Cooperative Banks Research Articles

A STUDY ON FINANCIAL STATEMENT ANALYSIS OF TAMILNADU INDUSTRIAL COOPERRATIVE (TAICO) BANK LTD,CHEENAI

Financial statements are the pulse of an organization to understand the healthy financial position of an organisation. This Study was taken up in Tamilnadu Industrial Development Cooperative Bank (TAICO), Chennai with the objective to determine the variation in the items of income statement and balance sheet by common size statement, to evaluate the performance of the bank by comparative study and to ascertain the solvency, liquidity and profitability ratios of the bank. For the purpose of the study, last three years financial statements were obtained from the bank.With the help of Common size balance sheet, Comparative Balance sheet and Ratios of Profitability, Solvency and Liquidity the financial status was obtained. The bank has seen a down side during the pandemic period as visible from the analysis. It is also very positive to note that deposits has risen and the bank is close to pre-pandemic status as per 2021 reports. The bank has to concentrate on investing in Fixed assets and also ensure that profits are used in this regard. Other variables indicate a healthy financial statement of the bank.

Forecasting of Banking Sector Securities Prices in Kenya Using Machine Learning Technique

Before investing in any company, an investor should have a basic understanding of how the stock market works. With the introduction of Machine Learning (ML), more resources have been spent to this area of research and it has been proved that stock market prediction is achievable. Although studies have been conducted in this area, there has not been a study to forecast banking sector security prices in Kenya using SVM – ML. Therefore, using the Machine Learning technique, this study aimed to forecast the banking sector security prices in Kenya. The study aimed at fitting ARIMA and SVM models for forecasting banking sector security prices in Kenya. The study targeted all banks listed by the Nairobi Securities Exchange and a sample of three banks was taken – Kenya Commercial bank, Equity bank, and Co-operative bank. To determine the models' performance capability, accuracy error metrics were used to assess them. SVM had an error of 0.01482, 0.1217, 0.1114 and 0.01922 for MSE, RMSE, MAE and MAPE respectively which were lower compared to ARIMA’s error results. SVM was recommended for forecasting banking sector security prices in Kenya as it proved reliable for forecasting.

AN ASSESSEMENT OF NON-PERFORMING ASSETS (NPA) AT SREE THYAGARAJA CO-OPERATIVE BANK LIMITED

India's cooperative banks have played a vital role in the country's performance in promoting financial presence. Since its beginning, they have brought important achievements and contributing to the empowerment and security of rural Indian. By offering loans and other facilities to farmers, small businessmen, start-ups, they are providing timely support to rural residents. Non-performing assets are those loans and advances on which principle or Interest amount is overdue for a period of 90 days. Non- performing assets are the indicator of the financial health of the bank. However, any loan repayment default will have an impact on the bank's operational effectiveness and financial stability. Managing NPA of the bank is a very comprehensive subject and very significant apprehension in the banking industry. To improve the efficiency and profitability of the banks the NPA need to be reduced and controlled. Reduced NPA generally indicate that the credit appraisal process has been strengthened and growth in NPA indicate the need for maintain provision in the balance sheet which will affect the profitability of the banks. The purpose of the study is to be familiar with the data of recent years and advancement of the bank in numerous sections of NPA. Keywords: Co-operative banks, Non-performing assets

Does creating perceived co-operative member value pay off? An empirical study in the German co-operative banking context

The relevance of co-operative values and principles has long been discussed in co-operative literature. Building on a structured literature review and expert interviews, I develop a measure of perceived co-operative member value. Using a multivariate data analysis method, I establish a structural path model that incorporates this new measure. In a sample of 390 members of German co-operative banks, perceived co-operative member value is found to be an important predictor of sustainable satisfaction, next to corporate reputation. The study’s main contributions are twofold: First, I develop an understanding of perceived co-operative member value building upon relevant literature and expert interviews. Second, I enhance the existing knowledge on co-operative principle and value’s importance by situating it in the broader context of co-operative members’ sustainable satisfaction, thereby combining it with marketing literature. In conclusion, I indicate how these contributions have implications for both co-operative theory and practice. • Perceived cooperative member value can be measured as a six-item index. • Perceived cooperative member value is an important driver of member satisfaction. • Perceived cooperative member value is an important element for cooperative banks.

