They have been created with a read to serve primarily the agricultural areas of India with basic banking and monetary services

64902.91 57 22.32 23.77 It may be observed from above that the share of agriculture credit to total credit has come down to 57% during the year but in absolute terms. The agriculture credit has more than doubled in 2012-13 from the year 2008-09. Agriculture credit growth rate has kept pace with the total credit deployment. 4.16.4 Investments The Investment of Regional Rural Bank increased from Rs.95,975 crore as on 31st March 2012 to Rs.1,10,683 crore as on 31st March 2013 registering an increase of 15.32%.
Further analysis of the investment data revealed that as on 31st March 2013, he Statutory Liquidity Ratio investment amounted to Rs.49,938 crore while non- Statutory Liquidity Ratio investments was to the tune of Rs.60,746 crore. The Investment Deposit Ratio of Rural Regional Banks have declined over the years from 72% as on 31st March, 2001 to 52.34% as on 31st March 2013 4.16.5
Working Results 4.16.5.1 Profitability and Viability 63 Rural Regional Banks have earned profit to the extent of Rs.3281 crore before tax as on 31st March 2013. The total profit of the Rural Regional Banks has increased from Rs.2549 crore in 2011-12 to Rs.3,281 crore during the year 2012-13. After payment of Income Tax of Rs.896 crore, the net profit aggregated to Rs.2, 385.
The number of loss making Rural Regional Banks had decreased from 3 in 2011-12 to 1 during the year 2012-13 and the losses decreased from Rs.29 crores to Rs.2.07 crore. 4.16.5.2 Accumulated Losses As on 31st March, 2013, 11 of the 64 Rural Regional Banks had reported accumulated losses to the tune of Rs.1,012 crore as against Rs.1,333 crore as on 31st March , 2012 The accumulated loss was decreased by Rs.321 crore during the year under review. 4.16.5.3
Recovery Performance There has been marginal decrease in the recovery percentage over the years from 81.32% as on 30th June 2012. The aggregate over dues, however, increased by Rs.1,802 crore to Rs.13,567 crore as on 30th June, 2012 Rs.11,765 crore as on 30th June, 2011. 4.16.5.4 Non Performing Assets The Gross Non-performing Assets of Rural Regional Banks which was Rs.5859 crore as on 31st March, 2012 5.02% has increased to Rs.7,907 crore as on 31st March 2013 5.65%. The Net Non-performing Asset of Rural Regional Banks which was Rs.3372 crore as on 31st March, 2012 2.98% has increased to 4,528 crore as on 31st March, 2013 3.40%.
The data revealed that 10 Rural Regional Banks had gross Non-performing Assets percentage of less than 2% while 32 Regional Rural Bank were having gross Non-performing Asset percentage above the national average 5.65 as on 31st March, 2013 4.16.5.5 Credit Deposit Ratio The aggregate CDR of Rural Regional Banks increased from 62.46% as on 31st March 2012 to 66.13% as on 31st March 2013. Nine Regional Rural achieved CDR of more than 100% 14.17 PRODUCTIVITY 14.17.1
Branch Productivity The average branch productivity (business per branch) of all 64 Rural Regional Banks stood at Rs/19.67 crore in the year 2012-13 as against rs.17.90 crore in March 2012 14.17.2 Staff Productivity Average staff Productivity (Business per staff) of all Rural Regional Banks was Rs,4.62 crore during 2012-13 as against Rs.4.07 crore in March, 2012 Net Worth The Net Worth of Rural Regional Banks improved from Rs.15,129 crore in 2011-12 to Rs.
18,292 crore in 2012-13 registering a growth of 20.91% 4.18 POLICY INTIATIVES/DEVELOPMENTS Recapitalization of Rural Regional Banks Ø The Chakraborty Committee reviewed the financial position of all Rural Regional Banks in 2010 and recommended for recapitalisation of 40 out of 82 Rural Regional Banks for strengthening their CRAR to the level of 9 percent by 31st March, 2012.
According to the committee the remaining Rural Regional Banks are in a position to achieve the desired level of CRAR on their own. accepting the guidelines of the committee, the authorities of india along side different shareholders determined to recapitalise the rural nearby banks via infusing finances to the volume of Rs 2,2 00 crore. the shareholder clever share (authorities of india, sponsor financial institution and country governments) is 50:35:15 respectively.

