Tripura Gramin Bank posts profit

Tripura Gramin Bank (TGB) posted a net profit of Rs.35.35 crore, the highest among the regional rural banks (RRBs) in eastern and northeastern India, in the last fiscal, the bank’s chairman said Wednesday.TGB, one of India’s 82 RRBs, has been making profit for the past 10 years consecutively.The bank, celebrating 35th foundation day Wednesday, has also attained a record in per branch business among India’s 82 RRBs and per staff business with Rs.25.67 crore and Rs.4.38 crore respectively in the last financial year (2009-10).TGB along with three other RRBs — Assam Gramin Bank, Manipur Gramin Bank and Bangiya Gramin Bank in West Bengal — are sponsored by Kolkata-based United Bank of India (UBI).“The bank (TGB) with 111 branches across Tripura has targeted to reach a net profit of Rs.55 crore in the current fiscal (2010-11),” TGB chairman Dinesh Mushahary told reporters here. TGB has been making profit for the past 10 years setting an outstanding feat among the RRBs, whose numbers have been reduced to 82 now from the earlier 196 with the amalgamation among the Rural banks.“By September next year, all the 111 branches would come under the core banking services (CBS) and nine more new branches would be opened in rural and remote areas within a year.”According to the bank official, the credit-deposit ratio of TGB was 41 percent up to September this year while that of the 173 branches of other commercial banks in Tripura has remained at a level of around 30 percent over the past many years.“Keeping with the directives of the Reserve Bank of India (RBI), the TGB has engaged several farmers’ clubs, retired banks officials and societies as business facilitators (BF) and business correspondents (BC) to extend the banking services to unbanked rural and remote areas having population of above 2,000 or even below 2,000.The RBI has earlier asked all commercial banks and RRBs across India to open banking services, in any form, to every village in the country with a population of around 2,000.

Regional rural banks in India penetrated every corner of the country

Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focussed upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas.

Apart from SBI, there are many other banks which function for the development of the rural areas in India. These banks are listed below:

Andhra Pradesh

Bihar

* Andhra Pradesh Grameena Vikas Bank
* Andhra Pragathi Grameena Bank
* Deccan Grameena Bank
* Chaitanya Godavari Grameena Bank
* Saptagiri Grameena Bank

Chhattisgarh

* Chhattisgarh Gramin Bank
* Surguja Kshetriya Gramin Bank
* Durg-Rajnandgaon Gramin Bank

Haryana

* Harayana Gramin Bank
* Gurgaon Gramin Bank

Jammu & Kashmir

* Jammu Rural Bank
* Ellaquai Dehati Bank
* Kamraz Rural Bank

Assam

* Assam Gramin Vikash Bank
* Langpi Dehangi Rural Bank

Jharkhand

* Jharkhand Gramin Bank
* Vananchal Gramin Bank

Madhya Pradesh

* Narmada Malwa Gramin Bank
* Satpura Kshetriya Gramin Bank
* Madhya Bharath Gramin Bank
* Chambal-Gwalior Kshetriya Gramin Bank
* Rewa-Sidhi Gramin Bank
* Sharda Gramin Bank
* Ratlam- Mandsaur Kshetriya Gramin Bank
* Vidisha Bhopal Kshetriya Gramin Bank
* Mahakaushal Kshetriya Gramin Bank
* Jhabua Dhar Kshetriya Gramin Bank




* Madhya Bihar Gramin Bank
* Bihar Kshetriya Gramin Bank
* Uttar Bihar Kshetriya Gramin Bank
* Kosi Kshetriya Gramin Bank
* Samastipur Kshetriya Gramin Bank

Gujarat

* Dena Gujarat Gramin Bank
* Baroda Gujarat Gramin Bank
* Saurashtra Gramin Bank

Himachal Pradesh

* Himachal Gramin Bank
* Parvatiya Gramin Bank

Punjab

* Punjab Gramin Bank
* Faridkot-Bhatinda Kshetriya Gramin Bank
* Malwa Gramin Bank

Kerala

* Narmada Malwa Gramin Bank
* North Malabar Gramin Bank

Tamil Nadu

* Pandyan Grama Bank
* Pallavan Grama Bank

Maharashtra

* Marathwada Gramin Bank
* Aurangabad -Jalna Gramin Bank
* Wainganga Kshetriya Gramin Bank
* Vidharbha Kshetriya Gramin Bank
* Solapur Gramin Bank
* Thane Gramin Bank
* Ratnagiri-Sindhudurg Gramin Bank

Karnataka

* Karnataka Vikas Grameena Bank
* Pragathi Gramin Bank
* Cauvery Kalpatharu Grameena Bank
* Krishna Grameena Bank
* Chikmagalur-Kodagu Grameena Bank
* Visveshvaraya Gramin Bank


Rajasthan

* Baroda Rajasthan Gramin Bank
* Marwar Ganganagar Bikaner Gramin Bank
* Rajasthan Gramin Bank
* Jaipur Thar Gramin Bank
* Hodoti Kshetriya Gramin Bank
* Mewar Anchalik Gramin Bank

Orissa

* Kalinga Gramya Bank
* Utkal Gramya Bank
* Baitarani Gramya Bank
* Neelachal Gramya Bank
* Rushikulya Gramya Bank

Villagers can now deposit as well as withdraw cash upto Rs 10000 per day using 'branch less banking under rural banking scheme

Financial inclusion plans of banks seems to be taking new leaps across the country. The rural banking drive in Goa has brought with it the facility of branchless banking to villagers in remote areas which have not been touched by banking. Villagers can now deposit as well as withdraw cash upto Rs 10000 per day using 'branch less banking under rural banking scheme.'A survey conducted has resulted in shortlisting of 41 villages which will receive the platform of mobile banking through customer service points (CSPs).According to SBI district manager, S Shahane, the CSPs will have 'zero' application software. The villagers will be provided biometric smart cards to carry out transactions."For every transaction, the customer will be issued a receipt from the machine," RSETI (rural self-employment training institute) director Suhas Dhamankar said.Of the 41 unbanked villages, 18 will be run by State Bank of India (SBI), and the others by Union Bank, Bank of India, Syndicate Bank, Canara Bank, Bank of Baroda and Indian Bank. The CSPs will be linked with a mobile service and will function in a PCO model whose accounts will be maintained by nationalized banks.

Rural banking prove the next development engine for Indian banks

The growth of the domestic economy, the banking sector in India has truly come of age. But with the current slowdown and fears of a global recession, the Indian economy and the banking sector have been looking for new avenues of growth. In the face of these circumstances, it is ironic that rural banking which has hitherto been a slow growth sector could prove the next development engine for Indian banks. With affordable and relevant technology driving penetration as well as providing an improved service experience, rural banking could bring in financial inclusion and help banks grow their business radically.

Indian banks have awakened to the vast potential of the rural sector. Specialized and innovative schemes to improve rural penetration have become the popular mantra. No-frills credit cards, franchisee networks, supply chain financing for agriculture, investments in rural infrastructure and cross-selling of products are only some of the programs directed at the rural sector. Needless to say, at the core of these initiatives lies sophisticated yet reasonably priced technology - playing a significant role both in effective operations and delivery

India’s First Rural Bank to issue ATM Card, Launched in Salem

Customer-friendly: Collector J. Chandrakumar (extreme left) launching the ATM cards of Pallavan Grama Bank to D. Bhuthalingam (GM, Indian Bank, Coimbatore), in Salem on Monday.Pallavan Grama Bank has become the first Regional Rural Bank in the country to launch the Indian Bank co-branded ATM cards for its customers.

