Regional Rural Banks plays a crucial role in extending and lending agricultural and rural credit. Amalgamation and Recapitalisationare some measures takenby the Governmentof India tostrengthen the Regional Rural Banks for playing greater role in agricultural and rural lending. The process of restructuring was initiated for improvement in their operations, ensure better managerial control and achieve economics of scale. A committee under the chairmanship A.V. Sardesai (2005) was formed on this issue of restructuring these Regional Rural Banks and to improve their operational viability. The committee had a view that, a change in the sponsor banks will bring change in workculture, efficiency and competitiveness which may in some cases improve the performance of the Regional Rural Banks.
The present study aims to answer the performance related questions, on the two regional rural bank of West Bengal, and suggest recommendations based on the study and finding. Both primary and secondarydata has been collected for the study. The secondary financialdata has been collected from the nineyears’ annualreport (2007–2015) of Paschim Banga Gramin Bank and Bangiya GraminVikash Bank. The primary data has been collected from 400 customers of these two banks, 211 from Paschim Banga Gramin Bank and 189 from Bangiya Gramin Vikash Bank.
The study isdone based onthree parameters. The first one is analysis of the key performance indicators, the analysis has been done using independent t-test, and second one is through ratio analysis using CAMEL Model and third one by analysing the primary data, using analysis of variance (ANOVA). The statistical analysis has been done with the help of SPSS 20.
It is expected that the research can bring some meaningful value addition in the post-amalgamation performance of Paschim Banga Gramin Bank and Bangiya Gramin Vikash Bank, where no work has been done previously.
