Cooperative Banks Research Articles

Exploration of Reliability and Security of E- Banking: Selected Urban Cooperative banks

The rise of E-banking has introduced unprecedented convenience and accessibility for users, transforming traditional banking operations into efficient online experiences. However, this shift brings challenges, particularly in terms of security and reliability, as users now expect robust protections for their financial data and consistent, dependable service. This study investigates the perceptions of security and reliability in digital banking among 290 urban cooperative banking customers. Using factor analysis, we explore key dimensions of e-banking services, focusing on elements like encryption, biometric security, and trust in transaction reliability. The analysis identified two primary factors: security and reliability, each with distinct contributions to overall user satisfaction. The factor loadings revealed that users had mixed confidence in encryption technologies and data privacy measures, with some expressing high levels of satisfaction, while others indicated significant concerns. Additionally, reliability emerged as a critical factor, with findings indicating that a notable portion of customers were dissatisfied with the timeliness and trustworthiness of e-banking services. For data collection, a structured survey measured responses on a five-point Likert scale, assessing variables such as trustworthiness, encryption effectiveness, privacy maintenance, and personal security practices. Through the use of descriptive and factor analysis, we quantified customer sentiments and identified patterns in user satisfaction. The results suggest that while there is moderate confidence in digital banking security, the reliability of service delivery remains an area for improvement. Banks should consider addressing these findings by enhancing transparency in their security protocols and strengthening service consistency to better meet user expectations in digital banking environments.

Growth and Performance of Self Help Group’s - An Exploratory Study

Today there are Mainstream Micro Finance Institutions like National Agricultural Bank for Rural Development (NABARD), Small Industries Development Bank of India (SIDBI) etc., which are creating micro credit, in rural areas by extending micro finance to Self Help Group (SHG’s) with the help of formal credit institutions, making it an effective poverty reducing strategy and simultaneously promoting rural development. SHG’s were initiated to empower the economically disadvantaged people, who were neglected by formal credit and savings institutions. Micro finance has shown that poor people, when given access to timely and responsive financial assistance, use the proceeds to not only increase their assets and income, but also repay their debts. NABARD, through its Micro Credit Innovations, is the facilitator and mentor of microfinance initiatives in the country. The model of Self help group- bank linage programme (SBLP) has evolved as a cost-effective mechanism for providing financial services to the unreached and deserving poor households. The initiative started as a pilot to link around 500 SHGs of poor to the formal financial institutions during the year 1992-93.The success of the pilot program has shown that Micro Finance can go beyond poverty reduction, to addresses issues of health, education, gender and over all development The present paper is a comparative study of the agency wise i.e. commercial banks, regional rural banks, and cooperative banks, performance in the SHG’s - bank linkage program in Telangana, from2014-18,. The paper also presents an in-depth, analysis of the number of self-help groups, Amount of savings outstanding, amount of loan outstanding of the SHGs, , and total loans disbursed to them through SBLP, generating micro credit to reduce poverty and boost rural development. Key words: NABARD, Micro Finance, SHG’s, SBLP, poverty reduction, rural Development,

“An Analysis of Rangareddy District Central Co-operative Bank's Financial Performance”

Cooperative banks offer loans and other services to farmers and rural populations in a timely manner. However, the bank's operating efficiency and financial stability will be impacted by any loan repayment default. Funds are halted as a result of NPA, which lowers interest income and results in a cash shortage. Operating bank services, such as processing regular payments and dues, is undoubtedly made more difficult by this. Cooperative banks are currently under a lot of stress, which is resulting in decreased working profits as well as a decline in productivity and efficiency. It is a known truth that NPAs are rising and recoveries are poor. The paper's goal is to evaluate Rangareddy DCCB's claim of 0% Net NPA. As a result, a number of bank financial metrics are examined in the study. According to the current study paper's conclusion, farmers were able to obtain sufficient funding for crop cultivation thanks to the ongoing process of monitoring loan issuance and recovery efforts, which demonstrated a profitability in association with loan and non-performing asset provision.

