Financial Performance of RRBs in Saurashtra Region of Gujarat

Agricultural sector plays a dominant role in improving living standard of people and employment generation in rural India. Regional Rural Banks are providing credit to farmers, agricultural labour and artisans for the development of rural India. So it is essential to evaluate its performance and viability regarding agricultural sector to enhance the smooth flow of credit to this sector. Keeping this in view, an attempt was made to undertake the study on "economic evaluation of the performance of institutional finance to agriculture in Junagadh district, Gujarat".The results of performance and viability through various ratios indicated a considerable improvement and sound position of credit delivery system of the bank. Current ratio and quick ratio for Junagadh Amreli Gramin Bank(JAGB) were found, on average, 1.53 and 1.25, respectively while the gross profit ratio was found 3.87. The turnover ratio and net capital ratio indicated sound performance and long-term financial safety over a period of time. Working capital ratio and capital employed turnover ratio were found 4.57:1 and 6.68:1, and 4.50:1 and 6.63:1 for JAGB and SGB, respectively, while the net capital ratio was found more than unity during study period. Economic performance ratio and operational performance ratio showed expected performance and improvement in size and volume of business. Productivity per staff and per branch increased from `10.40 lakh to ` 287.66 lakh and from ` 36.02 lakh to ` 969.59 lakh respectively, during the study period.