Basel accords and banking inefficiency: Evidence from the Italian local market

AbstractUsing data for Italy from 1994 to 2015, we appraise the nexus between Basel II and III accords and both the cost and the profit inefficiency of profit‐oriented and mutual cooperative banks. Our analysis further deals with the effects of the regulation in different market structures. To assess the efficiency of the two types of banks under scrutiny, a stochastic frontier approach has been proposed. The evidence reported in this paper indicates that the regulatory framework of the Basel accords had heterogeneous effects on the efficiency of Italian banking institutions. Specifically, Basel II is associated with a contraction in the profit inefficiency and an increase in the cost inefficiency for mutual cooperative banks. On the other hand, Basel III worsened the profit inefficiency, though it is found to reduce the profit inefficiency of mutual cooperative banks, with no significant impact on cost inefficiency. Furthermore, once we control for the degree of market competition, the effects of the regulation are shown to be statistically insignificant. The advent of the 2008 recession and the application of the revenue inefficiency do not alter the main findings. There is also some evidence of spatial effects of the Basel II regulation at the LMA level.

Does the Co-operatives Helps the Rural Development in India?

In India, the co-operative movement has played an important role in meeting the developmental needs of the rural poor. Co-operatives are the organisation that help the individuals harness the power of collective bargaining in order to protect the financial interests of the impoverished and underrepresented in society. In India co-operative credit structure is three-tiered, with State Cooperative Banks (SCB) at the top of the each state, Central Co-operative Banks in the middle or central level, and Primary Agriculture Credit Societies (PACS) at the bottom level. Each of these institutions focuses on the development of their area of operation and performs distinct purpose for the purpose of the upliftment of the members of co-operatives. The present study discuss the role of co-operative societies in the rural development of our country. Keyword : Co-operation, Rural Development, PACSs

Legal Protection for Soybean Farmers in Cooperation Based on the Muzara'ah Akad with the Murabahah System

Introduction: During the pandemic Covid-19, the global soybean market experienced a shock which resulted in the availability of imported soybeans in several countries decreasing and soybean prices increasing. This also has an impact on small and medium industries that cannot afford soybeans for their processed food raw materials, one of which is the production of “tempe”. Purposes of the Research: The purpose of this study is to explain the concept of cooperation to provide legal protection to soybean farmers based on a muzara'ah akad with a murabahah system. Methods of the Research: The research method used is normative legal research with a statute legal approach and a conceptual approach. Results of the Research: The result of this study include 2 (two) things, namely the concept of cooperation and the form of legal protection. The concept of cooperation consists of: The first scheme, cooperation between the government (Pemda) with soybean farmers and Islamic banks. The second scheme is the cooperation of Islamic banks with soybean farmers using a murabahah akad. The third scheme, namely cooperation between soybean farmers and cultivator using muzara’ah akad. In connection with the form of legal protection, it is divided into 2 (two) namely: first, external legal protection regulated in Law Number 19 of 2013 concerning Protection and Empowerment of Farmers, which was later changed to Law no. 11 of 2020 concerning Job Creation, and second, internal legal protection, namely 3 (three) concepts of cooperation as outlined in a written agreement as a form of guarantee of legal certainty for the parties, especially for soybean farmers.

An Evaluation of Net Profit to Working Capital Ratio and Loans and Advances to Working Capital Ratio of The Amreli District Cooperative Bank Ltd.

Majorly 21 types of banks are functioning worldwide. Each and every bank plays important role in growth and development of economy of the nation. This research is focusing on district level banks of Gujarat State. Presently total 42 district level banks are functioning in Gujarat. Amid them, the orientation is taken in account to evaluate the financial performance based on two parameters – Net profit to working capital ratio and Loans and advances to working capital ratio of the bank. The research is examined for Amreli District Co-Operative bank ltd for financial year 2013 to 2019. An application of t – test is used to examine the results. It is observed that there is significance difference between the yearly upgradation in Net profit to working capital ratio and Loans and advances to working capital ratio of the bank. The bank has progressively worked for Saurashtra region of Gujarat state.

