Article Details

An Analysis on Current and Future Prospects of Co-Operative Banks In India |

V. Ananda Kirubakaran, in International Journal of Information Technology and Management | IT & Management


Bankingbusiness has done wonders for the world economy. The simple looking method ofaccepting money deposits from savers and then lending the same money toborrowers, banking activity encourages the flow of money to productive use andinvestments. This in turn allows the economy to grow. In the absence of bankingbusiness, savings would sit idle in our homes, the entrepreneurs would not bein a position to raise the money, ordinary people dreaming for a new car orhouse would not be able to purchase cars or houses. The government of Indiastarted the cooperative movement of India in 1904. Then the government thereforedecided to develop the cooperatives as the institutional agency to tackle theproblem of usury and rural indebtedness, which has become a curse forpopulation. In such a situation cooperative banks operate as a balancingcentre. At present there are several cooperative banks which are performingmultipurpose functions of financial, administrative, supervisory anddevelopment in nature of expansion and development of cooperative creditsystem. In brief, the cooperative banks have to act as a friend, philosopherand guide to entire cooperative structure. The study is based on somesuccessful co-op banks in Delhi (India). The study of the bank‟s performancealong with the lending practices provided to the customers is herewithundertaken. The customer has taken more than one type of loan from the banks.Moreover they suggested that the bank should adopt the latest technology of thebanking like ATMs, internet / online banking, credit cards etc. so as to bringthe bank at par with the private sector banks.