Financial Appraisal of RRBs: Evidence from Eastern Uttar Pradesh

Abstract

India’s major population lives in rural area and adequate financial credit supply are much needed for speedy economic development of this region. Regional Rural Banks (RRBs) was established with the objective to provide financial support in rural areas. RRBs have been working as an economic agent and disbursing loan to the rural people since its inception. RRBs have performed to a great extent in terms of rural credit disbursement but Non Performing Assets (NPA) has become a key trouble. For the last few years RRBs have been facing a primary challenge of mounting NPAs, which is clogging the smooth credit supply in the rural areas. The present study aims to analyze the loan disbursement towards agriculture sector, overdue and NPAs of RRBs working in Eastern Uttar Pradesh.