Agricultural credit provides flow to the system averting ruins that would have occurred due to the lack of monetary capacity of farmers in India. The Malaprabha Grameena Bank (MGB) is an important Regional Rural Bank (RRB) providing institutional credit to agricultural sector. This RRB is considered for restructuring in Karnataka in the light of financial reforms. Hence, MGB was selected in the present study with an overall objective of evaluating the bank’s performance by identify the important physical and financial indicators.  The analysis is done for two periods; Pre and Post-WTO with the help of twenty-nine variables by applying the method of Principal Component Analysis (PCA). The results revealed that in case of physical indicators based on the factor loading three dimensions during pre-WTO period and two dimensions during post-WTO period were identified, which explained 74 percent and 91 percent of the variations respectively. Similarly with respect to financial indicators three dimensions during pre-WTO period and three dimensions during post-WTO period explained nearly 90 percent and 93 percent of the variations in the bank’s performance respectively. The PCA analysis indicated the dominance of Business Component in influencing the performance of the bank during post-WTO period. Hence, purpose wise and beneficiary wise rationalization of credit structure and scale is a pre-requisite for enhancing the effectiveness of the credit system and in turn business of the bank. Secondly, the bank has to strike a balance between advances for agricultural and non-agricultural purposes, since,  safeguarding the interest of the target groups is important on one hand and sustainability of the bank on the other.