1 REVIEW OF LITERATURE

The literature relating to topic is reviewed as under:

A. Ramachandran [September, 2012] in their article “A study on the progress of the

scheduled urban cooperative banks in India with respect to major indicators of financial
performance” published in RADIX international journal of banking, finance and accounting,
Volume 1, Issue No. 9, (Page No. 1-21) concluded that the future of urban cooperative banks
is challenging because of the competition from public sector banks and private sector banks.
Public sector banks and private sector banks are concentrating on their major expansion
activities both vertically and horizontally.

A. Ramachandran, D.Siva Shanmugam [May, 2012] in their article “An Empirical study on
the financial performance of selected scheduled urban co operative banks in India” published
in Asian journal of research in banking and finance, Volume 2, Issue No. 5, (Page No. 1-24)
concluded that the future of urban cooperative banks is challenging because of the
competition from public sector banks and private sector banks. Public sector banks and
private sector banks are concentrating on their major expansion activities both vertically and
horizontally.

Adhir Ambavane [May, 2011] in their article “A study of efficacy of staff training
programme in urban co operative banks in Raigad district - Maharashtra” published in
International referred research journal, Volume II, Issue No. 20, (Page No. 35-36) concluded
that Training is an important tool for increasing the overall productivity of an organization.
The emergence of new sectors, where human elements play a pivotal role, has exponentially
increased the need for training.

Anil Matkar [2012] in their article “A Glance in financial performance and retail banking
products of Maharashtra state co op. Bank” published in ABHINAV, Volume 1,Issue No. 3,
(Page No. 142-156) concluded that the increase in the net non – interest income, profit per
employee, business per employee, capital adequacy ratio and decrease in the operating
expenses, staff cost level of non perfortming assets by the last few years indicates that the
financial performance of the MSC Bank in retail banking products has been good and retail
banking has also contributed well to overall progress of thje MSC Bank.

B. Muniraja Sekhar, B. Sudhir [August, 2012] in their article “Core banking solutions in
urban cooperative banks – Issues and Challenges” published in International journal of
scientific & engineering research , Volume 3,Issue No. 8, (Page No. 1-8) concluded that the
technology laggard cooperative banks should realize that the economic class and age
composition of their customers is already not favorable. It would obviously be difficult for
laggard co operative banks to attract new young customers if they do not increase their
investments on IT in right direction with cautious approach.

E. Gnanasekaran, M.Anbalgan, N. Abdul Nazar [ March, 2012] in their article “A study on

the Urban Cooperative banks success and growth in Vellore district – statistical analysis”
published in International journal of advanced research in computer science and software
engineering, Volume 2,Issue No. 3, (Page No. 434-437) concluded that the overall financial
performance of the UCBs in all fronts namely, membership, share capital, deposits, loans and
advances, profit and Reserve funds, working capital, overdue, loans issued etc. are showing a
significantly and distributing trend through the application of different statistical tools
applied in the study.

Gurcharan Singh and Sukhmani [June, 2011] in their article “An analytical study of
productivity and profitability of district central cooperative banks in punjab” published in
Journal on banking financial services and insurance research, Volume ,Issue No. 3, (Page
No.128-142 ) concluded that It may be inferred that increased business of DCCBs had not
been managed professionally. It had also been observed during interaction with management
of theses DCCBs, that their manpower is not well versed in managing non farm sector loans
(commercial loans).

Jyoti Gupta and Suman Jain [October, 2012] in their article “A study on cooperative banks in
India with special reference to lending practices published in International journal of
scientific and research publications, Volume 2, Issue No.10, (Page No. 1-6) concluded that
The financial performances of Urban Cooperative Banks (UCBs) improved in 2010-11
though there are some concerns with regard to some of the UCBs reporting negative CRAR.
Within the rural cooperative sector, State Cooperative Banks (StCBs) and District Central
Cooperative Banks (DCCBs) reported profits but the ground level institutions, i.e., Primary
Agricultural Credit Societies (PACS) continued incurring huge losses.

K. Manohar, Himachalam Dasaraju, Kota Srinivasa Murthy [July, 2012] in their article
“Performance Assessment Of Urban Co operative banks (UCBS) : A Case study of Tirupati
UCB” published in International Journal of Management Research and Review, Volume No.
2, (Page No. 1248-1265) concluded that the overall analysis shows that the performance of
Tirupati Urban Co operative bank performance is good. One of the important activities of the
bank is to enhance the members and make the concerntration on improving the sources of
other income for the bank and also it has to reduce the risk cost.

K.A. Goyal, Vijay Joshi [2012] in their article “Indian banking industry: challenges and
opportunities” published in International Journal of business research and Management,
Volume No. 3, Issue No. 1 (Page No. 19-28) concluded that over the years, it has been
observed that clouds of trepidation and drops of growth are two important phenomena of
market, which frequently changes in different sets of conditions. The pre and post
liberalization era has witnessed various environmental changes which directly affects the
aforesaid phenomena.

K.V.S. N Jawahar Babu [July – Aug 2012] in their article “Performance evaluation of urban
Co - operative banks in India” published in IOSR Journal of Business and Management
(IOSRJBM), Volume 1, Issue No. 5 (Page No. 28-30) concluded that urban co operative
banking is a key sector in the Indian banking scene, which in the recent years has gone
through a lot of turmoil. Though some UCB’s have shown credible performance in the recent
years, a large number of banks have shown discernible signs of weakness.
K.V.S. N Jawahar Babu and B, Muniraja Selkhar [July – Aug 2012] in their article “The
emerging urban Co - operative banks (UCBs) in India : Problem and Prospects” published in
IOSR Journal of Business and Management (IOSRJBM), Volume 2, Issue No. 5 (Page No. 1-
5) concluded that presently, the UCBs occupy an important place in the Indian Financial
system. However the ucbs strengthen their uniqueness and growth in the banking industry
and it is required to take certain measures like for strengthening the ucbs sector sustenance of
its growth is attendant to Professionalization of its management, inculcating good corporate
governance, technology absorption and scrupulous adherence to regulatory framework.

Kadam Nandkumar Laxman [August, 2012] in their article “An evaluation of performance of
Sangli district central cooperative bank Ltd. Sangli in respect of agricultural finance”
published in Indian Streams research journal, Volume 2,Issue No. 7, (Page No. 1-7)
concluded that the bank has played an important role in agricultural financing. It provided
various types of loans taking into account needs of the farmers. The bank has lions share in
upliftment of small and marginal farmers and making rich to big farmers in the Sangli district
and development of cooperative societies.

Kishor Nivrutti Jagtap [October, 2012] in their article “Special services rendered by Co
operative bank – An overview” published in Golden research thoughts, Volume 2, Issue No.
4, (Page No. 1-4) concluded that India cannot have a healthy economy without a sound and
effective banking system. The commercial banking structure in India consists of scheduled
commercial banks and unscheduled banks. Scheduled banks constitute those banks that are
included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. As Most of the
schedule co-operative bank in an attempt to fulfill the ever rising needs of banks customers.

M.J. Mane [March, 2011] in their article “Performance of Sangli D.C.C.Bank limited Sangli”
published in Indian streams research journal, Volume 1, Issue No. II, (Page No. 151-155)
concluded that The Sangli DDC bank Ltd. had not been maintained a reasonable level of
solvency position and was unable to cover it medium and short term obligations. The
financial position of this bank analyzed by ratio analysis techniques and it is found that the
position solvency, liquidity and profitability are not satisfactory due to these ratios not up to
the standard level.

M.Syed Ibrahim [October, 2010] in their article “Performance evaluation of regional rural
banks in India” published in International business research, Volume 3, Issue No.4, (Page
No. 203 - 211) concluded that Depending on the context and applications, the term
‘performance’ may have different connotations. In the present study, the performance of
Regional Rural Banks, an attempt has been made to analyze the performance in terms of
certain defined parameters like number of branches, district covered, capital funds, and
mobilization of deposits, loans and investments made by these banks.

