IBPS announced for various post in regional rural banks

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IBPS announced for various post in regional rural banks, the Institute of Banking Personnel Selection also known as IBPS, is a recruitment body that was started with an aim to encourage the recruitment and placement of young graduates in public

sector banks in India. IBPS announced for various post in RRB’s the mode of examination will be online and conduct in two phase ,i.e. pre and mains detailed advertisements are as follow

IBPS announced for various post in regional rural banks

Regional Rural Banks were established under the provisions of an Ordinance passed in September 1975 and the RRB Act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. Thus, the banks asked the National Institute of Bank Management (NIBM) to design a selection testing process through which they could hire proficient candidates. In 1984, the NIBM department that handled the test was converted into the IBPS. The nationalization of the banks in 1969 boosted the confidence of the public in the Banking system of the country. However, in the early 1970s, there was a feeling that even after nationalization, there were cultural issues which made it difficult for commercial banks, even under government ownership, to lend to farmers. This issue was taken up by the government and it set up Narasimham Working Group in 1975. On the basis of this committee’s recommendations, a Regional Rural Banks Ordinance was promulgated in September 1975, which was replaced by the Regional Rural Banks Act 1976. Regional Rural Banks came into existence on Gandhi Jayanti in 1975 with the formation of a Prathama Grameen Bank. The rural banks had the legislative backing of the Regional Rural Banks Act 1976 . This act allowed the government to set up banks from time to time wherever it considered necessary.Regional Rural Banks were established under the provisions of an Ordinance passed in September 1975 and the RRB Act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. Thus, the banks asked the National Institute of Bank Management (NIBM) to design a selection testing process through which they could hire proficient candidates. In 1984, the NIBM department that handled the test was converted into the IBPS. The nationalization of the banks in 1969 boosted the confidence of the public in the Banking system of the country. However, in the early 1970s, there was a feeling that even after nationalization, there were cultural issues which made it difficult for commercial banks, even under government ownership, to lend to farmers. This issue was taken up by the government and it set up Narasimham Working Group in 1975. On the basis of this committee’s recommendations, a Regional Rural Banks Ordinance was promulgated in September 1975, which was replaced by the Regional Rural Banks Act 1976. Regional Rural Banks came into existence on Gandhi Jayanti in 1975 with the formation of a Prathama Grameen Bank. The rural banks had the legislative backing of the Regional Rural Banks Act 1976 . This act allowed the government to set up banks from time to time wherever it considered necessary.
The RRBs were owned by three entities with their respective shares as follows:

Central Government -50%

               State government    -15%

                Sponsor bank          -35%

Regional Rural Banks were conceived as low cost institutions having a rural ethos, local feel and pro poor focus. Every bank was to be sponsored by a “Public Sector Bank”, however, they were planned as the self sustaining credit institution which were able to refinance their internal resources in themselves and were excepted from the statutory pre-emptions.

Problems with Regional Rural Banks

But the original assumptions were belied as within a very short time, most banks were making losses. The RRB concept was based upon the policy that they would lend only to the weaker sections of rural society, charging lower interest rates, opening branches in remote and rural areas and keep a low cost profile. But the commercial motivation was absent.

Initially the banks expanded and by the end of year 1985 RRBS had opened 12606 branches. During this period their credit deposit Ratio (C.D.R) expanded very fast. In 1976 it was 165% and gradually declined to 104 % in December 1986. The Credit Deposit Ratio continuously declined thereafter.

Later, the questions started being raised about the viability of these banks. The Khusrau Committee of 1989, noted that the weaknesses of RRBs are endemic to the system and non-viability is built into it, and the only option was to merge the RRBs with the sponsor banks. The objective of serving the weaker sections effectively could be achieved only by self-sustaining credit institutions. RRBs were finding themselves unable to sustain because of the mounting losses due to imprudent commercial policy. Thus, Khusrau Committee (aka Agricultural Credit Review Committee) said that the RRBs have no justifiable cause for continuance and recommended their mergers with sponsor banks.

But by that time, the branch network had expanded so large that it would be political unwise for the government to merge the RRBs with sponsor Banks.

Recommendations of Narsimham Committee on RRBs

The Narsimham Committee in 1990s also reiterated that the RRBs should be merged with the sponsor banks. By 1993, 172 of the 196 RRBs were recorded unprofitable. The paid up capital which was ` 25 Lakh at that time was not able to absorb the loan losses of most of the RRBs. The loan recovery was around 40%. The First Narasimham Committee recommended that the RRBs should also be permitted to engage in all types of banking business and should not be forced to restrict their operations to the target groups. The Narasimham committee also recommended that there should be mergers of the RRBs with their sponsor bank, BUT the “sponsor banks might decide whether to retain the identities of sponsored RRBs or to merge them with rural subsidiaries of commercial banks to be set up on the recommendation of the committee”. The first recommendation of letting the RRBs do all businesses was accepted by the government.

