International Journal of Research in Engineering, Science and Management 191 Volume-3, Issue-12, December-2020 https://www.ijresm.com | ISSN (Online): 2581-5792

Appraisal of Financial Performance of Regional Rural with Special Reference to Assam Gramin Vikash , Gramin Vikash Bank and Karnataka Gramin Vikash Bank

S. Selvakumar1*, D. Abima2 1Assistant Professor & Head, PG & Research Department of Commerce, Theivanai Ammal College for Women (Autonomous), Villupuram, 2M.Phil. Scholar, PG & Research Department of Commerce, Theivanai Ammal College for Women (Autonomous), Villupuram, India *Corresponding author: [email protected]

Abstract: Regional Rural Banks are functioning at regional level required. That is why an attempt has been made to analyse the in different States and Union Territories of India. These banks are financial performance of the , rendering both fundamental and modern banking services. and Karnataka Vikash Gramin Finance is one of the most important aspects of banking business. Without proper financial planning an enterprise is unlikely to be Bank. successful in managing money. For the proper financial planning, analysis of the financial performance is required. Hence, an 3. Objectives of the Study attempt has been made to analyse the performance of the Assam  To ascertain the short - term solvency of select RRBs. Gramin Vikash Bank, Maharashtra Gramin Bank and Karnataka Vikash Gramin Bank in terms of short term solvency, long term  To ascertain the long – term solvency of select RRBs solvency and profitability. It is concluded that the financial  To ascertain the profitability of select RRBs. performance of the Assam Gramin Vikash Bank, Maharashtra  To offer suitable suggestions based on the findings of the Gramin Bank and Karnataka Vikash Gramin Bank are good. study.

Keywords: Financial ratios, Financial performance, Regional rural banks. 4. Research Methodology and Data Collection The study is based on secondary data only. The secondary 1. Introduction data were collected from websites, journals, magazines, books One of the successful experiments of the has and annual reports. been formation of the Regional Rural Banks. Close on the heels of nationalization, when the focus shifted from class banking to 5. Tools of Analysis mass banking, the RRBs emerged as low cost bank designed to a) Profitability Ratios cater to the needs of small and marginal farmers, rural artisans b) Short term solvency and long term solvency ratios. and small entrepreneurs. RRBs are operating at regional level in different states of 6. Limitations of the Study India. They have been created with a view of serving primarily 1. The study fully depends on financial data collected from the the rural areas of India with basic banking and financial published financial statements of Banks. services. 2. This study incorporates all the limitations that are inherent in the financial statements. 2. Statement of the Problem 3. Financial statements reflects the book value and the Finance is one of the most important aspects of banking management might have window dressed or manipulated business. Without proper financial planning an enterprise is the values. unlikely to be successful in managing money. For the proper financial planning, analysis of the financial performance is International Journal of Research in Engineering, Science and Management 192 Volume-3, Issue-12, December-2020 https://www.ijresm.com | ISSN (Online): 2581-5792

