Introduction
The credit requirements of farmers can be classified into two types-productive and unproductive loans. The former include loans to buy seeds, fertilizers, implements, etc. to pay taxes to the Government and to make permanent improvements on land, such as digging and deepening of wells, fencing of land, etc. All these forms of credit help the farmers in their agricultural operations or in improving their land. Besides these, the Indian farmers often borrow for unproductive purposes, such as for celebration of marriages, births and deaths, for litigation etc. Unproductive loans raised at exorbitant rates of interest are highly improper and unjustified.
Objectives of the Study
The specific objectives of the study are:
1) to analyse the performance of Andhra Pragathi Grameena Bank operating in Anantapuramu district of Andhra Pradesh;
2) to assess the impact of Andhra Pragathi Grameena Bank finance on the generation of additional income and employment among the sample bor¬rowers; and
3) to suggest measures, in the light of the empirical study, for the effective functioning of Regional Rural Banks in general and Andhra Pragathi Grameena Bank in particular.
The Universe and the Sample
Andhra Pragathi Grameena Bank has been lending for different productive purposes to a greater extent and for consumption purpose to a very limited extent. Since the main objective of the study is to examine the role of Andhra Pragathi Grameena Bank in asset creation as well as in generating additional income and employment among the poorer households and to assess the repayment performance of the borrowers, it was decided to confine the study to investment loans (to the exclusion of crop loans) in Agriculture and Allied Activities and othe...
... middle of paper ...
...gs though their innovative schemes of deposit mobilization.
Works Cited
1. C.R. Reddy Rural Banking in India, Rainbow Publications, Coimbatore; 1987, p. 154.
2. International Co-operative Alliance, State and Co-operative Development Banks, Bangalore; Allied Publishers, 1971, p. 10.
3. 3rd Annual Report , Andhra Pragathi Grameena Bank, 2008-2009.
4. C.A. Kumar and D. Dakshina Murthy, ‘Mobilisation of Savings – Role of Commercial Banks,’ The Indian Journal of Commerce, Vol. 35 (13), September 1982, p.46.
5. Quddes Mohammed, Control of Commercial Banks in India, Sahitya Bhavan, Agra, 1976, p.27.
6. B.P. Sharma, The Role of Commercial Banks in India’s Developing Economy, Sultan Chand and Company Private Limited, New Delhi, 1974, p. 60.
7. 1st Annual Report , Andhra Pragathi Grameena Bank, 2006-2007.
8. 3rd Annual Report , Andhra Pragathi Grameena Bank, 2008-2009.
Prior to Fuller’s transfer, management at the Carson’s location was poorly run using the classical approach. While this approach can be successful, management has to find a good middle ground between caring for the company and caring about their employees. A traditional classical approach recognizes that there are five important factors to running a successful business (Miller, 19). According to text, these factors are planning, organizing, command, coordination and control (Miller, 19-20). These factors can be seen when you look at Third Bank as a whole. In the study, the CEO saw the issues in his company and put a plan together to improve. He had meetings with management, like fuller, to organize a solution. He then commanded all locations
Foner, Eric., Garraty, John A (eds) “Banking” The Reader’s Companion to American History, Houghton Mifflin: New York, 1991., pg. 191
Banco Compartamos is a commercial microfinance institution rather than a village bank. Up to date, the expansion of the institution has seen it branch out numerously from the pilot objective, which is giving loans to the poor. Analyzing the services delivered by the Grameen Bank in Bangladesh, there is a kind of direct focus on the poor. Notably, loans are not advanced ...
Binhammer, H. H. & Peter S. Sephton. Money, Banking and the Financial System. Nelson, 2001.
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
In this case study it was stated that there were a problem happen in the outsourcing for the Royal Bank of Scotland. What happen was there were an error that happen during the routine software upgrade that cause million of that bank customer cant access to their account. The error happen when one junior technician in India was accidently wiped all the information during the routine software upgrade. The member of staff that was working under the program for the Royal Bank of Scotland, NatWest and Ulster Bank and it was based in Hyderabad, India.
Access to capital and credit at various stages in the business life cycle is identified as the major hurdle by the entrepreneurs. For many small firms and most start-ups, the personal funds of the business owners and entrepreneur and those of relatives and acquaintances constitute as the major source of capital. For many small businesses, especially during the early years of their operation, credit is simply not available. For many others, the limited available credit is not through bank loans. Due to this many of them rely on multiple credit card balances and home equity loans as major sources of credit for start-up firm. Because banks are bound by laws and regulations to prudent lending standards that require them a risk management assessment for each loan made. These regulations were made more vigor during the late 1980'' and early 1990 . Banks always found that lending to manufacturing firm with hard asset such as property, equipment, and inventory has always been easier than lending to today's expanding service sector firms. Because the service sector firms own few hard asses, therefor lending judgment have to be based in terms of character, markets, and cashflow, which make it difficult to the bank to meet the regulations for the approval of the loan. Additional, the banking industry, as well as the entire financial sector of the
“India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis”(Ahluwalia 2002).The idea being simple ,there was a need to ...
Financial Inclusion refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products. Financial inclusion broadens the resource base of the financial system by developing culture of savings among large segment of rural population and plays its own role in the process of economic development. Further, by bringing low income groups within the perimeter of formal banking sector; financial inclusion protects their financial wealth and other resources in exigent circumstances. Financial inclusion also mitigates the exploitation of vulnerable sections by the usurious money lenders by facilitating easy access to formal
Machiraju, H. R. , 2002. International Financial Markets And India. 1st ed. New Delhi: New Age International.
* Research Scholar, Department of Rural Management, School for Management Studies, Babasaheb Bhimrao Ambedkar University (A Central University), Lucknow.
The study is primarily designed to find out the continuous issue of the banking system in
An important term that is cropping up everywhere nowadays is “Microfinance”. It is important for every person interested in the field of finance to be aware of this term, as in the coming days Microfinance is expected to be one of the brightest and the most appealing sector of the Indian Economy.
A variety of groups are concerned in bank profitability for various reasons. The bank shareholders would want to know if the value of their investments is high or low. The investors also use current and past performance to predict future price of the banks’ shares traded on the stock exchanged. The management of the bank as trustee of the shareholders is evaluated and compensated on the basis of how well their decisions and planning have contributed to growth in assets and profits of their banks. Employees of bank also are concerned with profits, since their salaries and promotions are frequently tied to the profitability performance of their banks. Depositors use bank performance and profitability as indicators of security for their deposits in the banks. Finally, business community and general public are concerned about their banks’ performance to the extent that their economic prosperity is linked to the success or failure of their banks.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified