Regional Rural Bank's Financial Performance Based on the BASEL III Framework – An Evaluative Study on Andhra Pradesh Grameena Vikas Bank, India

Authors

  • V. Krishna Mohan
  • N. Madhu

Abstract

Most of the rural banks have been successful in extending cheaper loans to rural households, encouraging rural savings for productive activities, generating employment, and lowering rural credit costs. Rural development banks invest heavily in expanding branches, mobilising deposits, and providing credit to underprivileged rural individuals. There were several factors that contributed to its failure, including slow lending activities, incoherent branch expansion, and rigid procedures. Consequently, the RBI restructured the RRBs to improve financial results and assist them in bridging operational and functional gaps. RBI has extended the Basel-III Capital framework to All India Financial Institutions (AIFIs) including Export-Import Bank of India (EXIM), NABARD, NHB, and SIDDBI. This paper compares APGVB's seven years of financial performance. Using BASEL III standards, the study analyzed and reported on capital adequacy, credit risk, market risk, and operational risk qualitative and quantitative disclosures.

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Published

2023-03-16