The business: Granting of loans and advances
The Regional Rural Banks were started tostrengthen the banking system in rural areas. These banks combine the advantageof rural atmosphere, local feeling, practices of co-operative institutions andmodern banking practices of commercial banks. The Narashimham committee hasrecommended the establishment of Regional Rural Banks on the ground that theywould be better suited than the commercial banks or co-operative banks inmeeting the credit needs of rural areas. They “combine the local feel andfamiliarity with rural problems which co-operative possess and the businessorganization ability to mobilize deposits”.
In India, the banking sector has receivedfrom time to time definite orientations, and it has come to occupy apredominant position among the infrastructural factors of economic development. In a country where 74.2 per cent ofpopulation lives in rural areas, banks are relied upon to play a key role inrural uplift. An efficient system of purveying institutional credit in ruraland semi-urban areas is an essential ingredient of any viable strategy for theremoval of poverty and modernization of the economy at base level. PandianGrama BankPANDIAN GRAMA BANK sponsored by Indian Overseas Bank,first of its kind in Tamilnadu, was established as 43rd Regional Rural Bank on9th March 1977 with Headquarters at Sattur, having Ramanathapuram (undivided)and Tirunelveli (undivided) districts as its area of operation. CentralGovernment, State Government and Indian Overseas Bank are the joint owners,having pooled the capital of Rs.25 lakhs in the ratio of 50:15:35.
PandianGrama Bank is a scheduled Commercial public sector bank, right from itsinception. It enjoys all the privileges extended to other nationalized banks byReserve Bank of India and renders all kinds of services provided by aCommercial Bank, with an eye on the upliftment of small farmers, marginalfarmers, agricultural labourers and rural artisans in agriculture, trade andcommerce. Nearly twelve years have elapsed, since the establishment of RegionalRural Bank at Sattur in Tamilnadu.Functionsof Pandian Grama BankThe “Pandian Grama Bank”, apart from itsregular banking function, undertakes the following type of business: Granting of loans and advances to farmersindividually or in groups and to co-operative societies including agriculturalprocessing societies, cooperative Farming societies, primary Agriculturalsocieties or Farmers Service Societies for agricultural purposes oragricultural operations of for such other activities connected therewith. Providingloans and advances to persons engaged in trade, commerce or rural industry andother productive activities within the notified area of the bank. Objectiveof the study To analyze the attitude of customertowards pandian grama bank in Madurai. Methodology This study is based on empiricalresearch by conducting survey method. It is purely based on primary data from100 respondents following convenience sampling method.
A well-structured andpre tested questionnaire was administered to analyse the customers attitude towards Pandiyan GramaBanks in Madurai.Chisquare test, Garret ranking and one way ANOVA were the important statistical tools used forthis study.Analyse of the studyCHI-SQUARETEST Hypothesis1 There is no relationshipexisting between monthly income and no of years the respondents holding anaccount.
Income No of Years Holding An Account Total Less than 1year 1-2 Years 2-3 Years 3-4 Years 4-5 Years More than 5years Below Rs.10000 7 6 4 2 3 3 25 Rs.10000 – Rs. 20000 7 6 3 – 2 4 22 Rs.20000 – Rs. 30000 3 6 6 1 2 – 18 Rs.30000 – Rs.40000 11 5 1 2 1 2 22 Above Rs50000 3 3 1 1 3 2 13 Total 31 26 15 5 11 12 100 The calculated value of X2 is(66.
11) more than the table value (39.997) hence the hypothesis is rejected. Thereis a significant relationship between monthly income of the respondents and noof years of holding an account. Hypothesis2 There is no relationship existing betweenoccupation of the respondents and types of accounts. Qualification Deposits Total By Cheque By Cash By DD Below 10th 2 3 1 6 SSLC 1 9 2 12 HSC – 15 7 22 UG 4 10 6 20 PG 4 24 8 36 OTHERS 1 2 1 4 Total 12 63 25 100 Thecalculated value of X2 is (14.24) less than the table value (25.
18) thehypothesis is accepted. Hence, there is no significant relationship between educational qualifications of therespondents and depositing their money through cheque, cash and demand draft. GARRETRANKING Service No of Respondents Total Mean Score Rank 1 2 3 4 5 6 7 8 Short Deposit 26 26 22 10 8 2 3 3 6328 63.28 I Recurring Deposit 17 8 9 15 16 14 3 18 5057 50.
57 IV Servarvaisai Thittam 13 15 11 13 15 12 16 5 5252 52.52 III Niitham Valar Nithi 8 7 12 19 9 13 14 18 4688 46.88 VI Fixed Deposit 8 27 18 11 13 12 7 4 5568 55.68 II Thingal Thorum Thiravlam 8 5 5 16 20 10 21 15 4502 45.
02 VII Loan Facility 3 7 12 7 6 29 16 20 4233 42.33 VIII Locker Facility 19 5 10 8 12 9 13 24 4758 47.58 V Therespondents have given first rank for short deposit, second rank to fixeddeposits, third rank to servarvaisai thittam and last rank given to the loanfacility provided by the Pandian Grama Bank. ONE – WAY ANOVA Hypothesis3 There is no relationship existing betweenoccupation of the respondents and types of accounts. Types of Accounts Occupation Total Govt.
Employees Pvt. Employees Business Professional Others SHORT DEPOSIT 3 17 10 0 4 34 RDP 1 4 2 2 8 16 FD 0 6 3 4 6 19 RD 1 2 4 0 4 11 MID 0 0 7 0 3 10 NVN 1 7 2 0 0 10 Total 6 36 30 6 22 100 MS F = MS MS between -mean sum of square between samplesMS within – mean sum f square within samples. Sources of Variation Sum of Squares Degrees of Freedom Mean Square F Ratio Between Column 43.4 3 14.467 2.040 Between Row 28. 4 7.
125 1.005 Residual 85.1 12 7.091 Total 157 19 a) Degrees of freedom v1 = 3, v2 = 12 Table value = 3.
4903b) Degreesof freedom v1 = 4, v2 = 12 Table value = 3.2502 Sincethe calculated value is less than the table value at 5% level, the hypothesisis accepted. Hence, there is no relationship between occupation of therespondents and types of accounts. CONCLUSION Pandian Grama Bank performance inrespect of some important indicators was certainly better than that ofcommercial banks or even cooperatives. RRBs have also performed better in termsof providing loans to small and retail traders and petty non-farm ruralactivities.
In recent years, they have taken a leading role in financingSelf-Help Groups (SHGs) and other micro-credit institutions and linking suchgroups with the formal credit sector. Pandian Grama Bank should really bestrengthened and provided with more resources with which they can undertakemore of these important activities. And most certainly they should be keptapart from a profit-oriented corporate motivation that would reduce theircapacity to provide much needed financial services to the rural areas,including to agriculture.
Pandian Grama Bank offers valuable services by its pioneeringwork in Madurai. The management is taking all the steps to satisfy theircustomers. It is found that they are regularly trying to improve theirefficiency in providing services, adding more and more services and facilitieswith Technological development.