Ø As on 31st March, 2013, an amount of Rs.2015.86 crore has been released to 37 Rural Regional Banks in 20 states. the released amount consists of government of india's contribution of rs.1003.ninety two crore, state government contribution of Rs.303.59 crore and sponsor bank's contribution of rs.708.35 crore. the recapitalisation is whole in recognize of 35 rural nearby banks. government of india share of rs.7.99 crore is pending for release in respect of Manipur Rural Bank. Out of 35 fully Recapitalised Rural Regional Banks 3 Rural Regional Banks viz.

Central Madhya Pradesh Grameena Bank, Manipur Rural Bank and Mizoram Rural Bank have not achieved CRAR of 9 per cent as on 31st March, 2013. 4.19 FINANCIAL INCLUSION Regional Rural Bank as a group has become strong intermediary for financial inclusion in rural areas by opening a large number of “No frills” accounts and by financing under General Credit Card as per RBI guide lines .Total number of accounts stood at 1885.71lakh in March, 2013 against 1107.10 lakh in March 2009 4.20 FINANCIAL PERFORMANCE OF THE RRBs AS ON 31 MARCH 2014 4.20.1.
Credit Flow to agriculture The total credit flow to agriculture, agency-wise, during the last 5 year period by all agencies is as under: The share of the RRBs in Ground Level Credit (GLC) which was 8.9 per cent in 2008-09 has gradually increased to 11.6 per cent in 2013-14. The Rural Regional Banks are gicing agricultural loans to farmers to reduce local money leaders influence on the agriculture produce of the farmers in the rural areas which helping the farmers to become self sufficient finance in near future. Table: 4.8
Total Agricultural credit flow and share of agencies therein (Rupees in Crores) Year 2009-10 2010-11 2011-12 2012-13 2013-14* SCARDBs 2056 2664 2410 1554 1869 % share to total 0.5 0.6 0.5 0.3 0.2 StCBs 61441 75457 85553 109649 118095 % share to total 16 16.1 16.7 18.1 16.6 RRBs 35218 44293 54450 63681 82653 % share to total 902 905 10.7 10.5 11.6 Commercial Banks 285800 345877 368616 432491 509005 % share to total 74.3 73.9 72.1 71.2
71.5 Total 384515 468291 511029 607375 711622 Source: RBI 4.20.2. Financing of Small and Marginal Farmers RRBs had the highest share of disbursement to small and marginal farmers both in terms of number and amount disbursed among all the agencies during 2013-14. Table: 4.9 Loans disbursed to Small Farmers/Marginal Farmers (Rupees in Crores) Sl.No Agency No.
of A/Cs Disbursement Of which A/Cs pertaining to SF/MF % share to total number of A/Cs Of which Credit disbursed to SF/MF % share to total credit disbursed i Comm. Banks 379.04 5,09,004.96 234.52 61.87 2,01,296.26 39.55 ii Coop. Banks 321.37 1,19,963.79 206.05 64.12 69,352.24 57.81 ii RRBs 99.27 82,652.72 66.62 67.11 51,358.81 62.14 Total 799.68 7,11,621.47 507.19 63.42 3,22,007.31 45.25 Source: RBI 4.20.3.
Branch Network As on 31st March, 2014, 57 RRBs operated with a network of 19,082 branches (17,861 branches during previous year) covering 642 districts(Annexure I). 75 per cent of the branches of the RRBs were in the rural areas. As on 31st March, 2013 the rural branches of RRBs formed 38 per cent of the total rural branch network in the country (excluding cooperatives). 4.20.4.
