(a) Whether the Government has assessed the working of Regional Rural Banks (RRBs);
(b) if so, the details thereof;
(c) whether the Government proposes to formulate any plan for improvement in the
functioning of these banks;
(d) if so, the derails thereof; and
(e) the time by which a final decision is likely to be taken in this regard?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE
(SHRI P.CHIDAMBARAM)
(a) to (e): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO LOK SABHA STARRED QUESTION NO.#242 FOR
8TH DECEMBER 2006 REGARDING FUNCTIONING OF RRBs, TABLED BY SHRI PANKAJ
CHOWDHARY, MEMBER OF PARLIAMENT.
(a)and (b):- The peiformance of Regional Rural Banks(RRBs) is reviewed every year
by the National Bank for Agriculture and Rural Development ABARD) and a Consolidated
Review of RRBs is also, laid on the Table of both Houses of Parliament. Concerted
institutional strengthening measures, including other supportive action like capacity
building of staff etc. by NABARD and sponsor banks have enabled RRBs to improve their
performance. The review of performance for the period ended 31st Marci, 2006 on
certain parameters is given below;-
(Rs. in crores) S.No. Parameters 2004-05 2005-06#
1 Business Level 95013.00 111041.00 2 Deposit Outstanding 62143.00 71329.00 3 Loans Outstanding 32870.00 39713.00 4 Loss Making RRBs 30 22 5 Amount Of Accumulated Losses 2715.00 2626.47 6 Loans disbursed for Agriculture 11926.82 15183.00 7 Gross NPA (percentage) 8.53 7.28 8 Net NPA (percentage) 5.15 3.90