Performance evaluation of the Thoothukudi district central co-operative banks limited

Abstract

Co-operative banks are a part of the vast and powerful superstructure of Co-operative institutions which are engaged in the tasks of production, processing, marketing, distribution, servicing and banking, in India. Co–operative banks were created as a new type of institution based on the principles of co-operation to solve the problems peculiar to the Indian conditions. In rural areas, as far as agricultural and related activities were concerned, the corporative banks have provided adequate short-term and long-term institutional credit at reasonable rates of interest. Co-operative banks were made an integral part of the institutional framework of community development and extension services which were assigned the important role of delivering the fruits of economic planning at the grass- root level. Today co-operative banks continue to be a part of a set of institutions which are engaged in financing rural and agricultural development. In this context, the present study attempted to review the functioning of Thoothukudi District Central Co-operative Bank Limited. The specific objective of the study was to analyse various problems of the study unit and also offer appropriate suggestions for improving the working of the study unit. The study has analysed the functioning of the bank with regard to deposit mobilisation, issue of loans and advances, recovery of loans, financial aspects and views of employees regarding the working performance of the Bank. The data required for this study were collected through primary and secondary sources. The functioning of the study unit has been quite impressive in terms of deposit mobilisation and credit deployment. But the bank has failed to arrest the overdue position and strengthen the share capital base. The bank has not effectively utilised its working capital and controlled costs. The study has revealed that the financial viability and profitability of the bank is declining. Hence, the success of the Thoothukudi District Central Co-operative Bank in the future will depend not only upon the development of primary societies but also on the extent to which it is able to mobilise rural savings and recover the outstanding loans. The researcher has presented the study with the hope that it would be helpful to many individuals as well as institutions, directly or indirectly connected with the co operative banking system, especially the study unit. An earnest appeal is made to the Thoothukudi District Central Co-operative Bank to take into account all the findings of the present study for its future plans and for improving its performance in the years to come. The issues identified in the present study would provide a sound theoretical and analytical background for the future researchers in Co-operative banking.