Performance Assessment of Regional Rural Banks in India: Evidence from Andhra Pradesh Grameena Vikas Bank

Abstract

Development of economy depends on some of key elements; they are utilization of factors of production, efficient operations of some of vital sectors. Out of which banking sector is one of the key sectors plays a very important role in country’s economic growth. Banking sector performance assessment is an effective tool and indicator to verify the consistency and contribution in economic development. Rural banking sector is one of the supporting sectors for comprehensive development of rural areas of the country. In recent times, rural banking sector established the regional rural banks with the aim of satisfying the credit requirements of underprivileged segments of the country. Andhra Pradesh Grameena Vikas Bank (APGVB) is one of the notified regional rural banks in India. The article, therefore, is a synopsis on the evaluation of the performance of Andhra Pradesh Grameena Vikas Bank (APGVB) by applying CAMEL model which is an effective tool to measure the financial strength of the bank and also to offer required suggestions and corrective actions to overcome shortcomings. Descriptive and an analytical research design are used for the present study. The data for the year of 2008-09 and 2018-19 have been taken from the annual reports of the bank to make a comparative study on the performance of the bank over decade that is as on 2008-09 and as on 2018-19.