ADOPTION OF BANKING TECHNOLOGY IN RURAL BANKS OF ANDHRA PRADESH G.K. LAVANYA. Assistant Professor, St. Joseph s college of Arts and Science, Chennai

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1 ADOPTION OF BANKING TECHNOLOGY IN RURAL BANKS OF ANDHRA PRADESH ABSTRACT: INTERCONTINENTAL JOURNAL OF FINANCE RESEARCH REVIEW G.K. LAVANYA Assistant Professor, St. Joseph s college of Arts and Science, Chennai The paper examines the adoption rate of the banking technologies in rural banks. It identifies the operational problem in the use of modern technologies and suggests measures for improvement in the use of technologies. Regional Rural banks plays an important role in rural development, where Indian economy depends on economy. Use of technology by rural banks is challenge, but through continuous efforts of RRB s it has met to certain extent, on the long road to go. APGB in Andhra Pradesh has tried its best to implement and impart the technology among the farmers and its other customers. Yet the technology can be reached to rural areas only to educating the farmers and rural masses. The present study covers the functioning of the Andhra Pragathi Grammeena Bank established in Kadapa which extends its area of operation to Kadapa, Kurnool,Ananthapur, Nellore and some pockets of prakasam districts of Andhra Pradesh. All the five districts which fall under the operational view of the bank are more or less backward. Key words: APGB, Technology, ATM, Mobile commerce, RRB. Introduction Commercial banks plays an important role in banking sector by lending loans and advances not only in urban areas but even in rural areas. They also support Regional Rural Banking by sponsoring finance to Agricultural and rural development. Even though this indirect finance promotes the infrastructure facilities and services in rural areas the poor farmer are unable to acquire these services due to financial constraints. Thus agricultural credit delivery mechanism in India is loosely integrated and not reaching the target beneficiaries. Schemes introduced by Commercial banks in insuring yields and market risks to protect the interests of the farmers remained in nascent stage with a view to facilitate RRB s operations: The RBI gave RRB s direct access to refinance assistance at a concessional rate of 3 percent below the bank rate. RBI started allowing RRB s to maintain a lower level of SLR than Commercial banks. To pay half percent more interest on all deposits except those of 3 years and above. Sponsor banks like IDBI, NABARD, SIDBI and other financial institutions are statutorily required under the RRB s Act to provide managerial and financial assistance to RRB s. This helped RRB s to meet the needs of weaker sections of the rural population like small and marginal farmers, Agricultural labourers, Artisans, small entrepreneurs mobilize deposits from rural households. Thus role of RRB s or Grammeena banks at present play a major role in development of rural India. Therefore the present focus for RRB s be is on improving their performance including their profitability. At first and foremost RRB s are fast moving towards Core Banking Solution for effectiveness and to increase customer base over 20 RRB s are already on CBS platform. NABARD has taken the step of reaching the rural by adopting technology in banks. It started jointly with sponsor banks to bear 90% of the cost for implementing modern banking technology in weak regional rural banks. As directed by Government of India a committee was constituted in NABARD to develop 18 icmrrjournal@gmail.com

2 skills of the staff to implement CBS and other related technological up gradation. The technological development in the field of banks has changed its face of banking system and also its development in banking Industry. This helped banks to shift from mass banking to class banking with introduction of value added and customized products. Technology now allows banks to create what looks like a branch in a business buildings, lobby without having to hire man power from manual operations. The technology has helped banks to serve 24X7 working hours which is possible due to telebanking, ATM s, internet banking, mobile banking and e-banking. It also helps to reach maximum customers at lower cost and in most effective manner. The establishment of RRB branch network dates back to With the bank nationalisation in 1969 not giving the desired results in expanding rural base of banks, the Government came out with a new credit agency to operate in rural areas in the form of RRBs in This expansion of rural banking network lasted for more than a decade. From a modest beginning of just 6 RRBs with 17 branches covering 12 districts in 1975, the number grew to 196 RRBs with 14,446 branches working in 518 districts across the country, in However, given the multiagency shareholding and entailed restrictions, several RRBs failed to sustain viable operations and others merged vertically or horizontally, resulting in the total number of RRBs stabilizing at 91, in 2007, with over 14,000 branches, spread across 585 of the 622 identified districts. Now, RRB s in 2014, are with 56 in number with 14,200 branches in 23 states. State Bank of India with 14 sponsor banks is one of the commercial bank to help RRB s with branches. All these Regional Rural Bank s which helped them to adopt net banking technologies in banking. This helped RRB s to perform its best in rural areas. Now, RRB s are implementing internet banking, mobile banking, HRMS, cheque transaction system and Kisan Credit Card. Among the Information Technology implemented, Kisan Credit Card (KCC) is one which has become popular and could reach rural farmers. It can be said that a success of implementing technology in RRB s because the purpose of KCC is to provide timely and adequate credit to farmers to meet the production credit needs. It also fulfills the needs of meeting contingency expenses, and expenses related to ancillary activities through simplified procedure facilitating availing of the loans as and when needed. KCC helps tenant farmers, oral lessees and share croppers etc. it can help all farmers, individuals who are owner cultivators. Objectives of the study 1. To study the effectiveness of modern technologies adopted in banking operation and banking services of APGB( Andhra Pragathi Grameena Bank). 2. To examine the level of satisfaction in respect of the adoption of modern technology. 3. To identify the causes for not using the different banking channels, i.e., ATM, Internet Banking, Phone Banking and mobile commerce in banking operations. Methodology The sample for the present study includes the customers who are availing different services from different rural banks operating in Andhra Pradesh. the process of selecting the sample is multi-stage in nature. At the first stage rural banks in Andhra Pradesh have been selected out of the total banks operating in the state. In the second stage, Andhra Pragathi Grameena bank have been selected with the help of convenient sampling. At the third stage 10 branches, 2 from each district have been selected from Anantapur, Kadapa, Kurnool, Nelloor and Prakasam districts. While selecting the sample an utmost care has been taken to ensure that the respondents of different age, religion, educational background and family income, etc. are included. Consistent with objectives of the study, different techniques like simple percentage methods and chi-square methods have been used. 19 icmrrjournal@gmail.com

3 TECHNOLOGY AND RURAL BANKING : The technology development in the field of banks has changed its face of banking system. Banks from the traditional activities walked into non-banking activities like financial services and customer satisfaction and giving importance to Customer Relationship Management (CRM)also. Which helped banks to shift from mass banking to class banking with introduction of value added and customized products. Technology now allows banks to create what looks like a branch in a business building, lobby without having to hire man power from manual operations. This technology driven delivery channels are used to reach maximum customers at lower cost and in most efficient manner. The need of an hour is to design a system to promote marginal efficiency of investment in technology and widen the gap between marginal benefits and marginal costs involved in banking transformation with special reference of technological up gradation. Role of banks, which is central to formal credit in rural areas, is fast changing. The emergence of new technology allows access to banking and banking services without physical direct recourse to the bank premise by the customer. The concept of Automated Teller Machines (ATMs) is the best example. At present, ATMs are city oriented in our country. It is inevitable that ATMs will be widely used, in semi-urban and rural areas. The technology-led process is leading us to what has been described as virtual banking. The benefits of such virtual banking services are manifold. First, it confers the advantage of lower cost of handling a transaction. Second, the increased speed of response to customer requirements under virtual banking vis-à-vis branch banking can enhance customer satisfaction. Third, the lower cost of operating branch network along with reduced staff costs leads to cost efficiency. Fourth, it allows the possibility of improved quality and an enlarged range of services being available to the customer more rapidly and accurately at his convenience. It may not be possible to deny these facilities to rural areas in our country since, if banks do not provide them, some non-banks will do it. Another development relates to the increasing popularity of credit cards, which are bound to reach rural areas. Many Public Sector Banks are already in credit card business. In fact, multipurpose cards could be a facility that IT could usher in for rural population. The potential can be illustrated with smart cards. Cards Smart which are basically cards using computer circuits in them thereby making them intelligent' would serve as multipurpose cards. Smart cards are essentially a technologically improved version of credit and debit cards and could be used also as ATM cards. They could be used for credit facilities at different locations by the holders. Smart cards could also be used for personal identification and incidentally for monitoring credit usage. For the spread of virtualbanking and Smart cards to rural areas, it is essential that electric power and telecom connectivity are continuous and supplies do not drop especially during the hours when a bank's transactional activity is at relatively high levels. RTGS stands for Real Tike Gross Settlement system, it is a fund transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross prices. This is fastest money transfer system through the banking channel which is different form EFT and NEFT. It takes only 2 hours to transfer the funds effectively. The Electronic payment system such as electronic clearing service (ECS) credit and debit, National electronic fund transfer (NEFT) for retail transactions and real time gross settlement (RTGS) for large value, improved the speed of financial transactions across the country. Core Bank Solutions(CBS) is a centralized platform which creates environment where the entire bank operations can be controlled and run from a centralized hub. This creates centralized customer data base, which makes anytime, anywhere banking possible. The internet has emerged as one of the major distribution channels of banking products and services. Consumers are embracing the many benefits of the internet banking like improved customer access which facilitates the offering on more services, attract new customers and reduce customer attrition. 20 icmrrjournal@gmail.com

4 The banks could, under such assured supply conditions acquire the required banking software and also put in place the necessary networking for providing anywhere banking facilities in rural and semiurban areas also. Like banks in other parts of the world, Indian banks will have to get interested in providing diversified range of financial products and services along with those that they are already providing, by using technological advances. As the level of education in rural areas rises and affluence spreads, customers will start seeking efficient, quicker and low cost services. As the financial system diversifies and other types of financial intermediaries become active, in rural areas, savers would turn towards mutual funds or the savers themselves decide to deploy part of their financial surpluses into equities and debentures as also other fixed income securities. The bulk of bank deposits in the rural areas are currently longer term deposits and as these come down, there would be a distinct shortening of the average maturity structure of bank deposits with an increase in asset liability mismatches. The spreads that the banks now enjoy will progressively shrink making it more difficult for them to survive. As more and more intermediaries enter rural areas with greater level of technology, traditional banking business will come under pressure. In order to face the competitive pressures being exerted by the recently set up market savvy banks, banks which have extensive branch network in most of the existing and potential rich rural and semi-urban areas may have to provide such services. Andhra Pragathi Grameena Bank came into existence from by amalgamating Rayalaseema Grameena Bank, Sri Anantha Grameena Bank and Pinakini Grameena Bank consequent upon the Government of India Notification dt the bank is constituted under Regional Rural Banks Act, The Bank is having its Head Office at KADAPA with a jurisdiction of 5 districts namely Anantapur, Y.S.R(Kadapa) Kurnool, Nellore and Prakasam. The Bank is having 7 Regional offices with its Head quarters at 5 district Head Quarters, Kadiri of Anantapur district and in Nandyal of Kurnool district. The Bank is providing banking services with its 450 branches as on the bank is catering to the needs of Rural Poor mainly and to all other sectors also. The bank has been playing a pivotal role in economic development of its operational area by outreaching the people in the countryside. The Bank earned Net Profit of Rs Crore as on and stood first among all RRBs sponsored by Syndicate Bank and all RRBs in the Andhra Pradesh State in respect of networth Rs crore. The paid up capital of the Bank is Rs.300 lakh, contributed by the Govt. of India, Sponsor Bank(Syndicate Bank) and the Government of Andhra Pradesh in the ratio of 50:35:15 respectively. The entire area of operation of the Bank, which is mostly in Rayalaseema region, is characterized by drought and backwardness. About 75% of the population in the area lies in countryside. The soils are mostly black and red, about 75% of the area is rain fed and farmers depend on rain fed crops and Irrigation sources canals, tanks, bore wells etc., the major crops grown are paddy, cotton (hybrid), chilies, vegetables, horticulture crops like banana, papaya, sweet orange, mango etc., and under rain fed conditions the major grown are ground nut, jowar Bengal gram, sun-flower, coriander, tobacco, etc. MISSION OF ANDHRA PRAGATHI GRAMEENA BANK: 1. To increase the business on a sustainable manner with consistant efforts and bring all the house holds in the operational area into banking folds. 2. To fine tune the existing products and design new products and services to match the competition prevailing in the market. 21 icmrrjournal@gmail.com

5 3. To mould the staff of the bank as computer literate and technologically savvy and to achieve hundred percent computerization of branches. 4. To continue to be a true friend, philosopher and guide to customers with dedicated service and accelerate the pace of development of the operational area for accomplishing the Bank's Objectives. Objectives of APGB: To provide integrated credit to agriculture, commerce, industry and other productive activities in the rural areas of the respective Districts. To mobilization of deposits, loans, advances to the weaker sections and recovery of loans. To provide integrated credit to agriculture, commerce, industry and other productive activities in the rural areas of the respective Districts. To mobilize resources from the region and deploy them within the same region. To improve the social-economic conditions of the rural masses, particularly weaker sections, small farmers, marginal farmers, agriculture labourers, artisans and small entrepreneurs in the respective districts. 1. Andhra Pragathi Grameena Bank occupied No.1 position in Net worth among all the RRBs in the country. The bank has 450 branches in 5 districts. The operating profit of the bank for the year was Rs crore. 2. Total business crossed Rs crore. 3. Deposits crossed Rs.5948 crore. 4. Advances crossed Rs.7314 crore. 5. The bank has customer base with lakh. 6. The bank has computerized all its 450 branches with CBS(Core banking solutions) and 100% of its business is computerized as on Future Plans of the Bank: To improve the business level. Planning to open more branches. The bank has planned to provide banking services to all the villages allotted under financial inclusion and to enable the clientele with Aadhaar Bridge payment systems by linking to Aadhaar number. Providing Debit Cards and installing ATMs at strategic places for providing any time transaction facilities. Providing net banking services. Social Responsibilities: Establishment of Farmer s Clubs: the bank has established 357 farmers clubs through which the bank is undertaking activities for enriching the farmers with latest technology and improving the cultivation methods. One of the clubs has secured the Best Club Award from the NABARD. Establishment of Training Institutes: The bank is actively associated with providing of training and imparting the skills to the unemployed rural youth. The sponsor Bank i.e. syndicate bank has established training institutes (SIRD) AT Kadapa and Kurnool. 22 icmrrjournal@gmail.com

6 Conducting of extension activities: it is conducting extension programmes through its branches for educating the farmers in various fields like, post harvest technologies, improved agricultural practices, improved soil conservation methods etc., Improving the water resources: the bank has taken clearing/cleaning of villages ponds to improve the water retention capacity of the village tanks the bank has extended assistance for 154 village ponds so far. Contributing to Renewable Energy: the bank has entered MOU with the suppliers of solar energy systems and extending financial assistance for installation of solar energy systems. It also has 169 branches with renewable energy systems. Security measures & other developments: Security measures : The bank has provided fire extinguishers and security alarms to all the branches. It has also provided strong room facility to 30 branches and 430BB class safes to the branches and decided to provide BB class safe to all branches. Safe deposit lockers: the bank has provided 40 safe deposit locker units, taking the total lockers at the branches to 243. Cash counting Machines: the bank has provided 350 cash counting machines. Co-financing: Under Co-Financing, NABARD and APGB jointly finance new projects or even projects for modernization & expansion Table A1 there explains about the Regional Rural Banks operating in Andhra Pradesh. Results and discussion: Status of Bank Account Holders: Table B2 shows that the majority of the respondents of Anantapuram i.e., 59% are having maximum saving accounts compared to other districts. Nellore district is having 12% of fixed deposits compared to other districts. Current account is maintained more in Anantapuram district, and loan are utilized more in Anantapuram because of its large in area and operations of the bank. Branch expansion of APGB: The branch expansion of APGB since 2006 to 2014 shows that its progress is satisfactory, it has expanded from 360 branches to 450 branches respectively. Table C3 shows the branch expansion. It is explained in Table C3. Deposits of APGB: The rate deposits has increased form Rs to Rs in2006 from 2014, showing its contribution towards rural development. Table D4 Shows the deposits in different areas. Loans and advances of APGB: The progress of APGB can be discussed to show its efforts towards rural development. Table E5 shows the increase of loans and advances by the bank from 2006 to Profitability: APGB s profitability during the years 2006 to 2014 is discussed by graphical representation and in table F6. 23 icmrrjournal@gmail.com

7 Awareness of Modern Banking Channels: Table C3 explains that 75% respondents are found aware about ATM because rural areas have apragathi Grammeena bank) has made all its branches with net banking facilities. Only 18% of the respondents are noted familiar about mobile commerce, due to lack of awareness among the rural people. Satisfaction level of Respondents regarding Banking Services: Table D4 reveals that 82 percent of the respondents are either extremely satisfied or they are somewhat satisfied with the existing banking services. Further, the application of Chi-square test reveals a significant difference in the opinion of the students regarding the satisfaction level of the banking services, as the calculated value 96.4 is greater than the table value 9.49 at 5 percent level of significance. Reasons for not using channels: Table E5 explains the reasons for not using banking channels other than ATM was that the respondents did not have knowledge and facility. These services are not provided to rural people though the mission and vision is to serve rural people, banks are feeling hard and time taking in educating rural regarding the services and technological development of the banks and there is no awareness about the operation of these channels. So, it is suggested that mechanisms should be set-up to make people aware about the working of these channels. Operational problems in the use of Modern Technology by APGB: People do not have knowledge of the most of the services provided by the banks. The technologies should ne simple and user friendly so that even a layman can make the best use of them, even without having the technical knowledge. A majority of them are situated in remote rural areas where regular supply of electricity is a major problem. his bank overcame this by installing solar power packs in 169 branches of APGB another challenge for RRBs was training their manpower in new technology. Narrating the challenges in training and mindset change of KVGB, Mr Reddy said his bank gave premigration training to all its staff members before migration to CBS.The implementation of CBS involves huge cost for setting up of infrastructure such as data centre, disaster recovery site, connectivity and other monthly recurring charges. One of the RRBs having more than 400 branches, which implemented CBS this year, incurred a cost of around Rs. 12 crore.apgb is having 450 branches with CBS. LIMITATIONS A majority of them are situated in remote rural areas where regular supply of electricity is a major problem. Mr C. Sambasiva Reddy, Chairman of the Karnataka Vikas Grameena Bank (KVGB), a major RRB in Karnataka, told Business Line that the erratic grid power supply was one of the factors that came in the way of the implementation of CBS for his bank. However, Mr Reddy said, his bank overcame this by installing solar power packs in 112 branches. Another challenge for RRBs was training their manpower in new technology. Narrating the challenges in training and mindset change of KVGB, Mr Reddy said his bank gave pre-migration training to all its staff members before migration to CBS. The implementation of CBS involves huge cost for setting up of infrastructure such as data centre, disaster recovery site, connectivity and other monthly recurring charges. One of the RRBs having more than 400 branches, which implemented CBS this year, incurred a cost of around Rs. 12 crore. An update by Nabard (National Bank for Agriculture and Rural Development) 24 icmrrjournal@gmail.com

8 said that 22 weak RRBs were assisted with sanction of Rs crore for the implementation of CBS in their branches till November-end. Of this amount, disbursements were made to the tune of Rs crore. This move was based on the Union Finance Minister's discussion with Chairmen of RRBs in July 2010 where it was decided to support 28 weak RRBs for CBS implementation. The regulator is hopeful of getting a better result from the CBS implementation in RRBs. In an address at the FICCI-IBA conference on Global Banking in August, Mr H.R. Khan, Deputy Governor of RBI, had mentioned that a CBS-enabled RRB opens up immense possibilities in terms of products and services. He had then suggested that the sponsor banks need to integrate the CBS of RRBs with their own core banking. This would enable the customers of RRBs to enjoy the same benefits as the sponsor banks. Few other causes that banks face to make the customers accept the technology are: That bank customers remain unwilling to pay for interfaces for the new technology, while merchants expect to share the revenue of new payment media through lower commission charges. Unknown procedure associated with lack of knowledge and high marketing expenditure keep the customers confused. Awareness and literacy of technology is not to the mark by the customers. Conclusion: APGB is now progressing as the best RRB among RRB of Andhra Pradesh. NABARD has recognized as No.1 among other RRB s operating in Andhra Pradesh, government of Andhra Pradesh has awarded The Best Bank. The 56 percent of the respondents are satisfied with the services of the bank. The awareness level of ATM is higher as compared to the other banking channels. The mobile commerce has at least 18 percent awareness. ATM is the only banking channel which is used extensively among all the five channels followed by the personal visit to bank. However, the use of other channels is currently low, the lowest being the mobile commerce. The numerous challenges faced by bank such as increase in competition, pressure on spreads, and systemic changes to align with the international standards have necessitated for a re-evaluation of strategies and processes in order to remain competitive in this dynamic environment. The new business environment thus puts a premium on creativity and innovation more than ever before. Banks may have to for mobile banking services for a cluster of villages. Technological institutions have to come out with low cost, selfservice solution/atm. The Government and RBI should actively support such research efforts. It is important for the banks to have a customer service team familiar with the mobile banking platform and well trained to answer every question from customers. In an attempt to cater the ever increasing consumer expectations and demand, the new generation banks have adopted mobile banking also. The aim to offer banking services at the convenience and comfort of their customers. Thus with technology support banks can focus and excel in the core competency areas of banking and financial services. Suggestions: APGB has to educate the farmers through farmer clubs and youth clubs the use of technology in banks. To train the staff members on skills for the business development, to face new challenges, further give the awareness of products and credit management, anti-money laundering standards, code of banks commitment to customers etc. 25 icmrrjournal@gmail.com

9 References The cost and feasibility of modification to the organization of these banks and the restructuring of employees training incentives and practices must also be considered. To reach the target of credit deployment and to cover the large rural masses, the bank should not be satisfied with providing credit only to the approaching borrowers but it has to locate and identify those borrowers who have potentiality and credit worthiness, and lend them credit. Banks should make the Borrowers to attain a sense of confidence and self-sufficiency when they pay back their loans to grameena bank. To discourage the malpractices adopted by the richer sections the RRBs may allow to lend richer-sections of rural society to a maximum of 20 per cent of their total loans issued with specific ceilings on such loans to any one individual for each purposes. Which enables the bank to mobilize more local resources and thereby increase its loan capacity. The general opinion is that the aged people and the undergraduate people are not aware of the formalities to be followed in the banks. Hence the bank should take some actions initiatively banking knowledge among the farmers. The banks has greater responsibility in bringing the importance of training programme to the staff members on skills for the business development, to face new challenges, further give the awareness of products and credit management, Anti-money laundering standards, code of banks commitment to customers etc. The cost and feasibility of modification to the organization of these banks and the restructuring of employees training incentives and practices must also be considered. The uniqueness of the new institution of RRBs lies in their specialization in the task of rural development by directly providing credit facilities to the weaker sections of rural society which have been relatively neglected in the past both by the co-operative and the commercial banks. The banks should help the farmers in adopting new technologies for farming, irrigation, etc., with the help of the staff as the researches are taking place in institutions and are not reaching the farmers. Adoption of villages which has been introduced by RRBs, can be followed and help in development of those areas where banks have been situated. 1. APGB Annual Report RRB Annual Journals. 3. B.S. Kjubchandani, 2000, Practices and Law of banking. Macmillan India Ltd., Delhi, p C. Rangarajan Development of banking technology in India. Reserve Bank of India beyond, Deep & Deep Publications Pvt. Ltd. New Delhi, p.387. WebPages 1. The banking system in India.retrived from /rrb.in 2. Regional Rural Banks in Andhra Pradesh // 26 icmrrjournal@gmail.com

