Aggregate Profit Of Regional Rural Banks Edges Up 3.66%

The combined net profit of 196 regional rural banks (RRBs) spread across 26 states rose 3.66 per cent to Rs 623 crore in 2001-02, from Rs 601 crore in the previous financial year.

Their aggregate accumulated losses declined to Rs 2604.54 crore in FY 2002 as against Rs 2792.59 crore in the previous financial year.

During FY 2002, the number of profit making RRBs remained the same as in the previous FY.

Uttar Pradesh (UP), Andhra Pradesh (AP) and Karnataka, which together account for 33 per cent of the RRBs and 35 per cent of the total RRB branch network of 14,350 branches, together account for 60 per cent for the aggregate net profits of RRBs. Bihar, Madhya Pradesh, Orissa and West Bengal, which constitute 27 per cent of the total RRBs and 29 per cent of branches, accounted for 52 per cent of the aggregate accumulated losses of Rs 2,604.54 crore.

While 113 banks have shown improvement in financial performance either by way of increased profits, decreased loss or shifting from loss to profit, 83 RRBs have registered deterioration in performance by slipping from profit to loss, decline in profit or increase in losses.

Aggregate deposits of the RRBs, in which the Central government, State governments and sponsoring public sector banks hold stake in the 50:15:35 proportion, grew by 16 per cent in FY 2002 and stood at Rs 44,488 crore as of March-end 2002. Loans extended by the RRBs increased from Rs 8,823 crore in 2000-01 to Rs 9,929 crore in 2001-02, registering a growth of 13 per cent over the previous year.

Outstanding advances of RRBs stood at Rs 18,582 crore, recording a growth rate of 17 per cent. Credit-deposit (C-D) ratio of the RRBs marginally improved to 42 per cent from 41.33 per cent. Gross NPAs of the RRBs reduced from 18.83 per cent as of March 31, 2001 to 16 per cent as on March 31, 2002.

Of the 26 states, in terms of business operations viz. deposits and loans outstanding, UP had the highest share (24 per cent and 18 per cent) followed by Andhra Pradesh (AP) (15 and 13 per cent) and Bihar (10 and five per cent), respectively.