Performance of Regional Rural Banks (RRBs) in Jharkhand: A Case Study of Jharkhand Rajya Gramin Bank

This research examines the financial and operational performance of Regional Rural Banks (RRBs) in Jharkhand, with a particular focus on the Jharkhand Rajya Gramin Bank (JRGB). RRBs were established to promote financial inclusion and provide credit to the rural economy, especially for small and marginal farmers, artisans, and labourers. This study evaluates JRGB's performance by analysing various financial metrics, participation in government schemes, loan recovery rates, technological integration, and its contribution to inclusive growth. The research investigates key indicators, including the growth in deposits and advances, non-performing assets (NPAs), profitability ratios, credit-deposit ratios, and the implementation of government schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY), PM-KISAN, and MUDRA. Additionally, the study explores how JRGB has maintained financial stability while addressing the needs of marginalized rural communities. Key findings indicate that JRGB has successfully expanded its rural presence, reporting a customer base of over 2.5 million and opening more than 500,000 PMJDY accounts. In conclusion, the research highlights that JRGB has made significant contributions to rural economic development and financial inclusion in Jharkhand. Nonetheless, there is a pressing need for policy support, technological advancements, and improved credit risk management to sustain this growth. This study provides a micro-level perspective on how RRBs like JRGB can evolve into more robust pillars of rural banking and inclusive finance.