INTRODUCTION

Profit is an excess of revenues over associated expenses for an activity over a period
of time. Terms with similar meanings include ‘earnings’, ‘income’, and ‘margin’.
Lord Keynes remarked that ‘Profit is the engine that drives the business enterprise’.
Every business should earn sufficient profits to survive and grow over a long period
of time. It is the index to the economic progress, improved national income and rising
standard of living. No doubt, profit is the legitimate object, but it should not be over
emphasised. Management should try to maximise its profit keeping in mind the
welfare of the society. Thus, profit is not just the reward to owners but it is also
related with the interest of other segments of the society. Profit is the yardstick for
judging not just the economic, but the managerial efficiency and social objectives
also.

CONCEPT OF PROFITABILITY

Profitability means ability to make profit from all the business activities of an
organization, company, firm, or an enterprise. It shows how efficiently the
management can make profit by using all the resources available in the market.
According to Harward & Upton, “profitability is the ‘the ability of a given investment
to earn a return from its use.” However, the term ‘Profitability’ is not synonymous to
the term ‘Efficiency’. Profitability is an index of efficiency; and is regarded as a
measure of efficiency and management guide to greater efficiency. Though,
profitability is an important yardstick for measuring the efficiency, the extent of
profitability cannot be taken as a final proof of efficiency. Sometimes satisfactory
profits can mark inefficiency and conversely, a proper degree of efficiency can be
accompanied by an absence of profit. The net profit figure simply reveals a
satisfactory balance between the values receive and value given. The change in
operational efficiency is merely one of the factors on which profitability of an
enterprise largely depends. Moreover, there are many other factors besides efficiency,
which affect the profitability.
PROFIT & PROFITABILITY

Sometimes, the terms ‘Profit’ and ‘Profitability’ are used interchangeably. But in real
sense, there is a difference between the two. Profit is an absolute term, whereas, the
profitability is a relative concept. However, they are closely related and mutually
interdependent, having distinct roles in business. Profit refers to the total income
earned by the enterprise during the specified period of time, while profitability refers
to the operating efficiency of the enterprise. It is the ability of the enterprise to make
profit on sales. It is the ability of enterprise to get sufficient return on the capital and
employees used in the business operation. As Weston and Brigham rightly notes “to
the financial management profit is the test of efficiency and a measure of control, to
the owners a measure of the worth of their investment, to the creditors the margin of
safety, to the government a measure of taxable capacity and a basis of legislative
action and to the country profit is an index of economic progress, national income
generated and the rise in the standard of living”, while profitability is an outcome of
profit. In other words, no profit drives towards profitability. Firms having same
amount of profit may vary in terms of profitability. That is why R. S. Kulshrestha has
rightly stated, “Profit in two separate business concern may be identical, yet, many a
times, it usually happens that their profitability varies when measured in terms of size
of investment”.

Profitability Analysis from the View Point of Management

In order to pin-point the causes which are responsible for low / high profitability, a
financial manger should continuously evaluate the efficiency of a firm in terms of
profit. The study of increase or decrease in retained earnings, various reserve and
surplus will enable the financial manger to see whether the profitability has improved
or not. An increase in the balance of these items is an indication of improvement in
profitability, where as a decrease indicates a decline in profitability. Following ratios
are calculated to analyse the profitability

Earnings after Tax (EAT):

After-tax income is the net income after the deduction of all federal, state, and
withholding taxes. After-tax income also called income after taxes, represents the
amount of disposable income that a consumer or firm has available to spend. When
analyzing or forecasting personal or corporate cash flows, it is essential to use an
estimated after-tax net cash projection. This estimate is a more appropriate measure
than pretax income or gross income because after-tax cash flows are what the entity
has available for consumption. 

EAT= Net income/Net sales

Earnings before Interest &Tax

Earnings Before Interest and Taxes (EBIT) measures the profit a company generates
from its operations, making it synonymous with "operating profit." By ignoring tax
and interest expenses, it focuses solely on a company's ability to generate earnings
from operations, ignoring variables such as the tax burden and capital structure. This
focus makes EBIT an especially useful metric for certain applications. For example, if
an investor is thinking of buying a firm out, the existing capital structure is less
important than the company's earning potential. Similarly, if an investor is comparing
companies in a given industry that operate in different tax environments and have
different strategies for financing themselves, tax and interest expenses would distract
from the core question: how effectively do these companies generate profits from
their operations.

