Performance evaluation of pandyan grama bank pgb a study with reference to tamil nadu

Abstract

Regional Rural Banks (RRBs) which are hybrid institutions combining the role of co-operative with commercial banking functions have been the most intensively debated subject in recent years. Indian banking system today is evolving itself as a powerful instrument of planning for economic growth. Among the various factors of economic development and consequent removal of poverty, the role of financial institutions becomes very significant. The overall development of the economy depends to a large extent on the banking sector as financial institutions act as suppliers of capital for production of goods and services, which in turn raises income and standard of living of the people. newline newline In India, the banking sector has received from time to time definite orientations, and it has come to occupy a predominant position among the infrastructural factors of economic development. In a country where 74.2 per cent of population lives in rural areas, banks are relied upon to play a key role in rural uplift. An efficient system of purveying institutional credit in rural and semi-urban areas is an essential ingredient of any viable strategy for the removal of poverty and modernisation of the economy at base level. newline newline The main objectives of the present study are to assess the performance of Pandyan Grama bank with reference to the goals assigned to it, to find out whether the beneficiaries have secured adequate and timely credit from the bank, to appraise the impact of PGB s credit schemes on beneficiaries in terms of employment creation and income generation, to find out the repayment performance of beneficiaries and to suggest policy measures for better working of RRBs in future. newline newline The present evaluation exercise is empirical in nature. It analyses the benefits, performance and problems of various credit schemes of Pandyan Grama Bank. Both primary and secondary data collected for the study were analysed with reference to each of the objectives of the study with the help of appropriate tools of analysis. newline newline