Agricultural Development Bank Research Articles

Study of loans distributed by District Cooperative Bank and Cooperative Agriculture and Rural Development Bank

The basic principle of cooperation is- “One for all and all for one”. An institution formed with the spirit of cooperation is called a cooperative society. A cooperative society is a voluntary organization of people who meet each other for the purpose of helping each other. The nature of this society is socio-economic. World famous thinker Plato has said “Our own good lies in the good of others”. Therefore, the members of the cooperative society help each other on the basis of savings and investment. Its members are generally economically weak and middle-class people. The bank which is established with the contribution of these members is called a cooperative bank. Abstract in Hindi Language: सहकारिता का मूल सिद्धान्त है- ‘‘एक सबके लिए और सब एक के लिए’’। सहकारिता की भावना से बनी संस्था सहकारी समिति कहलाती है। सहकारी समिति व्यक्तियों का ऐसा ऐच्छिक संगठन है जो एक-दूसरे की सहायता के उद्देश्य से आपस में मिलते हैं। इस समिति की प्रकृति सामाजिक-आर्थिक होती है। विश्व प्रसिद्ध चिन्तक प्लेटो ने कहा है ‘‘दूसरों की भलाई में स्वयं अपनी भलाई निहित है’’। अतः सहकारी समिति के सदस्य बचत और विनियोग को आधार मानकर एक-दूसरे की सहायता करते हैं। इसके सदस्य साधारण रूप में आर्थिक रूप से कमजोर और मध्यम वर्ग के लोग होते हैं। इन सदस्यों के अंशदान से जिस बैंक की स्थापना होती है उसे सहकारी बैंक कहते हैं। Keywords: मुद्रा एवं वित्तीय प्रणालियाँ

Impact of Corporate Social Responsibility on Corporate Reputation of Public Sector Commercial Banks in Nepal

This study delves into the integral role of Corporate Social Responsibility (CSR) in shaping corporate reputation, focusing on public sector commercial banks (PSCBs) in Nepal. A sample of 105 banking professionals from Nepal Bank Limited (NBL), Rastriya Banijya Bank (RBB), and Agriculture Development Bank Limited (ADBL) participated, offering insights into CSR practices by employing a well-structured 5-point Likert scale questionnaire. The research elucidated that CSR activities undertaken by PSCBs were positively perceived by respondents, who concurrently acknowledged the commendable corporate reputations of their organizations. Notably, community responsibilities (β = 0.492, p-value < 0.001, 95% CI: 0.278 - 0.707) and investor responsibilities (β = 0.221, p-value = 0.01, 95% CI: 0.054 - 0.388) emerged as significant contributors to enhancing corporate reputation among the six CSR practices examined. To measure the impact, simple and multiple regression analyses were employed, affirming the positive association between CSR initiatives and corporate reputation. This research underscores the pivotal role of CSR, particularly in community and investor engagements, as a catalyst for bolstering the corporate reputation of PSCBs in Nepal. These findings offer valuable insights for organizational strategy and underscore the reciprocal benefits of responsible business practices. Keywords: Corporate reputation, Corporate social responsibility, Practices of CSR, Public sector, Commercial banks.

Changing Structure of Concessional Loan in Nepal

This article highlights the changing scenario of concessional loan in Nepal. It examines the policies, trends, and structural shifts within the country’s financial framework. A concessional loan is a crucial tool for the economic development of Nepal. It aimed at promoting economic efficiency and equitable distribution of income throughout the country. Using secondary data from FY 2017/18 to FY 2021/22, this study evaluates the trend and structure of concessional loan in Nepal. The findings reveal that there is a significant surge in both the volume of concessional loan and the number of borrowers across different headings of concessional loan. Particularly, the number of borrowers of Women entrepreneurship loan are remarkably increased in the recent years. However, the concentration of loan among larger borrowers and the misappropriation of funds raises concerns regarding the program’s effectiveness. Furthermore, the commercial banks play a dominant role in disbursing concessional loan. Agricultural Development Bank Limited is a key contributor, aligning with the government’s focus on promoting the agricultural sector. This study recommended a call for a comprehensive evaluation of the concessional loan program. The reevaluation of the program could be crucial to fine-tune the policies, address challenges, and focus the program toward its goals of enhancing productivity, promoting financial inclusion, and fostering equal distribution income distribution in Nepal.

