A Study On Deposit Mobilization And Credit Development In Puduvai Bharathiar Grama Bank

Abstract

This Study Analyzes The Deposit Mobilization And Credit Development Of Puduvai Bharathiar Grama Bank (PBGB) Over A Five-year Period, Highlighting Its Role In Promoting Financial Inclusion And Rural Economic Growth. The Research Evaluates Trends In Various Deposit Categories—savings, Fixed, Recurring, And Current Deposits—and Examines How Effectively These Mobilized Funds Were Converted Into Productive Credit. Secondary Data From The Bank’s Financial Statements (2019–2024) Were Used, Supported By Analytical Tools Such As Trend Analysis, Comparative Analysis, Credit–Deposit Ratio (CDR), And Correlation. Findings Reveal Steady Growth In Deposits, With Fixed Deposits Holding The Largest Share And Recurring Deposits Showing Strong Year-on-year Expansion. The CDR Improved Significantly, Indicating Efficient Utilization Of Funds For Lending. A High Correlation Coefficient (0.995) Between Deposits And Credit Demonstrates The Bank’s Strong Financial Intermediation And Effective Resource Deployment. The Study Also Highlights Challenges Such As Low Current Deposit Growth And Regional Limitations. Suggestions Emphasize Diversifying Deposit Products, Strengthening Digital Banking, Improving Credit Quality, And Promoting Financial Literacy. Overall, The Research Concludes That PBGB Has Achieved Consistent Growth In Both Deposits And Credit, Strengthening Its Position As A Key Contributor To Rural Development And Financial Stability.

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