Evaluating Loan Recovery Trends In Manipur Rural Bank: A Comprehensive Analysis

Abstract

In the contemporary economic landscape, financial institutions play a pivotal role in driving economic progress. India, as a developing nation aspiring for development, recognizes the importance of providing adequate credit facilities to rural areas. Regional Rural Banks (RRBs) were established based on the recommendations of the Narasimham committee and were founded on October 2, 1975, under the Regional Rural Bank Act of 1976. These banks, including Manipur Rural Bank (MRB) established on May 28, 1981, are crucial in catering to the credit needs of rural communities. However, MRB faces challenges in loan recovery, impacting its financial stability. This study delves into the trajectory of loan recovery performance and Non-Performing Assets (NPAs) from 2012-13 to 2017-18, utilizing data from MRB's annual reports. The repayment of loans hinges on various factors such as proper utilization of funds, income generation, marketing strategies, borrower willingness, supervision, and proactive measures by bank staff and government agencies.