7. Scope of the Study financial performance of RRBs in terms of investment to credit, This study is confined to RRBs only. It does not cover Cash to Deposits ratio, investment to deposit ratio, profitability Commercial Banks, Co-operative Banks and Industrial ratio, Development Banks. It considers only financial analysis factor, Ashuthosh Guta and Harish Kaur (2018) in their article titled other factors are ignored. “Performance of Regional Rural Bank in Punjab – A Financial Perspective” analysed the financial performance of Punjab 8. Period of the Study Gramin Bank and Malwa Gramin Bank using CAMEL Model and compound annual growth rate values. Further, the results It covers a period of five years from 2014-15 to 2018-19. of T-test revealed that there is statistically significant difference between the banks based upon selected CAMEL ratios. 9. Review of Literature Devendra Singh and Sowmiya Aggarwal (2018) in their Dhanraj N and Saikumar R (2018) in their article titled article titled “A study of Regional Rural Bank and Its Impact on “Performance of Regional Rural Banks in India” examined the Escalation of Agro based Economy in India” examined the growth-pattern and progress of national agriculture policy and growth of rural credit in India is deeply dependent on their programs in rural credit in India and analyze the financial financial strength, motive behind the establishment of RRBs to performance. They have concluded that the establishment of exclusively develop backward area and to provide assistance to Regional Rural Banks for the development of rural economy by the agricultural sector of India. They have concluded that providing financial assistance to agriculture, trade, commerce, Regional Rural Banks play a key role as an important vehicle small and house hold industry through credit and advances are of credit delivery in rural areas with the objective of credit being met with the establishment of various areas to specific dispersal to small, marginal farmers & socio-economically Regional Rural Banks. weaker section of population for the development of the Tripti Gupta and Kalpana Singh (2019) in their article titled agriculture, trade and industry. But still its commercial viability “Performance Evaluation of Regional Rural Banks in India” has been questioned due to its limited business flexibility, examined the growth pattern and progress of RRBs and smaller size of loans and high risk in loans and advances. evaluated the performance of RRBs before and after the merger John Boscom and Krishna Kumar R (2019) in their article of the banks and to analysis the financial health of RRBs. They titled “A Comparative Study of Regional Rural Banks in have concluded that improvement in the productivity Tamilnadu” analysed the key performance indicators of RRBs performance of RRBs in respect to per branch productivity and in Tamilnadu and offered suggestions based on findings. They per staff productivity was realized in the merging of 2005 while have concluded that banking staff should interact more with results showed the poor performance in 2013 merging process. their customer to overcome this problem, Regional Rural Banks Taral Patel and Nisarg Shah (2016) in their article titled “A in Tamilnadu are an integral part of the rural credit structure of study on performance evaluation of RRBs of India” analysed the State. It is concluded that RRBs in Tamilnadu are working the financial performance of RRBs and to evaluate the for the development of rural area of the state. performance of RRBs in terms of profitability, priority and non- Syed Mohammad and Narayana Reddy (2017) in their article priority sector over the study period. They have concluded their titled “Indian Regional Rural Banks’ Growth and Performance” research study finally analysing the financial performance of analysed the key performance indicators of Regional Rural RRBs at post and pre amalgamation scenario measuring based Banks in India. They have concluded that there is also a wide on the spread ratio, burden ratio and