Professional Documents
Culture Documents
By
DHANANJAYA.C.
(Reg. No - 04VWCM6021)
Date:
Place: Bangalore
DHANANJAYA.C.
(04VWCM6021)
ACKNOWLEDGEMENT
The satiation and euphoric that accompany the successful completion of task would be
incomplete without the mention of the people who made it possible. So with immense
gratitude I acknowledge all those whose guidance and encouragement crowned my
efforts with success.
I would like to thank Prof. Sudhir G Angur, President, Alliance Business Academy,
and Dr. B.V.Krishnamurthy, Executive Vice President, Alliance Business Academy for
providing the support to do this study.
With deep sense of gratitude and indebtedness I sincerely thank Professor Ray Titus,
my dissertation guide for giving me valuable suggestions and advice throughout the
execution of the dissertation.
I would like to thank all the faculty members of Alliance Business Academy.
I would like to thank Mr. Ravi kiran, Lab Co-coordinator, Alliance Business Academy
for his co-operation and support.
Last but not the least I would like to thank my parents, friends without whose co-
operation this dissertation wouldn’t have possible.
1
TABLE OF CONTENTS
EXECUTIVE SUMMARY
• STATEMENT OF PROBLEM
• RESEARCH METHODOLOGY
BIBILIOGRAPHY
ANNEXURE
2
LIST OF GRAPHS
TABLE PAGE
TITLE OF THE GRAPHS/CHARTS
NO. NO.
LIST OF DIAGRAMS
TABLE PAGE
TITLE OF THE DIAGRAMS
NO. NO.
3 ORGANISATION STRUCTURE 24
4 CREDIT STRUCTURE 25
3
Executive Summary
This is a study to understand the causes for success or failure of co-operative societies
banks. The Co-Operative Societies Banks are mainly divided into rural cooperative
societies banks and urban cooperative societies banks. Here we are studying the entire
structure of co-operative societies banks giving much emphasis on rural CSBs. We are
evaluating the strategies of CSBs with regards to their success and failure and attempting
to implement the strategies of successful CSBs to those, who that are a failure CSB to
minimize the problems faced by them. Based on the survey-conducted by us, we assume
that the main reasons for the failure of rural co-operative societies banks.
Inefficient fund management
Poor recovery methods
Political interferences
Lack of control & Supervision
By analyzing these causes we will be able to locate the loopholes in the CSBs, which
will help in eliminating the problems faced by these banks. Although the cooperative
banks established on the patterns of Raiffeisen and Schulze Delitzch patterns have made
substantial progress in India, the movement can not be termed as a vibrant one in regard
to cooperative values and philosophy as enunciated in cooperative principles. While the
extension of financial sector reforms programme mainly the prudential standards to
cooperative banking segment on par with commercial banks may be justified on several
counts, it can not be ignored that such standards were essentially contrived for the latter.
Logically, if the prudential standards, and supervision and regulation for cooperative
banks were same as that of commercial banks, then there would not be any difference
worth mentioning between these entities other than the holding pattern. The notion of a
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code of good practices though intuitively appealing, the temptation to prescribe
universally valid model codes which do not allow for differences in institutional
development, legislative framework and more broadly, different stages of development
must be avoided. The increasing external intervention in the era of reforms, many a
times beyond the functional aspects of cooperative banks has resulted in the dilution of
cooperative character in terms of their adherence to cooperative principles. The paper
identifies several broad areas for the intervention of researchers under three categories,
i.e., prudential standards, professional management and governance and supervision &
regulation against the backdrop of financial sector reforms. While maintaining the
thrust on cooperative character throughout the discussions, it is argued that if cooperative
character of credit cooperatives is to be preserved or promoted, then the prudential
norms, system of governance and supervision & regulation, all should emanate from the
guiding principles of cooperation.
5
Chapter 1
LITERATURE REVIEW
Is it possible to imagine a world without banks? Impossible! Banks today for several
reasons have become cornerstones of our economy. They transfer risk, provide liquidity,
facilitate both major and minor transactions, and provide financial information for both
individuals and businesses.
HISTORY
1786: Establishment of the General Bank of India, the first Joint Stock bank.
1860: Three presidency banks were set up in Calcutta, Bombay and Madras.
1921: Three presidency banks were amalgamated to form the Imperial Bank of India,
which took on the role of a commercial bank, a bankers’ bank and a banker to the
Government
1935: The establishment of RBI as the central bank of the country ended the quasi-
central banking role of the Imperial Bank of India.
1955: The State Bank of India (“SBI”) was constituted in order to take over the Imperial
Bank of India and integrating with it, the former state-owned and state-associate banks.
1959: the State Bank of India (Subsidiary Bank) Act was passed, enabling the SBI to
take over eight former state-associate banks as its subsidiaries.
1969: 14 private banks were nationalized followed by six private banks in 1980.
Since 1991 many financial reforms have been introduced substantially transforming the
banking industry in India.
6
THE BANKING INDUSTRY - PORTER'S 5 FORCES ANALYSIS
DEMAND: India is a growing economy and demand for credit is high thought it could
be cyclical.
2. Power of Suppliers-
High during periods of tight liquidity.
Trade unions in public sector banks can be anti reforms.
Depositors may invest elsewhere if interest rates fall.
7
3. Power of Buyers –
The individual doesn't pose much of a threat to the banking industry, but one
major factor affecting the power of buyers is relatively high switching costs. If a
person has their mortgage, car loan, credit card, checking account, and mutual
funds with one particular bank, it can make it extremely tough for them to switch.
In an attempt to lure-in customers, banks try to lower the price of switching, but
many people would still rather stick with their current bank.
For good creditworthy borrowers (both individuals and corporate) bargaining
power is high due to the availability of large number of banks.
4. Availability of Substitutes –
There are plenty of substitutes in the banking industry. Banks offer a suite of
services over and above taking deposits and lending money, but whether it is
insurance, mutual funds, or fixed income securities, chances are there is a non-
banking financial services company who can offer similar services.
In the lending side of the business, banks are seeing competition rise from
unconventional companies. Sony, General Motors, and Microsoft all offer
preferred financing to customers who buy big ticket items. If car companies are
offering 0% financing, why would anyone want to get a car loan from the bank
and pay 5-10% interest?
5. Competitive Rivalry -
The banking industry is highly competitive. There are public sector banks, private
sector and foreign banks along with non banking finance companies competing in
similar business lines. Each one is trying to out beat the other by offering lower
financing, preferred rates, and investment services.
The banking sector is in a race to see who can offer the better and faster services,
but this also causes banks to experience a lower ROA. They then have an
incentive to take- on high risk projects.