10 Regional Rural Banks in Andhra Pradesh: Table: AI List of amalgamated Regional Rural Banks in Andhra Pradesh: Regional Rural Bank Sponsor Bank Namesof amalgamated RRBs Andhra Pragathi GB Syndicate Bank Rayalaseema Grameena Bank Sri Anantha GB Pinakini GB Andhra Pradesh State Bank of India Kakathiya GB GVB Manjira GB Nagarjuna GB Sangameshwara GB Sri Visakha GB Saptagiri GB Indian Bank Kanakdurga GB Shri Venkateswara GB Chaitanya Godavari Andhra Bank Chaitany GB GB Godavari GB Source: Annual Report, APGB Table B2 : Status of bank account holders of APGB Operational area Anantapur,Y.S.R..(kadapa), Kurnool,Nellore,prakasam Guntur&Godavari districts Canhittor &Krishna district Guntur, East Godavari & West Godavari. District Savings FD Current Demat Loan Other Anantapuram 72(59%) 4(10%) 6(40%) 3(33.3%) 7(33.3%) - Kadapa 8(6.5%) 10(25%) 2(13.3%) 2(44.4%) 2(9.5%) 4(25%) Kurnool 8(6.5%) 10(25%) 3(20%) 2(22.3%) 2(9.5%) 4(50%) Nellore 24(19.5%) 12(30%) 2(13.3%) - 2(38.2%) 2(25%) Prakasam 10(8.5%) 4(10%) 2(13.3%) - 2(9.5%) - Total Source: Annual Report, APGB Table C3 giving branch network of APGB Population Rural Semi-urban Urban Total icmrrjournal@gmail.com

11 Graph showing branch network of APGB population rural semi-urban urban SOURCE: Annual report of APGB Table D4 showing branch deposits of APGB (Rs. In lakh) Column1 Category of branches Deposits( ) Deposits( ) Rural Semi-Urban Urban Total Graph showing branch deposits of APGB Deposits( ) deposits ) Column Rural Semi-Urban Urban SOURCE : Annual report of APGB 28 icmrrjournal@gmail.com

12 Table E5 showing Loans and advance of APGB (Rs. In CRORE) Particulars Loans&advances o/s( ) Loans&advances o/s( ) Priority sector a)farm sector b)non-farm sector d)indirect finance through FSCSs Total priority Non-priority Total Graph showing loans and advances of APGB SOURCE : annual report of APGB Table F6 Showing Profitability of APGB (Rs. Lakh) Particulars Amount Rs.( ) Amount Rs.( ) Income Earned Expenditure Incurred Profit icmrrjournal@gmail.com

13 Graph showing profitability of APGB SOURCE: Annual report of APGB Table. G3: Awareness of modern banking channels. Variables Yes No ATM Internet Banking Phone Banking Mobile Commerce Source: Secondary data. Table H4: Satisfaction level of respondents regarding banking services N=100 Variables No. of respondents Extremely satisfied 26 Somewhat satisfied 56 Neither Satisfied nor Dissatisfied 8 Somewhat Dissatisfied 6 Extremely Dissatisfied 4 Cannot say 0 X 2=96.4, t 0.05 = icmrrjournal@gmail.com

14 Table I5: Reasons for not using channels. Variable ATM Internet banking Phone banking Mobile commerce Rank Rank Rank Rank Risky High charge Don t fell necessary Inadequate Knowledge Facility is not there Source: secondary data About the Author: Author is G.K.Lavanya, graduated and post-graduated from S.V. university in Commerce. Did M.phil from Madhurai Kamaraj University and M.B.A, from Dr. B.R.Ambedkar University. Presently submitted a Thesis to Rayalaseema University, A.P. for the award of P.hd. in commerce. Worked as a Commerce Lecturer for 6 years and now as an Asst. Professor since 6 years in Chennai, with DMI sisters institution, St. Joseph s college of Arts and Science. 31 icmrrjournal@gmail.com