Financial Analysis of Regional Rural Banks in Haryana

This study analyzes the financial position of RRBs of Haryana. The financial analysis is the process of identifying the financial strengths and weaknesses of the organization by properly establishing a relationship between the items of balance sheet and profit and loss Account. It helps the concerned parties to form an opinion about the operating performance and financial position of the concerned to take suitable action to decide about the future course of action. The financial health of RRBs in Haryana has been evaluated with the help of ratio analysis. Accounting ratio is an arithmetical relationship between two accounting variables. Ratio analysis is study of relationship among the various factors in a business to judge the profitability, efficiency and financial soundness of the business and to locate the symptoms of weakness & strengths. The financial analysis is the process of identifying the financial strengths and weaknesses of the organization by properly establishing a relationship between the items of balance sheet and profit and loss Account. The financial health of RRBs (short term and long term financial position) in Haryana has been evaluated with the help of ratio analysis. The pre-merger period spans from year 2000-2001 to 2004-2005. The banks covered under this period include: Haryana Kshetriya Gramin Bank, Hisar Sirsa Kshetriya Gramin Bank, Ambala Kurukshetra Gramin Bank and Gurgaon Gramin bank. In case of Post-merger only two banks are left i.e. Haryana Gramin Bank and Gurgaon Gramin bank and time period of the study is from year 2005-06 to 2012-13.Again pre-merger and post-merger performance of RRBs in Haryana is taken into consideration by using these ratios: current ratio, debt-equity ratio, fixed assets to proprietor's funds, proprietary ratio, net profit ratio, operating ratio, return on shareholder's funds ratio and credit deposit ratio. By taking these above said ratios comparison among different Gramin banks of Haryana are made.