A Study on Role of Customer Relationship Managemen in Rural Cooperative Bank in Madurai District

In India, the banking business is become more and more complex and tremendously changes from the liberalization and globalization. Rural development is the process of improving the quality of life and economic well being of people living in rural areas. In past decades, the government has taken initial steps of accelerating the rural areas development and welfare activities. The opening of new bank, the customer creation is very important one and develops to maintain the relationship is difficult. Customer relationship management is helpful to remove these difficulty in various aspect of services provided to the people. CRM facilitates the cooperative banks to provide one to one services and also maintain the transactions security of the customers. The main purpose of CRM in cooperative banking sector is to create and keep customer and view the entire banking transactions as consisting of highly integrated effort to create and satisfy the customer needs. A customer satisfaction is silent advertiser of cooperative banks product. In this study, the researcher has analyze the customer satisfaction of cooperative banking services in rural areas and what they are expecting form cooperative banks etc. It helps to bring out the results related to benefit cooperative banks to build better CRM services to rural areas. CRM facilitates the cooperative banks to provide one to one services and also maintain the transactions security of the customers.

A Study on Customers’ Satisfaction with E-Banking Services with Special Reference to the Madurai District Central Cooperative Bank LTD

The banker you want to supplement should rely more on efficient services and coordinate relationships with clients. The only factor that differentiates the service of one bank from the other is “customer satisfaction” related to the services provided by the bank. This is the most important factor that influences the choice of the bank. The success of banks basically depends on customer satisfaction in relation to new technological services provided by banks. The banking industry is driven mainly by customers, and their survival in a competitive environment depends largely on new technological services provided by them. Technology plays a fundamental role in improving the quality of services provided by banking sectors. One of the technologies that really brought information to the revolution in society is internet technology and, for good reason, is considered the third wave of resolution after the agricultural and industrial revolution. The emergence and adoption of the Internet by the banking sector has eliminated the limitation of time, distance and communication, making the world a real village. Internet banking from anywhere, at any time and used for transactions, payments, etc. On the Internet via a bank, cash register or secure company website. Therefore, basically in online banking, the customer has a one-to-one interaction with the bank’s parties, in which case it is important for the bank to provide high quality services on the Internet. Therefore, unlike the traditional banking sector, online banking involves interpersonal interaction between clients and the online banking system.

THE IMPACT OF INFORMATION TECHNOLOGY ON THE PERFORMANCE OF BANKS IN PUNE CITY: A COMPARATIVE STUDY

Advent of ICT has brought transformational changes in the Indian Banking Industry. Liberalisation, privatization and globalization policy and the recommendations of various committees paves the way for use of ICT in the Indian Banking sector. ICT has made the banking more easy, convenient and user friendly. It has changed the way the banks provide the services to their customers. It has also impacted the performance of the banks in all respects. The present study is modest attempt to study the impact of IT on the performance of banks operating in Pune City. The researcher has selected 5 branches each of 2 Public Sector Banks, 2 Private Sector Banks, and 2 Co-operative Sector Banks operating in Pune City and the impact of information technology on core operational areas as well as secondary operational areas. Total sample size is 1950 which includes bank customers, employees and managers/officers. The study reveals that the private banks lag behind in several aspects as compared to the nationalized and cooperative banks and there is a lot of improvement required in several areas. One cannot clearly distinguish the nationalized banks as the best performers or the cooperative banks is the best performers because there are issues that need to be taken care of in nationalized and cooperative banks also. What the study would conclude is that, for a bank to be successful there should be a proper commitment of the top-level management and at the same time the IT staff who takes care of the hardware and software infrastructure within the bank must work in harmony with the banking staff. KEY WORDS: Information Technology, E-banking, online banking, e-banking service quality, customer satisfaction, CRM

