Regional Rural Banks (RRBs) plays a vital role in the agriculture and rural development of India. The RRBs have more reached to the rural area of India, through their huge network. The success of rural credit in India is largely depends on their financial strength. RRBs are key financing institution at the rural level which shoulders responsibility of meeting credit needs of different types of agriculture credit in rural areas. The Banking Commission (1972) recommended establish an alternative institution for rural credit and ultimately Government of India established RRBs as a separate institution basically for rural credit on the basis of the recommendations of the Working Group under the Chairmanship of Shri M. Narasimham (1975). At present in Andhra Pradesh five Regional Rural Banks functioning - Andhra Pradesh Grameena Vikas Bank (APGVB), Andhra Pragathi Grameena Bank (APGB), Chithanya Godavari Grameena Bank (CGGB), Deccan Grameena Bank (DGB) and Saptagiri Grameena Bank (SGB). This study finds and concludes that performance of RRBs has significantly improved Post Merger Scenario in Andhra Pradesh.
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