An Assessment of Selected Ghanaian Banks’ Internal Control and Corporate Governance

The general objective of the study is to assess the effectiveness of internal control and corporate governance in the Ghanaian banking industry. The study was basically a case study based and was approached quantitatively. Five banks (Absa Bank Ghana, Ecobank, Standard chartered Bank, Agricultural Development Bank, and Ghana Commercial Bank) were sampled for the study. Four hundred (400) respondents from the above sampled banks helped offer meaningful and enough information to answer the study questions. Non-probability sampling was used for this study’s sample strategy. The study made use of questionnaires to gather the data. In analyzing the data, the study made use of descriptive statistics, Kendall’s coefficient of concordance (w), correlations and regression analysis techniques. The study found that internal controls and corporate governance in the Ghanaian banking industry are effective. The results of the study confirm that internal auditors and staff have the role to review systems established to ensure compliance with policies, procedures, plans, laws, and regulations impacting operations and reports; to detect and prevent illegal practices; to report illegal acts; provide information to management; act with competence; make a report to the company about the problems and follow the corporate policy in ensuring effective internal control in the Ghanaian banking industry. Keywords: Compliance, Corporate governance, Corporate policy, Internal Control, Kendall’s coefficient of concordance (w).

IMPACT OF GOVERNMENT SPENDING ON AGRICULTURAL OUTPUT IN NIGERIA: (1990-2022)

This study utilized data spanning from 1990 to 2022 to investigate the impact of government expenditure on agricultural output in Nigeria. Employing the Autoregressive Distributive Lag (ARDL) methods, the study revealed a negative relationship between both government credit to agriculture and government expenditure on agriculture with agricultural output. The paper further recommended that Effective management of allocated resources in the agricultural sector is crucial, as merely increasing the budgetary allocation to the sector does not guarantee improved performance. To enhance the sector's functioning, consistent implementation of government policies and programs is essential also Many farmers are hesitant to seek loans from financial institutions due to concerns about collateral security and high interest rates. Therefore, the government should enact legislation that fosters a favorable lending environment for agricultural investments. Additionally, significant funding should be directed towards banks specializing in agriculture, such as Agricultural Development Banks (ADBs) and similar institutions, to support farming operations.

Determinants of Mobile Banking Adoption Among Customers of Agricultural Development Bank

The study sought to analyse the determinants of mobile banking adoption among bank customers of Agricultural Development Bank. Explanatory design of quantitative approach was used. A simple random sampling technique was used to select 420 respondents of which 380 successfully responded yielding a 90% response rate. Questionnaire was the main data collection instrument used and the data collected are analyzed using Structural Equation Modeling. The study found that communication, pursuance, perceived risk, perceived usefulness and transaction speed as the significant determinants of mobile banking adoption. In addition, respondents identify poor internet connectivity and high service charges as the main challenges associated with mobile banking. Therefore, it is recommended that Agricultural Development Bank should ensure speed and cost efficiency in its mobile banking service. Furthermore, mobile banking departments activities need to be closely supervised and audited in evaluating the developments, expansions and challenges of services rendering.

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

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.

A Study on Performance of the Karnataka State Cooperative Agriculture & Rural Development Bank Ltd., Bangalore in women development cell to promote entrepreneurship

The Karnataka State Co-operative Agriculture and Rural Development Bank Limited is the apex bank of all the primary co-operative agriculture and rural development banks in the state. All the PCARD Banks in the state are affiliated to it. The KSCARD Bank provides financial accommodation to the PCARD Banks for their lending operations. In order to quick sanction and disbursement of loans and supervision over the PCARD Banks the KSCARD Bank has opened district level branches. Bank has established Women Development Cell to promote entrepreneurship among women in 2005. The Bank is identifying women borrowers in the rural areas by assigning suitable projects to motivate their self-confidence to lead independent life. Progress made in financing women entrepreneurs women.

ORGANIZATIONAL CULTURE AND PERCEIVED FINANCIAL PERFORMANCE IN SELECTED COMMERCIAL BANKS: AN EMPIRICAL STUDY FROM NEPAL

The objectives of this research were to examine the association of corporate culture with perceived financial performance and to determine the influence of corporate culture on perceived financial performance in selected Nepalese commercial banks. This study was a descriptive and causalcomparative research design that was carried out through the survey technique. A quantitative technique was applied for this study. Primary data were used for the study. In Nepal, there are currently a total of 20 commercial banks that were statistical population organizations of the study. Among them, Agricultural Development Bank Limited (ADBL) and Rastriya Banijya Bank Limited (RBBL) as government-owned and managed banks, Prabhu Bank Limited as a public sector bank, and Himalayan Bank Limited (HBL) as a joint venture bank were taken as sample organizations. The sample size of this study was 287, which is based on the purposive sampling technique. Inferential statistics were used to analyze the data. The findings show that strong correlations were found among independent variables and perceived financial performances in sampled commercial banks. Adaptability and involvement have a significant positive influence on perceived financial performance. On the contrary, consistency has an inverse and insignificant influence on financial performance. On the other hand, mission has a positive and insignificant influence on perceived financial performance. It can be concluded that adaptability and involvement have a strong influence on financial performance, however, consistency and mission do not. Further studies may be carried out in other public and private sectors including other variables and techniques. Banking organizations have to adopt appropriate organizational culture as new managerial methods to accomplish super financial performance in the current kaleidoscope-changing circumstances

Eximbank of China and Agricultural Development Bank of China: International Aspect of Activity

The article analyzes the international aspect of China's policy banks` activities – the Export-Import Bank of China (Eximbank of China) and the Agricultural Development Bank of China (ADBC). Considering the decisions of the 20th National Congress of the Communist Party of China including emphasizing the importance of further expanding of “external world openness”, promotion of “high-quality development of the Belt and Road”, improving the quality of trade cooperation, as well as "priority of agricultural development" and poverty alleviation the Banks' role as tools for solving the export-import operations financing (the Eximbank of China) and “Sanong” (Three Rural Issues) agrarian problem (ADBC), financing development remains relevant. The article concludes that in the 14th Five Year Plan (2021-2025), there is an expansion of the Eximbank of China and ADBC`s interaction with the ASEAN Member States and Africa, including financing of infrastructure projects and agricultural sector, development of green technologies through special bonds issuing.

Impact on Dividend Payout Analysis between Nepal Bank Limited, Rastriya Banijya Bank Limited and Agricultural Development Bank Limited

This study entitles, “Factors Analysis on Dividend Payout of Nepal Bank Limited, Rastriya Banijya Bank Limited and Agricultural Development Bank Limited” focused on quantities paid are decided on the company's performance analysis of Nepal Bank Limited (NBL), Rastriya Banijya Bank Limited (RBB) and Agricultural Development Bank Limited (ADB) taking three sample banks. This study focused to find the effects of different factors and on its dividend payout taking secondary data from 2012/13 to 2021/22. The study’s finding indicate that larger corporations may afford to pay bigger dividends because of their greater financial strength. Also the profitability ratio, company size, and leverage ratio all have a negative correlation with the dividend payout ratio and as the bank's size grows, the dividend distribution will be reduced and increases in net income have a positive impact on dividend payments, meaning that higher payments will be made when growth is strong.

Exploring the use of automated teller machine (ATM) services of Agricultural Development Bank (ADB), Kasoa Branch

The Automated teller machine (ATM) is one of the technological advances that brought about changes in the way banks provide service to their customers. The ATM was introduced with the view to automate the operations of the banks and thus reduce the need for bank tellers and in long run reduce costs. One of the aims of banks in bringing the ATM was to reduce congestion in the banks and improve service delivery to the customer. Against this background, the study sought to determine the reasons underlining the low patronage of ATM services. The study adopted the descriptive approach whilst stratified sampling method to break the sample unit according to their level of education. The results of the study show that there is a high perception that the ATM is associated with technical problems such as frequent network failures and frequent breakdowns. Again, customers and the bank have benefitted in terms of improved service and increase in revenue. However, there are areas that need improvement like prompt resolution of ATM queries and faults as well as frequent network failures. Finally, the study recommends on how to alleviate the challenges such as the introduction of more ATMs and reduced ATM down time.

