A Comparative Study of Regional Rural Banks in Maharashtra State

Regional rural Banks plays a vital role in the agriculture and rural development of Maharashtra. The RRBs have more reached to the rural area of Maharashtra, through their huge network. The success of rural credit in Maharashtra is largely depends on their financial strength. RRBs are key financing institution at the rural level which shoulders responsibility of meeting credit needs of different types of agriculture credit in rural areas. At present, most of the regional rural banks are facing the problems of overdue, recovery, non-performing assets and other problems. In Maharashtra, two RRBs are functioning. Therefore, it is necessary to comparative study of financial performance of RRBs in Maharashtra. This paper attempts to analyze the comparison of financial performance of RRBs in Maharashtra as on 31st March 2013. The study is based on secondary data collected form annual reports of NABARD, RBI and RRBs. An analytical research design of Key Performance Indicators Analysis such as number of district covered and branches, deposits, loans, loans, investments, recovery and productivity is followed in the present study. The study concludes that Maharashtra Gramin Bank (MGB) is the largest bank of Maharashtra in district coverage and branch network but the productivity of Vidharbha Konkan Gramin Bank VKGB is low in comparison of Maharashtra Gramin Bank MGB.