180

CHAPTER V

DEPOSIT MOBILIZATION AND LENDING OPERATIONS OF

COMMERCIAL AND CO-OPERATIVE BANKS - A COMPARISON.

Contents Page 180-230

1. Comparison of Commercial and Co-operative Banks - South Zone

2. Comparison of Commercial and Co-operative Banks – Central Zone

3. Comparison of Commercial and Co-operative Banks - North Zone

4. Comparison of Commercial and Co-operative Banks – State Level

 181

CHAPTER V

DEPOSIT MOBILIZATION AND LENDING OPERATIONS OF

COMMERCIAL AND CO-OPERATIVE BANKS - A COMPARISON.

For the purpose of comparing the deposit mobilization and lending

operations of commercial and co –operative banks in the State, data have been first
classified and arranged into three zones –south zone, central zone and north zone.
The Total Deposits of commercial banks are classified into Term Deposits,
Savings Bank Deposits, Current Deposits and NRE Deposits, whereas Total
Deposits of co-operative bank are classified into Term deposits, Savings Bank
Deposits and Current Deposits, since co-operative banks are not permitted to
accept NRE Deposits. Likewise the Total Advances of both commercial banks and
co-operative banks are classified into Demand Loans, Cash Credits, Overdrafts and
Term Loans.

Comparison with regard to the following common parameters has been

made to evaluate the relative performance efficiency in between commercial banks
and co-operative banks - Total Deposits, Term Deposits, Savings Bank Deposits,
Current Deposits, Total Advances, Demand Loans, Cash Credits, Overdrafts, Term
Loans, Profit/ Loss, NPA, and Credit Deposit Ratio.
The following is the comparison of the relative performance efficiency of
both commercial and co-operative banks in the State. First the table showing
figures of the commercial banks and co-operative banks in the south zone is
given, and then its comparison. This is followed by the central zone and north
zone. Finally, the State- wise a comparison is given.
 182

Comparison of Commercial and Co-operative Banks in the South Zone

Table 5-1
Table showing Total Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Total Deposits (y) Total Deposits
1997 4706.86 4880.86
1998 5557.24 5247.53
1999 6591.34 5379.91
2000 7694.17 5564.59
2001 8880.00 5691.18
2002 10361.11 6570.38
2003 11587.18 7083.24
2004 13426.80 7341.64
2005 14946.44 7536.34
2006 15805.99 9187.13
AAG 14.48% 7.47%
Source: Bank wise audit reports
a = -2573240.943 3173.52814
b= 1290.630355 0.32893187
y= a+bx
The above table is depicted in the following diagram -
Figure 5-1
Chart showing Total Deposits from 1997 – 2006
18000.00
16000.00
14000.00
12000.00
Rs. in Lacs

10000.00
8000.00
6000.00
4000.00
2000.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Total Deposits (y) Co-Operative Banks. Total Deposits

Linear (Commercial Banks. Total Deposits (y)) Linear (Co-Operative Banks. Total Deposits)

Figure 5-1clearly shows the trend of total deposits of both commercial and
co-operative banks in the south zone from 1997-2006. Total deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total deposits of commercial banks recorded an AAG
rate of 14.48% that of co-operative banks was 7.47% only.
 183

Table 5-2
Table showing Term Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks Co-Operative Banks.
Year (x) Term Deposits (y) Term Deposits
1997 3580.67 3548.06
1998 4225.44 3789.74
1999 5047.01 3876.33
2000 5906.18 4035.89
2001 6845.36 4128.91
2002 8041.57 4763.63
2003 8873.96 5279.14
2004 9745.96 5368.70
2005 10705.72 5432.29
2006 11606.68 6660.73
AAG 14.03% 7.47%
Source: Bank wise audit reports
a=-1826526.949 2144.86832
b=916.3051727 0.34104623
y= a+bx

The above table is depicted in the following diagram -

Figure 5-2
Chart showing Term Deposits from 1997 – 2006
14000

12000

10000
Rs. in Lacs

8000

6000

4000

2000

0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Term Deposits (y) Co-Operative Banks. Term Deposits

Linear (Commercial Banks.Term Deposits (y)) Linear (Co-Operative Banks. Term Deposits)

Figure 5-2 clearly shows the trend of term deposits of both commercial and
co-operative banks in the south zone from 1997-2006. Term deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the term deposits of commercial banks recorded an AAG
rate of 14.03% that of co-operative banks was 7.47% only.
 184

Table 5-3
Table showing SB Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) SB Deposits (y) SB Deposits
1997 748.20 1064.71
1998 881.27 1163.29
1999 1021.04 1199.65
2000 1180.93 1214.92
2001 1345.54 1241.22
2002 1516.72 1434.34
2003 1986.7 1423.83
2004 2792.93 1562.48
2005 3198.79 1764.90
2006 3118.06 2164.80
AAG 17.73% 8.44%
Source: Bank wise audit reports
a= -592597.4387 842.388571
b= 296.9655041 0.32659974
y= a+bx

The above table is depicted in the following diagram -

Figure 5-3
Chart showing SB Deposits from 1997 – 2006
3500.00

3000.00

2500.00
Rs. in Lacs

2000.00

1500.00

1000.00

500.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.SB Deposits (y) Co-Operative Banks. SB Deposits

Linear (Commercial Banks.SB Deposits (y)) Linear (Co-Operative Banks. SB Deposits)

Figure 5-3 clearly shows the trend of SB deposits of both commercial and
co-operative banks in the south zone from 1997-2006. SB deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the SB deposits of commercial banks recorded an AAG rate
of 17.73% that of co-operative banks was 8.44% only.
 185

Table 5-4
Table showing Current Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Current Deposits (y) Current Deposits
1997 377.98 268.09
1998 450.53 294.50
1999 523.29 303.92
2000 607.05 313.78
2001 689.11 321.04
2002 802.82 372.41
2003 726.52 380.27
2004 887.91 410.46
2005 1041.93 339.15
2006 1081.25 361.60
AAG 12.80% 3.77%
Source: Bank wise audit reports
a= -154117.9332 238.424038
b= 77.36036564 0.13646818
y=a+bx

The above table is depicted in the following diagram -

Figure 5-4
Chart showing Current Deposits from 1997 - 2006
1200.00

1000.00

800.00
Rs. in Lacs

600.00

400.00

200.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Current Deposits (y) Co-Operative Banks. Current Deposits

Linear (Commercial Banks.Current Deposits (y)) Linear (Co-Operative Banks. Current Deposits)

Figure 5-4 clearly shows the trend of current deposits of both commercial
and co-operative banks in the south zone from 1997-2006. Current deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the current deposits of commercial banks recorded an AAG
rate of 12.80% that of co-operative banks was 3.77% only.
 186

Table 5-5
Table showing Total Advances from 1997 – 2006

Commercial Banks. Co-Operative Banks.

Year (x) Total Advances (y) Total Advances
1997 1931.06 3848.51
1998 2295.52 4182.47
1999 2709.17 4340.99
2000 3161.78 4492.67
2001 3631.57 4588.87
2002 4194.15 5327.21
2003 4392.13 6032.61
2004 5393.35 6656.33
2005 6352.26 6846.95
2006 8433.31 7635.51
AAG 18% 8.02%
Source: Bank wise audit reports
a= -1264482.708 2706.67723
b= 633.8906508 0.63268116
y=a+bx

The above table is depicted in the following diagram -

Figure 5-5
Chart showing Total Advances from 1997 – 2006

9000.00
8000.00
7000.00
6000.00
Rs. in Lacs

5000.00
4000.00
3000.00
2000.00
1000.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Total Advances (y) Co-Operative Banks. Total Advances

Linear (Commercial Banks.Total Advances (y)) Linear (Co-Operative Banks. Total Advances)

Figure 5-5 clearly shows the trend of total advances of both commercial and
co-operative banks in the south zone from 1997-2006. Total advances of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total advances of commercial banks recorded an AAG
rate of 18% that of co-operative banks was 8.02% only.
 187