Some Aspects of Chinese Policy Banks’ Activity at the Present Time

The Chinese policy banks (the State Development Bank of China, the Export-Import Bank of China and the Agricultural Development Bank of China) were created with the goal of financing national projects both abroad and inside China. They play an important role in providing loans to green and social projects and concessional lending to small and medium-sized enterprises. It is expected that there will be growth in the financing of scientific and technical areas during the 14th Five-Year Plan (2021-2025). In order to finance large-scale projects, the policy banks require a constant flow of funds. This article analyzes the main sources of the banks’ funding amongst which accepting loans from the People`s Bank of China and the issuing of bonds are in the lead. The two sources mentioned are characterized by reliability and constancy, but also have risks attached to them. These include limited sources of liquidity in general, increasing competition from local administrations which are also empowered to issue bonds, lending to low profit (but strategically important) projects, an implied long maturity period of medium and long-term loans, and other factors. Proof of sufficient capital is vital because policy banks have a key role regarding instruments for countercyclical regulation in the process of stabilizing the economy for example when funds were distributed through the banks to the most vulnerable sectors during the worst of the pandemic. To improve the policy banks’ financial efficiency it has been necessary to draft a Policy Banks Act. This supports the development not only of national but also of commercial projects, the granting of more independence to branches in the search for and selection of projects (taking into consideration local/regional/international specifics), the diversification of liquidity sources and the establishment of compensation for losses sustained during repayment of failing loans, to improve risk management. This necessary next stage of banking reform is expected to be enacted during 2022-2023.

Role of NPA Provisions in Financial Soundness and Profitability: A study on Primary Co-operative Agricultural and Rural Development Banks in Kollam District, Kerala

Primary Co-operative Agricultural and Rural Development Banks (PCARDBs) means a society has an area of operation confined to a taluk and the principal object of which is to provide long-term credit for agricultural and rural development. One of the dangerous problems faced by co-operative banking is the inability of the borrower to repay their overdue interest and principal, leading to Non-performing Assets (NPA). The presence of NPA had an adverse effect on the profitability and existence of PCARDBs, but they are still surviving with the help of provisions created against NPA. Provisioning means the portion of income set aside by the bank to meet contingent losses that may arise in the event of non-recovery of loans. By analysing the data collected from the financial statements of the six PCARDBs in Kollam district, it can be understood that the growth in NPA involves the necessity of provisions which bring down the overall profitability of the bank. But if the banks are capable to create such provisions from net profit, it helps to maintain the financial soundness of banks. The study is based on the data collected from financial statements of six PCARDBs in Kollam District and the results show higher provisioning for overdue which results net loss in the financial statements of banks

Relationship between Stock Return, Trading Volume, and Trading Price of Agriculture Development Bank

The main objective of the study is to measure the causal relationship between stock return, trading volume, and the trading price of Agriculture Development bank. Descriptive research and casual comparative research designs have been used to analyze the study. The 11years panel data has been used. The 2104 observations are analyzed to draw a valid conclusion about the study. The descriptive model provides evidence of average stock return, trading volume, and price volatility. The investors of ADB faced high risk in stock investment during the 11 years. There is a significant positive relationship between them. Similarly, there is a positive and significant impact of trading volume and trading price on stock return.

