“An Evaluation About Performance and Achievements of Co-Operative Banking System In Haryana” |

ABSTRACT:

Cooperative banking has been playing a crucial role inthe development of rural economy and work as a backbone of Indian financialsystem. These banks are playing a main role in the achievement of the goal offinancial inclusion. These banks with their extensive branch network andlocalized operational base, also engage in recreation of the developmentprocess, credit delivery and deposits mobilization in rural areas. So, anattempt has been made in this paper to study the cooperative banking in thestate of Haryana. The present paper only focuses on the short & medium-termrural cooperative banks working in the state of Haryana which is predominatelya rural economy state. The origination of co-operative credit institutions(CCIs) in India was made nearly 120 years back with the founding principles ofself-help and mutual help. With the passing of Co-operative Credit SocietiesAct 1904, the official efforts were started to eradicate the peculiar peasantryproblems and other financing problems of common public and that is continuingeven today through various committees and legislations. The face and pace ofCCIs has changed drastically due to the competition from commercial banks,undue political interference, scams in co-operatives and failure/closure ofvarious co-operative banks. The co-operative banks which were previouslyconceived as the best substitutes for money lenders have been struggling forsustenance. However these banks have played vital role in making availableshort and long term financing in both rural and urban India yet theirperformance in the last few decades has been questionable. Thefailure/bankruptcy of nearly 100 co-operative banks has cost dearly and aboveRs. 1000 crore to the DICGC/RBI in last decades. Considering these facts itbecomes crucial to analyze the financial position of these banks minutely andgenuinely. Out of total 372 district central co-operative banks (DCCBs) inIndia, 19 DCCBs have been operating under four divisions in Haryana. In thepresent paper an attempt is made to make profound comparative financialanalysis of eleven DCCBs operating in Ambala and Rohtak divisions in Haryana(India). The financial data for a period of twelve years (1997-98 to 2008-09)has been tested with the statistical tools and parameters like- profitability,liquidity, solvency, efficiency and risk. The end results reveal that thesebanks have been in awful situation as all the banks have poor financialperformance and have been suffering from the financial mismanagement. TheGovernment should take immediate workable measures for their revamp.