In the long run, we're likely to see more consolidation in the banking industry.
Larger banks would prefer to takeover or merge with another bank rather than
spend the money to market and advertise to people.
8
The Indian banking sector can be broadly classified as organised and unorganized
banking system. The unorganized system comprises of moneylenders, indigenous
bankers, lending pawnbrokers, landlords, traders, etc. whereas the organised banking
system comprises of Scheduled bank(which are included in the second schedule of RBI
Act 1934) and Non Scheduled banks that are permitted by RBI to undertake banking
business. The Scheduled banks comprises of Scheduled commercial Banks and
Scheduled Co-operative Banks.
RBI is the central banking and monetary authority in India. RBI manages the
country’s money supply and foreign exchange and also serves as a bank for the GoI and
for the country’s commercial banks. In addition to these traditional central banking roles,
RBI undertakes certain developmental and promotional activities.
RBI issues guidelines, notifications and circulars on various areas like exposure
standards, income recognition, asset classification, provisioning for non-performing
assets, investment valuation and capital adequacy standards for commercial banks, long-
term lending institutions and non-banking finance companies. RBI requires these
institutions to furnish information relating to their businesses to RBI on a regular basis.
Public sector banks make up the largest category of banks in the Indian banking
system. There are 27 public sector banks in India. They include the SBI and its 7
associate banks and 19 nationalized banks. Nationalized banks are governed by the
Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and 1980. At
the end of September 2004, public sector banks had 46,782 branches and accounted for
74.9% of the aggregate deposits and 70.5% of the outstanding gross bank credit of the
scheduled commercial banks.
Commercial Banks
9
were 291 scheduled commercial banks in the country, with a network of 67,221
branches.
Regional rural banks were established from 1976 to 1987 jointly by the Central
Government, State Governments and sponsoring public sector commercial banks with a
view to develop the rural economy. Regional rural banks provide credit to small farmers,
artisans, small entrepreneurs and agricultural laborers. There were 196 regional rural
banks at the end of September 2004 with 14,430 branches, accounting for 3.6% of
aggregate deposits and 3.0% of gross bank credit outstanding of scheduled commercial
banks.
10
In July 1993, as part of the banking reform process and as a measure to induce
competition in the banking sector, RBI permitted entry by the private sector into the
banking system. This resulted in the introduction of nine private sector banks. These
banks are collectively known as the ‘‘new’’ private sector banks. In addition, 21 private
sector banks existing prior to July 1993 were operating at year-end Fiscal 2004.
Foreign Banks
At the end of June 2004 there were around 32 foreign banks with 217 branches
operating in India, accounting for 4.6% of aggregate deposits and 7.0% of outstanding
gross bank credit of scheduled commercial banks. The primary activity of most foreign
banks in India has been in the corporate segment. However, some of the larger foreign
banks have made consumer financing a significant part of their portfolios. These banks
offer products such as automobile finance, home loans, credit cards and household
consumer finance.
Cooperative Banks
Cooperative banks cater to the financing needs of agriculture, small industry and self-
employed businessmen in urban and semi-urban areas of India. The state land
development banks and the primary land development banks provide long-term credit for
agriculture.
11
There are over 13,671 non-banking finance companies in India as of June 2004,
mostly in the private sector. The non-banking finance companies, on the basis of their
principal activities are broadly classified into four categories namely
State financial corporations operate at the state level and form an integral part of the
institutional financing system. State financial corporations were set up to finance and
promote small and medium-sized enterprises. At the state level, there are also state
industrial development corporations, which provide finance primarily to medium- sized
and large-sized enterprises.
12
Insurance Companies
Currently, there are 27 insurance companies in India, of which 13 are life insurance
companies, 13 are general insurance companies and one is a reinsurance company. Life
Insurance Corporation of India, General Insurance Corporation of India and public sector
general insurance companies also provide long-term financial assistance to the industrial
sector.
Mutual Funds
From 1963 to 1987, Unit Trust of India was the only mutual fund operating in India.
From 1987 onwards; several other public sector mutual funds entered this sector. These
mutual funds were established by public sector banks, the Life Insurance Corporation of
India and General Insurance Corporation of India. The industry is regulated by the SEBI
(Mutual Fund) Regulation 1996.
Chapter 2
INDUSTRY PROFILE
Co-Operative Society
History
Cooperation in older days was an integral part of human life; today it is a distinct form of
business, which affects the pattern of production and distribution within the economy. It
has undergone enormous changes from ancient times to till date. Industrialization
brought about drastic change in the society. Labour, as a factor of production, started
losing its importance. There was a shift in emphasis from farm to the factory; from
labour- intensive technology to capital- intensive methods; from rural to urban areas.
13
Society became divide in to two classes- the capitalist class and the working class.
Exploitation enveloped the society. In their anxiety to accumulate wealth, the capitalist
started exploiting the working class. Exploitation led to frustration and the working class
soon realized that they were quite weak and totally incapable of protesting individually
against the actions of the capitalist. It was during this time that social reformers like
Robert
Owen and Dr. William gave thought to the formulation of a new policy. The outcome
was co-operative movement with a new dimension and a wider scope.
If weak persons come together and formed an association of themselves, there was no
scope for exploitation and humiliation.
As stated, the evils of the capitalist system made social thinkers like Robert Owen and
Dr. William King of England think of an alternative and better economic system.
They visualized an ideal form of society based on cooperation and mutual help. By
1830’s, their dreams of creating a new world based co-operation did not become a
reality. A number of co-operatives were organized, but almost all of them failed. Finally
a group of 28 workers of Rochdale, an industrial town of England, organized a society,
which proved to be successful. The single factor that was responsible for the success of
this venture was that this society had absorbed the lessons of the previous failures.
These pioneers registered their society- “The Rochdale Society of Equitable Pioneers”-
on the 24th of October 1844 and began business on 21st of December 1844. This is said to
be true beginning of the modern co-operative movement.
The Co-operative movement is an alternative to capitalism, wherein it provides fair profit
to its members and better service to improve their quality of life. It aims at bringing
about welfare of not a particular individual but also of the whole community. It also aims
to transform the weak to strong and make them fit for a better life.
In 1904, the British government promulgated the Cooperative Societies Act, thereby
encouraging the formation of cooperative societies, especially agricultural cooperative
credit societies all over India. An amended cooperative societies law was enacted in
1912 to make the Cooperative Movement stronger. It was further amended in 1940 by
the Bengal Legislative Council to enact the Bengal Cooperative Societies Act to make
movement more effective. This law was in force in Bangladesh until 1984, when
Cooperative Societies Ordinance replaced it. At present, this law and the cooperative
rules of 1987 regulate all cooperative societies.