profitability ratio. gap in Cash to Deposits ratio between the RRBs and Sabitha Devi N (2014) in her article title “Problems and Commercial Banks. Hence it is recommended to make Prospects of Regional Rural Banks” have set objectives to consistent efforts to augment the C-D ratio of RRBs on par with cultivate the banking habits among the rural people and Commercial Banks. mobilize savings for the economic development of rural areas Akash Kumar (2018) in his article titled “An Analytical and to provide finance to Co-operative Societies and Primary Study on Performance of Regional Rural Banks” examined the Credit Societies and Agricultural Marketing Societies. They social relevance for studying profitability performance of RRBs have concluded that they should establish proper co-ordination and focused on the merger of RRBs in India as well as in Bihar with other institutional financing agencies, Co-operative Banks, State. It is concluded that the merged RRBs were establishing a Commercial Banks and local participants to enhance their strong link with NGOs, Government and other external capability and exploit untapped rural market. agencies such as community based organizations, corporates, Jitendra Kumar V.P. and Malik D.P., (2019) in their article research institutions and socially disposed individuals. titled “Growth and Performance of RRBs in India” examined Tanay Kumar Pal and Uday Krishna Mithra (2019) in their the growth and performance of RRBs in India. They have article titled “A concluded that the number of RRBs in India has decreased due Comparative Study of Regional Rural Banks in West to amalgamation process and number of districts covered by Bengal” enquired the necessity of opening banking sector in RRBs increased year by year. This paper investigates the rural West Bengal particularly Regional Rural Banks and International Journal of Research in Engineering, Science and Management 193 Volume-3, Issue-12, December-2020 https://www.ijresm.com | ISSN (Online): 2581-5792 recommended the measures in improving the functions on the Table 3 basis of conclusion. They have concluded that RRBs have Fixed Assets to Total Assets ratio YEAR AGVB MGVB KGVB successfully achieved the aforementioned goals to take banking 2014 – 15 0.17 0.25 0.41 to door steps of rural household particularly in banking to 2015 – 16 0.12 0.24 0.56 deprived rural areas to avail easy and cheaper credit to weaker 2016 – 17 0.14 0.21 0.54 section, who are mainly dependent on village money lenders 2017 – 18 0.12 0.20 1.12 2018 – 19 0.12 0.22 1.08 and to create employment opportunities in rural areas. Means Score 0.13 0.22 0.74 Piyush Thakur and Aditya Guta (2015) in their article titled Source: Calculated “Regional Rural Banks - A Way to Become a developed Formula: Economy” found the loss making regions in the working of 퐹𝑖푥푒푑 퐴푠푠푒푡푠 Fixed Asset to Total Assets ratio = × 100 RRBs and highlighted the causes of loss in these regions. They 푇표푡푎푙 퐴푠푠푒푡푠 have concluded that RRBs should involve Self-Help Groups and Co-operative Society to ensure that they reach every nook From the above table 3, it is inferred that the mean score of and corner so that the deep rooted unorganized sector is thrown fixed assets to total assets ratio is higher for KGVB when out of the society. compared to AGVB and MGVB. It is concluded that KGVB has made more fixed asset when compared to AGVB and 10. Ration Analysis MGVB from 2014-15 to 2018-19. Table 1 Capital to Total Liabilities Ratio Table 4 YEAR AGVB MGVB KGVB Other assets to Total Assets Ratio 2014 – 15 0.05 2.07 0.39 YEAR AGVB MGVB KGVB 2015 – 16 0.04 2.47 0.36 2014 – 15 3.18 2.67 1.96 2016 – 17 1.07 2.81 0.33 2015 – 16 4.05 2.13 6.20 2017 – 18 0.95 2.37 0.43 2016 – 17 1.95 2.47 5.29 2018 – 19 0.95 2.07 0.40 2017 – 18 1.71 3.31 4.53 Means Score 0.61 2.35 0.38 2018 – 19 1.99 2.18 4.70 Source: Calculated Means Score 2.57 2.55 4.53 Source: Calculated Formula: Formula: 퐶푎푝𝑖푡푎푙 푂푡ℎ푒푟 푎푠푠푒푡푠 Capital to Total Liability = Other Asset to Total Assets ratio = × 100 푇표푡푎푙 퐿𝑖푎푏𝑖푙𝑖푡𝑖푒푠 푇표푡푎푙 퐴푠푠푒푡푠

