A COMPARATIVE FINANCIAL PERFORMANCE ANALYSIS OF SAURASHTRA GRAMIN BANK AND BARODA GUJARAT GRAMIN BANK

Abstract

Regional Rural Banks are crucial to Gujarat's rural and agricultural development. In Gujarat's rural areas, the RRBs' network has a greater reach. The success of rural financing in Gujarat is largely dependent on their degree of financial stability. Regional rural banks are an essential source of finance for rural areas and are in charge of providing the necessary loans for various types of agricultural credit in rural areas. These days, most regional rural banks deal with a variety of problems, such as non-performing assets, past due loans, and loan recovery. Gujarat has two RRBs but now a day this two banks merge and made a Gujrat Gramin Bank. This study evaluates the performance of RRBs in the Gujarat, focusing on key financial parameters such as asset quality, credit growth, financial efficiency and profitability. This paper attempts to evaluate the performance of selected RRBs in Gujarat as on 2022-23 to 2024-25. The analysis is based on secondary data that was gathered from public statistics, the RBI, and the annual reports of a few chosen Regional Rural Banks.
The study employed an analytical research design focused on Key Performance Indicators (KPI) analysis to evaluate variables such as district and branch coverage, investment levels, loan disbursement and recovery, deposit mobilization, and overall productivity. According to the report, the comparative analysis reveals that: Baroda Gujarat Gramin Bank (BGGB) dominates in size, geographical coverage, and deposit base, whereas, Saurashtra Gramin Bank (SGB) demonstrates superior efficiency, recovery performance, lower NPAs, and higher productivity.

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