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Ijsrp p1039 PDF
Ijsrp p1039 PDF
ISSN 2250-3153
Abstract- Banking business has done wonders for the world operations in more than one State. However, today this limitation
economy. The simple looking method of accepting money is no longer prevalent. While the co-operative banks in rural
deposits from savers and then lending the same money to areas mainly finance agricultural based activities including
borrowers, banking activity encourages the flow of money to farming, cattle, milk, hatchery, personal finance, etc. along with
productive use and investments. This in turn allows the economy some small scale industries and self-employment driven
to grow. In the absence of banking business, savings would sit activities, the co-operative banks in urban areas mainly finance
idle in our homes, the entrepreneurs would not be in a position to various categories of people for self-employment, industries,
raise the money, ordinary people dreaming for a new car or small scale units and home finance.
house would not be able to purchase cars or houses. The These banks provide most services such as savings and
government of India started the cooperative movement of India current accounts, safe deposit lockers, loan or mortgages to
in 1904. Then the government therefore decided to develop the private and business customers. For middle class users, for whom
cooperatives as the institutional agency to tackle the problem of a bank is where they can save their money, facilities like Internet
usury and rural indebtedness, which has become a curse for banking or phone banking is not very important. Although they
population. In such a situation cooperative banks operate as a are not better than private banks in terms of facilities provided,
balancing centre. At present there are several cooperative banks their interest rates are definitely competitive. However, unlike
which are performing multipurpose functions of financial, private banks, the documentation process is lengthy if not
administrative, supervisory and development in nature of stringent and getting a loan approved quickly is rather difficult.
expansion and development of cooperative credit system. In The criteria for getting a loan from a UCB are less stringent than
brief, the cooperative banks have to act as a friend, philosopher for a loan from a commercial bank.
and guide to entire cooperative structure. The study is based on
some successful co-op banks in Delhi (India). The study of the
bank‟s performance along with the lending practices provided to II. OBJECTIVES OF THE STUDY
the customers is herewith undertaken. The customer has taken
To know the lending practices of cooperative banks in
more than one type of loan from the banks. Moreover they
India.
suggested that the bank should adopt the latest technology of the
To measure and compare the efficiency of Cooperative
banking like ATMs, internet / online banking, credit cards etc. so
Banks of India.
as to bring the bank at par with the private sector banks.
To study the impact of „size‟ on the efficiency of the
Index Terms- Cooperative movement of India, Usury, Rural Cooperative Banks.
Indebtedness, Cooperative Banks, Bank‟s Performance, Lending To suggest the appropriate measures to improve the
Practices, Loan, ATMs, Internet/Online Banking, Credit Cards, efficiency of the Cooperative banks.
Private Sector Banks To know different type of loans preferred by different
sets of customers.
To know the satisfaction level of the customers from
I. INTRODUCTION Bank‟s lending policies.
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20,000-50,000 10 20%
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Study reveals that 68% respondents says that average time Table 8: Satisfaction of the customers with the amount &
taken for processing of the loan is less than 7 days, 26% says that period of instalment
it takes 7 – 14 days and 6 % says that it takes more than 14 days.
No. Of respondent Percentage (%)
Table 6. Ranking of the facilities provided by the co-op. Yes 34 68%
banks No 6 12%
Can‟t say 10 20%
Rank the facility No. of respondent Percentage (%)
Above average 16 32%
Average 30 60%
Below average 4 8%
Study reveals that 68% are satisfied with the amount and
period of installment, 12 % are not satisfied and 20 % can‟t say.
Figure 6: Ranking of the facilities provided by the co-op. Table 9: Preferable banks for borrowing facilities
banks
Preferable banks in future No. of respondent Percentage (%)
Study shows that 60% of the respondent says that facility Public banks 7 14%
provided by the bank are average, 32% say that its above average Private banks 15 30%
and 8% says that its below average.
Cooperative bank 28 56%
Table 7: Customer’s ranking for service of the bank
Excellent 12 24%
Good 26 52%
Average 12 24%
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IX. LIMITATIONS [11] Ohlson, J.A. (1980), "Financial Ratios and the Probabilistic Prediction of
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