Growth and Performance of Primary Cooperative Agricultural and Rural Development Banks in District Patiala

Abstract

Cooperative banking or cooperative credit societies have a very important role to play in the Indian financial system and especially in the sphere of rural finance. The first LDB was started at Jhang in Punjab in 1920. The Punjab State Co-operative agricultural and rural development bank is an Apex Bank and Primary Co-operative agricultural and rural development banks are playing a key role in meeting credit requirement of rural population at Taluka level as its member Banks. There are 89 beside two others Primary Co-operative agricultural and rural development banks in Punjab as on 31st march 2013. The present study make an attempt to evaluate the growth and performance of primary co-operative agricultural and rural development banks in District Patiala on the basis of Share Capital, Loans and Advances, Borrowings, Owned Funds and profits/ losses, Non Performing Assets and membership by applying Statistical tools Mean, Standard Deviation, Coefficient of Variation and Compounded Annual Growth Rate over the period of eight years (2005-2006 to 2012-2013). The study revealed that although overall performance of the Bank during the study period is good, but advancement of loans and advancement be improved and heed must be given to profits because growth rate of net profit is less.