14
About cooperative societies
Cooperative Societies are Organizations that are registered under one of the Cooperative
Societies Acts. They work as independent economic enterprises. They extend various
services that include Finance to its members and member organizations. The Cooperative
Societies are expected to function on certain cooperative principles and cooperative
identity based on certain values of the Societies as a whole, within the framework of the
Cooperative Societies Acts and Rules.
Its objective was to make life better for the poor people, farmers, rural folks and urban
middle-class people.
Some of the Cooperative Societies existing and functioning in India are Housing
Societies, Industrial Societies, Labour Contract Societies, Salary Earners Societies,
Credit Societies, Primary Agricultural Credit Societies, Farmers Service Societies,
Adivasi Service Societies, Primary Cooperative Banks, Marketing Societies, Primary
Dairy Societies and Consumer Societies etc.
Cooperative Principles
Cooperative Values
Self –help
Self- responsibility
Democracy
15
Equity
Solidarity
Honesty
Openness
Social responsibility and care for others
16
DIAGRAM1: Organisation Structure (Operation):
Secretary to Government
Joint Registrar, Joint Registrar, Joint Registrar, Joint Registrar, Joint Registrar,
Accounts Legal
PMC, P&T Admn & ICDP Urban Banks
Where-
PMC-Performance Monitoring Cell
P&T – Planning & Training
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Secretary to government
Commissioner for cooperation & Registrar of Cooperative Societies
Additional Registrars and Chief Auditor in the Cadre of Additional Registrar assist
the commissioner. The entire State is divided into zones. Each Additional Registrar
will be in charge of zones.
The basic guidelines for the formation of Co-operative society in state are as
follows
There should be at least ten persons or more as the Registrar may determine from
time to time.
These persons should be from different families.
These persons should be competent to enter in to contract under the Indian
contracts Act 1872.
He should reside in the area of operation of the society.
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He should be eligible as per the bye-laws of the proposed society.
Any individual, firm, company or any other body corporate can become member
of the society.
The object of the society should be promotion of economic interest or general
welfare of the members or the public, in accordance with the cooperative
principles.
It should be economically sound, its registration should not affect adversely on
the development of the cooperative movement.
Its registration should not be contrary to the policy directives of the state
government.
Willing, eligible persons should come together and conduct a meeting. This meeting will
decide the name of the proposed Society, its object and bye-laws and then elect a Chief
Promoter authorizing him to sign the necessary documents on behalf of the promoter
members and open a bank account in the name of the proposed Society after obtaining
the necessary permission from the Registrar.
The Chief Promoter will apply to the Registrar for the reservation of name of the society
of the proposed society and permission to collect share-capital. He will then deposit the
collected share money in the bank account of the proposed Society.
The application for the registration has to be made in FORM-A. The promoters have to
give four copies of FORM-A to the Registrar along with copies of the byelaws and
necessary documents depending on the type of the Society. This has to be done after
receiving the name reservation from the Registrar and after collection of the necessary
share capital.
The application for registration should be accompanied with the scheme showing
economic feasibility of the proposed Society, bank balance certificate, list of the persons
who have contributed to the share capital and the entrance fee of the proposed Society.
The prescribed Registration fee has to be paid in to the Government Treasury.
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INDUSTRY PROFILES
NABARD
PACS(92000
)
Where…
NABARD: The National Bank for Agriculture and Rural Development
SCB: State Co-Operative Bank
DCCB: District or Central Co-Operative Banks
PACS : Primary Agricultural Co-Operative Societies
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National Level Co-Operation Institutions:
21
National Bank for Agriculture and Rural Development [NABARD]
The RBI of India took an active role in the field of agriculture credit ever since its
nationalization in 1949, for this purpose the RBI set up separate agricultural credit
development, which extended short term seasonal credit to agriculture through state
Co-operative banks and Land development Banks.
The RBI also had Rural Planning Credit Cell to promote rural economic planning and
development at the same time the RBI had also setup the agriculture refinance and
development co-operation [ARDC] to provide refinance support to the banks in their
development activities.
In 1981 the committee to Review Arrangement for Institutional Credit for agricultural
credit development recommended the establishment of the NATIONAL BANK FOR
AGRICULURE AND RURAL DEVELOPMENT. The government approved this
recommendation and consequently NABARD came into existence on 12th of July 1982.
These three institutes namely the Agriculture credit department and Rural Development
Credit Cell of the RBI and the Agriculture Refinance and Development Corporation
were amalgamated into NABARD, thus the NABARD was established to perform the
function of the RBI, as an Apex institute and the function of the ARCD as a refinancing
institute.
An Act of Parliament set up both the RBI the NABARD and the Government have
contributed equally to the share capital of NABARD.
NABARD linked organically with the RBI, which has three directors in the central
BOD of NABARD.
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Apex Banks or State Co-operative Banks (SCBs)
The State Co-operative Bank is an institution, which works as the final link in the chain
between the primary societies and the money market. It is the vertex of the
pyramidal structure in a state for the provision of short and medium term credit on
a co-operative basis.
They act as banker’s bank to the central banks in the district. They not only
mobilize financial resources needed by the societies, but also deploy them
properly among the various sectors of the cooperative credit structure.
They coordinate with their own policies with those of the cooperative movement
and the government.
They formulate and execute uniform credit policies for the cooperative
movement as a whole.
The cause of cooperation in general by granting subsidies to the central Co-
operative Banks for the development of cooperative activities.
They act as a clearinghouse for the flow of money from the Apex bank to the
Central Banks and from the Central Banks to the rural societies and from them to
individual borrowers.
They help the state Governments in drawing up co-operative development plans
and in their implementation.
23
Functions of DCCBs Banks
To meet the credit requirement for primary member societies for production,
marketing and supply operation by arranging a regular flow of credit to them
To undertake ordinary commercial banking business in rural areas
To act as balancing centers for the primary societies by making them available
the surplus funds of some societies to those which face shortage of funds. They
thus equalize the flow of the capital at the primary level.
To undertake non-credit activity, Surcharge the supply of seeds, manures,
foodstuffs and consumer goods.
To maintain close and continuous contact with primary societies and provide
leadership to them.
To supervise and inspect the primary societies ensure the satisfactory working of
recognized credit societies.
To provide a safe place for the investment of resources of primary societies.