Table 5-6
Table showing Demand Loans from 1997 - 2006
Commercial Banks. Co-Operative Banks.
Year (x) Demand Loans (y) Demand Loans
1997 351.60 713.50
1998 415.01 778.04
1999 475.39 798.77
2000 547.45 828.35
2001 618.38 851.35
2002 697.17 401.76
2003 743.48 436.16
2004 890.69 444.97
2005 928.00 443.43
2006 1034.41 416.00
AAG 12.84% -3.40%
Source: Bank wise audit reports
a= -150711.1717 1062.008577
b= 75.63393939 -0.672641566
y=a+bx

The above table is depicted in the following diagram -

Figure 5-6
Chart showing Demand Loans from 1997 - 2006
1200.00

1000.00

800.00
Rs. in Lacs

600.00

400.00

200.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Demand Loans (y) Co-Operative Banks. Demand Loans

Linear (Commercial Banks.Demand Loans (y)) Linear (Co-Operative Banks. Demand Loans)

Figure 5-6 clearly shows the trend of demand loans of both commercial and co-
operative banks in the south zone from 1997-2006. Whereas demand loans of
commercial banks showed an upward trend, co-operative banks showed a
downward trend during the period under study. Whereas the demand loans of
commercial banks recorded an AAG rate of 12.84%, that of co-operative banks
was a negative growth rate of 3.40%.
 188

Table 5-7
Table showing Cash Credits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Cash Credits (y) Cash Credits
1997 273.61 347.47
1998 328.58 374.10
1999 383.44 388.41
2000 446.66 401.13
2001 507.98 401.05
2002 579.17 1053.55
2003 677.35 1154.06
2004 725.43 1201.80
2005 812.44 1202.46
2006 1814.39 1194.40
AAG 26.71% 21.17%
Source: Bank wise audit reports
a= -238642.5458 364.053708
b= 119.5590561 0.622670709
y=a+bx

The above table is depicted in the following diagram -

Figure 5-7
Chart showing Cash Credits from 1997 – 2006

2000.00
1800.00
1600.00
1400.00
Rs. in Lacs

1200.00
1000.00
800.00
600.00
400.00
200.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Cash Credits(y) Co-Operative Banks. Cash Credits

Linear (Co-Operative Banks. Cash Credits) Linear (Commercial Banks.Cash Credits(y))

Figure 5-7 clearly shows the trend of cash credits of both commercial and
co-operative banks in the south zone from 1997-2006. Cash credits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the cash credits of commercial banks recorded an AAG rate
of 26.17%, that of co-operative banks was 21.17% only.
 189

Table 5-8
Table showing Overdrafts from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative
Year (x) Overdrafts (y) Banks. Overdrafts
1997 348.06 576.75
1998 416.40 647.45
1999 502.63 661.85
2000 592.12 659.40
2001 687.27 673.00
2002 824.65 778.85
2003 1069.11 884.14
2004 1054.44 962.30
2005 1446.13 849.43
2006 2804.57 824.75
AAG 28.17% 4.40%
Source: Bank wise audit reports
a= -407138.0435 655.0171152
b= 203.9033636 0.099303588
y=a+bx

The above table is depicted in the following diagram -

Figure 5-8
Chart showing Overdrafts from 1997 – 2006
3000.00

2500.00

2000.00
Rs. in Lacs

1500.00

1000.00

500.00

0.00
1996 1998 2000 2002 2004 2006 2008

Commercial Banks.Overdrafts(y) Co-Operative Banks. Overdrafts

Linear (Co-Operative Banks. Overdrafts) Linear (Commercial Banks.Overdrafts(y))

Figure 5-8 clearly shows the trend of overdrafts of both commercial and co-
operative banks in the south zone from 1997-2006. Overdrafts of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the overdrafts of commercial banks recorded an AAG rate of 28.17%,
that of co-operative banks was 4.40% only.
 190

Table 5-9
Table showing Term Loans from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks
Year (x) Term Loans(y) Term Loans
1997 957.78 2210.79
1998 1135.53 2382.89
1999 1347.71 2491.97
2000 1575.56 2603.79
2001 1817.93 2663.46
2002 2093.16 3093.05
2003 1902.19 3558.25
2004 2722.79 4047.26
2005 3165.69 4351.63
2006 2779.94 5200.36
AAG 13.64% 10.12%
Source: Bank wise audit reports
a= -467990.7381 879.5209691
b= 234.7941878 1.221042416
y=a+bx

The above table is depicted in the following diagram -

Figure 5-9
Chart showing Term Loans from 1997 – 2006
6000.00

5000.00

4000.00
Rs. in Lacs

3000.00

2000.00

1000.00

0.00
1996 1998 2000 2002 2004 2006 2008

Commercial Banks.Term Loans(y) Co-Operative Banks.Term Loans

Linear (Co-Operative Banks.Term Loans) Linear (Commercial Banks.Term Loans(y))

Figure 5-9 clearly shows the trend of term loans of both commercial and co-
operative banks in the south zone from 1997-2006. Term loans of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the term loans of commercial banks recorded an AAG rate of 13.64%,
that of co-operative banks was 10.12% only.
 191

Table 5-10
Table showing Profit/Loss from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Profit/Loss(y) Profit/Loss
1997 122.55 46.83
1998 152.05 50.13
1999 159.70 53.30
2000 177.77 58.88
2001 178.84 53.82
2002 244.86 54.68
2003 258.3 59.11
2004 242.23 123.62
2005 279.55 148.50
2006 244.98 44.41
AAG 8.83% 9.35%
Source: Bank wise audit reports
a= -32723.20152 -10.49903709
b= 16.45230303 0.387353819
y=a+bx

The above table is depicted in the following diagram -

Figure 5-10
Chart showing Profit/Loss from 1997 – 2006
300.00

250.00

200.00
Rs. in Lacs

150.00

100.00

50.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Profit/Loss(y) Co-Operative Banks.Profit/Loss

Linear (Commercial Banks.Profit/Loss(y)) Linear (Co-Operative Banks.Profit/Loss)

Figure 5-10 clearly shows the trend of profit/loss of both commercial and co-
operative banks in the south zone from 1997-2006. Profit/loss of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the profit/loss of commercial banks recorded an AAG rate of 8.83% only,
that of co-operative banks was 9.35%.
 192

Table 5-11
Table showing Total NPA from 1997 - 2006
Rs. In Lacs
Commercial Banks Co-Operative Banks.
Year (x) .Total NPA(y) Total NPA
1997 123.37 338.45
1998 129.67 344.56
1999 163.54 350.76
2000 186.00 342.99
2001 211.77 339.05
2002 216.96 372.76
2003 235.03 392.07
2004 290.77 419.73
2005 374.64 428.38
2006 197.14 387.07
AAG 8.31% 1.65%
Source: Bank wise audit reports
a= -38205.60024 287.4017411
b= 19.19484848 0.395418546
y=a+bx

The above table is depicted in the following diagram -

Figure 5-11
Chart showing Total NPA from 1997 – 2006
450.00
400.00
350.00
300.00
Rs. in Lacs

250.00
200.00
150.00
100.00
50.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Total NPA(y) Co-Operative Banks.Total NPA

Linear (Commercial Banks.Total NPA(y)) Linear (Co-Operative Banks.Total NPA)

Figure 5-11 clearly shows the trend of total NPA of both commercial and co-
operative banks in the south zone from 1997-2006. Total NPA of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the total NPA of commercial banks recorded an AAG rate of 8.31%, that
of co-operative banks was 1.65% only.
 193

Table 5-12
Table showing CD Ratio from 1997 - 2006
In Percentage
Commercial Banks Co-Operative Banks
Year (x) CD Ratio (y) CD Ratio
1997 41.03 78.85
1998 40.66 79.70
1999 41.10 80.69
2000 41.09 80.74
2001 40.90 80.63
2002 40.48 81.08
2003 37.91 85.17
2004 40.17 90.67
2005 42.50 90.85
2006 53.36 91.03
AAG 3.29 1.63
Source: Bank wise audit reports
a= -1283.194303 59.64394204
b= 0.662060606 0.579591072
y=a+bx

The above table is depicted in the following diagram -

Figure 5-12
Chart showing CD Ratio from 1997 – 2006
100.00
90.00
CD Ratio in Percentage

80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.CD Ratio(y) Co-Operative Banks.CD Ratio

Linear (Commercial Banks.CD Ratio(y)) Linear (Co-Operative Banks.CD Ratio )

Figure 5-12 clearly shows the trend of CD ratio of both commercial and co-
operative banks in the south zone from 1997-2006. CD ratio of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the CD ratio of commercial banks recorded an AAG rate of 3.29%, that
of co-operative banks was 1.63% only.
 194

Comparison of Commercial and Co-operative Banks in the Central Zone

Table 5-13
Table showing Total Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Total Deposits (y) Total Deposits
1997 4552.96 4936.78
1998 5113.84 5543.00
1999 5909.99 6231.54
2000 6524.91 6782.03
2001 7193.29 7339.70
2002 7823.48 8082.64
2003 8584.57 8679.73
2004 9038.08 11357.60
2005 9777.96 12679.23
2006 10252.37 14569.16
AAG 9.48% 12.96%
Source: Bank wise audit reports
a= -1283104.005 -3110.320706
b= 644.8069697 1.568842358
y=a+bx

The above table is depicted in the following diagram -

Figure 5-13
Chart showing Total Deposits from 1997 – 2006
16000.00
14000.00
12000.00
Rs. in Lacs

10000.00
8000.00
6000.00
4000.00
2000.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Total Deposits (y) Co-Operative Banks. Total Deposits

Linear (Co-Operative Banks. Total Deposits) Linear (Commercial Banks. Total Deposits (y))

Figure 5-13 clearly shows the trend of total deposits of both commercial and
co-operative banks in the central zone from 1997-2006. Total deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total deposits of commercial banks recorded an AAG
rate of 9.48% only, that of co-operative banks was 12.96%.
 195

Table 5-14
Table showing Term Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Term Deposits (y) Term Deposits
1997 3364.98 3875.38
1998 3787.03 4350.56
1999 4398.43 4895.19
2000 4856.99 5328.83
2001 5355.78 5774.19
2002 5829.86 6362.04
2003 6419.71 6749.36
2004 6704.35 7729.39
2005 7027.71 8331.29
2006 7163.66 10558.14
AAG 8.84% 11.92%
Source: Bank wise audit reports
a= -886871.4959 -1229.176565
b= 445.8467879 1.388603389
y=a+bx

The above table is depicted in the following diagram -

Figure 5-14
Chart showing Term Deposits from 1997 – 2006
12000.00

10000.00

8000.00
Rs. in Lacs

6000.00

4000.00

2000.00

0.00
1996 1998 2000 2002 2004 2006 2008
Commercial Banks. Term Deposits (y) Co-Operative Banks. Term Deposits
Linear (Commercial Banks. Term Deposits (y)) Linear (Co-Operative Banks. Term Deposits)

Figure 5-14 clearly shows the trend of term deposits of both commercial and
co-operative banks in the central zone from 1997-2006. Term deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the term deposits of commercial banks recorded an AAG
rate of 8.84% only, that of co-operative banks was 11.92%.
 196

Table 5-15
Table showing SB Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) SB Deposits (y) SB Deposits
1997 808.10 617.60
1998 906.15 695.46
1999 1042.85 777.95
2000 1150.44 847.84
2001 1266.29 909.68
2002 1364.51 994.38
2003 1594.28 1109.23
2004 1707.83 1523.75
2005 1941.93 1956.09
2006 2164.97 2053.54
AAG 11.61% 14.70%
Source: Bank wise audit reports
a= -292363.9644 -404.7919492
b= 146.7692727 1.11371983
y=a+bx

The above table is depicted in the following diagram -

Figure 5-15
Chart showing SB Deposits from 1997 – 2006
2500.00

2000.00
Rs. in Lacs

1500.00

1000.00

500.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. SB Deposits(y) Co-Operative Banks. SB Deposits

Linear (Commercial Banks. SB Deposits(y)) Linear (Co-Operative Banks. SB Deposits)

Figure 5-15 clearly shows the trend of SB deposits of both commercial and
co-operative banks in the central zone from 1997-2006. SB deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the SB deposits of commercial banks recorded an AAG rate
of 11.61% only, that of co-operative banks was 14.70%.
 197

Table 5-16
Table showing Current Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Current Deposits (y) Current Deposits
1997 379.88 443.79
1998 420.67 496.96
1999 468.72 558.40
2000 517.47 605.37
2001 571.23 655.82
2002 629.11 726.22
2003 570.58 821.14
2004 625.90 2104.46
2005 808.32 2391.85
2006 923.74 1957.48
AAG 10.77% 24.07%
Source: Bank wise audit reports
a= -103867.3295 -1113.775831
b= 52.19030303 3.701937365
y=a+bx

The above table is depicted in the following diagram -

Figure 5-16
Chart showing Current Deposits from 1997 – 2006
3000.00

2500.00

2000.00
Rs. in Lacs

1500.00

1000.00

500.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Current Deposits(y) Co-Operative Banks. Current Deposits

Linear (Co-Operative Banks. Current Deposits ) Linear (Commercial Banks. Current Deposits(y))

Figure 5-16 clearly shows the trend of current deposits of both commercial and
co-operative banks in the central zone from 1997-2006. Current deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the current deposits of commercial banks recorded an AAG
rate of 10.77% only, that of co-operative banks was 24.07%.
 198

Table 5-17
Table showing Total Advances from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Total Advances (y) Total Advances
1997 2111.30 1802.06
1998 2375.09 2024.42
1999 2735.66 2281.63
2000 3029.73 2488.40
2001 3346.53 2701.44
2002 3662.44 2972.18
2003 3509.47 3131.77
2004 4663.30 5263.98
2005 5737.18 6235.52
2006 6442.15 6029.84
AAG 13.59% 15.70%
Source: Bank wise audit reports
a= -892736.9045 -822.7126155
b= 447.9131592 1.147436834
y=a+bx

The above table is depicted in the following diagram -

Figure 5-17
Chart showing Total Advances from 1997 – 2006
7000.00

6000.00

5000.00
Rs. in Lacs

4000.00

3000.00

2000.00

1000.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Total Advances (y) Co-Operative Banks. Total Advances

Linear (Commercial Banks. Total Advances (y)) Linear (Co-Operative Banks. Total Advances )

Figure 5-17 clearly shows the trend of total advances of both commercial and
co-operative banks in the central zone from 1997-2006. Total advances of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total advances of commercial banks recorded an AAG
rate of 13.59% only, that of co-operative banks was 15.70%.
 199

Table 5-18
Table showing Demand Loans from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Demand Loans (y) Demand Loans
1997 385.11 312.02
1998 437.16 351.22
1999 515.20 395.43
2000 570.42 432.07
2001 629.47 467.59
2002 685.62 338.36
2003 572.72 371.17
2004 659.62 414.01
2005 785.39 474.27
2006 948.03 570.08
AAG 11.09% 7.89%
Source: Bank wise audit reports
a= -99929.69303 172.325726
b= 50.23660606 0.388280504
y=a+bx

The above table is depicted in the following diagram -

Figure 5-18
Chart showing Demand Loans from 1997 – 2006
1000.00
900.00
800.00
700.00
Rs. in Lacs

600.00
500.00
400.00
300.00
200.00
100.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Demand Loans(y) Co-Operative Banks.Demand Loans

Linear (Co-Operative Banks.Demand Loans ) Linear (Commercial Banks.Demand Loans(y))

Figure 5-18 clearly shows the trend of demand loans of both commercial and
co-operative banks in the central zone from 1997-2006. Demand loans of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the demand loans of commercial banks recorded an AAG
rate of 11.09%, that of co-operative banks was 7.89% only.
 200

Table 5-19
Table showing Cash Credits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Cash Credits (y) Cash Credits
1997 375.58 364.16
1998 423.27 408.04
1999 487.71 460.38
2000 539.93 500.69
2001 594.18 545.34
2002 648.46 777.58
2003 620.99 821.13
2004 669.03 1645.50
2005 857.94 1486.19
2006 940.27 1045.54
AAG 11.02% 16.87%
Source: Bank wise audit reports
a= -112547.3758 -364.7171434
b= 56.53915152 1.900443831
y=a+bx

The above table is depicted in the following diagram -

Figure 5-19
Chart showing Cash Credits from 1997 – 2006
1800.00
1600.00
1400.00
1200.00
Rs. in Lacs

