A Study on Non-Performing Asset at Co-Operative Societies in India

Abstract

The performance of a country's financial system reflects in a country's growth. India is striving to be one of the developed countries. Our country is going through many changes as it strives to be at the top of the world. The financial system is the mainstay of any country in India and the banking system plays an important role in the financial system. In a country like India, where 70% of the population lives in rural areas agriculture is a main occupation, which accounts for more than 30% of GDP. Banks and cooperatives in the public and private sectors play an important role in accelerating credit services to rural areas. India has 12 public sector banks, 22 private sector banks, 42 foreign banks, 56 regional rural banks, 1485 urban cooperative banks 96000 rural cooperative banks in addition to Credit Cooperative Bank. The obstacle for cooperative societies and banking institutions is NPA non-performing assets. The focus of this paper is to study NPA in Indian cooperatives and the impact of NPA on the profitability of cooperatives, the remedies for NPA problems to improve the performance of cooperatives.