EBIT=Profit before tax+ financial cost

Return on Assets

In basic terms, ROA tells you what earnings were generated from invested
capital (assets). ROA for public companies can vary substantially and will be highly
dependent on the industry. This is why when using ROA as a comparative measure, it
is best to compare it against a company's previous ROA numbers or against a similar
company's ROA.Remember that a company's total assets is the sum of its total
liabilities and shareholder's equity. Both of these types of financing are used to fund
the operations of the company. Since a company's assets are either funded by debt or
equity, some analysts and investors disregard the cost of acquiring the asset by adding
back interest expense in the formula for ROA. In other words, the impact of taking
more debt is negated by adding backs the cost of borrowing to the net income, and
using the average assets in a given period as the denominator. Interest expense is
added because the net income amount on the income statement excludes interest
expense.

ROA = (Net Income (or) Profit after Tax) / Average Total Assets

Return on Equity :

Return on equity measures how efficiently a firm can use the money from
shareholders to generate profits and grow the company. Unlike other return on
investment ratios, ROE is a profitability ratio from the investor’s point of view—not
the company. In other words, this ratio calculates how much money is made based on
the investors’ investment in the company, not the company’s investment in assets or
something else. That being said, investors want to see a high return on equity ratio
because this indicates that the company is using its investors’ funds effectively.
Higher ratios are almost always better than lower ratios, but have to be compared to
other companies’ ratios in the industry. Since every industry has different levels of
investors and income, ROE can’t be used to compare companies outside of their
industries very effectively. Many investors also choose to calculate the return on
equity at the beginning of a period and the end of a period to see the change in return.
This helps track a company’s progress and ability to maintain a positive earnings
trend.

ROE= Net income/Avg shareholders fund

Operating leverage

Operating leverage is the degree to which a firm or project can increase operating
income by increasing revenue. A business that generates sales with a high gross
margin and low variable costs has high operating leverage. The higher the degree of
operating leverage, the greater the potential danger from forecasting risk, where a
relatively small error in forecasting sales can be magnified into large errors in cash
flow projections. Operating leverage may be used for calculating a company’s
breakeven point and substantially affecting profits by changing its pricing structure.
Because businesses with higher operating leverage do not proportionately increase
expenses as they increase sales, those companies may bring in more operating income
than other companies. However, businesses with high operating leverage are also
more affected by poor corporate decisions and other factors that may result in income
decreases.
Financial leverage:

Financial leverage is the degree to which a company uses fixed-income securities

such as debt and preferred equity. The more debt financing a company uses, the
higher its financial leverage. A high degree of financial leverage means high interest
payments, which negatively affect the company's bottom-line earnings per share.
Financial risk is the risk to the stockholders that is caused by an increase in debt and
preferred equities in a company's capital structure. As a company increases debt and
preferred equities, interest payments increase, reducing EPS. As a result, risk to
stockholder return is increased. A company should keep its optimal capital structure
in mind when making financing decisions to ensure any increases in debt and
preferred equity increase the value of the company.

Evaluation of financial position of any business enterprise can be done through

financial analysis. Financial analysis tries to look at the capital cost, operating
expenses and operating income. The analysis also establishes a relationship between
the various factors of a balance sheet and profit & loss account of the unit. It serves as
a common measure of value for getting a clear understanding about the unit from the
financial point of view. One can get a clear idea about financial Strengths and
weaknesses of a particular business enterprise, after tracing down the financial
position of the organization. The co-operative credit structure consists of two groups;
one provides short term and medium term credit and other is for long term credit. The
co-op credit structure for short term and medium term credit is a three tired pyramidal
structure: Primary credit societies at village and city level Central co-operative
banks at district level State co-operative banks at apex level. The Urban co-
operative bank comes under primary co-operative societies at the base level of the
three tired pyramidal structure. The urban co-operative banks are the only institutions
in a co-operative credit structure which are very helpful to meet the requirement of
small farmers and small scale industrial concerns as UCBs are formed on the principle
of co-operation. Thus, right from their establishment, UCBs are solving the economic
problems of the lower middle income group of people and thereby contributing to the
economic development of the country.