Loans Outstanding as on 31 March 2014 As on 31st March, 2014, the outstanding advances of RRBs stood at Rs. 1,59,302 crore, registering a growth of 14.07 per cent over the previous year. Table: 4.10 (Rupees in Crores) Sl.No Purpose As on 31 March 2012 2013 2014 Total loans outstanding 116385 139652 159302 I Agriculture 63823 75200 90294 (a) Short term loans (crop loans 46580 55255 68267 (b) Term loans (for agri and allied) 17244 19406 21952 II Non-agriculture 52561 64452 79008 Share of agri to total loans o/s 54.84 53.84 56.68 Share of term loans to total loans o/s 14.81 13.89 13.78 III Priority Sector (a) Priority Sector 95542 111812 130215 (b) Non-Priority Sector 20843 25266 29087 Share of Priority Sector (% to total) 82.09 80.06 81.74 Provisional 4.20.5. Profitability and Viability During 2013-14, all 57 RRBs earned profit. The profit amount stood at Rs.2,694 crore as against Rs.2,275 in 2012-13.
During 2013-14, the maximum profit of Rs.194 crore was recorded by Baroda Uttar Pradesh GB followed by Telanagan GVB at Rs.180 crore. Nagaland RB earned profit of Rs.0.05 crore only. Table: 4.11 Profitability Indicator 2009-10 2010-11 2011-12 2012-13 2013-14* No. of RRBs 82 82 82 64 57 RRBs in profit 79 75 79 63 57 % of RRBs in profit 96 91 96 98 100 Net profit (` crore) 1884 1715 1857 2273 2694 Per RRB profit 24 23 24 36 47 Of the 57 RRBs, 49 RRBs are sustainably viable, while 8 RRBs are in current viability. No RRB is in loss.
The number of RRBs that had accumulated losses reduced from 11 as on 31st March, 2013 to 8 as on 31st March, 2014 and the aggregate accumulated losses decreased from Rs.1,091 crore in the year 2012-13 to Rs.949 crore in 2013-14. Table: 4.12 Viability (Rupees in Crores) S.No Viability Category 31-Mar-13 31-Mar-14 No. of RRBs Acc. Losses Current Profit/ loss(-) No. of RRBs Acc. Losses Current Profit/ loss(-) 1 Sustainable viz.,
in profit with no accumulated loss 53 0 2,165 49 0 2,609 2 Current viz., in profit with accumulated loss 10 1082 110 8 949 85 3 In Loss 1 9 (-)2 0 0 0 Net Position 64 1,091 2,273 57 949 2,694 Source: RBI Reports 4.20.6. Costs and Margins Financial return by way of interest earned on advances and investments, as a percentage to average working funds, declined from 7.99 in 2012-13 to 7.82 in 2013-14, as yield on loans as well as investments declined in comparison with the previous year. Financial cost also declined from 4.82 in 2012-13 to 4.78. Hence, financial margin declined from 3.17 in 2012-13 to 3.04 in 2013-14. Risk, operational and other costs increased from 0.59 to 2.17.
As a result, RRBs earned a marginally lower net margin of 0.87 during 2013-14 as against the net margin of 0.88 during 2012-13. Table: 4.13 COSTS AND MARGINS (Rupees in Crores) Indicator 2009-10 2010-11 2011-12 2012-13 2013-14* Financial Return (per cent) 8.27 8.05 8.7 7.99 7.82 Financial Cost (per cent) 4.71 4.56 5.17 4.82 4.78 Financial margin (per cent) 3.56 3.5 3.53 3.17 3.04 Risk, operational and other cost (per cent) 2.36 0.52 0.66 0.59 2.17 Net margin (per cent) 1.2 0.91 0.85 0.88 0.87 Source: Secondary data 4.20.7.
NON PERFORMING ASSETS The aggregate Gross NPAs of RRBs which stood ?8,330 crore as on 31st March, 2013 increased to ?9,689 crore as on 31st March, 2014. However, in percentage terms, the gross NPAs remained constant at 6.08 as on 31st March, 2014. Table: 4.14 Asset Classification (Rupees in Crores) Sl. No Particulars As at the end of 31 March 2010 2011 2012 2013 2014 1 Asset Classification Standard 79734 95205 110526 128748 149613 % to total 96.27 96.25 94.97 93.93 93.94 Sub-standard 1182 1622 3270 4622 4964 % to total 1.43 1.64 2.81 3.37 3.11 Doubtful 1713 1900 2377 3488 4501 % to total 2.07 1.92 2.04 2.54 2.81 Loss 190 190 211 220 224 % to total 0.23 0.19 0.18 0.16 0.14 2 Gross Loans 82819 98917 116385 137078 159302 3 Gross NPA 3085 3712 5859 8330 9689 %to loans 3.72 3.75 5.03 6.08 6.08 Twelve RRBs had NPA less than ?25 crore, 16 RRBs had NPA more than ?200 crore, three RRBs viz.