AN ANALYSIS OF GROWTH AND PERFORMANCE OF KARNATAKA STATE COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK IN KARNATAKA

Primary Agricultural Cooperative and Rural Development Banks are playing an important role in meeting the credit requirements of the rural population. The main activity of the Bank is the dispensation of long-term credit for agricultural and rural development under schematic lending approved by NABARD Bank. The lending programs are for productive purposes like integrated loans for agriculture and allied agricultural purposes under major and medium-term projects. The present study was carried out with a broad objective to examine the performance of the Karnataka State Cooperative Agriculture and Rural Development Bank (KSCARD Bank). The study has made use of secondary data (2010- 11 to 2019-20) and the analysis is carried out by using the exponential growth model which has been used to analyze the performance of KSCARD Bank. Finally, it is concluded that the lending performance has very crucial role in Long Term Credit requirements, but the status of the recovery balance of KSCARD bank is very high when compared to the demand and collection of the recovery

The Role of Service Promotional Mix on Customer Satisfaction; Case Study of Agriculture and Rural Development Bank in Djelfa

Now days, the issues of promotional efforts of banking services are becoming more complicated, in today’s competitive environment, in terms of competing effectively with other financial institutions. In banking sector communication elements are especially important, they help to create powerful images, confidence and a sense of reliability to achieve customers’ satisfaction.The main purpose of this study is to reach a better understanding of the promotion’s strategies in financial institutions. In order to reach this target we’ve conducted a questionnaire for clients of our case study bank, to examine the role that the promotion mix components play in terms of reaching the bank customers’ satisfaction. The results show that the personal selling plays an important role on achieving customer satisfaction.

An Upshot of Banking Service Quality and Cocoa farmers Satisfaction on Loyalty : The Case of Agricultural Development Bank (ADB), Sefwi-Wiawso

This study makes an empirical study on the relationship between service quality, customer satisfaction and customer loyalty in the banking sector for cocoa farmers of Sefwi-Wiawso in the western-north region of Ghana. Based on the servqual model the researcher constructed a model which brings to light the relationship amid quality of service and customer loyalty in the banking service sector using ADB as a case. The paper puts forward the relevant research hypothesis and develops standard measurements based on the data obtained in the survey questionnaire. The convenient sampling method was applied with 300 customers as samples from the Bank. In all, 360 questionnaires were successfully completed and analyzed. Descriptive statistics, correlation analysis, and regression analysis were carried out using Statistical Package for Social Sciences software (SPSS) to estimate the relationship between variables. The overall results of this study show that there is a positive and significant relationship between all constructs. Service quality and Customer satisfaction positively affect customer loyalty. The study recommends that strategic services bordering on the servqual dimensions should be introduced to provide high-quality services. This will also improve customer loyalty in the long run.

A state-owned bank for small farmers in Chile, c.1926-1953

This article deals with the creation and operations of the first agricultural development bank ever created in Chile, the Caja de Crédito Agrario (CCA), founded in 1926, in operations until 1953. The main sources are the annual reports of CCA from 1933 to 1951. The main contributions are to show first that the CCA was instrumental to provide subsidized long-term capital to small farmers in Chile to promote agricultural production, but that also had a “social mission”. The CCA soon became a protagonist within the local financial market. Given the lack of knowledge about the modus operandi of development banks in Latin America, we provide the first account of the management and financial activities of the CCA. We show that the management structure of the firm, and in particular its strategy of decentralization, was key to explain its success. Likewise, the CCA managed successfully to raise increasing amounts of capital from other state institutions at low interest rates, thus being able to cover its increasing loan operations.

Does SME financing perform well from both demand and supply sides? The case of a developing country

This study provides a way of understanding to analyze the performance of SME credit both from the demand and supply sides. Both primary and secondary data are used which are collected from entrepreneurs of SMEs and the head office of Rajshahi Krishi Unnayan Bank, a leading SME loan providing government-owned agricultural development bank in the Rajshahi district of Bangladesh. Some descriptive statistics, accounting and financial techniques, and a regression model are used to analyze the data. The study finds that the average ROA of SMEs is 35.87% and the ROE of SMEs is 62.81%. It indicates that the SMEs are earning more than the cost of the fund collected from the institutional sources. It is also observed that there is a significant effect of institutional credit on ROE of SMEs but not on ROA. On the other hand, the growth rate of SME NPL is higher than the total NPL during the study years that is of course alarming regarding SME loan recovery. The institutional SME credit should be increased by applying proper strategies for increasing loan recovery performance.