Adaptive Early Warning Systems: An Axiomatic Approach

Abstract The U.S. Subprime Crisis and the subsequent Great Recession have highlighted a renewed interest in the proper design and implementation of Early Warning Systems (E.W.S.), in order to help deter the onset of subsequent extreme financial events, through the implementation of adequate crisis detection mechanisms. The present article describes the Adaptive Early Warning Systems (A.E.W.S.) axiomatic approach, as a natural operational extension to E.W.S. testing. This novel protocol upholds the operational dimension of implementing an efficient holistic crisis detection mechanism, a domain which has been hitherto overlooked by the E.W.S. literature. The paper first describes the major axiomatic principles sustaining the A.E.W.S. protocol, which seek to establish universal principles in support of the said protocol. Second, the article also describes a basic universal template for an A.E.W.S. surveillance platform, which duly describes how multiple testing procedures can be integrated into a single crisis detection framework, while targeting multiple segments of the financial markets (such as the conventional and non-conventional segments of the financial markets). Third, the paper also describes the major advantages and disadvantages associated with the implementation of this novel protocol. It is hoped that the effective implementation of the A.E.W.S. protocol as a novel operational framework in the global macroprudential toolkit might help deter the onset of future extreme financial events, by enabling a greater cohesiveness in E.W.S.-related central banking procedures, as well as promoting a greater international central banking cooperation prior to and during financial distress episodes.

Interdependence, Integration and Co-Creation

The Indian Banking landscape is vast and complex. The monolithic public sector banks and single unit co-operative banks comprise two distinct ends of the spectrum, with private sector banks, regional rural banks and foreign banks populating the intermediate space. The complexity of the banking system can be assessed from its pure bandwidth, straddling 21 public sector banks, SBI and its seven associates, 25 private sector banks, 29 foreign banks, around 100 regional rural banks and around 1800 urban co-operative banks. Between them, these banks have deposits of around Rs. 29 lakh crore, advances of around Rs. 2 0 lakh crore and investments of around Rs. Nine lakh crore. The deposits, advances and investment numbers clearly highlight the signal role essayed by Banks in propelling India's economic growth.

Value of Due Diligence Exhibited by Customer in A Banking Institution

The Kerala banking system consists of 27 public sector banks, 16 private sector banks, 5 foreign banks, 1 RRB - Kerala Gramin Bank and 3 co-operative banking system in addition to cooperative credit institutions. Reserve Bank of India banking statistics and SLBC-Kerala Report-2017 indicates that Indian banking system has been reached at every corner in Kerala, and also increases the deposits, credits and accounts. At present banking sectors are giving different types of savings bank account with unique features focusing on different financial class customers, different age group customers, women customers, salaried peoples, business man etc., they also charge different type fees on different services. These types of offerings are a part of financial inclusion. The Report on State of Financial Inclusion in Kerala-2016 by Tara Nair and Devanshi Patani, concludes that state have complete literacy rate, hence the peoples are widely understood the importance of banking sector and also peoples are trusting with the banking sector. Report also shows that much of banking in the state has been limited to savings. In this context this study is examining the value of due diligence exhibited by customer in a banking institution. The study has focused with the identification parade by bank customer for identifying their own savings bank account by reading its key features only, reason for right and wrong identification made by the bank customers, and awareness about banking services, charges, fees and limit of usage. The study summary of findings, conclusion and recommendation will be strengthen the performance of financial inclusion, banking sector, and will helpful to update the financial inclusion plan and to accomplish the aim of financial literacy.

A Case Study of Financial Inclusion in Urban Co-Operative Bank of Kolhapur District

The positive results are found towards financial inclusion in case of factors like total membership, deposits, working capital, short term loans amounts, number of saving deposit account, number of saving and current deposits, no. of accounts of priority sector- small scale industries, small business and education loans, weaker sections, small scale industries, education loans, the SC under priority sectors, women –small scale industries and small business. It has adopted new financial scheme such as no frill account, Special fixed deposits, and SHGs bank account etc. to attract customers. It has helped a lot to priority sector. In case of individual, partnerships, societies, deposits accounts during the study period also showing positive remarks for financial inclusion of the Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd. Therefore, the hypothesis of the study is proved that “Urban co-operative bank in Kolhapur District are playing a significant role in the process of financial inclusion in semi urban area”.

