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
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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 study period? understood the relevance of taking positive steps towards the environment. Moreover, the study
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4. Does the profitability of TGB in terms of branch productivity in terms of deposit per branch, operating profit and net profit improved advance per branch and business per branch, during the study period? Recovery performance in terms of volume of 5. Does the profitability of TGB in terms of accumulated total NPA, Demand, Recovery select profitability ratio improved during overdue, recovery percentage, profitability in terms the study period? of operating profit, net profit and select profitability 6. Does the demand of TGB improved during ratios. To analyse the collected data for the above the study period? mentioned parameters, selected statistical measures 7. Does the Recovery is improved during the i.e. mean, standard deviation, average, annual study period? average growth rate (AAGR) and compound annual 8. Does the recovery percentage improved growth rate (CAGR) have been used. To witness during the study period? the performance on deployed finance during the study period semi average methods are used. VI. Statement of the Problem Moreover to perceive the trend, the straight line trend equation with respect to time has also been Though TGB is operating in Tripura state with 144 used for annual growth rate of selected parameters branches including rural semi-urban, urban branches under study. Formulae used in this study are as providing banking services for last 44 years, it is follows. essential to examine the business of the TGB in terms of operational performance, productivity, 퐴푛푛푢푎푙 퐺푟표푤푡푕 푅푎푡푒 = profitability and overall business sustainability and a 퐶푢푟푟푒푛푡 푌푒푎푟 푉푎푙푢푒 −푃푟푒푣푖표푢푠 푌푒푎푟 푉푎푙푢푒 푥100 sustainable rural development in rural Tripura. It is 푃푟푒푣푖표푢푠 푌푒푎푟 푉푎푙푢푒 essential to know the outreach of the banking 퐶퐴퐺푅 = services from TGB in the rural masses of Tripura 1 퐴푚표푢푛푡 푎푡 푡푕푒 푒푛푑 표푓 푠푡푢푑푦 푝푒푟푖표푑 and how much rural development took place 푛 − 1 퐴푚표푢푛푡 푎푡 푡푕푒 푏푒푔푖푛푖푛푔 표푓 푠푡푢푑푦 푝푒푟푖표푑 through the banking services of TGB. It is essential Where, n= number of years to know the rural inclusion in rural development of Tripura and hence the problem of the study is 푆푢푚 표푓 푎푛푛푢푎푙 푔푟표푤푡 푕 푟푎푡푒푠 퐴퐴퐺푅 = defined. 푁푢푚푏푒푟 표푓 푦푒푎푟푠
VII. Research Methodology VIII. Analysis of Research Results: a) Deposit mobilization of TGB during the study Data source is the published annual reports of TGB. period: The period of the study is 2012-13 to 2016-17 i.e. 5 TGB mobilizes deposit through three types of years. The present study aimed to examine the accounts namely saving deposit accounts, current operational performance in terms of deposit deposit accounts, term deposit accounts. To attract mobilization and credit deployment, recovery the customer lucrative term deposit schemes are performance in terms of accumulated total NPA, made for the bank customers. Deposits are Recovery, overdue, recovery percentage mobilized through rural saving and depend on the productivity in terms of labour productivity and income of the rural population. It is therefore very branch productivity and profitability in terms of much essential for TGB to boost the income of rural total income total expenditure, operating profit, net population through productive investment in profit and select profitability ratios, and C/D ratios lucrative project in the rural areas of Tripura. Table- of Tripura Gramin Bank (TGB) for a period of 5 1 below shows the deposit mobilization of TGB years from 2012-13 to 2016-17. Deposit during the study period. It is observed there is mobilization further looked into saving deposit, gradual increase of saving deposit, current deposit, current deposit, term deposit and total deposit. term deposit and total deposit of TGB during the Credit deployment further looked into priority sector study period. However there is 1.68 times increase lending, non-priority sector lending and total of saving deposit of TGB during the study period lending of TGB. The study also examines the status and such increments for current deposit, term of profitability ratios. Secondary data has been used to attain the objectives. Data has been collected Table-2 from the published Annual Reports of TGB 2012-13 Semi average of deposit mobilized by TGB to 2016-17. The broad parameters used to analyse during the study period the operational performance is deposit in terms