OBJECTIVES OF THE STUDY

The study is designed to fulfill the following objectives:

o To study the growth and performance of Scheduled UCBs in Gujarat State

o To measure and compare the efficiency of Scheduled UCBs in Gujarat state.
o To suggest the appropriate measures to improve the efficiency and financial
health of Scheduled UCBs.
o To find out the composite ranking of each of the SUCBs in Gujarat State by
applying the CAMEL Model.

RESEARCH METHODOLOGY
The study is based on only secondary data which have been collected from:

 Annual Reports of the bank

 Manual of instruction on loan and advances
 Books
 Articles and Research papers
 Internet

Secondary data were analyzed by three different techniques like Accounting,

Statistical and Mathematical. Various methods were used for all different techniques
which are as under:

Mainly four different techniques are used which are as under:

 Common size analysis

 Comparative statement analysis
 Trend analysis

For Common Size analysis, the balance sheet has been converted to common size by
converting each item on the assets side as a percentage of total assets. Similarly each
item on the liabilities side has been converted as a percentage of liabilities. Likewise
profit and loss account has also been converted to common size by converting each
item of profit and loss account as a percentage of sales. Thus, the Common Size
Statements have been prepared and analyzed.
Trend analysis has been done by comparing the banks’ ratios to the trend data to see
how selected banks are doing over a series of time periods.

For Ratio analysis, the evaluation has been done by using CAMEL parameters, the
latest model for financial analysis of banks. In applying this model, five main
dimensions of the performance (Capital adequacy, Assets quality, Management
capability, Earning capacity and Liquidity) have been assessed using ratio analysis.
For that purpose the financial ratios have been divided into five main categories and
several sub-categories.

Statistical Techniques:

Following Statistical Techniques have been used for the analysis of financial
statements.

 Average (central Tendency)

 Standard Deviation
 Co- efficient of variation
 Co- efficient of correlation
 Co- efficient of determination
 Regression Analysis
 t-test
 ANNOVA

Mathematical Techniques:

For Mathematical analysis, Lagrange’s method of Interpolation has been used.

SCOPE OF THE STUDY

The proposed study is a census study as the whole state of Gujarat covers 7 scheduled
urban co-operative banks and all that 7 scheduled urban co-operative banks have been
covered under the study.

The present study covers the time space of 10 years from the co-operative year 2002-
03 to 2011-12. The study analyses profitability, liquidity, short term financial
strength, longterm financial strength and capital structure analysis.
IMPORTANCE OF THE STUDY

“As the literature is the mirror of a society’s culture and civilization, the banks are the
barometers of a nation’s economy. The prosperity and decline of an economy are
immediately known from the extent of banking business.”

Banker’s point of view: the present study is very significant from a banker’s point of
view. The study focuses on analyzing efficiency, solvency, profitability and viability
of all scheduled urban co-operative banks in Gujarat state. The study also helps the
banker to compare the profitability of the last 10 years. Trend analysis guides the
particular banker about the trend of banks (regarding profitability, solvency and
efficiency). Apart from that present study also gives some important suggestion in the
light of the conclusion. The manager of a particular bank can apply the suggestion
given by a researcher for the better performance of the bank.

Society’s point of view: Analysis of financial statement has become significant for
society also. Society as a whole includes creditors, customers, shareholders,
employees, trade unions, economist, investment analysts, taxation authorities and
government. In society, various people look at the financial statements from various
angles. If RBI put a particular SUCB under section 35(a), the future of its customer,
employees, investors, and shareholder will be in danger. Present study gives a clear
idea to the shareholders that whether they should purchase a share of a particular bank
or not (after thoroughly checking the profitability, solvency and efficiency).
Customers can decide whether to open an account with a particular banker or not. The
study is also helpful for employees as well as the managers of the selected banks for
decision making.

The study also enables the researcher to identify the determinants of the financial
performance and to understand the financial capability and effectiveness of all
Scheduled UCBs. Moreover, the study has academic relevance too. New theoretical
and practical knowledge has undoubtedly, been added to the existing knowledge. The
present study also acts as a masterpiece on the subject for further research and
development.

LIMITATIONS OF THE STUDY

The limitations of the study are as follows:

The study includes all the limitations, which are inherent in the data collected from
the above mentioned sources.

While computing the percentages and average, the figures have been approximated,
and as such the totals at times may not exactly tally.

Limitations of tools and techniques that have been applied for the analysis are also
worth mentioning.

Comparability and ambiguity of data are one of the major limitations of the study.