Managerial insight on triple bottom line reporting – an analysis of the Indian banking sector

Purpose Reporting on triple bottom line (TBL) practices has emerged as an essential aspect in banking sector due to evolving social and environmental concerns. Engaging in social and environmental activities is a strategic means to uphold dynamic alliances with stakeholders and eventually attain sustainable development. Furthermore, perception towards social and environmental practices is strategic to satisfy stakeholders’ interests. This paper aims to examine managers’ perception about reporting on social-environmental performance and its impact on financial performance (FP) in Indian banking sector. Research further assesses moderating effect of gender and experience in influencing the relationship between the constructs and also determines importance and performance of the constructs. Design/methodology/approach A well-structured questionnaire was distributed to 400 bank managers across India’s public, private, regional-rural, foreign and cooperative banks. The collected data were analysed through Smart PLS structural equation modelling. The moderating effect of demographics of bank managers in influencing the relationship was assessed using PLS-multi-group analysis (MGA). Besides, importance performance map analysis (IPMA) was used to understand the importance and performance of the constructs. Findings Findings indicate that bank managers believe that social and environmental activities strengthen relations between banks and stakeholders, resulting in better FP, thereby endorsing the stakeholder theory. Results of MGA suggest that gender and experience of bank managers are not effectual moderators in determining relationship between the constructs. Using IPMA, findings advocate that managers perceive environmental performance as a relatively high performance and a more important construct in influencing FP than social performance. Social implications Research would pave the way for banks to effectively communicate their commitment to sustainable development goals, engage stakeholders and demonstrate their commitment to creating positive social and environmental impacts. Furthermore, managerial perceptions can have a marked effect on customers’ understanding of social and environmental practices. This may influence customer satisfaction, conviction, commitment and constancy. Besides, a better understanding of the performance on social and environmental aspects over and above the FP of banks would facilitate the investors to make more informed and effectual decisions. Originality/value Considering the paucity of studies on the managerial perception of social and environmental activities and determining how the perception affects financial success, this study makes significant contribution to the literature. It would facilitate banks to design appropriate strategies and legislations to incorporate reporting on TBL practices for improved performance analysis. This would eventually ensure profitability along with sustainability in the Indian banking sector.

PERFORMANCE ANALYSIS OF STATE COOPERATIVE BANKS IN INDIA (2012-13 TO 2022-23): TRENDS, CHALLENGES, AND OPPORTUNITIES

This article examines the financial performance and growth trajectory of State Cooperative Banks (SCBs) in India from 2012-13 to 2022-23, focusing on key indicators such as deposits, loans, borrowings, investments, and working capital. The study highlights the significant growth in these areas, driven by increased member engagement and trust. However, opportunities for further improvement remain, particularly in the areas of deposit mobilization, loan management, and investment diversification. SCBs can capitalize on these opportunities by introducing targeted savings products for rural populations, expanding digital banking services, implementing advanced risk management practices, and optimizing working capital. The study also emphasizes the need for SCBs to expand their network into underserved rural areas, leveraging technology for financial inclusion. By addressing these growth opportunities and challenges, SCBs can enhance their operational efficiency, financial stability, and contribution to rural development.

Role of District Central Cooperative Banks in Financial Inclusion: A Study on Two Selected Districts of West Bengal

Financial inclusion provides the legitimate provisions of basic banking services with adequate financial securities to the unbanked population at a reasonable cost. Since the early decade of the 20th century, the cooperative system has been engaged to percolate financial inclusion in various strata of our society. Several initiatives regarding financial inclusion have been implemented in the post-independence period; however, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) 2014 has been considered as one of the most fruitful and effective initiatives by the Government of India for opening no-frill bank accounts with zero balance facilities for financially excluded people in our country, and the cooperative banks have been playing a vital role in the process of implementing the said Yojana. The present study, based on Hooghly District Central Cooperative Bank (HDCCB) and Burdwan Central Cooperative Bank (BCCB) of West Bengal, has comprehended to investigate the role of the DCCBs in the process of financial inclusion with respect to a number of financial operations and annual changes of savings accounts over the second decade of the 21st century. The study has identified statistically significant segments of the financial operations. Those segments are consequences of several fluctuations in financial operations due to the changes in banking policy, implementation of PMJDY, demonetisation, loss of agriculture production, adverse effects of COVID-19 and also the national economic downturn. Finally, it has been observed that the implementation of PMJDY significantly gave rise to the business of the HDCCB and also acted as a threshold point of financial inclusion than its counterpart in the Burdwan district of West Bengal.