1000.00
800.00
600.00
400.00
200.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Cash Credits(y) Co-Operative Banks.Cash Credits

Linear (Co-Operative Banks.Cash Credits ) Linear (Commercial Banks.Cash Credits(y))

Figure 5-19 clearly shows the trend of cash credits of both commercial and
co-operative banks in the central zone from 1997-2006. Cash credits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the cash credits of commercial banks recorded an AAG rate
of 11.02% only, that of co-operative banks was 16.87%.
 201

Table 5-20
Table showing Overdrafts from 1997 - 2006
Rs. In Lacs
Commercial Banks Co-Operative Banks.
Year (x) Overdrafts (y) Overdrafts
1997 396.26 217.58
1998 448.35 244.09
1999 521.57 275.33
2000 580.71 299.83
2001 646.68 326.13
2002 711.49 360.03
2003 729.09 399.17
2004 816.23 952.44
2005 816.25 1027.85
2006 917.76 773.16
AAG 9.90% 20.63%
Source: Bank wise audit reports
a= -111571.7312 -482.9862923
b= 56.0730303 1.474012871
y=a+bx

The above table is depicted in the following diagram -

Figure 5-20
Chart showing Overdrafts from 1997 – 2006
1200.00

1000.00

800.00
Rs. in Lacs

600.00

400.00

200.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Overdrafts(y) Co-Operative Banks.Overdrafts

Linear (Commercial Banks.Overdrafts(y)) Linear (Co-Operative Banks.Overdrafts )

Figure 5-20 clearly shows the trend of overdrafts of both commercial and co-
operative banks in the central zone from 1997-2006. Overdrafts of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the overdrafts of commercial banks recorded an AAG rate of
9.90% only, that of co-operative banks was 20.63%.
 202

Table 5-21
Table showing Term Loans from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Term Loans (y) Term Loans
1997 954.36 908.30
1998 1066.31 1021.08
1999 1211.16 1150.49
2000 1338.66 1255.82
2001 1476.20 1362.39
2002 1616.87 1496.21
2003 1586.67 1540.30
2004 2518.42 2252.03
2005 3277.60 3247.21
2006 3636.09 3298.69
AAG 17.06% 16.39%
Source: Bank wise audit reports
a= -568687.8472 16.01168317
b= 285.0642424 0.929883391
y=a+bx

The above table is depicted in the following diagram -

Figure 5-21
Chart showing Term Loans from 1997 – 2006
4000.00
3500.00

3000.00
Rs. in Lacs

2500.00
2000.00
1500.00
1000.00
500.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Term Loans(y) Co-Operative Banks.Term Loans

Linear (Co-Operative Banks.Term Loans ) Linear (Commercial Banks.Term Loans(y))

Figure 5-21 clearly shows the trend of term loans of both commercial and co-
operative banks in the central zone from 1997-2006. Term loans of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the term loans of commercial banks recorded an AAG rate
of 17.06%, that of co-operative banks was 16.39% only.
 203

Table 5-22
Table showing Profit/Loss from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Profit/Loss (y) Profit/Loss
1997 144.43 -8.59
1998 143.53 30.52
1999 145.88 76.27
2000 178.85 83.73
2001 179.06 77.81
2002 196.10 117.41
2003 244.99 124.72
2004 251.58 210.65
2005 262.62 221.49
2006 247.79 274.07
AAG 6.62% -16.42%
Source: Bank wise audit reports
a= -30221.25485 -210.2067535
b= 15.1989697 1.659363221
y=a+bx

The above table is depicted in the following diagram -

Figure 5-22
Chart showing Profit/Loss from 1997 - 2006
300.00

250.00

200.00
Rs. in Lacs

150.00

100.00

50.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
-50.00

Commercial Banks.Profit/Loss(y) Co-Operative Banks.Profit/Loss

Linear (Co-Operative Banks.Profit/Loss ) Linear (Commercial Banks.Profit/Loss(y))

Figure 5-22 clearly shows the trend of profit/loss of both commercial and co-
operative banks in the central zone from 1997-2006. Whereas profit/loss of
commercial banks showed an upward trend, co-operative banks showed a
downward trend during the period under study. Whereas the profit/loss of
commercial banks recorded an AAG rate of 6.62%, that of co-operative banks was
a negative growth rate of 16.42%.
 204

Table 5-23
Table showing Total NPA from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Total NPA (y) Total NPA
1997 94.12 216.40
1998 111.21 227.24
1999 122.30 242.18
2000 129.58 281.15
2001 134.15 283.35
2002 132.40 321.88
2003 117.08 381.47
2004 131.64 381.67
2005 120.10 548.45
2006 133.97 559.89
AAG 4.44% 11.82%
Source: Bank wise audit reports
a= -5073.117697 -133.5767875
b= 2.595939394 3.896659634
y=a+bx

The above table is depicted in the following diagram -

Figure 5-23
Chart showing Total NPA from 1997 – 2006
600.00

500.00

400.00
Rs. in Lacs

300.00

200.00

100.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Total NPA(y) Co-Operative Banks.Total NPA

Linear (Co-Operative Banks.Total NPA ) Linear (Commercial Banks.Total NPA(y))

Figure 5-23 clearly shows the trend of total NPA of both commercial and co-
operative banks in the central zone from 1997-2006. Total NPA of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total NPA of commercial banks recorded an AAG rate of
4.44% only, that of co-operative banks was 11.82%.
 205

Table 5-24
Table showing CD Ratio from 1997 - 2006
In Percentage
Commercial Banks. Co-Operative Banks.
Year (x) CD Ratio (y) CD Ratio
1997 46.37 36.50
1998 46.44 36.52
1999 46.29 36.61
2000 46.43 36.69
2001 46.52 36.81
2002 46.81 36.77
2003 40.88 36.08
2004 51.60 46.35
2005 58.67 49.18
2006 62.84 41.39
AAG 3.92 1.95
Source: Bank wise audit reports
a= -2909.988332 13.21641011
b= 1.478528378 0.529032044
y=a+bx

The above table is depicted in the following diagram -

Figure 5-24
Chart showing CD Ratio from 1997 – 2006
70.00
60.00
CD Ratio in Percentage

50.00
40.00

30.00
20.00

10.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.CD Ratio(y) Co-Operative Banks.CD Ratio

Linear (Co-Operative Banks.CD Ratio ) Linear (Commercial Banks.CD Ratio(y))

Figure 5-24 clearly shows the trend of CD ratio of both commercial and co-
operative banks in the central zone from 1997-2006. CD ratio of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the CD ratio of commercial banks recorded an AAG rate of 3.92%, that
of co-operative banks was 1.95% only.
 206

Comparison of Commercial and Co-operative Banks in the North Zone

Table 5-25
Table showing Total Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Total Deposits (y) Total Deposits
1997 4601.04 1841.57
1998 5121.18 2145.60
1999 5524.53 2432.76
2000 5861.96 2511.48
2001 6910.16 2596.26
2002 7749.83 2917.56
2003 8004.13 3256.66
2004 8328.21 3885.35
2005 9378.19 4695.82
2006 9700.48 6005.38
AAG 8.74% 14.28%
Source: Bank wise audit reports
a= -1169261.646 -1465.1544
b= 587.7489967 0.659457265
y=a+bx

The above table is depicted in the following diagram -

Figure 5-25
Chart showing Total Deposits from 1997 – 2006

12000.00

10000.00

8000.00
Rs. in Lacs

6000.00

4000.00

2000.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Total Deposits (y) Co-Operative Banks. Total Deposits

Linear (Commercial Banks. Total Deposits (y)) Linear (Co-Operative Banks. Total Deposits)

Figure 5-25 clearly shows the trend of total deposits of both commercial and
co-operative banks in the north zone from 1997-2006. Total deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total deposits of commercial banks recorded an AAG
rate of 8.74% only, that of co-operative banks was 14.28%.
 207

Table 5-26
Table showing Term Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Term Deposits (y) Term Deposits
1997 2223.12 1085.79
1998 2454.64 1260.70
1999 2668.58 1433.23
2000 2789.61 1481.01
2001 3314.21 1532.28
2002 3744.16 1720.69
2003 3853.25 1907.09
2004 4217.18 2013.69
2005 4822.79 2891.86
2006 4976.21 3918.00
AAG 9.48% 16.04%
Source: Bank wise audit reports
a= -635986.845 -850.8238242
b= 319.5069804 0.791489042
y=a+bx

