A Study on the Profitability and Financial Performance of District Central Cooperative Banks in Tamil Nadu

Abstract

Agriculture has a crucial role in the Indian economy. Institutional and non-institutional sources of agricultural loans exist in India. Institutional credit cooperatives play a significant role in the provision of finance to the agricultural sector. The formation of these societies dates back to 1904 when the first Cooperative Credit Societies Act was passed. The objective was to provide cheap credit to the farmers to relieve them from the clutches of money lenders are thought to be the foundations of the overall cooperative structure. Cooperative societies not only mobilize deposits and provide agricultural and rural credit but also extend credit to priority sectors of the country. Banks' profitability and financial operations are always solid as they expand services to subsidiaries. The present analysis is based on secondary data from the years 2012-13 to 2021-22. The growth of different parameters is done by using Compound Average Growth Rate (CAGR) and profitability and financial performance by using ratio analysis and regression analysis of the data. The poor financial condition affects the growth of banks due to their reliability, liquidity, and profitability. The present analysis is based on secondary data from the years 2012-13 to 2021-2022. This paper deals with the profitability and financial performance of District Central Cooperative Banks (DCCBs) in Tamil Nadu.