A Case on Purvanchal Rural Bank (With Special Reference to Efficiency Enhancement in Rural Banking System)

Abstract

The case aims to highlight the intriguing fall of business of Purvanchal Rural Bank (PRB) working in the Purvanchal region of Uttar Pradesh. Since the inception, the bank has been doing considerably well and has emerged as a landmark in the rural banking industry. But, with the intrusion of private and nationalized banks in rural areas, the Purvanchal Rural Bank (PRB) has started losing its market share. The top management does not share information with the lower level employees who have never been involved in the policy making. Moreover, the new financial plans have been introduced only at the recommendation of government agencies regardless of their viability and suitability for a particular region. Conversely, private sector banks and nationalized banks used product-based marketing. They make a clear distinction in launching products in rural, semi-urban and urban areas. Consequently, they have been operating successfully in these regions. The cases put together primarily from secondary sources and aims to address financial issues such as financial operations, product strategies, financial communication, policy making and strategies forming etc. in regard to Purvanchal Rural Bank.

Keywords: Financial Plans, Policy Making, Product-Based Marketing, Indian Rural Banking and Nationalised Banks in India

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