The study examines the performance of Regional Rural Banks (RRBs) in India with special reference to credit flow to agriculture and allied sectors during 1986–87 to 2022–23. The analysis is based on secondary data collected from Reserve Bank of India and NABARD reports. The study compares loan issued and loan outstanding amounts using F-tests, t-tests, ANOVA, and Scheffe post-hoc tests. Results reveal that, overall, there is no significant difference between loan issued and loan outstanding by RRBs, indicating improved recovery performance. Period-wise analysis shows significant growth in agricultural lending across all three periods, with the highest average loan disbursement observed during 2012–13 to 2022–23. The compound annual growth rate of credit expansion remained positive and statistically significant throughout the study period. While loan recovery was a major concern during 1986–87 to 1999–2000, the problem diminished considerably in the 21st century. The findings further indicate substantial improvement in profitability, business volume, credit-deposit ratio, and reduction in non-performing assets. RRBs have emerged as important institutions for promoting rural development, agricultural growth, and support to micro, small, and medium enterprises. The study concludes that the lending and recovery efficiency of RRBs has significantly strengthened their overall performance and contribution to India's rural economy.
C et al. (Mon,) studied this question.