Performance of Regional Rural Banks in Bihar: An Analytical Study

This research topic is a study on the performance of RRBs in Bihar an analytical study. An effort has been made in the instant project to study and find out whether restructuring through consolidation have made any effect on the financial viability of the RRBs in this region. Since 1975 RRBs are being regarded as one of most important sources of institutional financing of rural credit in India. But at the end of expansion phase (1987) financial viability of the RRBs emerged as an important issue to the policy makers. Since 1991, various steps have been taken up by GOI for strengthening the RRBs e.g. cleansing of balance sheets, recapitalisation of selected RRBs etc. State-wise & Sponsor bank wise merger of RRBs is the recent route of restructuring of RRBs for improving their financial viability. There is always a need for up-gradation of the rural banking systems in India through performance evaluation in the context of necessity of institutional rural credit to the poor rural folk. Therefore, an attempt is made to study on the pre-merger and post-merger profitability performance of the RRBs in Bihar State.