Gramin Bank of Aryavart, Allahabad UPGB and Purvanchal GB had NPA more than Rs.500 crore 4.20.8. Recovery Performance The recovery performance (in percentage terms) of RRBs has shown steady improvement over the last decade, however, in absolute terms the over dues have increased from Rs.1799 crore as on June, 1995 to Rs.17,263 crore as on 30th June, 2013 despite improved recovery performance in percentage terms from 51.0
per cent to 81.9 per cent during the same period. 4.20.9. Productivity The productivity of RRBs, both in terms of per branch and per employee, have shown steady improvement over the years and stood at Rs.20.90 crore and Rs.4.98 crore respectively Table: 4.15 Productivity Productivity 2009-10 2010-11 2011-12 2012-13 2013-14* Per Branch 14.72 16.57 17.9 19.52 20.9
Per Employee 3.3 3.78 4.07 4.61 4 4.20.10. Credit Deposit Ratio (CDR) Credit Deposit Ratio in RRBs has gradually increased from 40.9 as on 31st March, 2000 to 66.51 as on 31st March, 2014. Eight RRBs had CD ratio above 100 per cent. Thirty three RRBs had CD ratio lower than the all India average. Of the 33, 21 RRBs had CD ratio above 35 per cent. 4.21 POLICY INITIATIVES AND DEVELOPMENTS 4.21.1.
Committee on Human Resource Policy for RRBs post implementation of Core Banking Solutions (CBS) As directed by Government of India a Committee was constituted in nabard to revisit the present human resource coverage for evaluation of manpower / staffing pattern, ability development needs of rrbs inside the occasion of implementation of cbs and other associated technological up gradation. they submitted their file to goi in november 2012. the tenure of the committee became extended up to 30th june, 2013 with modification of phrases of reference to prepare roadmap for implementation of the hints and monitoring of the equal.the committee finalised the rrb- clever avenue map and time-body for implementation of era adoption by all rrbs as in step with the amended phrases of reference.
The second Part of the Report of the Committee was submitted to GoI for consideration during March, 2013. 4.21.2. Committee for fixing Inter-Se seniority of staff of RRBs - Post amalgamation As advised by Government of India, a Committee was constituted by NABARD, with members of 11 new sponsor banks of amalgamated rrbs to restoration the norms for inter-se seniority of rrbs in post amalgamation state of affairs.
after approval from government of india, the pointers on fixation of inter-se seniority of rrb team of workers submit amalgamation as submitted through committee was issued to all the concerned on 25th November, 2013. 4.21.3. Recapitalisation of RRBs Dr. K.C. Chakraborty Committee had reviewed the financial position of all RRBs in 2010 and recommended for recapitalization of 40 out of 82 RRBs for strengthening their CRAR to the level of 9 per cent by 31st March, 2012. According to the Committee, the remaining RRBs are in a position to achieve the desired level of CRAR on their own.
Accepting the recommendations of the committee, the Government of India along with other shareholders decided to recapitalise the RRBs by infusing funds to the extent of Rs.2200 Crore, with proportion of shareholder being 50:35:15 for Government of India Sponsor Banks: State Governments. As on 31st March, 2014, an amount of Rs.2173.43 crore has been released to 38 RRBs in 20 States. The released amount includes Government of India's contribution of Rs.1086.70 crore, State Government of India's contribution of Rs.326.04 crore and Sponsor bank's contribution of ?760.69 crore.
This includes an additional recapitalization fund of Rs.96.92 crore has been released to Central Madhya Pradesh Gramin Bank including Government of India's contribution of Rs.48.46 cr., State Governments contribution of Rs.14.54 cr and Sponsor Bank's contribution of Rs.33.92 crore.
The recapitalization is complete in respect of 38 RRBs (5 each in Odisha & Rajasthan, 3 each in Madhya Pradesh & West Bengal, 2 each in Uttarakhand, Jharkhand, Chhattisgarh, Bihar, Maharashtra and Jammu & Kashmir and one each in Assam, Arunachal Pradesh, Nagaland, Tripura, Mizoram, Karnataka, Tamil Nadu, Gujarat, Manipur & UT of Puducherry). UP State Govt. has not released any amount in respect of 2 RRBs identified by the committee in Uttar Pradesh State. 4.21.4.
