bank is collecting money as deposit through deposit mobilization and invests money through credit deployment. The interest rate for the deposit is lower than the interest charged for the lending. The difference of these two interest rates is the earning of the bank. Apart from this bank earns through other sources like annual service charge, commission, fees etc. as non-interest income. To run the banking business bank has it’s operating expense including interest of borrowing and taxes. If we deduct operating expense from the gross income we get operating profit. If provisions and contingencies are subtracted from the operating profit we get the net profit of the bank.

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Table-1 Investment of TGB(Rs.in crore) SLR Investment Non-SLR investment Investment as credit deployment Total Total Total Total Total Grand Bonds Total non- non- GOI Bonds/De SLR Mutual Shares/e investment(S priority Credit total Years debentur SLR priority securities bentures Investme fund quities LR +non- sector deployme investme es investment sector nt SLR) lending nt nt lending 2003-04 186.7755 0 186.7755 51.1129 62.0000 0.0934 113.2063 299.9818 24.6084 55.8808 80.4892 380.471 2004-05 69.634 3.309 72.943 11.7767 50.4198 0 62.1965 135.1395 39.0494 58.7883 97.8377 232.977 2005-06 204.7687 0 204.7687 31.1077 138.4123 0 169.5200 374.2887 142.597 190.3477 332.9447 707.233 2006-07 10.0314 0 10.0314 17.4819 49.0831 0 66.5650 76.5964 136.1467 56.0598 192.2065 268.803 2007-08 0 0 0 4.9735 66.4726 0 71.4461 71.4461 134.5382 59.9135 194.4517 265.898 2008-09 33.73 0 33.73 97.06 75.1500 0 172.2100 205.9400 186.4164 62.0589 248.4753 454.415 2009-10 91.172 0 91.172 286.2153 159.0006 0 445.2159 536.3879 201.0717 70.3443 271.416 807.804 367.0114 2010-11 108.6392 0 108.6392 725.0063 0 1092.0178 1200.6569 262.9207 94.4815 357.4022 1558.06 3 2011-12 38.7705 0 38.7705 43.8269 1857.0178 0 1900.8447 1939.6152 366.2585 174.1898 540.4483 2480.06 2012-13 120 0 120 129 1670.0000 0 1799.0000 1919.0000 496.4937 131.6708 628.1645 2547.16 2013-14 311.2237 0 311.2237 19.9612 2465.9302 0 2485.8914 2797.1151 611.4523 134.6106 746.0629 3543.18 2014-15 411.6845 0 411.6845 101.8234 5103.5424 0 5205.3658 5617.0503 638.3834 102.688 741.0714 6358.12 2015-16 1426.93 0 1426.93 141.86 6940.5700 0 7082.4300 8509.3600 768.5208 122.9507 891.4715 9400.83 2016-17 6481.016 0 6481.016 155.3457 5306.5000 0 5461.8457 11942.8613 792.5045 139.0597 931.5642 12874.4 1458.556 24669.105 4800.961 Total 9494.375 3.309 9497.684 0.0934 26127.7552 35625.4392 1453.0444 6254.006 6 1 7 41879.4 SUM (26.65) (0.009) (26.65) (0.0002) (73.34) (85.06) (23.23) (14.93) (4.09) (69.24) (76.76) 104.1826 1762.0789 342.9258 103.78888 Average 678.1696 0.236357 678.406 0.006671 1866.2682 2544.6742 446.7147 2991.39 2 4 4 6 CAGR 0.29 0.29 0.08 0.37 -1.00 0.32 0.30 0.28 0.07 0.19 0.29 SD 1709.39 0.88 1709.30 108.03 2350.37 0.02 2366.95 3650.47 268.58 45.79 294.31 3908.53 Source: Compiled and computed from Annual Reports of TGB (2004-2017).Figures in the bracket indicates the percentage to total investment(SLR + non-SLR), total investment to grand total investment, priority sector lending to total credit deployment, non-priority sector to total credit deployment, total credit deployment to grand total investment respectively

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Table-1 shows the investment of the Tripura Gramin Bank for 14 years along with Total sum, Average, CAGR and Standard deviation. The investment of TGB consisting of 3 parts namely SLR, Non-SLR and credit deployment. The observations are as follows. The investment in GOI securities are increased 34.69 times during the study period. Total investment in GOI securities during the study period is Rs.9494.375 crore which is 26.65% of the total SLR and Non-SLR Investment. The average investment in GOI securities is Rs.678.1696 crore during the study period. The CAGR of investment in GOI securities is 0.29% during the study period. The standard deviation of investment in GOI securities is Rs.1709.39 crore. TGB is not investing in bonds / debenture under SLR investment. In one occasion during the year 2004-05 there is an investment of Rs. 3.309 crore which is 0.009% of the total SLR and non-SLR investment

The total SLR investment increased 34.69 times during the study period. Total SLR investment during the study period is Rs.9497.684 crore which is 26.65% of the total SLR and Non-SLR Investment. The average SLR investment is Rs.678.406 crore during the study period. The CAGR of total SLR investment is 0.29% during the study period. The standard deviation of total SLR investment is Rs.1709.30 crore.

The investment in bonds /debenture under non-SLR investment is increased 3.03 times during the study period. Total investment in mutual funds under non-SLR investment during the study period is Rs.1458.5566 crore which is 4.09% of the total SLR and Non- SLR Investment. The average investment in mutual funds under non-SLR investment is Rs.104.1826 crore during the study period. The CAGR of investment in mutual funds under non-SLR investment is 0.08% during the study period. The standard deviation of investment in mutual funds under non-SLR investments is Rs.108.03crore.

The investment in mutual fund under non-SLR investment is increased 85.58 times during the study period. Total investment in mutual funds under non-SLR investment during the study period is Rs.24669.10 crore which is 69.24% of the total SLR and Non- SLR Investment. The average investment in mutual funds under non-SLR investment is Rs.1762.0789 crore during the study period. The CAGR of investment in mutual funds under non-SLR investment is 0.37% during the study period. The standard deviation of investment in mutual funds under non-SLR investments is Rs.2350.37crore. TGB is not investing in share and equities. In only one occasion during the year 2003-04 there is an investment of Rs.0.0934 crore in equity/share which is 0.0002% of the total SLR and non-SLR investment.

The total non-SLR investment increased 48.24 times during the study period. Total non-SLR investment during the study period is Rs.26127.7552 crore which is 73.34% of the total SLR and non-SLR Investment. The average non-SLR investment is Rs.1866.2682 crore during the study period. The CAGR of total non-SLR investment is 0.32% during the study period. The standard deviation of total non-SLR investment is Rs.2366.95 crore.

During the study period total SLR and non-SLR investment has increased 39.97%.During the study period total SLR and non-SLR investment is Rs.35625.4392crore which is 85.06% of the grand total investment of TGB during the study period.

The investment in priority sector lending as credit deployment is increased 85.58 times during the study period. Total investment in priority sector lending under credit deployment during the study period is Rs.4800.9617 crore which is 76.76% of the total credit deployment. The average investment in priority sector lending during the study period is Rs.2544.6742 crore during the study period. The CAGR of investment in priority sector lending under credit deployment is 0.30% during the study period. The standard deviation of investment in priority sector lending as credit deployment is Rs.3650.47 crore.

The investment in non-priority sector lending as credit deployment is increased 2.48 times during the study period. Total investment in non-priority sector lending under credit deployment during the study period is Rs.1453.0444 crore which is 23.23% of the total credit deployment. The average investment in non-priority sector lending during the study period is Rs.103.7888 crore. The CAGR of investment in non-priority sector lending under credit deployment is 0.07% during the study period. The standard deviation of investment in priority sector lending as credit deployment is Rs.45.79 crore.