Launching the same here on Monday, Collector J. Chandrakumar lauded the efforts of the Pallavan Bank, which he said had been doing good services to the rural populace.He further added that the bank with its innovative schemes had been performing well.He also released a booklet on ‘Guidelines for Recognition and Settlement of Claims relating to Deceased Depositors’ account and on policies’.General Manager, Indian Bank Circle Head Office, Coimbatore, D. Bhuthalingam received it.

Named as Pallavan Bank ATM crads, its customers could withdraw money from any of 1,092 Indian Bank ATMs established in the country with a maximum of Rs. 25,000 as withdrawal amount per day. Its Chairman G. Rangarajan spoke in detail on various schemes of the bank and its future development. It also was determined to take the advanced banking to rural areas, he said.

The bank had touched Rs. 1,300 crores of business and second to none in automation of banking with ATM facility.

The modern banking system has failed to deliver inexpensive credit to India’s 600,000 villages

ECONOMICALLY empowering, i.e. access to inexpensive credit and other micro-finance services, including savings and insurance, India’s rural population will have a significant impact on India’s economic growth. Economic empowerment is defined here as. The modern banking system has failed to deliver inexpensive credit to India’s 600,000 villages – despite several expensive attempts to do so. Do we need to rethink the appropriate institutional structure for rural banking in India? The problems of widespread poverty, growing inequality, rapid population growth and rising unemployment all find their origins in the stagnation of economic life in rural areas.

Since the days of the Rural Credit Survey Committee (1954), India has come a long way in its search for an appropriate rural banking set-up. Though there has been some improvement, the problem remains. There has been tremendous progress in quantitative terms but quality has suffered, progress has been slow and halting and significant regional disparities persist. Stagnation in rural banking is noticed in the north and northeastern regions. The focus should be on assisting and guiding small farmers. It is in this context that the role of rural banking institutions has to be reconsidered.

The development strategy adopted and the increasing diversification and commercialisation of agriculture underline the need for the rapid development of rural infrastructure and a larger flow of credit. Activities allied to agriculture – livestock breeding, dairy farming, sericulture etc are being taken up on commercial lines. Further, hi-tech agriculture with an export orientation has brought about higher productivity in cotton, oilseeds, etc.

Progressive and not-so-small farmers have no difficulty in obtaining credit from the commercial banks. Credit for the poorer households is the real problem.

The Narasimham Committee observed that the manning of rural branches “has posed problems for banks owing to the reluctance of urban-oriented staff to work in the rural branches and the lack of motivation to do so. More local recruitment and improved working conditions in rural areas should help to meet this problem.”

Role of Banks in Promoting Financial Inclusion

The Indian economy is growing strongly which ensures better recovery and asset valuation. Progressive bank reforms and low interest rates will increase borrowing activity to meet their financial targets. Banking industry is making rapid strides with Information technology driven initiatives and has led to expansion of products (i.e.) expansion of financial services giving birth to the concept of Financial Inclusion.

Financial inclusion is the availability of banking services at an affordable cost to the disadvantaged and low incomegroups. In India, the basic concept of financial inclusion is having a saving or current account at any bank. In reality, it includes loans, insurance services and much more, for all members of an economy. An inclusive financial system has several merits. It facilitates efficient allocation of productive resources and thus can potentially reduce the cost of capital. In addition, access to appropriate financial services can significantly improve the day to day management of finances.

An inclusive financial system can help in reducing the growth of informal sources of credit such as money lenders, which are often found to be exploitative. Thus, an all inclusive financial system enhances efficiency and welfare by providing avenues for secured and safe saving practices and by facilitating a whole range of efficient financial services.

In India, the Reserve Bank of India has initiated several measures to achieve greater financial inclusion, such as facilitating “no frill” accounts and “General Credit Cards” for low deposits and credits. The German Bankers’ Association introduced a voluntary Code in 1996 providing for an “everyman” banking transactions. In South Africa, a low cost bank account called “Mzansi” was launched for financially excluded people in 2004 by the South African Banking Association. Alternative financial institutions such as micro finance institutions and Self Help Groups have also been promoted in some countries in order to reach financial services to be excluded.