Comparative Study on Selected Regional Rural Banks of South India

Abstract

Purpose: The object of this work was to evaluate the entire performance of the southern region for 2020 and 2021. The purpose of this study is to provide insight into the performance of the banks to analyse and understand the present scenario of the banking sector in the Southern region of India.

Methodology: The Key Statistics & Financial Statements of Regional Rural Banks from 2019-20 to 2020-21 of selected banks have been used for the research work. The CAMEL model is used to check the operation and has been ranked on an average scale of 1-10. The conclusion is by ranking both the years of all 10banks.

Findings: The study revealed a difference from year to year and it is restricted only by applying these areas. Even though leverage stands good, the possibility to rank 10 places is due to NPA.

Originality: It may be useful to each bank’s performance its state governments and central government in making effective tactics by modifying its strategy and implementation in the banks. However, the banking system is also prone to several inherent defects and inefficiencies, which can lead to financial instability and economic distress.

Utilitarian Implication: In recent years, there has been a renewed focus on RRBs by the government as well as by investors and creditors. Such a study would help understand the position of RRBs in the region and their contribution to the economy's health.

Paper Type: Analytical Research