From the above table 1, it is clear that mean score of capital From the above table 4, it is clearly understood that the mean to total liabilities is higher for MGVB when compared to score of other assets to total assets for KGVB is higher when AGVB and KGVB. It is concluded that MGVB was able to compared to AGVB and MGVB. It is concluded that KGVB attract more capital when compared to AGVB and KGVB. has made more other assets when compared to AGVB and MGVB from 2014-15 to 2018-19. Table 2 Reserve & Surplus to Total Liabilities Ratio Table 5 YEAR AGVB MGVB KGVB Borrowings to deposits ratio 2014 - 15 3.25 1.90 6.08 YEAR AGVB MGVB KGVB 2015 - 16 3.63 1.60 6.17 2014 – 15 2.17 21.02 4.71 2016 - 17 3.96 2.20 6.19 2015 – 16 5.63 20.78 2.25 2017 - 18 3.62 2.37 7.57 2016 – 17 7.90 16.25 2.08 2018 – 19 1.74 2.04 7.28 2017 – 18 7.76 15.37 1.46 Means Score 3.24 2.02 6.66 2018 – 19 4.54 12.60 1.29 Source: Calculated Mean Score 5.60 17.20 2.35 Source: Calculated Reserve & Surplus to Total Liabilities 푅푒푠푒푟푣푒 & 푆푢푟푝푙푢푠 Formula: = × 100 푇표푡푎푙 퐿𝑖푎푏𝑖푙𝑖푡𝑖푒푠 퐵표푟푟표푤𝑖푛푔푠 Borrowings to deposits ratio = × 100 From the above table 2, it is clear that mean score of reserve 퐷푒푝표푠𝑖푡푠 & surplus to total liabilities is higher for KGVB and lower for MGVB from 2014 – 15 to 2018 – 19. It is concluded that From the above table 5, It is clear that the mean score of KGVB has allocated more amount of reserves when compared Borrowings to deposits ration is higher for MGVB when to AGVB and MGVB. compared to AGVB and KGVB. It is concluded that MGVB International Journal of Research in Engineering, Science and Management 194 Volume-3, Issue-12, December-2020 https://www.ijresm.com | ISSN (Online): 2581-5792 has more operating expenses when compared to MGVB and Formula: KGVB from 2014-15 to 2018-19. Cash Balance with RBI to Total Assets ratio Table 6 퐶푎푠ℎ 퐵푎푙푎푛푐푒 푤𝑖푡ℎ 푅퐵퐼 Deposits to Total Liabilities Ratio = × 100 YEAR AGVB MGVB KGVB 푇표푡푎푙 퐴푠푠푒푡 2014 – 15 87.58 73.48 86.29 2015 – 16 84.22 76.93 88.75 From the above table 8, it is clear that all the three banks 2016 – 17 84.20 80.13 89.35 maintained cash balance with RBI at uniform rate from 2014 – 2017 – 18 84.37 81.04 88.47 15 to 2018 – 19. 2018 – 19 90.82 83.80 89.33 Table 9 Means Score 86.32 79.07 88.43 Money at calls and short notice to Total Assets Ratio Source: Calculated YEAR AGVB MGVB KGVB 2014 – 15 25.80 19.02 0.39 Formula: 2015 – 16 31.67 20.32 0.24 2016 – 17 25.38 18.09 0.71 퐷푒푝표푠𝑖푡푠 2017 – 18 25.96 15.43 0.53 Deposits to Total Liabilities = × 100 2018 – 19 15.49 20.92 0.08 푇표푡푎푙 퐿𝑖푎푏𝑖푙𝑖푡𝑖푒푠 Means Score 24.86 18.75 0.39 Source: Calculated From the above table 6, it is inferred that mean score of deposits to total liabilities ratio is higher for KGVB and lower Formula: for MGVB. It is concluded that KGVB has mobilised more deposits when compared to AGVB and MGVB from 2014 – 15 Money at calls and short notice to Total Assets ratio to 2018 – 19. 푀표푛푒푦 푎푡 푐푎푙푙푠 & 푠ℎ표푟푡 푛표푡𝑖푐푒 = × 100 푇표푡푎푙 퐴푠푠푒푡푠 Table 7 Borrowings to Total Liabilities Ratio From the above table 9, it is understood that the mean score YEAR AGVB MGVB KGVB of AGVB is higher. It is concluded that AGVB has borrowed 2014 – 15 1.90 14.08 4.07 2015 – 16 4.74 15.98 2.00 more funds through money at call short notice when compared 2016 – 17 6.65 13.02 1.86 to MGVB and KGVB from 2014-15 to 2018-19. 2017 – 18 6.55 12.46 1.29 2018 – 19 4.13 10.55 1.16 Table 10 Means Score 4.79 13.21 2.07 Investment to Total Assets Ratio Source: Calculated YEAR AGVB MGVB KGVB 2014 – 15 19.09 26.32 32.37 Formula: 2015 – 16 17.99 28.68 27.06 2016 – 17 23.80 27.34 28.77 2017 – 18 27.30 33.44 31.53 퐵표푟푟표푤𝑖푛푔푠 Borrowings to Total Liabilities = × 100 2018 – 19 41.16 36.77 21.94 푇표푡푎푙 퐿𝑖푎푏𝑖푙𝑖푡𝑖푒푠 Means Score 25.86 30.51 28.33 Source: Calculated From the above table 7, it is clear that the mean score of borrowings to total liabilities ratio is higher for MGVB and Formula: 퐼푛푣푒푠푡푚푒푛푡 lower for KGVB from 2014 – 15 to 2018 – 19. It is concluded Investment to Total Assets ratio = × 100 that MGVB has more debt content in its capital structure when 푇표푡푎푙 퐴푠푠푒푡푠 compared to AGVB and KGVB. From the above table 10, it is clear that the mean score of Table 8 investments to total assets ratio is higher for MGVB when Cash Balance with RBI to Total Assets Ratio compared to AGVB and KGVB. It is concluded that MGVB YEAR AGVB MGVB KGVB has high investment when compared to AGVB and KGVB from 2014 – 15 1.90 14.08 4.07 2014-15 to 2018-19. 2015 - 16 4.74 15.98 2.00 Table 11 2016 - 17 6.65 13.02 1.86 Investment to Total Assets Ratio 2017 - 18 6.55 12.46 1.29 YEAR AGVB MGVB KGVB 2018 – 19 4.13 10.55 1.16 2014 – 15 47.30 42.74 60.27 Means Score 4.79 13.21 2.07 2015 – 16 42.00 44.36 61.11 Source: Calculated 2016 – 17 44.43 47.83 60.00

