3. Commerctal banks are spread over a wide area and can collect deposits from whereas deposits raised by co- operative banks can be ured only in specified arcas, 4. Commercial banks enjoy more liberty in lending policies. which are determined by their Roard of Directors subject to RBI control, where as co-operative banks: follow the lending policies laid down by the RBI and co-opemtive department of the state, 5.Co-operative anes can give higher interest; fe 0.5 percent per annum more on deposits than commercial banks. duc to concessions given by the RBI 6. In co-operative banks. borrowers, being shareholders, have some say In the use of funds, whereas in commercial banks borrowers have hardly any voice in the management anc policy framing. 7. Co-operative banks have becn established under the Co-operative Sacictics Act of different Stntex and they work on the principle of co-operation, whereas commercial banks have been organized cither ax joint stock companics ander the Ranking Regulation Act of 1949, or as Public Corporations under relevant Acts and they function on sound business principles Statement of the Problem. The problem to be Investigated in this study Is stated ax “A Study on the Deposits and Lending of Commercial Banks in Kerali~ A Comparative Study with Co-operative Banks.” It Is proposed in this study to evaluate the performance efficiency of Commercial Banks in the State against Co-operative Ranks in the State by assigning various parameters like profitability, credit-deposit ratio, the impact of non-performing amcts on profitability aad the degree of customer satisfaction with regard (© various banking services. Both commercial banking and co-operative hanking have been passing through a critical phase since the launching of the New Economie Policy back in 1991. It envisaged the opening of all spheres of economic activities, especially, hanking and insurance sectors to the slobal players. Hence the sudy is Htled ay “A Study on the Deposits and Leading of Commercial Banks in Kerala -A Comparative Study with Co-operative Banks.”