COMPARATIVE STUDY OF FINANCIAL AND OPERATIONAL PERFORMANCE ANALYSIS OF REGIONAL RURAL BANKS (HARYANA AND PUNJAB)

The Rural Banking Institutions play significant role in the socio-economic development of rural India through funding to different sections of rural sector, In the Northern India, Haryana and Punjab has pivotal place in utilizing the services of Rural Banking/Financial Institutions. The Sarva Haryana Gramin Bank (SHGB) and Punjab Gramin Bank (PGM) is committed to cater to the financial needs of rural masses to make them self-reliant and to facilitate them with better and safer saving opportunities, keeping in view the social responsibility with special care for weaker sections of the society. The present study is an attempt to Comparative analysis of financial and operational performance of SHGB and PGM. The main objectives of the study are to examine financial performance, operational performance and bankruptcy level of the banks. For this purpose CAMEL model and Z-Score model have been used besides other statistical techniques to analyse financial and operational performance of this bank. Through CAMEL model capital adequacy, asset quality, management efficiency, earning quality and liquidity level are evaluated and through z-score model bankruptcy level of the bank is evaluated. After identifying the weaknesses through study, significant suggestions have been given. Keywords: Financial Performance, Operational Performance, Capital Adequacy, Asset Quality, Earning Quality, Liquidity Position and Bankruptcy