All that Glitters is Not Gold! Could M&As Post‐Bank Reforms be Just a Tool for Balance Sheet Embellishment?

AbstractThis study investigates whether the surge of mergers and acquisitions (M&As) that occurred in Italy after the enactment, in 2016, of a new reform of credit cooperative banks (CCBs) ultimately improved their performance. Worldwide, CCBs have proved to play a crucial role in spurring local economic development. With the adoption of a dataset composed of 594 Italian banks and 3933 bank‐year observations from 2008 to 2020, our results show a positive and significant impact of the 2016 reform on M&As among CCBs. However, contrary to the expectations of regulators, our results highlight a puzzling deterioration in bank stability of the CCBs involved in M&As, with no relevant improvement in capitalization and profitability, reinforcing the view that bigger is not always better, at least in the context of CCBs. Our evidence sheds light on the perils underlying a massive consolidation process of local banking industries, calling for a regulatory recalibration and further research investigating the impact of different growth models capable of preserving the diversity and unique characteristics of banks, rather than pursuing a ‘one‐size‐fits‐all’ model.

Evaluating Job Satisfaction in Women-centric Co-operative Banks: An Empirical Study of Udaipur Mahila Samridhi Urban Co-operative Bank

This study focuses on job satisfaction within co-operative banks with a special emphasis on women-centric co-operative banks which have added complexity due to their dual goals of financial success and gender empowerment. It aims to assess the overall job satisfaction of employees of the Udaipur Mahila Samridhi Urban Co-operative Bank, Udaipur by studying various underlying factors to provide recommendations for improving human resource practices. This empirical study adopted a quantitative approach and surveyed 35 management and supervisory employees of Udaipur Mahila Samridhi Urban Co-operative Bank using a convenience sampling technique.

Enterprise value and risk taking in the banking industry: Cooperatives vs. corporations

This study leverages on a quasi-natural experiment to shed light on the relative merit of the cooperative versus the corporate form. In Italy, a new law forced some cooperative banks to turn into joint stocks banks. This change of ownership structure proves to be Pareto improving for all financial claimholders since it either increases or leaves the value of equity and debt of any seniority unchanged, while reducing the market-based metrics of risks. This evidence challenges the view that the demutualization increases the asset substitution risk, transferring wealth from bondholders to shareholders and heightening the firm risk profile. Therefore, a transition from a cooperative to a corporate form should not cause stability concerns in the banking industry.

Contemporary Issues and Challenges of Institutional Finance in Bihar: An In-depth Study

It has been observed that the Public sector banks in Bihar are prominent in institutional credit and deposits. They play a vital role for expansion of the economic activities and filling the credit gaps. The number of customers visiting the banks has come down due to the use of technology in their functioning. Wide spread use of debit cards, credit cards, ATM cards, UPI transactions, services of CSPs, internet and mobile banking services has changed the banking habits of the customers. The network of banks through Grahak Seva Kendras or Customer Service Points is expanding rapidly. Public sector banks lead in deposits and advances in comparison to the private banks, cooperative banks and other small finance banks. Commercial banks have twice non-performing assets vis- a- vis the regional rural banks. The state has enormous constraints due to the prevalence of weak governance, lack of infrastructure, complex social stratification, persistent poverty, etc. High dependence on public sector banks, credit gaps, credible underwriting digital innovations and high non-performing assets are the major challenges before the institutional finances in Bihar.

Do creditors punish weak banks? Evidence from Indian urban cooperative banks’ failure

This study empirically assesses two critical hypotheses related to market discipline: (i) Do depositors penalize underperforming banks by withdrawing their deposits? and (ii) Do well-informed peer banks reduce lending to weak banks? Based on the annual standalone balance sheet data of urban cooperative banks in India from 1990 to 2020, our findings suggest that: (i) the behaviour of savings and current depositors is not significantly affected by the bank risk; (ii) the risk-taking behaviour of the banks significantly influences term deposits; and (iii) other informed peer banks and financial institutions do respond to the riskiness of peer banks. Additionally, our research revealed a positive association between the size of assets and the deposit growth rate, indicating that depositors are responsive to the influence of the “too-big-to-fail” phenomenon. Moreover, depositors are sensitive to banks’ non-interest expenditures. Banks with higher non-interest expenditures pay a higher interest rate to retain depositors, thus suggesting the presence of weak market discipline.

