Post Reform Period Trends in Deposits and Credit Deployments of Regional Rural Banks in Karnataka

This study analyse the trends in deposits and credit deployments of Regional Rural Banks (RRBs) in the State of Karnataka during the post reform period (March 1992- March 2008). Basic data for this study were collected from the various issues of Basic Statistical Returns of Scheduled Commercial Banks in India published by Reserve Bank of India. Deposits, advances (outstanding) and credit-deposit ratios were three important parameters used to assess the performance of RRBs. Kendall’s coefficient of concordance (W) was computed to study whether there were any changes in the pattern of the flow of sectoral credit lending by the RRBs over the study period. In the area of deposit mobilisation and credit disbursements, the RRBs had made a notable progress during the post reform period. C-D ratios of RRBs were fluctuating throughout the study period. It was found that RRBs continued to focus on agriculture credit disbursements in the Sate of Karnataka. At the same time, RRBs had favored credit to personal loans in place of rural artisan industries credit and “other small scale industries” credit.