The primary credit society is that operational level at the base of the co-operative credit
structure. They constitute the largest number of co-operative institutions in India. The
organization of these societies’ dates back to 1904 when first co-operative societies act
was passed. These societies were started with aim of providing micro credit to
agriculturists and free then from clutches of unscrupulous money lenders.
24
To borrow adequate funds from central financial agencies for helping the
members adequately for the above purposes.
To local savings for share capital and fixed deposits
To supervise the use of loans and to see that they are paid punctually
To distribute fertilizers, seeds, agricultural implements etc. either on its own
or on behalf of as an agent
To store produce of its member till it sold
Constitution
Membership to a PACS is open for agriculturists, artisans and small traders in the
villages. The minimum initial membership is 10 with no upper limit regarding the
number of members. The value of each share is generally nominal so as to enable even
the poorest farmer to become a member. The members have unlimited liability, which
means that each member is fully responsible for the entire loss of the society in the event
of the failure. This will mean that all the members should know each other intimately.
Diagram 3: Organisation Structure
Accountant
Clerk
The ultimate authority in affairs of a society is the General Body consisting of all the
members. To carry out the day-to-day administration General Body elects a small
25
managing committee, which consists of 5-9 members. Committee elects the president,
Secretary and Treasurer. All the office bearers render honorary service. In cases where
the society is large a clerk or / and accountant may be appointed to maintain the accounts
and who may be paid a monthly salary.
As per the constitution guiding functioning of PACS, universal membership has been
accepted by the standard policy. This is to enable the poorest of the poor to become
members and avail of its services.
Co-operative societies are classified on the basis of credit as follows
Credit Societies
Non-Credit Societies
Types of Credit:
Short term
Medium term
Long term
CREDIT STRUCTURE
PCS
DCCS
SHORT& MEDIUM TERM LONG TERM
SCB
LDB URBAN BANKS
SCB INDUSTRIAL
BANKS
DCCB
PCS
26
Where,
PCS: Primary Credit Societies
DCCS: District or Central Co-Operative Societies
SCBs : State Co-Operative Banks
LDBs: Land Development Banks
Credit Societies
They begin as marketing Societies, which we were set up to help the poor former in
marketing their products. The agrarian sector was characterized by the existence of
middle men who appropriated a major share of prices paid the consumer so the credit
societies which had been establish to save the poor farmers from clutches of money
lenders, started taking up work of helping them to market the products.
27
Financial Sector Reforms and Credit Cooperatives:
The process of economic and financial sector reforms were initiated in 1991, as a step
towards a broader process of international economic integration and globalization of
financial markets. The objectives of the reform program have been to remove the
structural constraints in the factor and product markets, allowing market forces to
improve efficiency and ensuring outward orientation to the economy for bringing about a
higher degree of integration of the Indian economy with the rest of the world. It may be
mentioned that the structural reforms in the trade regime and industrial and financial
policies have been given utmost priority in order to ensure macro-economic stability. A
healthy financial system being the principal pre-requisite for the globalization process,
the banking sector being an important component thereof came into sharper focus. The
financial system in India has built up a vast network of financial institutions and markets
over time, and the sector is dominated by the banking sector which accounts for about
two-thirds of the assets of the organized financial sector. The first phase of the current
reform of the financial sector was initiated in 1992 based on the recommendations of the
Committee on Financial System (CFS, 1992).
The progress that has been made in a substantial, yet non-disruptive manner has given
the confidence to launch what has been described as the second generation or second
phase of reforms especially for the banking sector. The report of the Committee on
Banking Sector Reforms (CBSR, 1998) provides a framework for the second phase of
reforms in the banking system. The broad features of the on going banking reforms have
been; gradual removal of pre-emptions (reduction in CRR and SLR), deregulation of
interest rates, tightening of prudential standards, competition and transparency,
improving the quality of supervision, partial removal of selective credit controls,
assistance to banks in debt recovery and reforms in money and forex markets. This apart,
needless to mention, the succinct objective of the banking sector reforms has been to
improve the efficiency in the system by introducing an element of competition. The
extension of reforms, particularly prudential standards to cooperative banking
institutions, an important component of the banking system was a natural corollary as the
weaknesses in cooperative segment could pose systemic risks.
Though cooperative banks operate at the district and state level, the urgency and
importance for extension of the reforms need hardly be emphasized keeping in view of
28
their reach and scale of operations. Therefore, the banking sector reforms could be
treated as complete only if it encompasses the cooperative segment, enabling the latter to
function on sound lines at par with other banking institutions. Accordingly, prudential
standards covering capital adequacy, income recognition, asset classification and
provisioning norms were made applicable to cooperative banks in a phased manner.
However, cooperative reforms encompassing legal and administrative aspects have not
taken place in India. This is on account of multiplicity of controls (administrative aspects
including registration are under State Cooperative Acts whereas financial supervision
and regulation is with the Central Bank of the country). The impact of the extension of
prudential standards to cooperative banks has resulted in an increased intervention by the
regulator and the Government in the name of the financial regulation/supervision.
Co-Operative Banks that are seen primarily in the urban areas of the country are given
the name “urban Co-Operative Banks”. Urban areas imply those areas, which are
recognized as town & cities. They are similar to commercial banks in their operations
with the promulgation of the Banking Regulation Act of 1949, any credit society which
has a paid up share capital of not less than Rs.20, 000/- and which does banking business
as specified under section 5(b) of the Banking Regulation Act of 1949 can use the word
“Bank” in its name. In either word the urban co-operative banks all functioned initially
as co-operative credit societies, which cratered to the requirements of the urbanites of the
country. The minimum requirement of paid up capital for a society to assume the status
of a bank differs from state to state. In certain states this is only Rs10, 000/-, which in
certain others it is even Rs.50, 000/- but it is mandatory that an urban-co-operative Bank
confirms its operations to the municipal area of a town.
An urban co-op Bank has to function within the precincts of its byelaws. Most co-
operative Banks began then operation as co-operative societies. Each society councils of
a large number of share holders, each holding a minimum of five shares, persons living
in urban areas alone could become members, generally traders, merchants, professionals
and salaried classes are members of urban co-operative banks. Some urban co-op banks
also admit firms and local bodies as members to a limited extent.
29
The management of these banks is in the hands of a Board of Directors who are elected
at the Annual General Body of the shareholders. The Board is normally elected for a
period between three years and five years. There are instances of the Board being
constituted once in two years. It is mandatory that these banks undertake both internal as
well as statutory audit. The Director Board elects from among its members the President,
the Secretary and the Treasurer. All three have joint financial responsibility. They shall
work without receiving any remuneration, i.e., their services shall be honorary. However,
the director board has the authority to appoint the necessary staff for the day to day
working of the bank. All employees should have the necessary qualifications in Co-
operation for being appointed in such banks.