The above table is depicted in the following diagram -

Figure 5-26
Chart showing Term Deposits from 1997 – 2006
6000.00

5000.00

4000.00
Rs. in Lacs

3000.00

2000.00

1000.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Term Deposits (y) Co-Operative Banks. Term Deposits

Linear (Co-Operative Banks. Term Deposits) Linear (Commercial Banks. Term Deposits (y))

Figure 5-26 clearly shows the trend of term deposits of both commercial and
co-operative banks in the north zone from 1997-2006. Term deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the term deposits of commercial banks recorded an AAG
rate of 9.48% only, that of co-operative banks was 16.04%.
 208

Table 5-27
Table showing SB Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) SB Deposits (y) SB Deposits
1997 1743.12 653.57
1998 1945.08 764.81
1999 2095.12 864.06
2000 2236.14 889.76
2001 2627.52 918.00
2002 2941.66 1033.16
2003 3058.76 1141.71
2004 3434.02 1502.63
2005 3868.27 1504.28
2006 3941.30 1622.17
AAG 9.59% 10.97%
Source: Bank wise audit reports
a= -515447.4006 -79.93043888
b= 258.9240566 0.419255908
y=a+bx

The above table is depicted in the following diagram -

Figure 5-27
Chart showing SB Deposits from 1997 - 2006
4500.00
4000.00
3500.00
3000.00
Rs. in Lacs

2500.00
2000.00
1500.00
1000.00
500.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. SB Deposits (y) Co-Operative Banks. SB Deposits

Linear (Commercial Banks. SB Deposits (y)) Linear (Co-Operative Banks. SB Deposits)

Figure 5-27 clearly shows the trend of SB deposits of both commercial and
co-operative banks in the north zone from 1997-2006. SB deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the SB deposits of commercial banks recorded an AAG rate
of 9.59% only, that of co-operative banks was 10.97%.
 209

Table 5-28
Table showing Current Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Current Deposits (y) Current Deposits
1997 634.80 102.21
1998 721.47 120.11
1999 760.82 135.45
2000 836.21 140.70
2001 968.43 145.97
2002 1064.01 163.71
2003 1092.12 207.86
2004 677.01 369.03
2005 687.13 299.68
2006 782.97 465.21
AAG 3.86% 21.22%
Source: Bank wise audit reports
a= -17827.11943 328.4892681
b= 9.317819629 -0.137989424
y=a+bx

The above table is depicted in the following diagram -

Figure 5-28
Chart showing Current Deposits from 1997 – 2006
1200.00

1000.00

800.00
Rs. in Lacs

600.00

400.00

200.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Current Deposits (y) Co-Operative Banks. Current Deposits

Linear (Co-Operative Banks. Current Deposits) Linear (Commercial Banks. Current Deposits (y))

Figure 5-28 clearly shows the trend of current deposits of both commercial
and co-operative banks in the north zone from 1997-2006. Current deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the current deposits of commercial banks recorded an AAG
rate of 3.86% only, that of co-operative banks was 21.22%.
 210

Table 5-29
Table showing Total Advances from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Total Advances (y) Total Advances
1997 2854.14 1767.07
1998 3272.89 2046.14
1999 3429.01 2377.85
2000 3851.27 2452.11
2001 4416.04 2549.50
2002 4832.63 2867.59
2003 4923.21 3175.45
2004 5138.24 3572.47
2005 6042.83 5189.30
2006 6190.48 6904.44
AAG 9.13% 17.01%
Source: Bank wise audit reports
a= -742673.2901 -2325.454416
b= 373.3042041 1.249288957
y=a+bx

The above table is depicted in the following diagram -

Figure 5-29
Chart showing Total Advances from 1997 – 2006
8000.00
7000.00
6000.00
Rs. in Lacs

5000.00
4000.00
3000.00
2000.00
1000.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Total Advances (y) Co-Operative Banks. Total Advances

Linear (Co-Operative Banks. Total Advances) Linear (Commercial Banks. Total Advances (y))

Figure 5-29 clearly shows the trend of total advances of both commercial
and co-operative banks in the north zone from 1997-2006. Total advances of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total advances of commercial banks recorded an AAG
rate of 9.13% only that of co-operative banks was 17.01%.
 211

Table 5-30
Table showing Demand Loans from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Demand Loans (y) Demand Loans
1997 510.10 476.23
1998 569.09 552.71
1999 629.44 661.97
2000 678.46 667.52
2001 780.62 693.62
2002 869.33 756.19
2003 934.85 1067.19
2004 930.66 971.12
2005 1064.66 1145.71
2006 1158.03 1398.76
AAG 9.63% 13.53%
Source: Bank wise audit reports
a= -140679.0644 -227.2287271
b= 70.69277481 1.312366816
y=a+bx

The above table is depicted in the following diagram -

Figure 5-30
Chart showing Demand Loans from 1997 – 2006
1600.00
1400.00
1200.00
Rs. in Lacs

1000.00
800.00
600.00
400.00
200.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Demand Loans(y) Co-Operative Banks. Demand Loans

Linear (Commercial Banks. Demand Loans(y)) Linear (Co-Operative Banks. Demand Loans)

Figure 5-30 clearly shows the trend of demand loans of both commercial
and co-operative banks in the north zone from 1997-2006. Demand loans of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the demand loans of commercial banks recorded an AAG
rate of 9.63% only, that of co-operative banks was 13.53%.
 212

Table 5-31
Table showing Cash Credits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Cash Credits (y) Cash Credits
1997 892.29 315.86
1998 1056.47 375.65
1999 1049.83 418.18
2000 1247.19 432.80
2001 1412.03 447.44
2002 1514.63 530.91
2003 1609.24 713.02
2004 1793.73 1184.72
2005 1922.91 2197.68
2006 2001.29 3274.45
AAG 9.56% 32.30%
Source: Bank wise audit reports
a= -252732.6171 -2036.122628
b= 126.9960418 2.086397199
y=a+bx

The above table is depicted in the following diagram -

Figure 5-31
Chart showing Cash Credits from 1997 – 2006
3500.00

3000.00

2500.00

2000.00
Rs. in Lacs

1500.00

1000.00

500.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
-500.00

Commercial Banks. Cash Credits(y) Co-Operative Banks. Cash Credits

Linear (Commercial Banks. Cash Credits(y)) Linear (Co-Operative Banks. Cash Credits)

Figure 5-31 clearly shows the trend of cash credits of both commercial
and co-operative banks in the north zone from 1997-2006. Cash credits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the cash credits of commercial banks recorded an AAG rate
of 9.56% only, that of co-operative banks was 32.30%.
 213

Table 5-32
Table showing Overdrafts from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Overdrafts (y) Overdrafts
1997 256.72 7.55
1998 290.24 8.60
1999 310.94 9.76
2000 339.99 10.14
2001 392.35 10.52
2002 432.44 11.69
2003 514.23 15.47
2004 524.85 20.68
2005 609.87 25.65
2006 627.21 43.70
AAG 10.57% 22.95%
Source: Bank wise audit reports
a= -86958.96922 -14.57919114
b= 43.6616806 0.072005835
y=a+bx

The above table is depicted in the following diagram -

Figure 5-32
Chart showing Overdrafts from 1997 – 2006
700.00

600.00

500.00
Rs. in Lacs

400.00

300.00

200.00

100.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Overdrafts(y) Co-Operative Banks. Overdrafts

Linear (Commercial Banks. Overdrafts(y)) Linear (Co-Operative Banks. Overdrafts)

Figure 5-32 clearly shows the trend of overdrafts of both commercial and
co-operative banks in the north zone from 1997-2006. Overdrafts of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the overdrafts of commercial banks recorded an AAG rate of
10.57% only, that of co-operative banks was 22.95%.
 214

Table 5-33
Table showing Term Loans from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Term Loans (y) Term Loans
1997 1195.02 967.44
1998 1357.09 1109.17
1999 1438.80 1287.95
2000 1585.64 1341.66
2001 1831.04 1397.92
2002 2016.23 1568.80
2003 1864.89 1379.77
2004 1889.00 1395.95
2005 2445.39 1820.26
2006 2403.95 2187.53
AAG 8.55% 10.12%
Source: Bank wise audit reports
a= -262304.2174 48.96505854
b= 131.9544945 0.774769637
y=a+bx