Strategies of Cooperative Society for Flourishing of Business

A company's corporate social responsibility (CSR) refers to the methods it uses to conductbusiness in a manner that is ethical, considerate of the needs of the community, and conducive to itsgrowth.Villages are the life of India and it is very important for the development of the rural areas in everyfield especially in agriculture sector which is the livelihood of India. Cooperative banks are playing a majorrole in the well being of the rural banks along bringing financial stability. One of the main societies in Indiawhich has been Asia’s second largest co-operative bank which supports its farmers by providing loanshelps in marketing of the crops and also provides welfare schemes to the agrarian committee. This studyaims to know the social responsibility activities of the Mulkanoor society in the development of the ruralpeople who are the share holders of the society. The study is descriptive in nature and for this studysecondary data is mainly used.

A Study of the Performance of Urban Co- Operative Banks

This study examines the performance of urban cooperative banks, focusing on key financialindicators, governance structures, and customer service. The research aims to provide insights into thechallenges and opportunities faced by these banks in today's competitive banking landscape. Byanalyzing data from multiple urban cooperative banks across different regions, this study sheds light onthe factors contributing to their success or shortcomings. The findings will offer valuable guidance forpolicymakers, regulators, and the banking industry as a whole to enhance the sustainability andefficiency of urban cooperative banks while ensuring they continue to play a vital role in serving localcommunities.

A Study of the Banking System and Urban Co- Operative Banks in India

This comprehensive study delves into the Indian banking system with a specific focus on urbancooperative banks. It offers a detailed examination of the structure, operations, and challenges facing thesebanks within the broader financial landscape of India. Through a combination of data analysis, regulatoryinsights, and case studies, the research explores the historical evolution, governance frameworks, andfinancial performance of urban cooperative banks. It also assesses the impact of regulatory reforms andgovernment policies on their operations. The study ultimately aims to provide a holistic understanding ofthe role and significance of urban cooperative banks in India's banking sector, offering valuable insightsfor policymakers, regulators, and industry stakeholders to foster their growth and ensure financialstability at the grassroots level.

Aspects of Growth in the District Central Co-Operative Bank in India

The reserves are essential to Co-operative banks since they are involved in so many different aspects of the banking industry. The Credit Co-operative Societies Act, which was subsequently revised in 1912, and the establishment of Co-operative banks with an installation base were both done by the government in 1904. Rather of emphasising rural financing, the main Agriculture Credit Co-operative Society Act concentrates on long-term credit. The article’s objectives are to evaluate the reserve funds and deposits of Indian Co-operative banks and investigate their development factors. Journals, papers, and other publications will be among the sources from which secondary data will be gathered. The data will be interpreted and analysed using statistical methods, and the results will be examined using charts, bar graphs, clustered column graphs, and Pai charts.

Credit Card Fraud Detection Using Machine Learning Algorithms

This study aims to address the rising issue of credit card fraud by developing a machine learning model capable of identifying and preventing fraudulent transactions. The model works by analyzing transaction data to detect potential fraud, subsequently canceling the transaction and alerting the credit card owner. Credit card fraud detection is a classification problem, where various machine learning algorithms are applied to distinguish between legitimate and fraudulent transactions. The analysis emphasizes the importance of robust countermeasures due to the increasing use of credit cards globally. However, real-world implementation of such systems may face challenges, particularly in securing the cooperation of banks and addressing resource constraints. The study also highlights key dataset features that correlate with fraudulent behavior, with ensemble methods standing out as top-performing algorithms in terms of accuracy and efficiency.