Financial analysis can be done by comparing the data of different years of the same
banks or different banks. Since business conditions vary considerably from bank to
bank and industry to industry, there can be difference in services, accounting policies,
level of efficiency, caliber of management and so on

Because of this differences, financial analysis of a business become a very difficult

task for an analyst or researcher but inspite of all these limitations, present study
throws glow on the important challenging problems of the Scheduled UCBs.

REVIEW LITERATURE

Medhat Tarawneh (2006) they studied that financial performance is a predicated

variable and measured by ROA and the intent gain size. The independent variables are
the size of banks as measured by total assets of banks; property management
measured by asset utilization ratio (operating income divided by total assets)
operational efficiency measured by the operating efficiency ratio ( total operating
expenses divided by net income).

Manish Mittal and Aruna Dhademade (2005) they found that higher profitability is the
only major parameter for calculating banking sector performance from the
shareholders point of view. It is for the banks to hit a balance between commercial
and social objectives. They found that public sector banks are less profitable than
private sector banks. Foreign banks top the list in terms of net income. Private sector
banks earn higher fee income than public sector banks because these banks offer more
and more fee-based services to business house or corporate sector. Thus, there is
urgent need for public sector banks to provide such services to stand in competition
with private sector bank.
Kumari (2003) the researcher found that in terms of deposit mobilization arm
expansion credit classification and employment generation both public and private
sector banks have shown increasing trend. Bank with analysis let out that private
sector banks have shown higher improvement as compared to public sector banks.
The researcher suggested that public sector banks should their profitability and
productivity performance by assuming innovation modern technological change and
by fixing responsibility of officers for recognition etc.

Chandan and Rajput (2002) calculating the performance of the banks based on
profitability analysis. The researcher analysed the factors discovering the profitability
of the banks in India with the help of multiple retrogradation technique. They found
that spread ( i .e) net interest income is the major source of income for banks. The
study found public sector banks at weaker position in relation to foreign banks and
public banks. The author recommended that public sector banks should focus on
performing asset management and make investment in technology up scale for better
data management and quicker flow of information.

K. Selvavinayagam (2005), in his paper titled “Financial Analysis of Banking

Institutions” intended to provide an improved analytical framework to present the
different aspects of performance.

Patel, Rupal R. Lecturer at Saraspur Arts and commerce college, Gujarat University
Ahemedabad, (2005), in her study of ‘Operational Efficiency of District Central
Cooperative Banks in Gujarat - A Comparative Study’ observed on Operational
efficiency of DCCBs of Gujarat and Gujarat State co-operative banks (GSCBs) and its
development and progress. She also focused on comparative growth of DCCBs and
GSCBs.

Desai, Suresh V. (2006) Performance Appraisal of Urban Co-operative Banks in

North Gujarat. PhD thesis, Saurashtra University. In his study Mr. Desai has examine
profitability, financial efficiency of UCBs of North Gujarat, the data related to all the
twenty Urban Cooperative Banks for the past seven years viz. 1997-98 to 2003-2004
have been collected and various techniques of measuring performance like, Common
Size Statement, Ratio Analysis and several statistical techniques have been applied to
analyze and draw conclusions.
Amit Basak (2009) analyzed the case Study on “Performance Appraisal of Urban
Cooperative Banks” figured that though some UCBs have performed creditability in
the recent years, a large number of them have shown discenrnible sigh of weakness.

R. K. Patel, Head, Accountancy Department, Desai C. M. Arts & Commerce College,

Viramgam, Dist. Ahmedabad (Gujarat) (2012) in his paper titled “Financial
performance of urban co-operative bank” studied that during the period 1991-2004
the urban co-operative banking sector witnessed substantial growth, possibly
encouraged by the liberalized policy environment in post reform period.

Dr. Padmaja B. (Associate professor, Sri Vasavi Institute of Management) Dr.

BhanuKiran, C. (Professor, Ananta Lakshmi Institute of Technology and Sciences)
and Dr. Rama Prasada Rao, C. H. (Professor, Sri Krishnadevaraya Institute of
Management, SK. University, Anantapur). (2013) in their study titled “An empirical
study on financial performance of Anantapur urban Cooperative bank” reveal that
Urban Cooperative Banks are mostly working in the rural and semi-urban areas. They
are the back bone of banking system and contribute for growth of the nation .The
researcher aims to analyze the financial performance of Anantapur Urban Cooperative
bank.

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.

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.