The above table is depicted in the following diagram -

Figure 5-33
Chart showing Term Loans from 1997 – 2006
3000.00

2500.00

2000.00
Rs. in Lacs

1500.00

1000.00

500.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Term Loans(y) Co-Operative Banks. Term Loans

Linear (Co-Operative Banks. Term Loans) Linear (Commercial Banks. Term Loans(y))

Figure 5-33 clearly shows the trend of term loans of both commercial
and co-operative banks in the north zone from 1997-2006. Term loans of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the term loans of commercial banks recorded an AAG rate
of 8.55% only, that of co-operative banks was 10.12%.
 215

Table 5-34
Table showing Profit/Loss from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Profit/Loss (y) Profit/Loss
1997 80.66 72.45
1998 86.57 80.02
1999 90.06 80.73
2000 96.05 76.88
2001 108.49 72.47
2002 120.48 67.90
2003 135.84 56.21
2004 154.05 222.24
2005 167.71 271.88
2006 175.53 340.28
AAG 9.08% 35.58%
Source: Bank wise audit reports
a= -22599.47695 -171.2388704
b= 11.35199684 2.512201845
y=a+bx

The above table is depicted in the following diagram -

Figure 5-34
Chart showing Profit/Loss from 1997 – 2006
400.00

350.00

300.00

250.00
Rs. in Lacs

200.00

150.00

100.00

50.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Commercial Banks. Profit/Loss(y) Co-Operative Banks. Profit/Loss

Linear (Co-Operative Banks. Profit/Loss) Linear (Commercial Banks. Profit/Loss(y))

Figure 5-34 clearly shows the trend of profit/loss of both commercial and
co-operative banks in the north zone from 1997-2006. Profit/loss of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the profit/loss of commercial banks recorded an AAG rate of
9.08% only, that of co-operative banks was 35.58%.
 216

Table 5-35
Table showing Total NPA from 1997 - 2006
Rs. In Lacs
Commercial Banks. Co-Operative Banks.
Year (x) Total NPA (y) Total NPA
1997 218.29 139.96
1998 232.32 160.06
1999 244.81 172.32
2000 270.48 180.31
2001 305.92 183.08
2002 290.68 194.36
2003 296.64 207.35
2004 353.42 225.41
2005 381.86 314.63
2006 299.22 405.05
AAG 4.22% 13.12%
Source: Bank wise audit reports
a= -28598.22485 -52.04454923
b= 14.4329697 0.934109113
y=a+bx

The above table is depicted in the following diagram -

Figure 5-35
Chart showing Total NPA from 1997 – 2006
450.00

400.00

350.00
300.00
Rs. in Lacs

250.00

200.00

150.00
100.00

50.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Commercial Banks.Total NPA(y) Co-Operative Banks. Total NPA
Linear (Co-Operative Banks. Total NPA) Linear (Commercial Banks.Total NPA(y))

Figure 5-35 clearly shows the trend of total NPA of both commercial and
co-operative banks in the north zone from 1997-2006. Total NPA of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total NPA of commercial banks recorded an AAG rate of
4.22% only, that of co-operative banks was 13.12%.
 217

Table 5-36
Table showing CD Ratio from 1997 - 2006
In Percentage
Commercial Banks. Co-Operative Banks.
Year (x) CD Ratio (y) CD Ratio
1997 62.03 95.95
1998 63.91 95.36
1999 62.07 97.74
2000 65.70 97.64
2001 63.91 98.20
2002 62.36 98.29
2003 61.51 97.51
2004 61.70 91.95
2005 64.43 110.51
2006 63.82 114.97
AAG 0.36 2.24
Source: Bank wise audit reports
a= 17.60012249 -31.79246182
b= 0.022754388 2.08422462
y=a+bx

The above table is depicted in the following diagram -

Figure 5-36
Chart showing CD Ratio from 1997 – 2006
140.00

120.00
CD Ratio in Percentage

100.00

80.00

60.00

40.00

20.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.CD Ratio(y) Co-Operative Banks.CD Ratio

Linear (Commercial Banks.CD Ratio(y)) Linear (Co-Operative Banks.CD Ratio )

Figure 5-36 clearly shows the trend of CD ratio of both commercial and co-
operative banks in the north zone from 1997-2006. CD ratio of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the CD ratio of commercial banks recorded an AAG rate of 0.36% only,
that of co-operative banks was 2.24%.
 218

Comparison of Commercial and Co-operative Banks at State Level

Table 5-37
Table showing Gross Total Deposits from 1997 - 2006
Rs. In Lacs

Commercial Banks. Co-Operative Banks.

Year (x) Gross Total Deposits (y) Gross Total Deposits
1997 13860.86 11659.21
1998 15792.28 12936.13
1999 18025.86 14044.21
2000 20081.02 14858.10
2001 22983.46 15627.14
2002 25934.42 17570.58
2003 28175.88 19019.63
2004 30793.09 22584.59
2005 34102.59 24911.39
2006 35758.84 29761.67
AAG 11.15% 11.08%
Source: Bank wise audit reports
a= -5025605.811 344.8071403
b= 2523.185931 0.731236249
y=a+bx
The above table is depicted in the following diagram -

Figure 5-37
Chart showing Gross Total Deposits from 1997 – 2006
40000.00
35000.00
30000.00
Rs. in Lacs

25000.00
20000.00
15000.00
10000.00
5000.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross Total Deposits (y) Co-Operative Banks. GrossTotal Deposits

Linear (Co-Operative Banks. GrossTotal Deposits) Linear (Commercial Banks. Gross Total Deposits (y))

Figure 5-37 clearly shows the trend of total deposits of both commercial and
co-operative banks in the state from 1997-2006. Total deposits of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the total deposits of commercial banks recorded an AAG rate of 11.15%,
that of co-operative banks was 11.08% only.
 219

Table 5-38
Table showing Gross Total Term Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks.
Year (x) Total Term Deposits (y) Gross Total Term Deposits
1997 9168.78 8509.22
1998 10467.11 9401.00
1999 12114.03 10204.75
2000 13552.78 10845.73
2001 15515.35 11435.39
2002 17615.59 12846.36
2003 19146.92 13935.59
2004 20667.49 15111.78
2005 22556.22 16655.44
2006 23746.55 21136.87
AAG 11.20% 10.79%
Source: Bank wise audit reports
a= -3349384.876 1256.003421
b= 1681.658735 0.714199392
y=a+bx
The above table is depicted in the following diagram -

Figure 5-38
Chart showing Gross Total Term Deposits from 1997 – 2006
30000.00

25000.00

20000.00
Rs. in Lacs

15000.00

10000.00

5000.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks Gross Term Deposits (y) Co-Operative Banks GrossTerm Deposits
Linear (Co-Operative Banks GrossTerm Deposits) Linear (Commercial Banks Gross Term Deposits (y))

Figure 5-38 clearly shows the trend of term deposits of both commercial and
co-operative banks in the state from 1997-2006. Term deposits of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the term deposits of commercial banks recorded an AAG rate of 11.20%,
that of co-operative banks was 10.79% only.
 220

Table 5-39
Table showing Gross Total SB Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks.
Year (x) Total SB Deposits (y) Gross Total SB Deposits
1997 3299.42 2335.89
1998 3732.49 2623.56
1999 4159.01 2841.67
2000 4567.50 2952.51
2001 5239.35 3068.91
2002 5822.89 3461.88
2003 6639.74 3674.77
2004 7934.78 4588.86
2005 9008.99 5225.27
2006 9224.33 5840.51
AAG 12.19% 10.88%
Source: Bank wise audit reports
a= -1400408.804 475.7642828
b= 702.6588334 0.534244192
y=a+bx

The above table is depicted in the following diagram -

Figure 5-39
Chart showing Gross Total SB Deposits from 1997 – 2006
10000.00
9000.00
8000.00
7000.00
Rs. in Lacs

6000.00
5000.00
4000.00
3000.00
2000.00
1000.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks Gross SB Deposits (y) Co-Operative Banks Gross SB Deposits