Mr. M.J. Mane and V.B.Kodag [June, 2011] in their article “Mobilisation of funds by district
central co operative banks in Maharashtra” published in Indian streams research journal,
Volume I,Issue No. V, concluded that It is found that from the above figures and analysis,
the management of district central co-operative banks in Maharashtra has succeeded in
mobilizing the total deposits collected by them from member societies, individuals and other
co-operative societies during the study period i.e. 2001-02 to 2008-09 due to the growth in
owned funds as well as growth in total assets of the DCC Banks
Ms. Shachi Pareek [July, 2012] in their article “Profitability performance analysis of urban
cooperative banks in Jaipur district” published in International indexed & referred research
journal, Volume III, Issue No. 33, (Page No. 24-25) concluded that the above analysis
reveals that the UCBs in Jaipur are in a positive state of health with satisfactory level of
profitability. Even being small in size, they have got a great potential to cater the marginal
clients.

Ms. Vidya Ramchandra Shelke [November, 2011] in their article “A study of performance
and challenges before the D.C.C. Bank Ltd,, Sangli” published in Golden research thoughts,
Volume 1, Issue No. V, (Page No. 1-4) concluded that in nutshell, the Cooperative Banks are
the life blood of Indian economy and the mechanisms for any development programs. In this
LPG era the cooperatives are an ideal instrument in economic and social development
through strong local community
R.S. Shirasi [ June, 2012] in their article “A study of financial working and operational
performance of Urban Co – operative Banks in Pune District” published in Indian Streams
Research Journal, Volume 1,Issue No. V, (Page No. 1-4) concluded that it is observed that
there is regional imbalance in the growth of UCBs in India. Five states viz., Maharashtra,
Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu account for 1661 UCBs out of 2104 in
the country as at end March 2003. In 2008 out of total UCBs were registered in Maharashtra
state. And in Pune there are 14 blocks. The total number of UCBs registered in Pune district
was 60 as on 31-03-2008 out of these 60 UCBs 44 UCBs were concentrated in Pune city
where is 13 UCBs scattered 13 blocks of the district as on 31-03-2008

Rajiv Kumar and Kaur Jasmindeep [ December, 2010] in their article “Financial Appraisal of
Haryana State Co operative Apex Bank” published in Advances in management, Volume
3,Issue No. 12, (Page No. 41-48) concluded that results of the study showed that in the
membership of the bank, major share was of cooperatives. Whereas, individuals and
government had very less percentage share and in paid up share capital, the maximum share
was in the hands of cooperative, government share was minimum in it.

Ramesh Chander [December. 2010] in their article “Financial viability and performance
evaluation of co operative credit institutions in Haryana (India)” published in International
journal of computing and business research, Volume 1, Issue No. 1, concluded that However
District Central Co-operative Banks (DCCBs) play pivotal role in the rural banking system
yet failure/bankruptcy of these banks raise many doubts about their viability and sustenance.
In the present study financial efficiency and performance of four DCCBs operating in
Gurgaon division have been identified and analyzed on five parameters viz. profitability,
liquidity, solvency, efficiency and risk. The results reveal that banks performed better on one
parameter but weaken on other which led to dwindling situation.

Ramesh Chander and Jai Kishan Chandel [November - April, 2011] in their article “An
Evaluation of financial performance and viability of cooperative banks – A study of four
DCCBs in Haryana (INDIA)” published in KAIM journal of management and research,
Volume 3,Issue No. 2, (Page No. 1-12) concluded that the present study has been an attempt
to identify the financial performance and efficiency of District Central Cooperaive Bank
(DCCBs) operating in Hisar division in Haryana comprising of Hisar, Bhiwani, Fatehabad
and Sirsa.