Empanelment of Statutory Auditors for RRBs The norms for selection of auditors for conducting Statutory Audit of RRBs have been revised by NABARD with the approval of Government of India. For the year 2013-14, the approval for empanelment of auditors was received from Government of India and forwarded to all RRBs/Sponsor Banks/ROs for facilitating commencement audit with effect from 1st April, 2014. 4.21.5.
National Review Meet National Review meet to review performance of RRBS as on 31st December, 2013 was held at NABARD, HO, Mumbai on 25th February, 2014. 4.22 AGRICULTURAL CREDIT BY RURAL REGIONAL BANKS Agriculture is the core sector of the Indian economy. It accounts for 21 per cent of GDP and about two-thirds of the population is dependent on this sector.
it is consequently rightly stated that agriculture is the spine of our financial system and its prosperity can largely be chargeable for the properly being of the whole financial system. The full of life boom of agriculture area needs ok waft of finance. Farm finance has a place of satisfaction within the agro-socioeconomic development of the united states both at micro and macro degrees.

Its catalyst position strengthens the farming commercial enterprise and augments the productiveness of scarce sources. utility of new technological inputs acquired through farm finance helps increase of agricultural productiveness. Farm finance can also make a contribution to reduction in nearby monetary imbalances.

Thus, the role of farm finance in strengthening and development of both input and output markets in agriculture is crucial and significant. 4.23 INSTITUTIONAL AGENCIES FOR AGRICULTURAL CREDIT It is brought to notice by many studies on agricultural credit that among all the agencies involved in agricultural credit the individual moneylenders as non-institutional organizations till currently, had been most crucial both from the factor of view of number of loans and the volume of business. The institutional resources include the Co-operatives, Scheduled commercial Banks and local Rural Banks (RRBs).

The co-operatives provide mainly quick and medium time period loans to the farmers. the industrial banks along with RRBs offer each brief and medium time period loans for agriculture and allied activities. The country wide bank for Agriculture and Rural improvement (NABARD) is the apex organization at the national degree for agricultural credit score and affords refinance assistance to the corporations stated above.

The Reserve Bank of India as the Central Bank of the country plays a crucial role in the sphere by giving overall direction to rural credit and financial support to NABARD for its operations. Table: 4.15 Institutional Credit to Agriculture Year Share in total (Percent) Total (Rs. In Crores) Co-operatives Scheduled Commercial Banks RRBs 1970-71 100 - 744 1980-81 61.6 38.4 - 3292 1990-91 49 47.6 3.4 9830 2001-02 44 45 11 41386 2002-03 34 57.3
8.7 69480 2003-04 30.9 60.4 8.7 86897 2004-05 24.92 65.02 10.05 125309 2005-06 24.55 65.99 9.45 117899 2006-07 22.63 67.26 10.1 150156 2007-08 19.63 70.53 9.84 182738 2008-09 19.21 71.52 10.27 188251 2009-10 18.39 69.19 13.42 178734 Source: Hand book of Statistics on the Indian Economy, RBI, Annual Reports and issues, NABARD. Mumbai 4.23.1
Agricultural Credit - The Role of RRBs The working Group on Rural Banks (1975) recommended the establishment of Rural Regional Banks (RRBs) to supplement the efforts of the commercial banks and cooperatives in extending credit to rural community - small and marginal farmers, landless labourers and the rural esidents of small means.
the rrbs and commercial banks began with the fundamental objective of providing industrial banking inside the rural areas of the country, particularly in the ones regions and to the ones sections of rural society where industrial banking centers have no longer been to be had hitherto. the rrbs have now emerge as an crucial part of the rural banking of the us of a and are gambling a commendable position in presenting credit score and banking services to the rural areas within the united states of america.