2017 – 18 40.89 43.01 57.70 2018 – 19 36.91 35.02 67.14 Means Score 42.30 42.59 61.24 Source: Calculated International Journal of Research in Engineering, Science and Management 195 Volume-3, Issue-12, December-2020 https://www.ijresm.com | ISSN (Online): 2581-5792

Formula: Table 14 Interest expended to Total expenses ratio 퐴푑푣푎푛푐푒푠 YEAR AGVB MGVB KGVB Advances to Total Assets ratio = × 100 2014 – 15 53.58 63.81 71.48 푇표푡푎푙 퐴푠푠푒푡푠 2015 – 16 60.51 65.60 74.24 2016 – 17 58.14 66.67 72.06 From the above table 11, it is clear that the mean score of 2017 – 18 55.16 62.58 66.65 2018 – 19 45.83 57.88 58.92 advances to total assets ratio is higher for KGVB when Mean Score 54.64 63.30 68.67 compared to AGVB and MGVB. It is concluded that KGVB Source: Calculated has made more amount of advances when compared to AGVB and MGVB from 2014-15 to 2018-19. Formula: Interest expended to Total expenses ratio Table 12 퐼푛푡푒푟푒푠푡 푒푥푝푒푛푑푒푑 = × 100 Interest earned to Total income ratio 푇표푡푎푙 푒푥푝푒푛푠푒푠 YEAR AGVB MGVB KGVB 2014 – 15 94.69 94.02 89.22 2015 – 16 94.23 93.49 90.25 From the above table 14, It is clear that the mean score of 2016 – 17 94.06 92.50 90.18 interest expended to total expenses is higher for KGVB when 2017 – 18 82.90 92.89 86.50 compared to AGVB and MGVB. It is concluded that interest 2018 – 19 89.70 88.56 85.02 Means Score 91.11 92.29 88.23 expended is more in case of KGVB when compared to AGVB Source: Calculated and MGVB from 2014-15 to 2018-19.

Formula: Table 15 Interest expended to Total expenses ratio Interest earned to Total Income ratio YEAR AGVB MGVB KGVB 2014 – 15 26.84 27.01 19.96 퐼푛푡푒푟푒푠푡 푒푎푟푛푒푑 = × 100 2015 – 16 36.39 27.65 18.97 푇표푡푎푙 퐼푛푐표푚푒 2016 – 17 31.83 28.71 19.35 2017 – 18 30.97 25.76 23.52 From the above table 12, it is clear that the mean score of 2018 – 19 24.65 24.55 22.11 Mean Score 30.13 26.73 2.78 interest earned to total income is higher for MGVB when Source: Calculated compared to AGVB and KGVB. It is concluded that MGVB has high interest earned income when compared to AGVB and Formula: KGVB from 2014-15 to 2018-19. Interest expended to Total expenses ratio Table 13 퐼푛푡푒푟푒푠푡 푒푥푝푒푛푑푒푑 Interest earned to Total income ratio = × 100 YEAR AGVB MGVB KGVB 푇표푡푎푙 푒푥푝푒푛푠푒푠 2014 – 15 5.30 5.92 10.77 2015 – 16 5.76 6.48 9.74 From the above table 15, It is clear that the mean score of 2016 – 17 5.94 7.49 9.81 2017 – 18 17.09 7.11 13.49 operating expenses to total expenses is higher for AGVB when 2018 – 19 10 11.43 14.95 compared to MGVB and KGVB. It is concluded that AGVB Mean Score 8.87 7.68 11.75 has incurred more operating expenses when compared to Source: Calculated MGVB and KGVB from 2014-15 to 2018-19.

Formula: Table 16 Net profit after tax to Total assets ratio Other income to Total Income ratio YEAR AGVB MGVB KGVB 푂푡ℎ푒푟 𝑖푛푐표푚푒 2014 – 15 0.34 0.98 0.66 = × 100 2015 – 16 0.48 0.85 0.87 푇표푡푎푙 퐼푛푐표푚푒 2016 – 17 0.30 0.87 0.73 2017 – 18 5.96 0.47 0.70 From the above table 13, it is inferred that the mean score of 2018 – 19 1.43 0.63 0.65 other income to total income is higher for KGVB when Mean Score 1.70 0.78 0.72 compared to AGVB and MGVB. It is concluded that KGVB Source: Calculated has high interest earned income when compared to AGVB and MGVB from 2014-15 to 2018-19. Formula: Net profit after tax to Total assets ratio 푁푒푡 푝푟표푓𝑖푡 푎푓푡푒푟 푡푎푥 = × 100 푇표푡푎푙 푎푠푠푒푡푠 International Journal of Research in Engineering, Science and Management 196 Volume-3, Issue-12, December-2020 https://www.ijresm.com | ISSN (Online): 2581-5792