Linear (Co-Operative Banks Gross SB Deposits) Linear (Commercial Banks Gross SB Deposits (y))

Figure 5-39 clearly shows the trend of SB deposits of both commercial and
co-operative banks in the state from 1997-2006. SB deposits of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the SB deposits of commercial banks recorded an AAG rate of 12.19%,
that of co-operative banks was 10.88% only.
 221

Table 5-40
Table showing Gross Total Current Deposits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks. Gross
Year (x) Current Deposits (y) Current Deposits
1997 1392.66 814.10
1998 1592.67 911.57
1999 1752.82 997.78
2000 1960.74 1059.85
2001 2228.77 1122.83
2002 2495.94 1262.34
2003 2389.22 1409.27
2004 2190.82 2883.95
2005 2537.38 3030.68
2006 2787.96 2784.29
AAG 8.34% 17.70%
Source: Bank wise audit reports
a= -275812.3821 -1292.462642
b= 138.8684883 1.369090056
y=a+bx
The above table is depicted in the following diagram -

Figure 5-40
Chart showing Gross Total Current Deposits from 1997 – 2006
3500.00

3000.00

2500.00
Rs. in Lacs

2000.00

1500.00

1000.00

500.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross Current Deposits (y) Co-Operative Banks. Gross Current Deposits
Linear (Co-Operative Banks. Gross Current Deposits) Linear (Commercial Banks. Gross Current Deposits (y))

Figure 5-40 clearly shows the trend of current deposits of both commercial
and co-operative banks in the state from 1997-2006. Current deposits of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the current deposits of commercial banks recorded an AAG
rate of 8.34% only, that of co-operative banks was 17.70%.
 222

Table 5-41
Table showing Gross Total Advances from 1997 - 2006
Rs. In Lacs

Commercial Banks. Co-Operative Banks.

Year (x) Gross Total Advances (y) Gross Total Advances
1997 6896.49 7417.64
1998 7943.50 8253.06
1999 8873.83 9000.47
2000 10042.78 9433.18
2001 11394.14 9839.81
2002 12689.22 11166.98
2003 12824.81 12339.83
2004 15194.89 15492.78
2005 18132.27 18271.77
2006 21065.94 20569.79
AAG 13.33% 12.17%
Source: Bank wise audit reports
a= -2899892.902 -12.28464437
b= 1455.108014 0.974813827
y=a+bx
The above table is depicted in the following diagram -

Figure 5-41
Chart showing Gross Total Advances from 1997 – 2006

25000.00

20000.00
Rs. in Lacs

15000.00

10000.00

5000.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross Advances (y) Co-Operative Banks. GrossAdvances

Linear (Commercial Banks. Gross Advances (y)) Linear (Co-Operative Banks. GrossAdvances)

Figure 5-41 clearly shows the trend of total advances of both commercial and
co-operative banks in the state from 1997-2006. Total advances of both
commercial and co-operative banks showed an upward trend during the period
under study. Whereas the total advances of commercial banks recorded an AAG
rate of 13.33% that of co-operative banks was 12.17% only.
 223

Table 5-42
Table showing Gross Total Demand Loans from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks. Gross
Year (x) Total Demand Loans (y) Total Demand Loans
1997 1246.82 1501.75
1998 1421.25 1681.98
1999 1620.03 1856.16
2000 1796.32 1927.93
2001 2028.47 2012.56
2002 2252.12 1496.31
2003 2251.05 1874.52
2004 2480.97 1830.10
2005 2778.05 2063.41
2006 3140.47 2384.84
AAG 10.89% 6.24%
Source: Bank wise audit reports
a= -391320.1376 1205.780842
b= 196.5634242 0.312708927
y=a+bx

The above table is depicted in the following diagram -

Figure 5-42
Chart showing Gross Total Demand Loans from 1997 - 2006

3500.00

3000.00

2500.00
Rs. in Lacs

2000.00

1500.00

1000.00

500.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross Demand Loans(y) Co-Operative Banks. Gross Demand Loans
Linear (Co-Operative Banks. Gross Demand Loans) Linear (Commercial Banks. Gross Demand Loans(y))

Figure 5-42 clearly shows the trend of demand loans of both commercial and
co-operative banks in the state from 1997-2006. Demand loans of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the demand loans of commercial banks recorded an AAG rate of 10.89%,
that of co-operative banks was 6.24% only.
 224

Table 5-43
Table showing Gross Total Cash Credits from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks. Gross
Year (x) Total Cash Credits (y) Total Cash Credits
1997 1541.48 1027.49
1998 1808.32 1157.79
1999 1920.98 1266.97
2000 2233.77 1334.62
2001 2514.19 1393.83
2002 2742.26 2362.04
2003 2907.58 2688.21
2004 3188.19 4032.02
2005 3593.29 4886.33
2006 4755.95 5856.76
AAG 13.58% 22.91%
Source: Bank wise audit reports
a= -603922.5386 -2121.38052
b= 303.0942495 1.735640793
y=a+bx

The above table is depicted in the following diagram -

Figure 5-43
Chart showing Gross Total Cash Credits from 1997 - 2006
7000.00
6000.00
5000.00
Rs. in Lacs

4000.00
3000.00
2000.00
1000.00
0.00
1996 1998 2000 2002 2004 2006 2008

Commercial Banks. Gross Cash Credits(y) Co-Operative Banks. Gross Cash Credits
Linear (Commercial Banks. Gross Cash Credits(y)) Linear (Co-Operative Banks. Gross Cash Credits)

Figure 5-43 clearly shows the trend of cash credits of both commercial and
co-operative banks in the state from 1997-2006. Cash credits of both commercial
and co-operative banks showed an upward trend during the period under study.
Whereas the cash credits of commercial banks recorded an AAG rate of 13.58 %
only, that of co-operative banks was 22.91%.
 225

Table 5-44
Table showing Gross Total Overdrafts from 1997 - 2006
Rs. In Lacs

Commercial Banks. Gross Co-Operative Banks.

Year (x) Total Overdrafts (y) Gross Total Overdrafts
1997 1001.04 801.88
1998 1154.99 900.13
1999 1335.14 946.94
2000 1512.82 969.37
2001 1726.31 1009.65
2002 1968.58 1150.57
2003 2312.43 1298.78
2004 2395.52 1935.42
2005 2872.25 1902.93
2006 4349.54 1641.61
AAG 18.31% 9.38%
Source: Bank wise audit reports
a= -605668.7439 583.0393689
b= 303.6380745 0.326095075
y=a+bx
The above table is depicted in the following diagram -

Figure 5-44
Chart showing Gross Total Overdrafts from 1997 – 2006

5000.00
4500.00
4000.00
3500.00
Rs. in Lacs

3000.00
2500.00
2000.00
1500.00
1000.00
500.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross Overdrafts(y) Co-Operative Banks. Gross Overdrafts

Linear (Co-Operative Banks. Gross Overdrafts) Linear (Commercial Banks. Gross Overdrafts(y))

Figure 5-44 clearly shows the trend of overdrafts of both commercial and co-
operative banks in the state from 1997-2006. Overdrafts of both commercial and
co-operative banks showed an upward trend during the period under study.
Whereas the overdrafts of commercial banks recorded an AAG rate of 18.31%,
that of co-operative banks was 9.38% only.
 226

Table 5-45
Table showing Gross Total Term Loans from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks.
Year (x) Total Term Loans (y) Gross Total Term Loans
1997 3107.16 4086.52
1998 3558.93 4513.15
1999 3997.67 4930.41
2000 4499.86 5201.26
2001 5125.17 5423.77
2002 5726.26 6158.06
2003 5353.75 6478.32
2004 7130.21 7695.24
2005 8888.68 9419.10
2006 8819.98 10686.58
AAG 12.85% 11.43%
Source: Bank wise audit reports
a= -1298982.803 627.4609317
b= 651.8129247 1.037541835
y=a+bx
The above table is depicted in the following diagram -

Figure 5-45
Chart showing Gross Total Term Loans from 1997 – 2006

12000.00

10000.00

8000.00
Rs. in Lacs

6000.00

4000.00

2000.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross Term Loans(y) Co-Operative Banks. Gross Term Loans
Linear (Co-Operative Banks. Gross Term Loans) Linear (Commercial Banks. Gross Term Loans(y))