Self-help group–bank linkage programme

In the rural and urban areas Self-Help Group–Bank Linkage Programme (SHG–BLP) was introduced to provide banking services to poor people. The present study analyses the loan disbursement of SHG for the last two decades. The research used the time-series data of SHG. The data was acquired from a secondary source, and the investigation is descriptive and analytical (NABARD). The obtained data were subjected to trend analysis. In the study, it was observed that the number of SHGs with commercial and regional rural banks are increasing. In contrast, SHGs affiliated with cooperative banks are declining. The loan disbursement amount increases for SHGs related to commercial and regional rural banks while it declines for cooperative banks. The analysis revealed that the numbers of SHGs are growing in Madhya Pradesh, and the loan disbursement amount is also increasing significantly over the study period.

Present Status of it Security of Madurai District Central Cooperative Bank, Tamil Nadu

Though the Computerization of Cooperative Banks started during the new millennia, it catches up with Madurai District Central Cooperative Bank during 2010 at a leisure pace only. Initially, an application approved by the TNSCB was in use though it was developed locally. DCCBs of Tamil Nadu were using different types of Software in different regions, and it resulted in a nightmare for Bank Integration and further expansion.Hence adopting the prudential norms, RBI’s IT security policy, NABARD circulars on IT security instructions, continuous monitoring the Banking news and events, Interacting with Bankers in seminars and training, and updating security protocols will surely save the Bank from any kind of Internal and External threat to its IT infrastructure.

A Study on the Funds and Investment Management of the Dehradun Urban Co-Operative Bank in Uttarakhand

Cooperative credit can be broken down into Urban Co-operative Banks (UCBs) and Rural Cooperative Banks. Rural cooperatives play a big part in the credit delivery system in rural areas. Urban Cooperative Banks (UCBs) try to get savings from middle and low-income people and give them money to people who need it. People who work for UCBs and rural cooperative credit banks are regulated by the Reserve Bank of India and NABARD, respectively. Both are regulated by the State Government in regard to certain types of work they do.The research demonstrates that in the majority of situations, the bank handles money and investments more effectively and efficiently. On the other hand, the bank’s high cost deposits are on the higher side, which will have a stronger impact on the bank’s profit and profitability in the long run. To provide more contemporary banking services and to attract new consumers, the bank should place a premium on providing high-quality services. Delivering high-quality services and transitioning from conventional to digital banking will undoubtedly bring value to the bank. Developing an appropriate plan to address difficulties such as NPA management, increasing competition from new generation banks, small and payment banks, would undoubtedly increase the bank’s operating efficiency.

Funds and Investment Management of Virudhunagar Cooperative Urban Bank LTD

There are many Primary Urban Cooperative Banks (UCBs), forming a heterogeneous size and spread group. Many of these banks are very small in size and reach. They compete with more significant participants in the same banking space. Over the years, many urban cooperative banks became weak and non-viable, thus posing a systemic risk to the UCB sector. They lack avenues for raising capital funds since they cannot go for public issues of shares, nor can they issue shares to members at a premium. At the same time, there are many UCBs in the sector which is financially solid and viable. This sector in the recent past has witnessed significant developments that have far-reaching implications for the banking sector that is savings banking interest rate has been deregulated. It shows that the RBI gives a lot of freedom and autonomy for the smooth functioning of the UCBs. Hence, the virudhunagar UCB, by using independence and liberty, should bring in qualitative improvement in the method of functioning and altitudinal transformation and increase in per-employee Productivity, which will result in achieving the objectives of inclusive growth and sustainable development.This study, therefore, analyses Funds and Investment Management of Virudhunagar Urban Bank.

The Impact of Psychological Changes in Mental Health on Employees Performance

The goal of this research was to explore the Impact of psychological changes in mental health on workers' productivity inside financial organizations. A descriptive research approach was chosen in performing this study and addressed the research topics presented above. The research population comprised 800 individuals at the top, middle and operational level from Cooperative Banks, Bank of Africa and National Bank of Kenya; however, out of a total sample of 384, only 300 people replied, resulting in a 78 percent response rate. The study employed SPSS for data analysis, and the descriptive research design was assessed using frequencies and percentages. At the same time, inferential statistics were also done to discover the link between dependent and independent using correlation and regression analysis. The dependent variable comprised the awards and the workers' performance, while the independent variable was the consequences on employee psychological changes in mental health. The research found a substantial negative significant link between absenteeism and employee performance. The survey stated that workers were set unreasonable expectations with their employers and were expected to reach their targets, the human resource management needed to ensure there was a work-life balance.