The investment as total credit deployment is increased 11.57 times during the study period. Total credit deployment during the study period is Rs.6254.006 crore which is 14.93% of the grand total investment of TGB. The average total credit deployment during the study period is Rs.446.7147 crore during the study period. The CAGR of total credit deployment is 0.19% during the study period. The standard deviation of total credit deployment is Rs.294.31 crore.

The grand total investment of TGB is increased 33.83 times during the study period. Grand total sum investment of TGB during the study period is Rs41879.4 crore. The average grand total investment during the study period is Rs.2991.39 crore. The CAGR of grand total investment of TGB is 0.29% during the study period. The standard deviation of grand total investment is Rs.3908.53 crore during the study period.

Table -2 shows incomes and profits of TGB from various types of investments. The observations are as follows. The interest income from SLR investment is increased 13.08 times during the study period. The total interest income from SLR investment during the study period is Rs.620.526 crore which is 40.83% of the total income from SLR and non-SLR investment. The average interest income from SLR investment during the study period is Rs.44.3233 crore. The CAGR of interest income from SLR investment is 0.20%. The standard deviation of interest income from SLR investment is Rs.48.0922 crore.

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Many irregularities are observed in the trading income from the SLR investment during the study period. The total trading income from SLR investment during the study period is Rs.21.0992 crore which is 1.38% of the total income from SLR and non-SLR investment. The average trading income from SLR investment is Rs.1.5070 crore. The CAGR of trading income from SLR investment is (-)1 . The standard deviation of trading income from SLR investment is Rs.3.4917 crore. The total income from SLR investment is increased 8.70 times during the study period. The total income from SLR investment during the study period is Rs.641.625 crore which is 42.21% of the total income from SLR and non-SLR investment. The average income from SLR investment during the study period is Rs.45.8303 crore. The CAGR of income from SLR investment is 0.16%. The standard deviation of income from SLR investment is Rs.20.1667 crore.

The interest income from non-SLR investment is increased 5.22 times during the study period. The total interest income from non- SLR investment during the study period is Rs.670.9010 crore which is 44.14% of the total income from SLR and non-SLR investment. The average income from non-SLR investment during the study period is Rs.47.9215 crore. The CAGR of income from non-SLR investment is 0.12%. The standard deviation of income from non-SLR investment is Rs.45.0935 crore.

The trading income on non-SLR investment is increased 5.07 times during the study period. The total trading income from non-SLR investment during the study period is Rs.207.2 crore which is 13.63% of the total income from SLR and non-SLR investment. The average trading income from non-SLR investment is Rs.14.8 crore. The CAGR of trading income from non-SLR investment is 0.12%. The standard deviation of trading income from non-SLR investment is Rs.20.1667 crore.

The total income from non-SLR investment is increased 5.15 times during the study period. The total income from non-SLR investment during the study period is Rs.878.101 crore which is 57.78% of the total income from SLR and non-SLR investment. The average total income from non-SLR investment during the study period is Rs.62.7215 crore. The CAGR of total income from non- SLR investment is 0.12%. The standard deviation of income from non-SLR investment is Rs.58.5209 crore. The sum of total SLR and non-SLR income has increased 6.58 times during the study period. The total sum income from SLR and non-SLR investment during the study period is Rs.1519.7261 crore which is 54.19% of grand total income from grand total investment of TGB during the study period. The average total income from SLR and non-SLR investment is Rs.108.558 crore. The CAGR of total income from SLR and non-SLR investment is 0.14%. The standard deviation of total income from SLR and non-SLR investment is Rs.100.9887 crore.

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Table -2 Incomes and profits of TGB.(Rs.in crore).

Interest Interest Total income Income Income on Total income Income on Total income income from income from from SLR and from loan Grand total Years trading- from SLR Trading- from non-SLR Net Profit/Loss SLR non-SLR non-SLR and Income SLR investment non-SLR investment investment investment investment advance 2003-04 14.0075 7.046 21.0535 16.1818 14.8237 31.0055 52.059 14.641 66.7 4.0184 2004-05 15.9645 0.101 16.0655 10.4753 2.0751 12.5504 28.6159 19.6752 48.2911 0.502 2005-06 18.3444 0.4415 18.7859 6.5796 2.334 8.9136 27.6995 25.7118 53.4113 0.762 2006-07 18.5972 0.3661 18.9633 6.9772 1.4319 8.4091 27.3724 35.7621 63.1345 1.1311 2007-08 18.1521 0 18.1521 5.6045 5.0702 10.6747 28.8268 44.0226 72.8494 4.9246 2008-09 17.9526 0 17.9526 35.1189 2.9412 38.0601 56.0127 52.6305 108.643 20.7115 2009-10 22.4044 0.134 22.5384 54.7586 2.6659 57.4245 79.9629 66.6983 146.661 35.3516 2010-11 26.679 0 26.679 19.9762 4.7752 24.7514 51.4304 84.5494 135.98 17.4285 2011-12 28.2197 0.6525 28.8722 26.8951 11.1226 38.0177 66.8899 113.845 180.735 50.0999 2012-13 39.404 0.544 39.948 47.5911 8.0628 55.6539 95.6019 129.471 225.073 68.7755 2013-14 39.6922 11.8141 51.5063 144.759 12.9571 157.716 209.2225 149.765 358.988 82.6911 2014-15 63.9371 0 63.9371 102.95 29.3186 132.268 196.2054 162.417 358.623 35.6882 2015-16 113.914 0 113.914 108.478 34.4013 142.879 256.7927 186.873 443.666 43.9505 2016-17 183.257 0 183.257 84.5563 75.2208 159.777 343.0341 198.642 541.677 56.8383 620.526 21.0992 641.625 670.901 207.2 878.101 1519.7261 1284.7 Total SUM 2804.43 422.873 (40.83) (1.38) (42.21) (44.14) (13.63) (57.78) (54.19) (45.80) Average 44.3233 1.5070 45.8303 47.9215 14.8 62.7215 108.5518 91.7646 200.316 30.2052 CAGR 0.2016 -1.0000 0.16 0.12 0.12 0.12 0.14 0.20 0.16 0.20 SD 48.0922 3.4917 47.7246 45.0935 20.1667 58.5209 100.9887 64.3721 161.7249 27.4082 Source : Compiled and computed from Annual Reports of TGB(2004-2017)Figures in the bracket indicates percentage to total income from SLR and non-SLR investment, percentage to grand total income respectively.

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The income from credit deployment as loan and advance is increased 13.56 times during the study period. The total income from loan and advance is Rs.1248.7 crore which is 45.80 % of the grand total income of TGB. The average total income from credit deployment is Rs.91.7646 core. The CAGR of total income from loan and advance is 0.20%.The standard deviation of total income from loan and advance is Rs.64.3721 crore.

The grand total income of TGB is increased 14.14 times during the study period. The sum grand total income of TGB during the study period is Rs.422.873 crore. The average grand total income is Rs.30.2052 crore. The CAGR of grand total income is 0.20%. The standard deviation of grand total income of TGB is Rs.27.4082 crore.

The total profit of TGB is increased 14.14 times during the study period. The sum total profit during the study period is Rs.422.873 crore. The average profit during the study period is Rs.30.2052 crore. The CAGR of total profit is 0.20% during the study period. The standard deviation of total profit of TGB during the study period is Rs.27.4082 crore.

Table-3 Profitability of TGB in absolute-values (Rs.in crore) Net Total Total Operating profit Years Income(Rs.in Expenditure(Rs.in Profit(Rs.in after crore) crore) crore) tax(Rs.in crore) 2004 58.69 52.26 6.41 4.01 2005 52.19 50.46 1.7 0.5 2006 58.82 55.73 3.08 0.76 2007 70.05 63.08 6.97 1.13 2008 84.45 73.81 10.63 4.92 2009 112.46 86.96 25.49 20.71 2010 153.09 110.44 42.64 35.35 2011 172.71 149.64 23.06 17.42 2012 245.91 186.4 59.5 50.09 2013 298.31 228.28 71.52 68.77 2014 370.69 266.57 104.12 82.69 2015 371.85 292.89 78.95 35.68 2016 459.61 348.68 110.93 43.95 2017 564 386.67 180.33 56.88 Total 3072.83 2351.87 725.33 422.86 Average 219.49 167.99 51.81 30.20 CAGR 0.18 0.15 0.27 0.21 SD 168.16 117.56 52.76 27.41 Source: Compiled and computed from annual reports of TGB from 2004 to 2017. In the table-3 it is observed that total income of TGB is 9.60 times increased during the study period. The average total income of TGB is Rs.219.49 crore and CAGR of total income during the study period is 0.18 %. The total expenditure of is increased 7.39 times during the study period. Hence increase of total income is more than the increase of expenditure during the study period. So it is evident that, business of TGB during the study period is profitable. The average expenditure of TGB during the study period is Rs.167.99 crore and CAGR of the total expenditure of TGB is 0.15%. The operating profit of TGB has increased 28.13 times during the study period. The average operating profit of TGB during the study period is Rs.51.81 crore. The CAGR of the operating profit of TGB during the study period is 0.27%. The net profit of TGB has increased 14.18 times during the study period. The average net profit of TGB during the study period is Rs.30.20 crore. The CAGR of net profit of TGB during the study period is 0.21%. So it is evident that the business of TGB during the study period is profitable.

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Table-4 Straight line trend equation with respect to time for various investment parameters of TGB Parameters of Straight line trend equations with Regression R2 Trend Direction of trend Investment respect to time coefficient (β) Investment in GOI y = -992.58 + 222.77x 222.77 0.2972 Positive Upward securities Bond debenture under y = 0.8363 -0.08x -0.08 0.1432 Negative downwards SLR Total SLR investment y = -991.74 + 222.69x 222.69 0.297 Positive Upward Bonds /debenture y = 38.562 + 8.7494x 8.74948. 0.1148 Positive Upward under non-SLR Mutual fund under y = -1856.1 + 482.43x 482.43 0.7373 Positive Upward non-SLR Shares/equities y = 0.0267 - 0.0027x -0.0027 0.2 Negative Downwards Total non-SLR y = - 1817.5 + 491.17x 491.17 0.7536 Positive Upward investment Total SLR and non- y = -2809.3 + 713.86x 713.86 0.6692 Positive Upward SLR investment Total priority sector y = - 122.03 + 61.994x 61.994 0.9323 Positive Upward lending Total non-priority y = 66.415 + 4.9832x 4.9832 0.2072 Positive Upward sector lending Total credit y = -55.613 + 66.977x 66.977 0.9063 Positive Upward deployment Grand total investment y = -2864.9 + 780.84x 780.84 0.6984 Positive Upward Source: Compiled and computed from Annual Reports of TGB (2004-2017).

The table-4 above shows the straight line and trend equation with respect to time for the investment made by TGB during the study period. The observations are as follows. The regression coefficient (β) for investment in GOI security under SLR, total SLR investment, Bonds/debentures under non-SLR investment, investment in mutual fund under non-SLR investment, total non –SLR investment, total SLR and non-SLR investment, total priority sector lending, total non-priority sector lending, total credit deployment, grand total investment is positive and 222.77, 229.69, 8.7494, 482.43, 491.17, 713.86, 61.994, 4.9832, 66.977, 780.84 respectively with coefficient of determination 29.72%, 29.72%, 11.48%, 73.73%, 75.36%, 66.92%, 93.23%, 20.72%, 90.63%, 69.84% respectively having a positively rising trend during the study period. On the other hand the regression coefficient (β) for investment of bond/debenture under SLR investment and investments in share/equities under non-SLR investment is negative and (-) 0.08 and (-) 0.0027 respectively with coefficient of determination 14.32% and 0.002% respectively with a downward trend during the study period.

Table-4 Straight line trend equation with respect to time for various income from various investment of TGB Straight line trend Parameters (Income from Regression Direction of equations with respect to R2 Trend various investments) coefficient (β) trend time Interest income from SLR y = -21.232 + 8.7407x 8.7407 0.5721 Positive Upward investment Income on trading-SLR y = 1.7049 - 0.0264x -0.0264 0.001 Negative Downward Total income from SLR y = -19.527 + 8.7143x 8.4173 0.5835 Positive Upward investment Interest income from non-SLR y = -17.175 + 8.6795x 8.6795 0.6483 Positive Upward investment Income on Trading-Non-SLR y = -10.023 + 3.3097x 3.3097 0.4713 Positive Upward Total income from non-SLR y = - 27.197 + 11.989x 11.989 0.7345 Positive Upward investment Total income from SLR and y = -46.725 + 20.704x 20.704 0.7355 Positive Upward non-SLR investment Income from loan and y = -21.779 + 15.139x 15.139 0.9679 Positive Upward advance Grand total Income y = -68.503 + 35.843x 35.843 0.8596 Positive Upward Profit/Loss y = -10.004 + 5.3612x 5.3612 0.6696 +Positive Upward Source: Compiled and computed from Annual Reports of TGB (2004-2017) JETIR1908864 Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org 430

The table -4 shows the straight line trend equations with respect to time for income of various investment and net profit of TGB during the study period. The observations are as follows. The regression coefficient (β) of interest income from SLR investment, total income from SLR investment, interest income from non-SLR investment, income on trading-non-SLR, total income from non-SLR investment, total income from SLR and non-SLR investment, income from loan and advances, grand total income, Profit has positive regression coefficient(β) 8.7407,8.4173, 8.6795, 3.3097, 11.989, 20.704, 15.139, 35.843, 5.3612 respectively with coefficient of determination 57.21%, 58.35%, 64.83%, 47.13%, 73.45%, 73.55%, 96.79%, 85.96%, 66.96% respectively with a positively rising trend during the study period .On the other hand regression coefficient of income on trading –SLR is negative (-)0.0264 with coefficient of determination 0.1% and a negative trend during the study period.

10. Findings:

The investment of TGB and resulting profitability of Tripura Gramin Bank is improved during the study period. The specific findings are as follows.

 The total SLR investment of TGB is 26.65% of the total SLR and non-SLR investment out of which 0.009% is invested in Bonds/debentures.  The total non-SLR investment of TGB is 73.34% of total SLR and non SLR investment of which 4.09% is in Bonds /Debentures, 69.24% in mutual funds and 0.0002% in shares/equities.  Total credit deployment is 14.93 % of the grand investment of TGB of which 76.76% is in priority sector lending and 23.23% in non-priority sector lending.  The total SLR investment , investment in government securities, total non SLR investment with investment in Bonds/debentures, mutual fund and total SLR and non-SLR investment in having a positively rising trend during the study period.  Total credit deployment with priority sector lending, non-priority sector lending has a positively rising trend during the study period.  Investment in bonds/debentures under SLR investment and share/equities under non-SLR investment has a negative trend during the study period.  Interest income from SLR investment, total income from SLR investment, interest income from non-SLR investment, income on trading-non-SLR, total income from SLR investment, total income from SLR and non-SLR investment, interest income from loan and advance, grand total income of TGB, net profit of TGB has a positively rising trend during the study period.  Income on trading –SLR has a negative trend during the study period.

11. Suggestion: Though the investment of TGB enhances the profitability but TGB has taken much risk by investing huge capital in mutual fund. TGB is suggested to reduce the risk of investment by reducing the volume of investment in mutual fund.

12. Conclusion:

After analyzing 14 years data we have arrived at the conclusion to say that during the study period the investment made by TGB resulted profitability of Tripura Gramin Bank.

13. Acknowledgement: I do acknowledge the active help that I have got in terms of fruitful discussion from my supervisor Dr. Ram Chandra Das, Asst. professor, department of commerce, Assam University, Silchar.

14. Reference:

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