A review of Non Performing Assets and various problems in RRB’s

Abstract

Regional rural banks were bom with a structure, synthesizing the good features of commercial banks - professional management and financial discipline; and the cooperative banks - local feel, small area of operation, low cost structure and democratic management to improve the credit delivery system in the rural areas. Their main motto is to develop the rural economy by deploying credit for the purpose of development of agriculture, trade, commerce, industry and other productive activities; and extending facilities to the weaker sections in the rural areas. In analysis of the financial performance of regional rural banks, a deductive approach is adopted. This would help in understanding the character and analyzing various factors pertaining to success of business activities of the mral credit institutions in supplementing the mral economy.