Performance Evaluation of Credit Management in RRBs (A Case Study of Manipur Rural Bank)

Abstract

Credit Management is a key driver of a Bank's profitability and long term sustainability which help in sound and healthy position of the bank. Credit expansion is one of the important functions of any banking institution through which it meets the financial requirements of needy people and institutions for the expansion of their economic activities. However, the credit expansion of any financial institution largely depends upon the level of deposits and other resources along with the demand for it. Manipur Rural Bank was established on 28th May, 1981 as a joint undertaking of the Government of India, Government of Manipur and United Bank of India (Sponsored Bank) who contributed share capital at the ratio of 50:15:35 respectively. The bank started its operations with the objective of economic development of rural people of Manipur state, particularly the weaker sections by participating in different poverty alleviation programmes of Central and State Governments. The Bank has been operating with a net-work of twenty seven branches spread over all the nine districts of the state to help in deposit growth, better management and reforms in loans and advances in particular. In this paper, an attempt is made to evaluate the performance of credit management in Manipur Rural Bank - deposit mobilization, loans & advances outstanding, recovery performance of loan amounts and management of non performing assets etc .. The Bank is trying hard to improve its credit management which is one of the few sectors to think upon