Main source of funds is deposits from the public in many forms. Their Banks
accept current, savings & Fixed deposits.
Fixed deposits constitute a major portion of these total deposits.
The RBI has permitted them to fix a rate of Interest, which is at least one percent,
more than the rate of Interest offered by the banking system.
In recent times these banks have been given the permission to determine their
own interest rates.
The RBI is also taking a lot of interest in the functioning of such banks; RBI is
subjecting these banks to frequent inspection since they perform regular banking
business like other commercial Banks.
30
An urban Co-operative bank tends to focus its attention on particular groups on
professions to increase its resources as well as to cater the credit requirements.
Types of Loans
Productive Purposes
Consumption Purposes
Productive Loans:
Business firms demand loans because of the time consuming nature of the
productive and distributive processes. So the loans taken by business
firms earn reasonable returns
31
Terms & Conditions for Consumption loans:
The bank assumes that the applicant is not enjoying similar facilities with other
banks. As far as possible, it tries to restrict the borrower to rely one bank
The bank should obtain from the borrower a written application accompanied by
a declaration that in the event of non-payment, the bank may confiscate the
consumer good. At least two other shareholders should stand guarantee if the loan
is to be sanctioned.
Generally short-term loans are sanctioned for such purposes. The rate of interest
charged is also normally higher than that of productive loans. The repayment is in
the form of equated monthly installments and interest is charged on a diminishing
basis. That means the interest is charged on amounts that remain of the principle
amount.
Loans are granted to meet the medical needs of its members or depositors
Loans are sanctioned to meet educational expenses of either the shareholders
themselves or that of their children
Loans are also given to meet expenses related to marriages and other social
ceremonies of its members.
Purchase of durable consumer goods, in such cases the durable goods purchased
are under hypothecation to the banks till the loan is repaid. A hypothecation is
also called are “open loan”
32
Chapter 3
Problem Statement
The CSBs were formed with an objective of an improving the standard of life by
eliminating the uneven distribution of wealth in rural areas. But the purpose was not
served, as many CSBs did not function properly due to inefficient management. The
reason behind this research is to understand the causes for the failure of CSBs
Research objective
Karnataka in depth, evaluation of their methodologies problems faced by this banks both
Research methodology
Primary data is collected by using Exploratory research method from Cooperative bank
managers.,
For both primary and secondary data following methods were also adopted
Interview techniques.
Historical methods.
Study of literature like books, reports and journal articles on the CSBs.
33
Visited branches and discussed officially and non- officially.
Sampling method:
Non random (convenience and judgmental sampling) methods was used due to
constraints of time and cost.
Sampling unit:
Sampling size:
10 Cooperative banks.
Method of contact:
Personal Interview.
Research instrument:
Respondents were the employees of cooperative society bank the list of the respondents
as framed on the basis of convenience and judgmental sampling. The respondents were
knowledgeable and were giving the true information.
34
policy makers nor the researchers have shown any serious interest. And this is
particularly true in India. It seems the cooperative researchers, particularly doctoral
students are more concerned with the assessment and measurement of the impact of
reforms on the performance of cooperatives using a definite and quantifiable parameters.
While the difficulties in examining the impact of reforms on the cooperative character of
cooperatives are quite understandable, it does not mean the same can not be attempted
meaningfully. What is required perhaps is a normative analytical framework, which is
different from the one usually used for capturing the impact of reforms on cooperatives.
Using this normative analytical framework, Ramesha (1996) in his empirical study
points out that Self Help Groups (SHGs) which are not registered as cooperatives are, in
practice, much closer to cooperative principles than cooperatives themselves. Given the
diversity that prevails today in the cooperative sector and the levels of reforms
Thereof, a general discussion on the impact of reforms (economic or banking sector) on
cooperative character would be almost impossible. For the sake of research, even if one
attempts, the conclusions could be abstruse. Thus, in the present paper an attempt is
made to evolve a conceptual framework for further research concerning Urban
Cooperative Banks (UCBs) in India against the backdrop of banking sector reforms.
However, all through the discussion, it is attempted to maintain a special thrust on the
cooperative character of UCBs. The analytical framework for the aforesaid purpose rests
on three basic assumptions;
(i) Banking sector reforms essentially refers to the guidelines/directions from the
regulator (central bank of the country) and the Government during the last ten years.
(ii) Urban Cooperative Banks (falling under Banking Regulation Act of 1949) are more
influenced by banking sector reforms in the short-run than other credit cooperatives.
(iii) Cooperative character of urban cooperative banks can be captured in terms of the
adherence to cooperative principles.
35
Secondary Data Analysis
Graphical Analysis of SCBs Vs DCCBs:
50000 43997
40000 36853
31516
28354 25698
30000 24606
19588 21902
16585 18312
20000
10000
0
31.3.1996 31.3.1997 31.3.1998 31.3.1999 21.3.2000
SCBs DCCBs
The above graph depicts the growth in loans outstanding for SCBs as well as for DCCBs.
from the above shown graph it is clear that the rate of outstanding loans is more in CBs
when compared to SCBs .
Recovery Percentage
SCBs DCCBs
36
The above graph depicts recovery percentage of SCBs and DCCBs.From the graph it is
clear that SCBs are able to recover their loans far better than DCCBs.
1000
516
800
301
497
600
Profitability -DCCBs
3000 2817
2143 2483
(Rs Crore)
2000
1000
436
303 358
0
1997-98 1998-99 1999-2000
Profit Loss Acccumulated Loss
The above charts show the profitability position of SCBs and DCCBs
Profit: The profit earned by SCBs is increasing steeply when compare to profits earned
by DCCB’s.
37
Loss: The loss incurred by SCBs has been reduced drastically over the period of 1997-
2000, when compared to the losses incurred DCCB’s has been almost the same over the
period of 1997-2000.
Accumulated Loss (AL): The AL of SCBs had increased in the period 1998-99 which
was later controlled and reduced in 1999-2000, but when compared to AL of 1997-98 the
AL of 1999-2000 has increased.
Cooperative Banking is a concept arising out of cooperative efforts for group welfare. It
provides for the collective savings of small amounts of money by a group of people
belonging to the same profession or class and utilization of that capital to try to enhance
their income. Cooperative Banking essentially tries to collect the savings of the
cooperative societies and attempts to invest them among the members. The cooperative
banking sector caters to the varied needs of small investors and small business. Role
played by Government of Karnataka in Cooperative Societies
38
Directorate of Cooperative Audit in the year 1977 conferring all required statutory
powers and responsibilities to perform its function like a guide to the cooperative
societies in particular and the cooperative movement as a whole, in general.
