A study on the deposits and lending of commercial banks in Kerala: a comparative study with cooperative banks

Abstract

The research project A Study on the Deposits and Lending of Commercial Banks in Kerala- A Comparative Study with Co-operative Banks is a critical analysis of the comparison of the performance efficiency of commercial banks against co-operative banks in Kerala for a period of ten years from March 1997 to March 2006. The universe for the collection of data has been divided into three zones, the south, central and north, represented by three districts, Thiruvananthapuram, Ernakulam and Kozhikode respectively. Each district is represented by four Commercial Banks and four branches of the District Co-operative Banks. The parameters taken into account are Total Deposits, Term Deposits, Savings Bank Deposits, Current Deposits, Total Advances, Demand Loans, Cash Credits, Overdrafts, Term Loans, Credit-Deposit Ratio, Profitability, Non-Performing Assets and Customer Satisfaction. It was found that Commercial Banks far exceeded Co-operative Banks in terms of the volume of Deposits and Advances. But when these Advances and Deposits were compared with, the Credit-Deposit Ratio of Co-operative Banks far exceeded Commercial Banks. With regard to profitability, the performance of Commercial Banks was remarkably superior to that of Co-operative Banks. In respect of NPA, Commercial Banks showed a downward trend whereas, Co-operative Banks showed an upward trend during the period under study. Customer satisfaction was more in Commercial Banks than in Co-operative Banks.