Agri-inputs Sourcing Networks of Rice Farmers in Andhra Pradesh and Kerala, India

Agricultural inputs are the underlying elements that are vital for agricultural production. Timely availability and quality of the inputs also have a significant impact on production. Thereby, the study aims to investigate the structure and dynamics of agricultural input sourcing networks among rice farmers in two districts each of Andhra Pradesh (AP) and Kerala. A total of 120 farmers were randomly selected and surveyed. Social network analysis was deployed for the analysis and to delineate the network maps. The results revealed that commercial banks were the major source of financial resources among all four districts. Cooperative banks with an eigen-centrality value of 0.96 were on par with the commercial banks in providing credit to the farmers in Palakkad region of Kerala. In seeds, private dealers were major players in Kurnool, while neighbouring farmers were the major source in East Godavari of AP. In Kerala, Krishi Bhavan was the major source of seeds for farmers in both districts. For other inputs such as fertilisers and plant protection chemicals, farmers in Kurnool sourced majorly from private dealers while East Godavari farmers sourced primarily from both private dealers and cooperatives. In Kerala, farmers sourced other inputs primarily from cooperatives in Thrissur and in Palakkad, farmers sourced them from a farmer producer organisation.

Government strategy to revive SMEs from post-COVID-19 collapse: Analysis of economic improvement for lower class communities in Jakarta, Indonesia

This research aims to determine the strategy of the Jakarta Provincial Government in increasing the resilience and growth of small and medium enterprises (SMEs) within a collaborative governance framework post-COVID-19. This study explores the effectiveness of SMEs and facilities in accessing financing and fostering collaborative partnerships between SMEs, government agencies, and financial institutions by utilizing USAID’s Theory of Change (TOC). This research uses a qualitative approach supported by in-depth interviews and Focus Group Discussions to enrich the insights of SME stakeholders, large companies, and SME actors and assess the impact of their roles. The results of this research highlight the critical role of SME Cooperative Banks (SCB) in improving SMEs’ access to credit and financial services, including collaborative governance frameworks and partnerships between SMEs, government agencies, and banks, which were identified as necessary to improve policy coherence and encourage conducive SME business environment conditions. The main findings of this research underscore the importance of the SCB model, demonstrating its potential to improve SME resilience and economic sustainability. This SCB model enriches the TOC indicators introduced by USAID. The study identifies gaps in digital infrastructure and market access that hinder SME growth and recommends targeted interventions to address these challenges. This study shows that SCB offers a promising pathway to increase the resilience and growth of SMEs in Indonesia, especially if accompanied by effective collaborative governance strategies. These initiatives can encourage inclusive economic development and strengthen the role of SMEs as drivers of the local economy. Recommendations include expanding the SCB model to other regions, encouraging digitalization, facilitating market access, advocating for a supportive policy framework, and integrating these strategies to advance the principles of USAID’s Theory of Change, fostering sustainable SME development and economic resilience.

An Empirical Study of the Impact of Non-performing Assets on Bank Shareholder Value and Investor Confidence

This empirical study investigates the impact of Non-Performing Assets (NPAs) on bank shareholder value and investor confidence using secondary data analysis. The research synthesizes insights from existing literature and employs a structured approach to analyze NPAs' effects across different types of banks. Drawing on studies that explore NPA management efficiencies, financial performance in cooperative banks, stock market returns mediated by loan performance, and macroeconomic influences on NPAs respectively, this study aims to provide a nuanced understanding of how NPAs influence shareholder value and investor confidence globally. The methodology involves comprehensive data collection from financial statements, stock market data, and regulatory filings. Analytical techniques include regression analysis, correlation studies, and event studies to quantify and interpret the impact of NPAs on stock prices and investor sentiment. The findings will contribute valuable insights into effective NPA management strategies for enhancing bank performance and maintaining investor trust in international financial markets.

Balance Sheet Analysis with the Aim of Improving Financial Reporting: A Case Study of DCCB Raipur, India

This paper presents in the form of a case study the process of analysis of the balance sheet and income statement of the District Central Cooperative Bank (DCCB) Raipur. The research presented in the paper is based on the analysis of the official set of basic financial reports, as well as other publicly available data on the DCCB Raipur. As the time component is very important for research of this type, that reports were observed in the paper during only current and the previous years, ie for the period 2021-22. The aim of the research is to assess the financial result and financial position of a given company by examining the structure and dynamics of total income and the distribution of total income, profitability and opportunities to improve the financial position. The results of the research indicate that the bank's strong financial position and profitability are attributed to its efficient operations and strategic financial management, as evidenced by the substantial growth in net income. The bank has effectively managed its assets and liabilities to achieve strong financial health. This positive trend indicates the bank's ability to generate sustainable profits and maintain its competitive edge in the market.