The Directorate of Cooperative Audit and its personnel are striving hard to conduct the
audit of all cooperative societies in Karnataka at least once in a year as by Karnataka
Societies Act 1959. A Director at the state level heads the department. In each district, a
Deputy Director is heading the district level office. At the subdivision level, an Assistant
Director is heading the office and at taluka level Senior Auditor is heading the office.
Along with this setup, hundreds of Auditors, and other supporting staff are striving hard
to reach, Audit, and guide all categories of societies, scattered over every nook and
corner of the state Cooperative society has also setup a website called SAHAKARA
DARPANA. This website is like a mirror reflecting the true and correct financial
position of all the cooperatives in the state. In pursuit of bringing higher degree of
transparency in the Government, the State Government is implementing the e-
governance strategy throughout the state in all departments. In keeping with the policy
the department of Cooperative Audit is also striving hard not only to bring in
transparency in highlighting the financial position, strength and weaknesses of
cooperative institutions by hosting on the web the abridged audit report. This website
being citizen friendly, it helps every individual who is interested to participate in the
business of a particular cooperative society as it provides comprehensive information
about the financial position, its liability and irregularities if any in the institution. The
website also provides information required by the members of the society, the common
citizen and also to the government.
39
KARNATAKA – SHORT CO-OPERATIVE CREDIT STRUCTURE
IMPORTANT OBSERVATIONS – 1999-2000
Membership PACS had a membership of 57, 21,250 and the borrowing members at
18, 50,750 constituted a mere 32.35%.
40
Overall resources (owned funds+deposits+borrowings) of apex bank
and DCCB’s increased by 24% and 22% respectively during 1999-
2000 over the previous year.
At the apex bank and DCCB’s level, 60% and 54% of the total loans
outstanding as on 31 March 2000 were for agricultural purposes.
Management As at the end of 1998-99, the KSCAB and all 19 DCCB’s had elected
board.
The KSCAB has been awarded “A” class audit classification during
the last three years.
41
Cost of management as % to working capital decreased from 0.72%
(1997-98) to o.69% (1998-99) and further to 0.58 in 1999-2000 in
respect of KSCAB. The same in respect of DCCB’s during the year
1998-99 and 1999-2000 stood at 2.23%.
Erosion in There was no erosion in asses at the apex level accumulated loss at
Assets Rs.110.13 crore and imbalances at Rs.92.59 crore together with
unprovided bad debts of Rs. 133 crore eroded the owner funds to the
extent of 58% at the DCCBs level as on 31 March 2000.
42
KARNATAKA LONG-TERM CO-OPERATIVE CREDIT STRUCTURE
IMPORTANT OBSERVATIONS – 1999-2000
Resources The contribution of the State Govt. to the share capital of KSCARDB
remained static at Rs. 4.45 crore during the last three years, whereas the
State Govt’s share in respect of PCARDBs increased to Rs.5.68 crore in
1999-2000 from Rs.4.70 crore in 1998-99.
86% and 82% of the total resources of the SCARDB & PCARDBs
respectively were in the form of borrowings. This is indicative of the fact
that L.T. Structure in Karnataka was highly dependent on other external
financial agencies for augmenting its resources.
Investments The total investment of KSCARDB as at the end of March 2000 stood at
Rs.170.59 crore as against Rs.151.33 crore as at the end of March 1999.
The loans issued during 1999-2000 at Rs.164.67 crore (apex level) and
Rs.208.70 crore (PCARDBs) showed a growth of 10% &15% 43
Outreach respectively over the preceding year.
Dossier on Co-Operatives, Edition-March 2000
National Bank for Agriculture and Rural Development (NABARD)
44
Analysis of Comparison of Cooperative banks with commercial banks
Chart 3:
Comparison of NetProfit between cooperative
banks and commercial banks
6000
Net Profit
Interpretation:
From the above graph it is shown that profitability of cooperative bank with respect to
other commercial bank is very less. Totally there are 2084 Urban cooperative banks with
7368 branch outlets in that more than 200 urban cooperative banks are identified as
eak/sick banks by the regulator.
45
Chart 4: Profit per Employee of Cooperative Banks
10
in Percentage
5
0 Series1
-5 1 6 11 16 21 26 31 36 41 46 51
-10
Banks
Interpretation
From the above chart it is shown profit per employee of cooperative banks from this
inference it is clearly shows the cooperative banks are still in same old policy that
cooperative society is not for profit it is for service oriented it is difficult to follow in this
competitive world.
UCB’s are generally small-sized banks. About 44 percent of UCB’s in 2002-03 were
with deposits of less than 10 crore; another 24 percent were with deposits of about Rs 10
to 25 crore. The UCB’s normally confine their area of operations to localized
geographical regions i.e they are mostly local banks,, but some of them have expanded
their network beyond a district or stste in which they are registered. Their client profile
primarily comprises small business units, small-scale industries, retailers, professionals,
self-employed, transport operators, etc. some of them have been permitted to undertake
forex and merchant banking operations
46
Chart 5:
Size-Wise Distribution of UCB's in
Percentage of UCB's India
50
40
30
Series1
20
10
0
Less than
1000crore
Rs 25-50
250crore
RS 100-
Rs 500-
Rs 10
crore
Deposit Size
25
20
NPA's
15
Series1
10
0
B10
B3
B6
B1
B2
B4
B5
B7
B8
B9
Banks
Interpretation:
From the above chart it is clearly shown that the average NPA of sample cooperative
banks is above 10% which is not a healthy sign.
47
Percentage of Commercial bank Customers transactions by various
Channels
2001
14% 3% ATM
40% Branches
Telephone
Chart 7.b
2005
13%
ATM
7% Branches
53% Telephone
27%
Internet & Mobile
Interpretation:
The above chart shows the change in commercial bank customer’s transaction from 2001
to 2005. Here it is clearly shown that technology plays a vital role in retail banking that
cooperative banks are not providing for there customers like other commercial banks.
Chapter 4
48
Summary of Findings, Suggestions and Conclusion
Findings:
Suggestion:
49
5. In cooperative banks main driver should be profit oriented in addition to service
oriented.
