Impact of 3rd Phase Consolidation of RRBs in Other States on the Financial Performance of RRBs in Odisha
Year: 2026
Type: article
Abstract: This research study evaluates the impact and challenges after merging of Regional Rural Banks (RRBs) in Odisha with reference to a multi-facet perspective. This study uses a span of 10 years, out of which five years before merging (2013-2018) and five years after merging (2018-2023). The study makes use of the data collected from secondary sources. Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), and Gross Non-Performing Assets (GNPA) are some of the key financial parameters considered in the research. It has been found that ROA has witnessed an increase from 0.42% (before merger) to 0.78% (after merger). Also, ROE has recorded a rise from 6.5% to 11.2%, thereby indicating improved profitability of the RRBs in Odisha. However, GNPA has demonstrated a somewhat inconsistent pattern, starting with an increase from 8.9% to 10.4%, followed by a decline to 7.6%. The operational efficiency has been found to have improved, as the cost-to-income ratio has fallen from 62% to 54%. Despite the positive outcomes, there exist various challenges after the mergers of RRBs in Odisha, such as poor integration (65%), HR-related problems (52%), and technology adaptation challenges (48%). Keywords: RRBs, Odisha, Bank Mergers, Financial Performance, ROA, ROE, GNPA, Cost-to-Income Ratio, Post-Merger Challenges, Rural Banking
Institution: Utkal University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7166315937