From the above table 16, It is clear that the mean score of net 2. Policy should be made by Government for opening more profit after tax to total assets is higher for AGVB when branches in weaker and remote areas of the States. compared to MGVB and KGVB. It is concluded that AGVB 3. Productivity can be improved by controlling the costs and has earned more net profit after tax when compared to MGVB increasing the income. and KGVB from 2014-15 to 2018-19. 4. In this competitive world, RRBs have to concentrate on speedy, qualitative and secure banking services to retain 11. Findings existing customers and attract potential customers.  MGVB was able to attract more capital when compared to AGVB and KGVB. 13. Scope for Further Research  The performance of KGVB in creating reserves is The following are the scope for further research: satisfactory when compared to AGVB and KGVB. 1. A Comparative Study on Standalone and Amalgamated  MGVB has more debt content in its capital structure when Regional Rural Banks using CAMELS Approach. compared to AGVB. 2. Customers Perception towards Regional Rural Banks in  All three banks maintained cash and bank balance with RBI India. at uniform rate from 2014 – 15 to 2018 – 19. 3. Role of RRBs in the Promotion of Self Help Groups in  AGVB has borrowed more funds through money at call and India -An Analytical Study. short notice when compared to MGVB and KGVB from 2014 – 15 to 2018 – 19. 14. Conclusion  MGVB has high investments when compared to AGVB and RRBs successfully achieved its objectives such as to take KGVB from 2014 – 15 to 2018 – 19. banking to door steps of rural households particularly in  The performance of KGVB in granting loans and advances banking deprived rural area, to avail easy and cheaper credit to is satisfactory when compared to AGVB and MGVB from weaker rural section who are dependent on private lenders, to 2014 – 15 to 2018 – 19. encourage rural savings for productive activities, to generate  KGVB has more fixed assets when compared to AGVB and employment in rural areas and to bring down the cost of MGVB from 2014 – 15 to 2018 – 19. purveying credit in rural areas. Thus RRBs are providing  KGVB has more other assets when compared to AGVB and strongest banking network. Based on the financial statement MGVB from 2014 – 15 to 2018 – 19. analysis using financial ratios, it is concluded the short-term  As far as MGVB is concerned the interest income is solvency position, long-term solvency position and profitability satisfactory where as AGVB and KGVB need to improve. position of the selected RRBs are good.  KGVB has high other income when compared to AGVB and MGVB from 2014 – 15 to 2018 – 19. References  AGVB has incurred more operating expenses when [1] P. Chandra, ‘Fundamentals of Financial Management’, 4th Revised Edition, Tata McGraw Hill Publications, 2018. compared to MGVB and KGVB from 2014 – 15 to 2018 – [2] J. U. Ahmed, and G. B. Bhandari, and R. Ahmed, “Profitability of RRBs 19. in India – an empirical analysis in Meghalaya Rural bank,” in Journal of  The profitability ratio shows that AGVB has earned more rural and industrial development, 2013. [3] D Maheshwara Reddy, and K. V. N Prasad, “Evaluating performance of net profit after tax where as MGVB and KGVB need to RRBs – an application of camelmodel, Researchers world,” in Journal of improve in that aspect. arts, science and commerce, vol. 2, no. 4, 2011. [4] G. Lodha, and I. Trivedi, “NABARD: A Financial Inclusion through Regional Rural Banks (RRB’s),” in International Journal of Research in 12. Suggestions Business Management, vol. 3, no.10, pp. 77-82, 2015. The following are the suggestions for the improvement of [5] S. S. Khan, and A. A. Ansari, “A Study on the Performance of Regional Rural Banks in India,” in Global Journal for Research Analysis, vol. 7, RRBs: no. 2, 2018. 1. The Government should encourage and support RRBs to [6] A. K. Sony, and A. Kapre, “A Study on Current Status of Regional Rural take appropriate steps in rural development. Banks in India,” in National Journal of Research in Commerce and Management, vol. 2, no. 2, pp. 1-16, 2013.