Conclusion
While the progress of the cooperative movement in India in general, and the cooperative
banking in particular has been rather appreciable, the movement can not be termed as a
vibrant one in regard to cooperative values and philosophy as enunciated in cooperative
principles. With regard to the extension of reforms to cooperative banking segment, it is
yet not clear as to whether the same would ensure soundness and stability in the
cooperative banking segment. Although the promotion of prudent financial practices in
urban cooperative banks has become a sine quo non in the present competitive
environment, one can not afford to ignore that such practices were contrived essentially
for commercial banks. It must not be forgotten that the notion of a code of good practices
though intuitively appealing, the temptation to prescribe universally valid model codes
which do not allow for differences in institutional development, legislative framework
and more broadly, different stages of development must be avoided. It seems the
extension of reforms/prudential standards to urban cooperative banking has provided
substantial scope for the external intervention and in the process, affecting the
cooperative character in terms of adherence to the cooperative principles. Logically, if
the prudential standards, and supervision and regulation for cooperative banks were same
as that of commercial banks, then there would not be any difference worth mentioning
between these entities. There are several areas that need the intervention of researchers
and perhaps, more important amongst them are prudential standards, professional
management & governance and supervision & regulation. The framework for such
research should essentially be within the guiding principles of cooperation. However, in
the long run, if cooperative character of credit cooperatives is to be preserved, the
prudent practices, system of governance and supervision & regulation all should emanate
from the guiding principles of cooperation.
50
BIBLOGRAPHY
Books Referred
Websites Referred
www.dateyvs.com
www.sahakaradarpana.kar.nic.in
www.iffco.nic.in
www.fcamin.nic.in
www.ncui.net
http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Trend
%20and%20Progress%20of%20Banking%20in%20India
www.nabard.org/whats/nlnov2004
http://www.business-today.com/btoday/20060226/index.html
http://www.business-today.com/btoday/20060226/index.html
51
Annexure
Appendix Table IV.5: Select Financial Parameters of Scheduled
Abhyudaya Co-operative
1 41.74 1.2 0.15 0.68 0.05 5.4 187.99 0.1
Bank Ltd.
Ahmedabad Mercantile
2 62.65 3.78 0.26 2 0.52 6.4 137.68 0.93
Co-operative Bank Ltd.
Amanath Co-operative
3 6.75 -0.25 0.47 -3.11 -6.94 6.9 130.61 -7.99
Bank Ltd.
Andhra Pradesh Mahesh
4 Co-operative Urban Bank 44.48 3.38 0.84 1.41 0.78 7.44 107.32 0.86
Ltd.
Bassein Catholic Co-
5 29.13 3.73 0.46 2.55 2.06 6.53 321.79 5.26
operative Bank Ltd.
Bharat Co-operative Bank
6 16.5 4.22 0.56 2.03 1.06 5.91 271.49 2.12
(Mumbai) Ltd.
Bharati Sahakari Bank
7 12.36 2.02 0.97 1.26 0.26 8 177.68 0.36
Limited.
Bombay Mercantile Co-
8 -16.66 1.7 2.78 1.04 0.08 4.87 94.39 0.09
operative Bank Ltd.
Citizencredit Co-operative
9 17.35 2.93 0.48 1.61 1.49 5.14 295.24 3.86
Bank Ltd.
Co-operative Bank of
10 -36.89 3.87 0.23 0.63 0.53 5.84 130.18 0.66
Ahmedabad Ltd.
Cosmos Co-operative
11 17.19 2.76 0.66 1.64 1.1 6.84 349.29 3.14
Urban Bank Ltd.
Dombivli Nagari Sahakari
12 14.53 3.62 0.7 2.43 0.88 5.92 255.15 1.79
Bank Ltd.
Goa Urban Co-operative
13 14.87 3.59 0.47 0.68 0.6 5.76 169.68 0.87
Bank Ltd.
Greater Bombay Co-
14 12.54 2.55 1.42 1.5 0.6 7.12 252.2 1.48
operative Bank Ltd.
Ichalkaranji Janata
15 12.32 1.95 1 0.73 0.28 8.03 175.51 0.36
Sahakari Bank Ltd.
Indian Mercantile Co-
16 20.72 4.72 1.09 3.62 2.96 5.57 111.09 2.53
operative Bank Ltd.
Jalgaon Janata Sahakari
17 10.06 2.79 0.58 0.27 0.03 7.71 160.33 0.05
Bank Ltd.
Janakalyan Sahakari
18 6.96 0.29 0.95 -0.98 -2.87 7.47 396.89 -7.58
Bank Ltd.
Janalaxmi Co-operative
19 14.11 5.61 0.88 4.86 0.74 7.92 105.28 0.73
Bank Ltd.
Janata Sahakari Bank
20 -11.94 1.49 1.6 1.16 0.02 6.63 244.82 0.03
Ltd.
Kalupur Commercial Co-
21 45.02 2.3 1.7 1.42 1.08 7.01 343.62 4.14
operative Bank Ltd.
Kalyan Janata Sahakari
22 12.8 2.86 0.88 1.78 0.85 5.92 235.64 1.55
Bank Ltd.
Kapole Co-operative
23 14.43 2.18 4.19 3 0.32 6.05 143.87 0.44
Bank Ltd.
Karad Urban Co-
24 13.08 2.73 0.38 0.28 0.07 6.81 122.04 0.07
operative Bank Ltd.
-
Madhavpura Mercantile
25 1,141.4 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Co-operative Bank Ltd.
3
26 Mahanagar Co-operative 16.46 4.24 0.47 0.92 0.59 6.26 160.97 0.77
52
Bank Ltd.
Mandvi Co-operative
27 12.3 2.52 0.62 0.73 0.27 6.72 334.32 0.71
Bank Ltd.
Mapusa Urban Co-
28 operative Bank of Goa -51.42 -3.49 0.45 -6.38 -4.95 6.46 116.31 -4.88
Ltd.
Mehsana Urban Co-
29 14.46 1.52 0.54 1.07 0.92 9.33 269.59 2.15
operative Bank Ltd.
Nagar Urban Co-
30 10.65 2.69 0.47 0.93 0.23 7.74 186.57 0.33
operative Bank Ltd.
Nagpur Nagrik Sahakari
31 12.44 2.1 1.45 0.53 0.21 6.37 153.74 0.25
Bank Ltd.
Nasik Merchant’s Co-
32 31.71 4.47 1.26 3.35 1.09 6.76 99.62 1.04
operative Bank Ltd.
New India Co-operative
33 42.07 4.28 0.41 1.55 1.37 4.9 194.31 2.42
Bank Ltd.
North Kanara GSB Co-
34 13.8 3.08 0.62 2.05 1.06 6.08 351.14 2.88
operative Bank Ltd.
