The objectives of the study was to analyse influence of physical indicators on the performance of Malaprabha Grameena Bank. The data on physical indicators were abstracted from the annual reports of the bank for the period from 1976 to 1994.

Growth rate analysis revealed that majority of the indicators were found to be having significant positive trend. Principal component technique indicated that the family coverage, number of advance accounts, number of branches, villages covered, deposit accounts and number of employees were the most important indicators influencing the performance of the bank. The non-performing assets and productivity were the next most important indicators of Bank performance. It is advisable for the bank to concentrate immediately on per branch concept for attaining overall efficiency in the performance of the bank.