Some measures were taken by the Reserve Bank of India also. It allowed the RRBs to relocate their branches if they were making losses at one location for more than 3 years. They were also allowed to finance the non-target groups to the extent not exceeding 40 percent of their incremental lending. This limit was subsequently enhanced to 60 percent in 1994. As a result, the RRBs diversified into a range of non-priority sector (NPS) advances, including jewel and deposit-linked loans, consumer loans and home loans

Some efforts were done by NABARD with funding support of the Swiss Development Corporation (SDC). It took a number of HR and Organizational Development in these banks.

Turnaround of RRBs




The above discussion makes it clear that most RRB were making loss and had deviated from the original idea that had created them. But there were some profit making RRBs also. Some reforms led the rise in the number of the profit making RRBs but most of them were having a low credit deposit ratio. This was coupled with the decreasing percentage of loans to small and marginal farmers out of the total loans disbursed by the RRBs. The RRBs NPA level was high. In the early 2000s there was no prescribed CRAR (capital to risk weighted asset ratio) for the RRBs. In 2005, based upon the recommendation of an internal working group the RRBs were asked to maintain a capital to risk weighted asset ratio at 5% and over the period of time they were expected to align themselves to Basel I standards. However, the major reform was to merge the RRBs with the sponsor banks.

Number of Regional Rural Banks in India

 

SL.NOBANKSHEAD OFFICE
1Andhra Pradesh Grameena Vikas BankWarangal
2Andhra Pragathi Grameena BankKadapa
3Chaitanya Godavari Grameena BankGuntur
4Saptagiri Grameena BankChittoor
5Arunachal Pradesh Rural BankNaharilagun
6Assam Gramin Vikash BankGuwahati
7Langpi Dehangi Rural BankDiphu
8Bihar Gramin BankBegusarai
9Madhya Bihar Gramin BankPatna
10Uttar Bihar Gramin BankMuzaffarpur
11Chhattisgarh Rajya Gramin BankRaipur
12Surguja Kshetriya Gramin BankAmbikapur
13Durg-Rajnandgaon Gramin BankRajnandgaon
14Baroda Gujarat Gramin BankBharuch
15Dena Gujarat Gramin BankGandhinagar
16Saurashtra Gramin BankJunagadh
17Sarva Haryana Gramin BankRohtak
18Gurgaon Gramin BankGurgaon
19Himachal Pradesh Gramin BankMandi
20Parvatiya Gramin BankChamba
21Ellaquai Dehati BankSrinagar
22J&K Grameen BankJammu
23Vananchal Gramin BankDumka
24Jharkhand Gramin BankRanchi
25Kaveri Grameena BankMysore
26Karnataka Vikas Grameena BankDharwad
27Pragathi Krishna Grameena BankBellary
28Kerala Gramin BankMalappuram
29Agricultural and Rural Development BankPalakkad
30Narmada Jhabua Gramin BankIndore
31Madhyachal Gramin BankSagar
32Central Madhya Pradesh Gramin BankChhindwara
33Vidarbha Konkan Gramin BankNagpur
34Maharashtra Gramin BankAurangabad
35Uttar Banga Kshetriya Gramin BankCoochbehar
36Paschim Banga Gramin BankHowrah
37Bangiya Gramin Vikash BankBerhampur
38Uttarakhand Gramin BankDehradun
39Purvanchal Gramin BankGorakhpur
40Sarva UP Gramin BankMeerut
41Prathama BankMoradabad
42Kashi Gomti Samyut Gramin BankVaranasi
43Baroda Uttar Pradesh Gramin BankRae Bareli
44Ballia Kshetriya Gramin BankBallia
45Gramin Bank of AryavartLucknow
46Allahabad UP Gramin BankBanda
47Tripura Gramin BankAgartala
48Telangana Grameena BankHyderabad
49Andhra Pradesh Grameena Vikas BankWarangal
50Pallavan Grama BankSalem
51Pandyan Grama BankVirudhunagar
52Baroda Rajasthan Kshetriya Gramin BankAjmer
53Rajasthan Marudhara Gramin BankJodhpur
54Malwa Gramin BankSangrur
55Punjab Gramin BankKapurthala
56Sutlej Kshetriya Gramin BankBathinda
57Puduvai Bharathiar Grama BankMuthialpet
58Odisha Gramya BankBhubaneswar
59Utkal Grameen BankBalangir
60Nagaland Rural BankKohima
61Nagaland State Cooperative Bank Ltd.Dimapur
62Mizoram Rural BankAizawl
63Meghalaya Rural BankShillong
64Manipur Rural BankImphal

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