A Study on Sustainable Finance by Tripura Gramin Bank for Sustainable Rural Development

SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 A Study on Sustainable Finance by Tripura Gramin Bank for Sustainable Rural Development Puranjan Chakraborty1 Dr. Ram Chandra Das2 Research scholar, Asst Professor, Department of Commerce, Assam University, Silchar P.O Dorgakona, District Cachar, Assam, PIN-788011, India Abstract Tripura Gramin Bank (TGB) is the only Regional finance. Firstly such sustainable finance will ensure ural Bank in Tripura operating since 1976 with an the very survival of the business and it will not cease objective of amelioration of socioeconomic condition in the future course of time due to any sort of crisis. of rural population of Tripura. Tripura Gramin bank Secondly Such sustainable finance will ensure the was facing challenges from internal and external protection of the environmental by green investment. banking environment in terms of Technology, Thirdly such sustainable finance will ensure the rural structure of business, policy of Bank and competition economic development uninterrupted and exist for with other commercial banks in the area of the future period of time. Tripura is a small hilly operation. Tripura was an environment friendly state state in the North East region of India with three but in the course of time there is sustained sides are surrounded by the international border with environmental degradation in terms of deposition of Bangladesh and one side is connected with Assam carbon in the environment due to increased motor state of India. Tripura has areas mostly rural with a vehicles, industries, brickfields which is the outcome population of 37 lacks. There are 16 types of tribes of unethical commercial practices financed by bank living in the rural hilly areas of Tripura. Agriculture which is against sustainability of ecosystem and and animal husbandry is the main livelihood of the environment. This paper is an effort to examine the rural population of Tripura. Tripura Gramin Bank sustainable finance by Tripura Gramin Bank for the (TGB) is the only Regional Rural Bank (RRBs) in sustainable rural development of Tripura state. Tripura operating since 1975 and it attains 45th years Firstly TGB needs to do green finance such as since it’s inception. TGB is operating in Tripura with investment in nonconventional energy generating an objective of amelioration of socioeconomic projects, roof top solar panel, effluent and waste condition of rural population of Tripura. Prior to the management project in the rural area of Tripura. The operation of TGB in Tripura other scheduled paper used statistical tools like average annual commercial banks, cooperative banks are operating in growth rate, compound annual growth rate, average Tripura. Tripura was a totally green state without any etc. The paper finds that the TGB has done presence of industries. But in the course of time sustainable finance for the sustainable rural many pollution generating body like small scale development of Tripura. industries increased motor vehicles, increased brick clines are on rising through bank finance. As such Keywords – Business, sustainable, non-sustainable investment and finance is done by ruraldevelopment, environment the banks of Tripura state causing environmental degradation by polluting the air and environment of I. Introduction Tripura which results health hazard and imbalance of the ecosystem. The main objective of the study is to The word sustainability means the virtue by which a identify the financial activities of Tripura Gramin system will exist for the future period of time without Bank in terms of deposit mobilization and credit any sort of degradation. The sustainable finance deployment in rural areas of Tripura through their means a financial system which will ensure it’s branch network in Tripura. financial activities for the future period without any decay or degradation of it’s objectives and activities Sahin.et.al(2014) in their study of green banking for for the future period. It is also to ensure no a sustainable future, concluded that Banking sector, degradation and decay of the environment and the driving force of the economic growth and ecosystem of the planet comprising human being, development, finds its ground as a financial system to animals, vegetation and herbs and water bodies on come up with product, process and policies to support earth by their financial activities like investment in and encourage pro-environment practices in financial non-environment friendly or hazardous projects So systems and without a healthy banking system, it is there are three angles of thoughts for sustainable ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 28 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 not possible to maintain a sustainable development and stability in the country. II. Review of literature concluded that public sector banks have taken more initiatives as compared private sector. Ahmed (1992) has conducted a study with an objective to evaluate the performance and III. Research Gap profitability of RRB in India. The study concluded that district wise performance of deposit Like all other state Tripura a small state in the North mobilization, credit deployment, investment and East India also has it’s Regional Rural Bank in the hence the resulting profitability is uneven and name of Tripura Gramin Bank. This bank is performance of RRB is not improved. Desai (1983) operating in entire Tripura state providing banking has conducted a study with an objective of assessing services with an objective of amelioration of the profitability performance through credit socioeconomic condition of the rural people in deployment in the light of agricultural credit and Tripura since it’s inception in 1976 and it is now deposit mobilization and investment by RRB in completion of a long period of 44 years. By this India. The study revealed that, profitability time there are many studies on the performance of performance through deposit mobilization and credit various RRBs across the country and also in the deployment in the rural area are not sound due to north east region comprising the states of Assam , presence of commercial banks and cooperative Manipur , Mizoram, Nagaland, Arunachal Pradesh, banks. The findings of the study also claim that Meghalaya, Tripura, Sikkim. But there is no such there is problem of demarcation of area of operation. study on the sustainable finance and rural Sharma, K. and Gopal(2014) expressed that, banks development by Tripura Gramin Bank (TGB). in India have significant influence over the Hence here is a Research gap and present study is an safeguarding of fragile social groups and effort in this respect. environments in Asia. At this time, they must seriously consider their attitudes towards IV. Objectives of the study:To examine the responsible lending both nationally and globally. operational performance of TGB in terms of deposit This shows the ignorance in the part of Indian banks mobilization and credit deployment during the about the green banking initiatives at international study period level. Nath et al. (2014) expressed through their studies that, RBI identified (IRDBT, 2014) green 1. To examine the status of C/D ratio and banking to make internal bank processes, physical Total NPA of TGB during the study infrastructure and IT infrastructure as effective and period. efficient as possible, with zero or minimal impact on 2. To examine the performance of the environment. Green rating standards (Green productivity of TGB in terms of labour Coin Ratings) for Indian banks had been introduced. productivity and branch productivity According to the green rating standards, carbon during the study period. emissions from banks operations and on the amount 3. To examine the profitability of TGB in of recycling, refurbishment and reuse material being terms of operating profit, net profit and used in their building furnishings and in the systems select profitability ratios during the study used are key indicators in judging banks period. performance. More importantly, the amount of 4. To examine the recovery performance of green projects finance by banks and rewards or TGB in terms of Demand, Recovery, recognitions given to borrowers for turning their Overdue and Recovery percentage businesses greener is also a criterion for judgment. during the study period. Narang (2015) stated that, the Institute for Development and Research in Banking Technology After fixing the objectives few research questions (IDRBT) established by Reserve Bank of India are raised there are as follows. (RBI) proposed the introduction of standard rating for green efficient banks and banking practices V. Research Questions among Indian Banks. Sudhalakshmi and 1. Does the operational performance of TGB Chinnadorai (2014) argued that banks are required improved during the study period in terms to include their green aspect in the lending principle. of deposit mobilization and credit Indian banks are running behind time in adoption of deployment? this green phenomenon. Serious steps are required 2. What is the status of C/D ratio and NPA of to be taken in this regard. Yadav and Pathak TGB during the study period? (2013) studied the green banking approaches opted 3. Does the productivity of TGB improved in by private and public bank for environment terms of labour productivity and branch sustainability. Study found that Indian banks have productivity during the

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