Nutan Nagarik Sahakari
35 46.53 2.91 1.31 1.54 0.91 6.26 153.39 1.36
Bank Ltd.
Parsik Janata Sahakari
36 27.15 3.89 0.45 2.28 1.13 5.06 191.98 1.95
Bank Ltd.
Pravara Sahakari Bank
37 8.39 2.67 0.45 1.04 0 8.8 147.76 0
Ltd.
Punjab and Maharashtra
38 13.45 2.98 0.78 1.37 0.96 7.31 283.45 1.96
Co-operative Bank Ltd.
Rajkot Nagrik Sahakari
39 30.35 2.05 0.01 0.75 0.57 6.75 256.48 1.66
Bank Ltd.
Rupee Co-operative Bank
40 -54.14 -0.88 0.31 -2.63 -2.34 7.49 215.37 -4.6
Ltd.
Sangli Urban Co-
41 9.74 1.79 0.42 -1.01 -1.06 7.8 73.68 -0.64
operative Bank Ltd.
Saraswat Co-operative
42 15.23 0.63 0.57 0.52 0.07 5.75 456.65 0.28
Bank Ltd.
Sardar Bhiladwala Pardi
43 Peoples’ Co-operative 45.91 4.14 1.02 2.86 0.63 7.17 154.14 1.02
Bank Ltd.
Shamrao Vithal Co-
44 12.77 3.63 0.73 1.67 0.84 6.79 435.77 2.69
operative Bank Ltd.
Shikshak Sahakari Bank
45 5.7 2.13 0.42 0.72 -0.77 7.49 226.81 -1.31
Ltd.
Solapur Janata Sahakari
46 10.59 2.48 0.34 0.75 0.33 8.51 174.49 0.45
Bank Ltd.
Surat Peoples Co-
47 28 4.53 0.54 2.57 0.94 6.08 212.24 1.82
operative Bank Ltd.
Thane Bharat Sahakari
48 13.78 3.59 0.44 1.88 0.84 6.62 205.72 1.33
Bank Ltd.
Thane Janata Sahakari
49 20.29 3.79 0.39 2.01 1.35 5.87 353.79 3.71
Bank Ltd.
The Akola Janata
50 Commercial Co-operative 11.21 2.05 1.15 1.36 0.34 8.01 151.04 0.39
Bank Ltd.
The Akola Urban Co-
51 10.84 1.47 0.39 0.47 0.27 8.18 233.03 0.43
operative Bank Ltd.
The Khamgaon Urban
52 9.14 2.1 0.51 0.92 -0.3 13.43 154.98 -0.35
Co-operative Bank Ltd.
Zoroastrian Co-operative
53 19.94 3.72 0.18 2.35 1.02 5.86 332.66 2.67
Bank Ltd.
53
INDUSTRY >> FACT SHEET >> Services >> Banks & Finance >> Banks >>
Private Sector [No. of Cos: 90]
54
Karur Vysya Bank 200603 18 199.11 794.05 135.42
Kotak Mah. Bank 200603 324.3 168.58 936.95 118.23
Krung Thai Bank 200503 35.84 1.69 4 0.02
Lak. Vilas Bank 200603 19.57 92.2 368.13 22.47
Mandvi Bank 200503 6.78 9.56 52.77 1.68
Mangal Coop Bank 200503 0.89 1.06 2.42 0.22
Mashreqbank PSC 200503 48.38 5.56 32.5 3.71
Memon Co-op Bank 200303 1.87 13.75 30.58 4.63
Model Co-op Bank 200503 3.1 1.27 14.75 1.12
Mogaveera Co-op 200403 4.83 11.56 29.12 0.4
Mumbai Dist.Bank 200503 38.86 17.76 417.84 11.09
Nainital Bank 200203 5 4.04 66.66 5.73
Natl. Co-op.Bank 199503 1.3 0 2.82 0.44
New India Co-op 200503 11.09 20.13 64.74 10.51
North Kan. GSB 200503 10.43 30.91 93.02 12.08
Oversea-Ch. Bank 200303 37.76 0.63 2.48 -0.09
Patan Co-op Bank 200503 1.99 0.7 5.46 0.82
Pun. & Mah. Bank 200503 12.69 20.46 125.43 12.57
Raghu.Co-op Bank 199603 0.8 0 3.5 0.7
Ratnakar Bank 200503 19.38 27.96 70.55 -9.45
Safe Co-op. Bank 200203 0.94 1.18 8.9 2.27
Samasta Nag.Co 200203 0.89 0.62 5.03 -1.27
Sangli Bank 199803 8.76 0 135.86 4.02
Sanwa Bank 200103 56.8 7.14 34.56 0.78
Saraswat Bank 200503 34.58 81.76 504.59 70.34
SBI Comm. & Intl 200303 100 63.47 59.03 -8.55
Shamrao Vithal 200603 29.27 131.4 246.61 21
Siam Comm. Bank 200203 33.59 1.93 8.31 -51.77
Soc. Generale 200403 60.93 60.46 49.74 15.01
South Ind.Bank 200603 70.41 156.89 851.82 50.59
South Ind.Co-op 200403 4.13 9.58 24.03 -35.84
St Bk of Mauriti 200503 83.39 24.35 38.54 5.48
Standard Charter 200503 373.8 631.46 3276.08 596.86
Sumitomo Mitsui 200403 140.37 16.62 51.38 -72.67
T N Merc. Bank 200503 0.28 117.14 580.65 82.34
Toronto Dom Bank 200303 41.04 1.3 4.62 0.78
UFJ Bank 200503 186.8 6.92 21.43 6.82
United West.Bank 200503 53.8 194.02 564.96 -98.58
UTI Bank 200603 279.99 898.68 3620.52 486.09
Yes Bank 200603 270 17.59 289.92 55.32
Zoroas. Co-op. 200503 5.29 9.48 29 7.85
55
INDUSTRY >> FACT SHEET >> Services >> Banks & Finance >> Banks >>
Public Sector [No. of Cos: 31]
56
Interview Questions
Age :
57
10. How far its true that competition from commercial banks is the main reason for
failure of co-operative banks? Rate between 1 to 5 , 1 being Not at all True and 5
showing Very much True. ---------------
11. Are Co-operative banks suffering from the problem of too much of NPA (Non
Performing Assets) ? Rate between 1 to 5 , 1 being Not at all True and 5 showing
Very much True. ---------------
12. How important are the loan recovery systems in Co-operative banks for their success
or failure?
Very Important Important Less Important
15. Do you think in India, the failure of Monsoon will affect the performance of co-
operative banks?
Strongly Disagree Disagree Agree
58