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Synopsis of the Project

Evaluating Performance of Berhampur Co-operative Central Bank in Recovery Management.

Brief Description:
Berhampur Co-operative Cenral Bank is a leading Central Bank in cooperative sector, is one of the 18 such central Banks in Orissa, established in the year 1914, since the dawn of co-operative movement in India. Its operations cover almost half of the area of Ganjam District and the entire Gajapati District in State of Orissa. Its overall performance is fairly good since it was awarded as the best performing bank in Orissa consecutively for six years in the decade starting 1991 to 2000. It has a very sound financial strength. It has a very loyal and committed employees base. It has a reach upto 60% of the agriculture sector farmers beside other non-farm sector also. However its performance in managing recoveries is not remarkable contrasting with the potentialities. There seems to be a gap between target and the achievement. The erratic behaviour in managing the recoveries is hence required to be studied to find out the remedies.

Recovery constitutes the bread and butter of any financial Institution. It is primary component of performances that keeps all the components moving sustainably. Of late it is reported that almost in all the co-operative institutions in Orissa the recoveries have been off the mark and performance is quite erratic across all the financial institutions functioning in Orissa. BCC Bank however is able to maintain a stable financial strength in spite of the generic shortcomings and weaknesses in managing its recoveries. Hence a study is necessary to find out the strategies and plans followed in this Bank, its potentialities and shortcomings and to suggest a more suitable mode of Recovery Plan keeping in view the requirements as envisaged in Baidyanathan Committee recommendations that has been adopted in the Bank since 2008-09.

Methodology to be adopted can be divided into following categories in this study

1. Study of literature: Study of literature available with the Bank and other places like Lead Bank for the Ganjam and Gajapati Districs of Orissa as the Bank has the reach in both the Districts 2. Formulations of Samples (a) For Field study; Probability Sampling is to be adopted for which samples from different segments to be selected considering following factors (1) Societal division : Tribal and Non-tribal (2) Market Availability: Near the Market and inaccessible remote area (3) Category of Agriculture: Field Crop and Non-field crop like fisheries poultries etc (4) Agriculture and non-agriculture

(b) For Personnel at different levels at (1) Bank Branch level (2) At PACS Level 3. Data Collection : (1) Primary Data from the field: Formulation of Sample Questions for field study and for the personnel of the bank at different levels (2) Secondary Data from the Lead Bank (Andhra Bank for Ganjam District) over the Recovery patterns of other Banks working under the District. 4. Data Analysis and validation 5. Presentation and Inferences

Motivational factors in the part of the personnels engaged in recoveries play a major role despite the entire legal framework prescribed by the management as well as the Govt. In any recovery strategy. Hence interactions with the personnel in bank and Primary Agricultural Co-operative Societies level will reveal a lot of informations on the matter. Hence focussing on the field study proves its rationality. The data sourced from Bank Account Books as well as secondary data from the Lead Bank is to contrast and comparison purposes.

Sampling is to be done keeping in view the different categories of loaned like

(1) Tribal Agriculturists (2) Non-Tribal Agriculturists (3) Remoteness: with good accessibility and without good accessibility (4) Crop : Field Crop like paddy and other crop and others like fisheries, poultries etc (5) Agriculture and Non-agriculture etc. The Sampling is not to be random but segmented as above

Instruments to be used:
Data analysis by regression model for trend analysis and behaviour analysis to be adopted.

Limitations of the Study:

1) Sampling is not exhaustive 2) Short time period: Sometimes short span data does not reflect the true trend 3) Govt. Policies; temporary populist policies of Govt. Has the ability ti distort the result ( Loan waiver facilities in the year 2008-09) 4) Temporary Climatic mishaps like floods and drought affecting the result

Future Directions for further study:

(1) Interdepartmental co-operations required for improvement of agriculture (2) Clear definitions of roles specifically for financing the agriculture and other activities by different financial institutions (3) A binding legal framework to reduce the non-performing assets (4) A better HR Management strategy to be adopted in co-operatiive sector (5) Automation and net banking to be applied in co-operative sector