Financial Performance Evaluation Of Himachal Pradesh Gramin Bank

Abstract

A good banking system is very important for the economic strength of any country. Indian economy is also no exception to this and the Indian banking system has a huge stake in the country’s economic growth and development. To analyse the financial performance of a bank, the financial efficiency, liquidity position and credit performance are the main areas. The present study is an attempt to measure the financial performance Himachal Pradesh Gramin Bank. The secondary data has been used for the study and different ratios have been applied to evaluate the performance. Study found that HPGB has achieved success in channelizing the savings of rural people into productive purpose. The amount of advance has been significantly increased at a faster rate. The ratio of advances over deposits of bank significantly improving but bank did not utilize its deposits efficiently in the study period. Study concluded that profitability position, credit performance of the bank has been found poor and liquidity position remained almost constant during the study period. It is suggested that bank can mobilize its deposits to meet credit demand and may earn higher profit by increasing the ADR ratio although it indicates lower liquidity. It is advised that bank should make more efforts to improve its financial performance