Performance appraisal of operational efficiency in regional rural Banks

Development of the Country mainly depends on agricultural rural masses. To meet the agricultural needs of rural masses which are inadequate in condition the govt. decided to establish a poor man's bank (RRBs) for the purpose of mobilizing the deposits and disbursement of loans to the needy people. The present paper focused on the evaluation with respect to the operational performance of regional rural banks in India for a period of ten years. The study is mainly based on secondary data, which is assembled from the annual reports of NABARD and reports on trend and progress of banking in India. The indicators which are considered for the study are deposits, advances, investments, credit deposit ratio investment deposit ratio and percentage of advances in priority sector lending. The data were analysed through descriptive statistics and F-Test Two sample for Variances using EXCEL. The operational performance of regional rural banks has improved significantly during the study period.