The particulars relating to the deployment of total credit and share of agriculture in total credit by RRBs in the country are furnished in table Table: 4.16 Credit Deployments by RRBs and Share of Agriculture Year Agriculture Non- Agriculture Total 2002 8405 10224 18629 -45.12 -54.88 -100 2003 10261 11897 22158 -46.31 -53.69 -100 2004 12320 13794 26114 -47.18 -52.82 -100 2005 12597 20273 32870 -38.32 -61.68 -100 2006 18820 20892 39712 -47.39 -52.61 -100 2007 15170 32156 47326 -32.05 -67.95 -100 2008 17987 40997 58984 -30.5 -69.5 -100 2009 19325 48477 67802 -28.5 -71.5 -100 2010 23984 58237 82221 -29.17 -69.83 100 Source: Hand book of Statistics on the Indian Economy, RBI, Annual Reports and issues, NABARD. 5.
TELANGANA GRAMEENA BANK AN OVERVIEW The Telangana Grameena Bank-TGB (formerly known as Deccan Grameena Bank DGB) was established on 24.03.2006 by amalgamating four Rural Regional Banks sponsored by State Bank of Hyderabad, viz Sri Saraswathi Grameena Bank, Sri Satavahana Grameena Bank, Sri Rama Grameena Bank and Golconda Grameena Bank and introducing as Deccan Grameena Bank with head quarter at Hyderabad by giving various facilities like low rate of interest, best credit facilities etc. The Deccan Grameena Bank covering five districts of Telangana State, majority of them are backward districts i.e.
Adilabad, Nizamabad, Ranga Reddy, Karimnagar, Hyderabad Urban. The Authorised Capital of the Bank is Rs. 5 Crores. Paid up Capital is Rs. 4 Crores which is contributed by Government of India, sponsor bank i.e. State Bank of Hyderabad and Government of Telangana in the ratio of 50:35:15 respectively. Dated October 20th 2014, Central Government released a Notification No.
SO2718 (E), “DECCAN GRAMEENA BANK was renamed as TELANGANA GRAMEENA BANK” In the entire state of Telangana Financial Institute's operations spread to 10 districts of Telangana State which covers the full state. Deccan Grameena Bank a financial institution, rendering their services to improve provincial areas and to uplift the rural poor for the people living under the poverty line. The bank is in existence since 24th March 2006.
Telangana Grameena Bank's (TGB) Shares and their details are as follows: 35% Share with SBH (State Bank of Hyderabad) 15% Share with Government of Telangana State and 50% Share with Government of India. In (5) districts Telangana Grameena Bank is running its operations, the five districts are: Adilabad, Karimnagar, Nizamabad, Ranga Reddy and Hyderabad of Telangana state, as a part of their operations financial help is also being provided in 1878 villages, tremendously in extension financial support has been extended to 330 branches and five Regional Offices in Twin Cities of Telangana State (Hyderabad and Secundrabad) from 30th March 2015.
The Bank has an efficient and committed workforce of 1373 staff members as on 31.03.2015. By 31.03.2015 with the net work of Rs. 484.39 Crores, operations proved to be running efficaciously in all five exceptional states. bank's primary importance is to lend the money to agricultural zone, with the aid of the operation which have been extended 311879 credit playing cards, operations proved to be walking efficaciously. the financial institution additionally a pioneer in micro finance (financing of self assist organizations). the economic group has a consumer base of over 32.70 lakh as on 31.03.2015.

(FIP) Financial Inclusion Plan In FIP, a concept called Ultra Small Branches is being implemented in four different states named as: Rangareddy, Karimnagar, Adilabad & Nizamabad To implement the plan of Financial Inclusion in different states: Rangareddy, Karimnagar, Adilabad and Nizamabad, with 1526 Villages and their Population should be on or above 2,000 as per the (SBLC) State Level Bankers Committee.

For 436 SSAs, appointed with CSPs which were covered with 1526 villages at operational areas under the concept of Sub Service Area Concept (SSA) The Financial Institution offers the following pre-requisites to its valued customers. 1. The Bank has tailor-made products & services to meet the varied requirement of different types of rural and urban customers.
Brief details of all the products & services are available in this website. a) Loans & advances to small & marginal farmers, agricultural laborers, small entrepreneurs, artisans, persons of small means engaged in trade, industry & other productive activities. B) Loans for Land development, Farm mechanization like Tractors, Power tillers etc.