Reshma B. Khatavkar, Chadrakant B. Kamble [July – Aug 2012] in their article

“Performance evaluation of the Rayat sevak co operative bank Ltd. Satara : A case study of
Karad Branch” published in Golden research thoughts, Volume II, Issue No. II concluded
that Rayat sevak co operative bank Ltd. Satara firstly known as the Rayat sevak co operative
credit society on 16th Aug 1940. Therein 1969 it came into light as the Rayat sevak co
operative bank. Accountholder of this bank was 4778 during the year 2000-01 and upto 31st
March 2008 was 6198.

Sanjay Kanti Das [March, 2012] in their article “Operational and financial performance
analysis of Meghalaya cooperative Apex Bank” published in Journal on banking financial
services and insurance research, Volume 2,Issue No. 3, (Page No. 20-39) concluded that
MCAB is one of the top most cooperative banking institutions in Meghalaya and renders
services towards the common people as friend, philosopher and guide. The bank earned
consistent profit during the years from inception except a few years.

Seema Sant and P.T. Chaudhari [May 2012] in their article “A study of the profitability of
Urban co- operative banks (In greater Mumbai and Jalgaon for 5 years)” published in
International journal of multidisciplinary research, Volume 2,Issue No. 5, (Page No. 124-
134) concluded that the analysis of different financial ratio of UCB’s operating in greater
Mumbai and Jalgaon suggest that the technological changes have significantly improved the
productivity and profitability margin of these banks. Further, the statistics indicate that the
performance of UCB’s the greater Mumbai is significantly better than the performance of
UCB’s in Jalgaon.

Seema Sant in their article “A study on urban cooperative banks employee’s performance
and technology development” published in International journal of engineering and social
science Volume 2, Issue No. 1, (Page No. 45-54) concluded that the progress of the urban co
operative bank has been satisfactory over the years and they are constantly upgrading their
technological base. However, the employees of these banks reported various problems that
they have faced while adopting new technology.

Tejani Rachana [2011] in their article “Financial inclusion and performance of rural co
operative banks in gujarat” published in Research journal of finance and accounting,
Volume 2, Issue No.6, (Page No. 40-50) concluded that There is lot of opportunity for the
commercial banks to explore the rural unbanked areas. Though RRBs and PACS have good
coverage but most of them are running into losses. Again, the number of kisan credit cards
issued and the amount of credit granted under it is also showing a declining trend.
Commercial banks should seize this opportunity rather than looking at it as a social
obligation.

Thiruypathi Kanchu [October, 2012] in their article “Performance evaluation of DCCBs in

India – A Study)” published in Asia Pacific Journal of marketing & management review,
Volume 1,Issue No. 2, (Page No. 169-180) concluded that the financial performance of the
district central cooperative banks in India is analyzed using different statistical techniques.
From the above analysis, it is concluded that the growth of No. of DCCBs and their branches
have negative trend upto certain period later there is negligible positive trend where as the
membership in cooperatives have been increasing.

Vijay Hooda [May, 2011] in their article “State cooperative banks versus scheduled
commercial banks: A comparison of three financial ratios” published in International journal
of computing and business research, Volume 2, Issue No.2, (Page No. 40-50) concluded that
Even though the objectives of cooperative banks and commercial banks primarily differ, both
types of banks are important for financial inclusion in particular and socio-economic
development of our population in general. The present study has compared the performance
of StCBs with SCBs by considering the three financial ratios.

Mr. P. K. Kulkarni published reprinted [2010], in their book “Co operative banking” by
Indian institute of banking and finance, Macmillan publisher India Pvt. Ltd. (Page No. 304-
310) concluded that requirement of making provisions on loss asset in advances, and
investment and depreciation in investment also need similar analysis. Requiring more BDDR
and NPA provisions, loss in investment, depreciation in investment are signs of bad credit
appraisal and monitoring, poor recovery performance wrong investment decision and poor
market study. If such things exist in management need to think seriously about overall
performance, systems and procedures.