of Average during Average during Parameters (2012-13 to 2013- (2015-16 to 2016- Results saving deposit, current deposit, term deposit and 14) 17) total deposit, credit deployment in terms of priority Saving deposit 1818.29 2591.98 Improved sector lending, non-priority sector lending and total Current deposit 220.83 286.35 Improved lending and C/D ratio as overall operational performance, labour productivity in terms of deposit Term deposit 1296.79 2228.95 Improved per staff, advance per staff, business per staff, Total deposit 3285.92 5106.89 Improved Source : Compiled and computed from Annual Reports of TGB(2012-13 to 2016- 17) ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 30 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020
deposit and total deposit of TGB during the study annual growth rate of total deposit is higher the period are 1.41 times, 1.98 times and 1.78 times corresponding table values at 3 df at 1per cent and respectively . The annual average growth rate 5per cent level and hence the trend is significant. (AAGR) of saving deposit, current deposit, term The straight line trend equation with respect to time deposit and total deposit of TGB during the study of annual growth rate of term deposit has a negative period is 11.27per cent, 1.38per cent, 22.96per cent, regression coefficient (β) with negative and 14.22per cent respectively. The CAGR of saving downward trend during the study period. However it deposit, current deposit, term deposit and total is found that the calculated t values are higher than deposit of TGB during the study period is 115, 7per the table values at 3 df at 5per cent level only hence cent,15per cent and 12per cent respectively . It is the trend is significant at 5per cent level only. inferred that the deposit mobilization of TGB in terms of saving deposit, current deposit, term Table-3 deposit and total deposit is improved during the Straight line trend equation with respect to time study period. of annual growth rates of deposits of TGB during the study period Straig Table-1 ht line trend Regressio Deposit mobilization by TGB during the equati Directio Calcula Paramet n Significa on R2 n of ted t Status ers coefficien nce study period with trend values t(β) AGR- AGR- AGR- AGR- respec SD(p CD(p TD(p TLD(p t to Years SD CD TD TLD er er er er time cent) cent) cent) cent) tcal
Table values at 3 degree of freedom t = 3.182, t = 5.841 1) Semi average of deposits mobilized by TGB 0.05 0.01 Source: Compiled and computed from Annual Reports of TGB (2012-13 to 2016-17) during the study period: Table-2 below shows the semi average of deposits mobilized by TGB during the study period. It is observed that semi average of saving deposit, b )Credit deployment by TGB during the study current deposit, term deposit and total deposit of period: TGB is improved during the study period TGB extends credit under two types of accounts and these are priority sector lending accounts and non- 2)Straight line trend equation with respect to time priority sector lending accounts. All types of credit of annual growth rates of deposits of TGB during deployment including green credit deployment and the study period: non-green credit deployment is done through these two types of lending accounts. The Green credit The Table-3 below shows the straight line trend deployments are included in the priority sector equation with respect to time of annual growth rate lending accounts.in this respect Guidelines from of saving deposit, current deposit, term deposit and RBI and Indian renewable energy development total deposit of TGB during the study period . It is authority is followed. The non-green investment observed that annual growth rate of saving deposit, never exceeds 10 percent of the total investment current deposit and total deposit of TGB has a under any circumstances. Table -4 below shows the positive regression coefficient (β) with a positively credit deployment of TGB for the study period. it is rising trend during the study period. However it is observed that priority sector lending has increased found that, calculated t values of annual growth rate 1.59 times during the study period and such of saving deposit and current deposit is smaller than increment for non-priority sector lending and total the table values at 3 degree of freedom at 1per cent lending of TGB are 1.05 times and 1.48 times and 5per cent level and hence these trends are not respectively. The AAGR of PSL, NPSL and total significant. On the other hand calculated t values of lending of TGB are 17.33per cent, -2.61per cent,
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SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020
Table-6 Table-5 Straight line trend equation with respect to Semi average of credit deployed by TGB during time of annual growth rate of PSL, NPSL and the study period total lending of TGB during the study period Average Average Straight Regr during during line Calcu essio Direc Par trend lated Sign Parameters (2012-13 (2015-16 Results n tion ame equation R2 t Status ifica coeffi of to 2013- to 2016- ters with value nce cient( trend 14) 17) respect s β) to time Priority sector t ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 32 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 Table-7 Table-9 Status of C/D ratio and total NPA of TGB during Straight line trend equation with respect to time the study period of annual growth rate of C/D ratio and total Total AGR- C/D ratio AGR- NPA of TGB during the study period Year NPA(Rs.in Total Straig (%) C/D ht line Crore) NPA (%) trend Regressio equati Calculat 2012-13 44.26 4.38 37.45 55.27 Paramet 2 n Direction Stat Significa on R ed t ers coefficien of trend us nce with values 2013-14 40.79 -7.84 65.72 75.49 t(β) respec 2014-15 39.51 -3.14 80.09 21.87 t to 2015-16 38.38 -2.86 149.04 86.09 time t of TGB during the study period ) (%) Average Average during during ratio Parameters Results (2012-13 to (2015-16 to 2013-14) 2016-17) Axis C/D C/D Axis C/D ratio 42.525 37.66 Declined AGR-C/D -1.73 -3.31 Declined ratio Fig- 2 shows the straight line trend with respect to time of annual growth rate of total NPA and it is a Total NPA 51.59 158.8 Increased downward trend. AGR- 65.38 49.59 Declined Fig-2 Total NPA Source : Compiled and computed from Annual Reports of Straight line trend of annual growth rate of total TGB(2012-13 to 2016-17) NPA of TGB c)Straight line trend equation with respect to time y = -7.373x + 72.48 of annual growth rate of C/D ratio and total NPA 100 R² = 0.131 of TGB during the study period: 90 80 70 Table-9 below shows the straight line trend 60 50 AGR-NPA equation with respect to time of annual growth rate 40 of C/D ratio and total NPA of TGB during the study 30 20 Linear (AGR- period. It is observed that the straight line trend 10 NPA) equation with respect to time of annual growth rate 0 of C/D ratio and total NPA of TGB has negative 1 2 3 4 5 regression coefficient (β) with a negative and Years(2012-13 to 2016-17) downward trend during the study period. However it NPA Total ofTGB (Rs. in crore) is found that the calculated t values are smaller than the table values at 3 df and at 1% and 5% level. Hence these trends are not significant. Fig-1 below With this not of analysis it is inferred that C/D shows the line chart of the down ward trend of status is not satisfactory and total NPA of TGB is annual growth rate of C/D ratio of TGB. under control during the study period and over all ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 33 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 operational performance of TGB is improved during Table-11 the study period. Semi average of Labour productivity of TGB during the study period Average during Average during Parameters Results IX. Productivity of TGB during the study period (2012-13 to 2013-14) (2015-16 to 2016-17) Deposit per Productivity of TGB is sub divided into two part in 4.53 6.7 Improved staff which one is labour productivity and another one is Advance 0.95 1.07 Improved branch productivity. Productivity is the capacity or per staff Business 5.48 7.76 Improved ability to give maximum output for a given input. per staff Net profit 0.10 0.07 Declined Labour productivity is the ability of a bank staff to per staff give maximum output in terms of deposit per staff, Source : Compiled and computed from Annual Reports of TGB(2012-13 to 2016-17) advance per staff, business per staff and net profit per staff and branch productivity is the maximum output in terms of deposit per branch, advance per 2) Straight line trend equation with respect to time of branch, business per branch and net profit per annual growth rate of deposit per staff, advance per branch of a bank branch for a given input. staff, and business per staff of TGB: a) Labour productivity of TGB during the study As it is shown in the Table-12 below, annual growth rate period: of deposit per staff, Business per staff and net profit Table-10 shows the labour productivity of TGB. It per staff of TGB has positive regression coefficient is observed that deposit per staff is increased 1.56 (β) with positively rising trend during the study times during the study period and such increment period. However it is found the calculated t values for advance per staff, business per staff and net are smaller than the table values at 3 df and at 1% profit peer staff is 1.02 times, 1.47 times and 0.8 and 5% level. Hence these trends are not significant. times respectively. The AAGR of deposit per staff, It is also observed that, annual growth rate advance advance per staff, business per staff and net profit per staff of TGB has a negative regression per staff of TGB during the study period is 12.08%, coefficient (β) with a negative and downward trend. 1.43%, 10.34% and 0.83% respectively and However it is found that the calculated t values are respective CAGR are 9%, 0%, 8% and -4%. smaller than the table values at 3 df and at 1% and 5% level. Hence this trend is not significant. Table-10 Labour productivity of TGB during the study Table-12 period Straight line trend equation with respect to time Net Deposi Advanc Busines AGR AGR AGR profi AGR Year t per e per s per of annual growth rates of deposit per staff, -DPS -APS -BPS t per -NPS staff staff staff staff advance per staff, business per staff, and net 2012- 4.57 0.95 5.52 0.1 13 profit per staff of TGB during the study period 2013- 4.49 -1.75 0.94 -1.05 5.43 -1.63 0.1 0 Straig 14 ht line 2014- trend 5.3 18.04 0.95 1.06 6.25 15.10 0.05 -50 Regressio 15 equati R- Directio Calcula Parame n Significa 2015- on squa n of ted t Status 6.27 18.30 1.16 22.11 7.42 18.72 0.06 20 ters coefficien nce 16 with re trend values 2016- - t(β) 7.13 13.72 0.97 8.1 9.16 0.08 33.33 respec 17 16.38 t to No. of time times t This is inferred that labour productivity of TGB is improved during the study period. ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 34 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 b)Branch productivity of TGB: table values at 3 df and at 1%, 5% and 5% The Table-13 shows that deposit per branch of TGB is respectively and hence the trend of deposit per increased 1.65 times during the study period and branch is significant at 1% and 5% level and such increment for advance per branch, business per business per branch is significant at 5% level only. branch and net profit per branch are 1.08 times, 1.55 The straight line trend equation with respect to time times and 0.77 times respectively. The AAGR are of annual growth rate of advance per branch of TGB 13.26%, 2.92%, 11.57% and 2.52% respectively. has a negative regression coefficient (β) with The CAGR are 10% 1%, 9% and -5 % respectively. negative and downward trend during the study This is inferred that Branch productivity of TGB is period. However it is found that calculated t values improved during the study period. are smaller than the table values at 3 df and at 1% and 5% level hence the trend is not significant. The Table-13 straight line trend equation with respect to time of Branch productivity of TGB during the net profit per branch of TGB has appositive study period regression coefficient (β) with positively rising trend Depo Adva Busin Net AG AG AG AG sit nce ess profi during the study period. However it is found that the R- R- R- R- Year per per per t per DP AP BP NP calculated t values are smaller than the table values bran branc branc bran B B B B ch h h ch at 3df and at 1% and 55 levels. Hence the trend is 2012- 22.72 4.72 27.44 0.52 13 not significant. 2013- 13.2 14.4 13.4 15.3 25.73 5.41 31.13 0.60 14 5 7 6 8 - Table-14 2014- 13.7 - 10.7 29.27 5.22 34.49 0.25 58.3 15 7 3.47 8 Straight line trend equation with respect to time 3 2015- 14.6 18.6 15.2 24.0 of annual growth rates of deposit per branch, 33.56 6.19 39.75 0.31 16 4 2 5 0 advance per branch, business per branch, and - 2016- 11.3 29.0 37.37 5.08 17.9 42.45 6.81 0.40 17 8 3 net profit per branch of TGB during the study 4 No. of period times Strai 1.65 1.08 1.55 0.77 Increa ght sed line trend Regress Avera 13.2 11.5 R- Directi Calcul 29.73 5.32 2.92 35.05 0.42 2.52 Param equa ion Statu Signific ge 6 7 squ on of ated t eters tion coefficie s ance 13.2 11.5 are trend values AAGR 2.92 2.52 with nt(β) 6 7 respe CAGR 0.10 0.01 0.09 -0.05 ct to time AGR-Annual growth rate, DPB-Deposit per branch, APB-Advance per branch, BPB- t >t y = cal t Business per branch, NPB-Net profit per branch AGR- at 14.44 ab Deposi 0.19 Negativ Down 11.198 1% Source : Compiled and computed from Annual Reports of TGB (2012-13 to 2016-17) 5 - Signific t per 65 e ward 66 and 0.474 ant branch 5% 2x level t ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 35 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 income, total expenditure, operating profit and net 3) Straight line trend equation with respect to time profit are 11.89%, 10.12%, 20.07% and -0.70% of annual growth rate of total income, total respectively. The CAGR of total income, total expenditure, operating profit, net profit of TGB expenditure, operating profit and net profit of TGB during the study period. are 14%, 11%, 20% and -4% respectively. It is observed fromthe Table-17 that the straight line Table-15 trend equation with respect to time of total income, Profitability of TGB in -absolute-Values (Rs.in operating profit and net profit of TGB during the crore) study period has positive regression coefficient (β) AG R- with positively rising tend during the study period. AG Ne Net R- AGR- AGR- t However it is found that the calculated t values are Tot pro Tot Total Total Oper Oper pr Year al fit al Expen Expen ating ating ofit smaller than the table values at 3 df and at 1% and at s Inco aft Inco diture diture Profit Profit aft me er 5% level of significance and hence these trends are me (%) (%) er tax (%) tax neither significant at 1% level nor at 5% level . It is (% ) also observed that the straight line trend equation 2012- 298. 68. 228.28 71.52 13 31 77 with respect to time of total expenditure of TGB has 2013- 370. 24.2 104.1 82. 20. 266.57 16.77 45.58 negative regression coefficient (β) with a negative 14 69 6 2 69 24 - and downward trend during the study period. 2014- 371. 35. 0.31 292.89 9.87 78.95 -24.17 56. 15 85 68 Moreover it is found that the calculated t values are 85 2015- 459. 23.6 110.9 43. 23. 348.68 19.05 40.51 higher than the table values at 5% level. so it is a 16 61 0 3 95 18 2016- 22.7 180.3 56. 29. good sign for TGB that total expenditure has a 564 386.67 10.90 62.56 17 1 3 88 42 significantly downwards trend during the study No. of period 0.8 1.4 times 1.89 0.94 1.69 0.65 2.52 1.37 3 5 incre ased Table-17 Aver 412. 17.7 109.1 57. 4.0 304.62 14.15 31.12 age 89 2 7 59 0 Straight line trend equation with respect to time - AAG 11.8 of annual growth rates of Total income, Total 10.12 20.07 0.7 R 9 0 expenditure, Operating profit and Net profit of - CAG 0.14 0.11 0.20 0.0 TGB during the study period R Stra 4 ight Source: Compiled and computed from various annual reports of line tren TGB(2012-13 to 2016-17) d Regressio Para equ Directio Signi R- n Calculate meter atio n of Status fican square coefficien d t values s n trend ce t(β) 1). Semi average of profitability parameters of with resp TGB: ect to Thee semi average of total income, total expenditure time y = AGR- and operating profit of TGB is improved during the 13.0 t Semi average of annual growth rate of Table values at 3 degree of freedom t 0.05 = 3.182, t 0.01 = 5.841 profitability parameters of TGB in absolute Source: Compiled and computed from Annual Reports of TGB (2012-13 to 2016-17) values during the study period Average during Average during Parameters (2012-13 to 2013- (2015-16 to Results b)Profitability ratios of TGB: 14) 2016-17) AGR-Total 12.29 23.16 Improved Table-18 shows the select profitability ratios of Income AGR-Total TGB during the study period. A gradual growth of 13.32 14.97 Improved Expenditure profitability ratios of AGR- Operating 10.70 51.53 Improved profit TGB is noticed during the study period. The AGR-Net profit -18.30 26.30 Improved Source : Compiled and computed from Annual Reports of TGB(2012-13 to 2016-17) average of operating profit ratio, net profit ratio, interest earned ratio, interest paid ratio, spread ratio and non-interest earned ratio of TGB are 0.25, 0.15, 0.09, 0.06, 0.03, 0.01 respectively. The CAGR of ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 36 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 Compound growth of interest earned ratio is the Table-18 highest (25%) which is a sign of good financial Profitability ratios of TGB (Per cent) health of TGB. Negative CAGR of net profit ratio Non- Net Interes shows a diminishing growth of net profit during the Operatin Interes interes profi t Sprea Years g profit t paid t t earned d ratio study period. The spread ratio is 11% which shows ratio ratio incom ratio ratio e ratio that TGB is in a solvent and safe state during the 2012-13 0.24 0.23 0.06 0.04 0.03 0 study period. 2013-14 0.28 0.22 0.07 0.04 0.03 0.01 2014-15 0.21 0.1 0.07 0.04 0.02 0.01 2015-16 0.24 0.1 0.12 0.08 0.04 0.02 2016-17 0.29 0.09 0.13 0.08 0.05 0.03 Averag 1) Semi average of profitability ratios of TGB 0.25 0.15 0.09 0.06 0.03 0.01 e during the study period: CAGR 0.04 -0.17 0.17 0.15 0.11 0.25 Source: Compiled and computed from annual reports of TGB (2012- 13 to 2016-17) The Table-19 shows the semi average of Table-19 profitability ratios of TGB during the study period. Semi average of select profitability ratios of TGB It is observed that the semi average of operating during the study period profit ratio, interest earned ratio, interest paid ratio, Ave rage spread ratio and non-interest earned ratio of TGB is duri improved during the study period. It is also observed Average ng during that the net profit ratio of TGB is declined during Profitability ratios 2012 Results (2015-16 to -13 the study period. 2016-17) to 2013 -14) With this note of analysis of profitability parameters Operating profit ratio 0.26 0.27 Improved and profitability ratio of TGB it is inferred that profitability of TGB is improved during the study Net profit ratio 0.23 0.10 Declined period. Interest earned ratio 0.07 0.13 Improved 1 XI. Recovery performance of TGB during the Interest paid ratio 0.04 0.08 Improved study period It is observed in the Table-20 that the average of Spread ratio 0.03 0.08 Improved Demand, Recovery, Over-due, Recovery percentage Non-interest earned 0.01 0.03 Improved ratio of TGB during the study period are Rs.938.44 crore, Rs.727.18 crore, Rs.209.45 crore and 45.43 % Table-22 respectively .The CAGR of Demand, Recovery and Straight line trend equation with respect to time of annual over-due are 39%, 48% and 4% respectively. The growth rates Demand, recovery and Over-due of TGB during the study period average recovery percentage is 45.43%. S Straig ht line R Table-20 trend R D C P Regressi S S equati R- Directi Calculat Paramet on Statu Significa Recovery performance of TGB during the study on squa on of ed t ers coefficien s nce with re trend values t(β) period respec AGR- Recove Overd Recover t to AGR- AGR- Demands(R Dema ry ue y time Years Recove Overd s.in crore) nd (Rs.in (Rs.in percenta t ry (%) ue (%) y (%) crore) crore) ge (%) t Table values at 3 degree of freedom t 0.05 = 3.182, t 0.01 = 5.841 1)Semi average of recovery performance of TGB Source: Compiled and computed from Annual Reports of TGB during the study period: (2012-13 to 2016-17) It is observed in the Table-21 that semi average of operating profit ratio, net profit ratio, interest Demand, Recovery, and Recovery percentage is earned ratio, interest paid ratio, spread ratio and improved during the study period. It is also observed non-interest earned ratio of TGB are 4%, -17%, that the semi average of over-due also increased 17%, 15%, 11%, 25% respectively. Here one thing during the study period. to be noted that interest earned ratio is higher th interest paid ratio, there is a standard difference between operating profit ratio and net profit ratio. ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 37 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 Table-21 terms of deposit per branch, advance per branch Semi average of recovery performance of and business per branch during the study period. TGB during the study period The profitability performance of TGB in terms Average Average of total income, total expenditure, noninterest during during income, operating profit, net profit, interest Parameters (2012-13 (2015-16 Results to 2013- to 2016- earned ratio, interest paid ratio, non-interest 14) 17) earned ratio, spread ratio, operating profit ratio, Demand 425.015 1786.235 Improved net profit ratio is improved during the study Recovery 222.64 1556.42 Improved period. Over due 202.38 225.305 Increased Recovery 38.77 60.39 Improved XIII. Limitation of the study percentage Source : Compiled and computed from Annual Reports of TGB(2012-13 to 2016-17) The study uses secondary data from a compiled published data and there are chances of inherent 2)Straight line trend equation with respect to error in the compiled statement of the secondary time of recovery performance of TGB during the data. To complete the study limited statistical tools study period: and techniques are used. Due to unavailability of segregated data of green investment, integrated data It is observed in the Table-22 that the straight line is used. The study is location specific and trend equation with respect to time of annual under Tripura jurisdiction and Tripura Gramin Bank growth rate of Demand, Recovery and over dues specific and Findings cannot be generalised. The of TGB has positive regression coefficient (β) wit study is conducted only for 5 years period. positively rising trend during the study period. However it is found that calculated t values are XIV. Scope of Further Study smaller than the table values at 3df and at 1% and 5% levels. Hence these trends are not significant. For more accurate results longer period can be chosen and more sophisticated tools and techniques With this note of analysis on recovery may be used. Using primary data from bank performance of TGB this is inferred that the customer and bank staff related to productivity more recovery performance of TGB during the study elaborate study can be done. So far as productivity period is improved. However the over-due also of bank staff is concern primary data is not collected increased during the study period. and hence there are wide open scope of further study on bank staff productivity ground. Data may be XII. Findings of the study collected from bank on green investment for further study. After details analysis of operational performance, recovery performance, productivity profitability XV. Conclusion for sustainability of deployed finance and rural development the following findings are obtained. With RBI guideline on sustainable finance TGB is doing well which is revealed through this study. The operational performance of TGB in terms of TGB is able to deploy credit in green and deposit mobilization and credit deployment is sustainable investment and recover the credit which improved during the study period. Deposit is a good sign of banking business of TGB. One way mobilization further improved in terms of saving TGB is fulfilling the credit need of marginalised deposit, current deposit, term deposit and total section of the rural society. In other way TGB is deposit during the study period. Credit deployment encouraging sustainable activity like generation of further improved in terms of priority sector solar power, mini Hydel power waste management lending, non-priority sector lending and total project through sustainable finance. The rural saving lending during the study period. is mobilized by TGB and re invested the same in the The Recovery performance of TGB in terms of same area for the rural development in Tripura. accumulated NPA during the study period improved during the study period. Reduced XVI. Recommendations and Implication of the study volume of NPA during the study period proves As per the analysis of the study TGB has done the recovery performance of TGB is improved. proper banking business through deposit The Productivity performance of TGB in terms mobilization as the rural saving from rural Tripura of labour productivity and branch productivity is are taped well by TGB and the same is reinvested in improved during the study period. The labour the rural areas of Tripura for further economic productivity of TGB further improved in terms development of the area in terms of better standard of deposit per staff, advance per staff, and of living of the rural population in terms of business per staff during the study period. The employment , income generation, financial freedom, branch productivity of TGB further improved in ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 38 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3 – March 2020 health care, sanitation, rural infrastructure Reference development in terms of safe drinking water, electricity, road connectivity, housing, education, [1] Ahmed, K.M. (1992). “Banking in India”, Anmol Publications Pvt. Ltd. New Delhi. proper nutrition and future opportunity of [2] Desai, S.S.M. (1983). “Rural Banking in India”, Himalaya employment and income generation. The proper Publishing House, Mumbay . deposit mobilization of TGB proves that bank is [3] Şahin, G., Aydin, H.I. and Abaci, B., 2014. “Green successful in generating financial inclusion and a Banking for a Sustainable Future: Turkey Application”. Annals of the Constant in Brancusi, University of saving habit among the rural population of Tripura. TarguJiu, Economy Series,- Information society and The low volume of total NPA in the course of time sustainable development. [pdf] pp.166-171. Available proves that recovery performance is good enough to through: www.utgjiu.ro/revista/ec/pdf/2014- make the business of the bank sustainable. Improved 04.../30_Sahin,per cent20Aydin.pdf (Accessed on 11 January 2020 ) productivity and profitability of TGB ensures the [4] Sharma, M.N., K, M.S. and Gopal, D.R., 2014. “A study business of TGB towards sustainability. But TGB on customer’s awareness on Green Banking initiatives in should inspire more rural mass towards productive selected public and private sector banks with special economic activities using bank credit so that there reference to Mumbai”. Journal of Economics and Finance, [Online], pp.28-35. Available through: IOSR journals will be complete development of the area of website ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 39