ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
Available Online: www.ajeee.co.in/index.php/AJEEE
Vol. 07, Special Issue 05, (IC-RTCASEMHPS-2022) September 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 142 GROWTH OF SMALL FINANCE BANKS IN RURAL AREAS AND FINANCIAL INCLUSION
IN INDIA
Mr. Abhilash Sharma, Mr. Vikas Sharma Shree Rewa Gurjar Bal Niketan College, Sanawad
Abstract - Small Finance Bank in India are fastest growing small financial supporting banks, it's main objective is to server small interpreneur former small business units like small and marginal former and micro and small industries RBI has changed its terms to encourage financial inclusion in India it was very challenging to sustain banking facilities in the tribal rural or backward areas in India. Currently there are approx 12 small finance Bank are functioning under the governance of RBI, this study is about the growth of SFB’s in India.
Keywords: Small Finance Banks, Rural And Semi Rural Area, Main Stream of Financial Inclusion.
1 INTRODUCTION
India is an agricultural country according to the statistical data 18% of GDP contributed by the agriculture sector. India is an agricultural country and Agriculture is mainly associated with the rural areas, the increase in the productivity of agriculture promote the development of small industrial now a days in the process from yield to manufacturing of goods India entrepreneurs so that small expenditure related task can be done easily keeping in views, in India the future of sfbs is very sharp. GOI realized that 100% financial inclusion. Would be a dream unless there is a paradigm shift in approach towards financial inclusion. As a result, GOI has changed its strategy from group based approach to individual based approach. Pradhan Mantri Jan Dhan Yojna (PMJDY) has been one of such individual based strategies introduced in the year 2014. PMJDY has succeeded significantly in providing a bank account to each individual in India and mobilizing the savings of poor and downtrodden people of India. As on 6th March, 2019, PMJDY opened 34.37 crores bank accounts and mobilized Rs 93567.18 crores through those bank accounts (PMJDY, 2019).
2 REVIEW OF LITERATURE
Ravi Kumar 2018 Shown district pintration and performance of small finance banks in India they tried to show that small will open easily in India because the deposit and advanced deposit were growing year by year in the bed condition of market during demonetization.
Ms. Charmi Patel and Dr. Archana Fulwari said that financial inclusion has been focus on the policies of RBI since 2005-06. Along with verious initiatives of the Government of India, The RBI approved the setting of small finance bank in the year of 2015. SFB’s are try to setup to undertake basic banking activities for the unserved and unreserved section of the population.
On September 16, 2015, the RBI gave an “in-principle” approval to ten entities including Microfinance Institutions (MFIs), Non-Banking Finance Companies (NBFCs) and Local Area Banks (LABs) for establishing SFBs. The primary motive of setting up SFBs was to have a greater focus on the unserved sections of the society. SFBs would undertake basic banking activities like mobilization of deposits and advancing of loans to unserved and underserved sections which include small business units, small and marginal farmers, micro and small industries, and enterprises in the unorganized sector.
2.1 Research Objectives
1. To analyse the growth of SFB’s in rural and semi rural areas.
2. To measure the net profit growth of sfbs in demonetization and Covid-19 pandemic conditions.
3 RESEARCH METHODOLOGY
This research is based on secondary data. We tried to exhibit the performance of small finance banks by Net profit growth. All the data is taken from annual reports from 2016-17 to 2020 - 2021of small finance Bank of India.
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037
Available Online: www.ajeee.co.in/index.php/AJEEE
Vol. 07, Special Issue 05, (IC-RTCASEMHPS-2022) September 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 143 The Government of India wishes the people of rural and areas to the main stream of the economical growth there are 65% of the total population of the country grossly unbanked or underbanked and many pockets under the service it is higher time that the banking in financial services are able to create meaningful way of main streaming these segments and buildings there financial self reliance.
Small Finance banks provide micro loans to the lap of rural Indian people out of money service providing by them many savings and current accounts opened by the small finance banks this is the great assessment for inclusion of Indian.
There are some performance of 5 Small Finance Banks, which measured on the basis of Net profit of 2016-17 to 2020-21, The following data taken from annual reports of Banks.
5 Year Data Analysis of Net Profit Growth Profit in Cr*
S.No. Name of Bank 2016-17 2017-18 2018-19 2019-20 2020-21
1 Ujjivan SFB’s Profit 207.7 7 199 350 8.3
Growth in % 96.63% 2742.85% 75.87% 97.62
2 Utkarsh SFB’s Profit 4.83 63 93.89 186.74 111.82
Growth in % 1413% 249.2% 98.89% 40.12%
3 AU SFB’s Profit 212 305 292 382 674.78
Growth in % 43% 4.26% 30.82% 76.64%
4 JANA SFB’s Profit 170.11 -2503 1949.06 30 84.31
Growth in % -1371.40% 177.86% 10.02% 181.03%
5 Equitas SFB’s Profit 104.13 31.83 210.55 243.63 384.22
Growth in % 69.43% 561.48% 15.71% 57.70%
In this table we found that the Net Profit goes to downward in 2017-18 due to démonétization of indian currency and other hands Net Profit goes to downwards in 2020- 21 due to pandemic of covid -19 in india.
4 CONCLUSION
Small finance Bank are ready to change in the banking scenario of India there are 65% of Indian citizen are not having the banking facilities because they are living ruler and Sami rural areas small finance banks are trying to give them banking offer to join them in the main stream of financial inclusion. there are lots of chance for growth in India as a small or micro finance bank there are maximum opportunities for small finance bank to spread their branches into rural and semi rural areas. To providing banking services for poor and less income people of rural India in the time of pandemics and demonetization
REFERENCE
1. T. Ravi Kumar (June 2020) Small finance bank and financial inclusion, Research Review Journals volumes 4 lesson 03 march 2014
2. Miss Charmi Patel Archana Phulwari June 2021 small finance bank in India A preliminary study of their progress, An indexed refered & peer reviewed journal of Higher Education, volume 13 Issue no 2 ISSNNO.
0974-035X
3. https://www.rbi.org.in/
4. https://www.aubank.in/
5. https://www.equitasbank.com/
6. https://www.janabank.com/
7. https://www.ujjivansfb.in/
8. https://www.utkarsh.bank/
9. https://www.tractorjunction.com/
