An Analysis of the performance of Andhra Pradesh GrameenaVikas Bank in India

Regional Rural Banks were formed when Government of India felt the need of a financial institution to cater to the needs of Rural sector, hence this also aimed to cease the traditional method of private money lenders. Earlier, financial assistance to rural sector was provided by Co-operatives, land development banks and private money lenders. Post nationalization of Commercial banks and formation of Regional Rural Banks, credit facilities to the poor were being disbursed by them. Regional Rural Banks were restructured and consolidated in the year 2005 as their performance was too low, high level of NPA’s and lower amount of profits forced GOI to initiate amalgamation of Regional Rural Banks. In 2006, Andhra Pradesh Grameena bank was established as a Regional Rural Bank with the amalgamation of five RRB’s Viz. Sri VisakhaGrameena Bank, Nagarjuna Grameena Bank, SangameswaraGrameena Bank, ManjiraGrameena Bank and KakathiyaGrameena Bank. The present study aims to study the performance of Andhra Pradesh Grameena Bank post transformation era.