Figure 5-45 clearly shows the trend of term loans of both commercial and co-
operative banks in the state from 1997-2006. Term loans of both commercial and
co-operative banks showed an upward trend during the period under study.
Whereas the term loans of commercial banks recorded an AAG rate of 12.85%,
that of co-operative banks was 11.43% only.
 227

Table 5-46
Table showing Gross Total Profit/Loss from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks.
Year (x) Total Profit/Loss (y) Gross Total Profit/Loss
1997 347.64 110.69
1998 382.15 160.67
1999 395.64 210.30
2000 452.67 219.49
2001 466.39 204.10
2002 561.44 239.99
2003 639.13 240.04
2004 685.18 556.51
2005 672.56 641.87
2006 668.30 658.76
AAG 7.76% 26.76%
Source: Bank wise audit reports
a= -84638.5275 -369.3635195
b= 42.55090593 1.315863049
y=a+bx

The above table is depicted in the following diagram -

Figure 5-46
Chart showing Gross Total Profit/Loss from 1997 – 2006

800.00
700.00
600.00
Rs. in Lacs

500.00
400.00
300.00
200.00
100.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross Profit/Loss(y) Co-Operative Banks. Gross Profit/Loss

Linear (Commercial Banks. Gross Profit/Loss(y)) Linear (Co-Operative Banks. Gross Profit/Loss)

Figure 5-46 clearly shows the trend of profit/loss of both commercial and co-
operative banks in the state from 1997-2006. Profit/loss of both commercial and
co-operative banks showed an upward trend during the period under study.
Whereas the profit/loss of commercial banks recorded an AAG rate of 7.76% only,
that of co-operative banks was 26.76%.
 228

Table 5-47
Table showing Gross Total NPA from 1997 - 2006
Rs. In Lacs
Commercial Banks. Gross Co-Operative Banks.
Year (x) Total NPA(y) GrossTotal NPA
1997 435.78 694.81
1998 473.20 731.86
1999 530.65 765.26
2000 586.06 804.45
2001 651.84 805.48
2002 640.04 889.00
2003 648.75 980.89
2004 775.83 1026.81
2005 876.60 1291.46
2006 630.33 1352.01
AAG 5.16% 7.89%
Source: Bank wise audit reports
a= -71876.94279 137.1739173
b= 36.22375758 1.275434276
y=a+bx

The above table is depicted in the following diagram -

Figure 5-47
Chart showing Gross Total NPA from 1997 - 2006
1600.00

1400.00

1200.00

1000.00
Rs. in Lacs

800.00

600.00

400.00

200.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks. Gross NPA(y) Co-Operative Banks. Gross NPA

Linear (Commercial Banks. Gross NPA(y)) Linear (Co-Operative Banks. Gross NPA)

Figure 5-47 clearly shows the trend of total NPA of both commercial and co-
operative banks in the state from 1997-2006. Total NPA of both commercial and
co-operative banks showed an upward trend during the period under study.
Whereas the total NPA of commercial banks recorded an AAG rate of 5.16% only,
that of co-operative banks was 7.89%.
 229

Table 5-48
Table showing Gross Total NPA to Gross Total Advances from 1997 - 2006
Rs. In Lacs
Commercial Commercial % of Co-Operative Co-Operative % of NPA
Banks. Banks. NPA to Banks. Gross Banks. Gross to Total
Gross Total Gross Total Total Total Total NPA Advances
Year Advances NPA Advances Advances
1997 6896.49 435.78 6.32 7417.64 694.81 9.37
1998 7943.50 473.20 5.96 8253.06 731.86 8.87
1999 8873.83 530.65 5.98 9000.47 765.26 8.50
2000 10042.78 586.06 5.84 9433.18 804.45 8.53
2001 11394.14 651.84 5.72 9839.81 805.48 8.19
2002 12689.22 640.04 5.04 11166.98 889.00 7.96
2003 12824.81 648.75 5.06 12339.83 980.89 7.95
2004 15194.89 775.83 5.11 15492.78 1026.81 6.63
2005 18132.27 876.60 4.83 18271.77 1291.46 7.07
2006 21065.94 630.33 2.99 20569.79 1352.01 6.57
Source: Bank wise audit reports

The above table is depicted in the following diagram -

Figure 5-48
Chart showing Gross Total NPA to Gross Total Advances from 1997 – 2006

10.00

8.00
% of NPA

6.00

4.00

2.00

0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

% of NPA to Total Advances % of NPA to Total Advances

Linear (% of NPA to Total Advances) Linear (% of NPA to Total Advances)

Figure 5-48 clearly shows the trend of total NPA in relation to Total
Advances of both commercial and co-operative banks in the State from 1997-2006.
Whereas the total NPA of commercial banks in relation to Advances decreased
from 6.32% in 1997 to 2.99% in 2006 that of co-operative banks decreased from
9.37% to 6.57% only during the same period.
 230

Table 5-49
Table showing Gross Total CD Ratio from 1997 - 2006
In Percentage
Commercial Banks. Gross Co-Operative Banks.
Year (x) Total CD Ratio (y) Gross Total CD Ratio
1997 49.76 63.62
1998 50.30 63.80
1999 49.23 64.09
2000 50.01 63.49
2001 49.58 62.97
2002 48.93 63.55
2003 45.52 64.88
2004 49.35 68.60
2005 53.17 73.35
2006 58.91 69.12
AAG 2.04 0.99
Source: Bank wise audit reports
a= -1028.471956 37.77368854
b= 0.539068739 0.554182609
y=a+bx

The above table is depicted in the following diagram -

Figure 5-49
Chart showing Gross Total CD Ratio from 1997 – 2006

80.00
70.00
CD Ratio in Percentage

60.00
50.00
40.00
30.00
20.00
10.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Commercial Banks.Gross CD Ratio(y) Co-Operative Banks.Gross CD Ratio

Linear (Commercial Banks.Gross CD Ratio(y)) Linear (Co-Operative Banks.Gross CD Ratio )

Figure 5-48 clearly shows the trend of CD ratio of both commercial and co-
operative banks in the state from 1997-2006. CD ratio of both commercial and co-
operative banks showed an upward trend during the period under study. Whereas
the CD ratio of commercial banks recorded an AAG rate of 2.04%, that of co-
operative banks was 0.99% only.
 231

CHAPTER VI

CUSTOMER SATISFACTION

Contents Page 231-268

1. Introduction

2. Tables Showing Analysis of Various Parameters Affecting Customer

Satisfaction, their Chi-square Tests and their Interpretations.

3. Table Showing Z –Test and its Interpretations.

 232

CHAPTER VI

CUSTOMER SATISFACTION

Banking is a key industry in the service sector and it is indeed the financial
nerve center of the economy. In the competitive environment of the post
liberalization era, financial sector reforms have significantly deregulated the
markets. In a service industry like banking, the quality of customer services holds
primary significance, particularly in the context of sustained business growth. In a
deregulated environment, customer’s expectation keeps rising, as they look for
more convenient and flexible option available to them at competitive rates from
many players operating in the field. This has made the acquisition of customer
patronage a formidable task. Customer is now a new watchword in the Indian
banking scene.
As observed by the Banking Ombudsman for Kerala and Lakshwadeep, V.
Krishnamurthy, the biggest challenge to Indian Banks comes not from trade unions
or foreign banks but from the customers who are demanding more and more.
Shopping for banks was a trend with which the banking industry had to cope with.
Rising expectations from the customers and narrow margins of profit are
challenges before the banking as a whole.
It is against this background, the study “Customer Satisfaction of Banking
Services” was carried out to find the customer satisfaction level on various services
provided by both commercial and co-operative banks. For the purpose of collecting
primary data, a questionnaire was prepared. First a pilot survey was conducted and
accordingly changes were made in the in the original questionnaire and the final
questionnaire was given to 20 customers each, in 12 selected commercial and co-
operative banks, thus making the total questionnaire 240 each in commercial and
co-operative banks. Of the questionnaires received back, only 152 from co-
operative banks and 148 from commercial banks were found to be useful for the
study. The following is an analysis of the primary data: