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CHAPTER – V
OPERATIONAL PERFORMANCE OF CENTRAL COOPERATIVE BANKS IN PUNJAB
Cooperative banks with a vast network, wide coverage and
outreach to the remotest parts of the country has a unique position in
the rural credit system. Rural credit cooperatives are the prime
institutional agencies in the dispensation of credit for agriculture and
rural development. The Indian Banking industry has been
transformed since the implementation of the recommendations of the
Narasimham Committee (1991). The major element of Banking Sector
Reforms, popularly known as prudential norms was made applicable
to commercial banks from 1992. The cooperative banking sector was
excluded from the implementation of these reforms but in 1996-97
these norms were made applicable to cooperative banks also. The
cooperative banking system, being an important player of the Indian
credit system, has also witnessed a vast and comprehensive change
from regulated to competitive and deregulated scenario. In the light of
these changes, it is imperative to review the operational performance
of Central Cooperative Banks.
In the present chapter, an attempt has been made to analyse
the growth and performance of Central Cooperative Banks in Punjab
on the basis of following parameters:
(1) Branch Expansion
(2) Deposit Mobilization
(3) Credit Deployment
(4) Volume of Business
(5) Working Funds
(6) Owned Funds
(7) Human Resources (Manpower)
(8) Non Performing Assets as percentage to Total Advances
(9) Recovery Performance
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5.1 BRANCH EXPANSION Branch expansion is one of the most important instruments for
deposit mobilization for any bank and cooperative banks are no
exception. Since mid-sixties, emphasis has been laid on branch
expansion by the Central Cooperative Banks and they were
encouraged by the Reserve Bank of India to undertake branch
expansion on a large scale by adopting a liberal licensing policy and
permitting cash subsidies for new branches (Koli and Landage, 2007).
Branch expansion programme can aid development in two ways.
Firstly, it helps in mobilization of idle resources and their
channelisation into economically productive purposes. Secondly,
branches can identify genuine credit needs in the areas served by
them and provide credit especially to the neglected sectors so that
requirements of their areas may be adequately met (Chawla, 1987).
Under the provisions of the Banking Regulation Act, 1949 the Central
Cooperative Banks have the freedom to open their branches without
obtaining the permission from Reserve Bank of India. While opening
new branches by Central Cooperative Banks, potential for mobilization
of deposits and the avenues available for profitable deployment of
such funds is taken into consideration (Shoora, 2005). Central
Cooperative Banks and their branches do their loaning business
through Primary Agricultural Credit Societies (PACS), so while opening
new branches the number of PACS in that area is also taken into
consideration. Widespread branch network with diversity has helped
the cooperative banks in the state to register an enviable performance
in the matter of deposit mobilization.
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TABLE 5.1 BRANCHES OF CENTRAL COOPERATIVE BANKS IN PUNJAB
Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 57.00 55.00 58.00 58.00 64.00 60.00 60.00 56.00 56.00 57.00 57.00 57.00 57.00 -0.15 57.85 2.34 4.04 % share 7.34 7.58 7.37 7.31 7.67 7.28 7.40 7.01 7.00 7.12 7.07 7.07 7.09 Bathinda 38.00 36.00 38.00 41.00 40.00 43.00 40.00 40.00 40.00 40.00 41.00 41.00 39.00 0.53 39.77 1.74 4.37 % share 4.89 4.96 4.83 5.17 4.80 5.22 4.93 5.01 5.00 4.99 5.09 5.09 4.85 F.Sahib 23.00 23.00 23.00 23.00 28.00 27.00 24.00 24.00 24.00 24.00 24.00 25.00 25.00 0.43 24.38 1.56 6.38 % share 2.96 3.17 2.92 2.90 3.36 3.28 2.96 3.00 3.00 3.00 2.98 3.10 3.11 Fazilka 27.00 27.00 27.00 27.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 1.05 29.08 1.44 4.96 % share 3.47 3.72 3.43 3.41 3.60 3.64 3.70 3.76 3.75 3.74 3.72 3.72 3.73 Ferozepur 34.00 30.00 35.00 26.00 28.00 27.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 -3.39 26.23 4.36 16.63 % share 4.38 4.13 4.45 3.28 3.36 3.28 2.84 2.88 2.88 2.87 2.84 2.85 2.86 Faridkot 22.00 21.00 22.00 22.00 22.00 24.00 24.00 24.00 24.00 24.00 24.00 24.00 24.00 1.09 23.15 1.14 4.94 % share 2.83 2.89 2.79 2.77 2.64 2.91 2.96 3.00 3.00 3.00 2.98 2.98 2.99 Gurdaspur 44.00 44.00 44.00 44.00 44.00 44.00 44.00 44.00 44.00 44.00 44.00 44.00 44.00 0.00 44.00 0.00 0.00 % share 5.66 6.06 5.59 5.55 5.27 5.34 5.43 5.51 5.50 5.49 5.46 5.46 5.47 Hoshiarpur 61.00 58.00 61.00 61.00 64.00 64.00 62.00 63.00 63.00 63.00 65.00 65.00 65.00 0.69 62.69 2.06 3.28 % share 7.85 7.99 7.75 7.69 7.67 7.77 7.65 7.89 7.87 7.86 8.07 8.07 8.08 Jalandhar 72.00 66.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 72.00 0.24 71.54 1.66 2.33 % share 9.27 9.09 9.15 9.08 8.63 8.74 8.88 9.01 9.00 8.99 8.93 8.93 8.96 Kapurthala 30.00 29.00 34.00 35.00 40.00 40.00 40.00 38.00 38.00 39.00 39.00 40.00 40.00 2.25 37.08 3.88 10.47 % share 3.86 3.99 4.32 4.41 4.80 4.85 4.93 4.76 4.75 4.87 4.84 4.96 4.98 Ludhiana 55.00 49.00 55.00 56.00 60.00 60.00 60.00 54.00 54.00 54.00 54.00 54.00 54.00 -0.07 55.31 3.12 5.64 % share 7.08 6.75 6.99 7.06 7.19 7.28 7.40 6.76 6.75 6.74 6.70 6.70 6.71 Mansa 23.00 20.00 23.00 22.00 23.00 22.00 22.00 22.00 22.00 24.00 24.00 22.00 22.00 0.30 22.38 1.04 4.66 % share 2.96 2.76 2.92 2.77 2.76 2.67 2.71 2.75 2.75 3.00 2.98 2.73 2.74 Moga 36.00 35.00 38.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 2.18 44.54 4.72 10.60 % share 4.63 4.82 4.83 5.93 5.63 5.70 5.79 5.88 5.88 5.87 5.83 5.83 5.85 Muktsar 19.00 17.00 20.00 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 1.54 21.08 1.55 7.37 % share 2.44 2.34 2.54 2.65 2.52 2.67 2.71 2.75 2.75 2.75 2.73 2.73 2.74 N.Shahr 45.00 44.00 45.00 46.00 46.00 46.00 46.00 47.00 47.00 47.00 47.00 47.00 47.00 0.49 46.15 0.99 2.14 % share 5.79 6.06 5.72 5.80 5.52 5.58 5.67 5.88 5.88 5.87 5.83 5.83 5.85 Patiala 46.00 44.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 0.12 45.85 0.55 1.21 % share 5.92 6.06 5.84 5.80 5.52 5.58 5.67 5.75 5.75 5.74 5.71 5.71 5.72 Ropar 42.00 36.00 42.00 42.00 41.00 40.00 40.00 40.00 41.00 42.00 42.00 42.00 42.00 0.42 40.92 1.71 4.17 % share 5.41 4.96 5.34 5.30 4.92 4.86 4.93 5.01 5.12 5.24 5.21 5.21 5.22 Sangrur 61.00 57.00 62.00 62.00 75.00 67.00 67.00 67.00 67.00 63.00 65.00 65.00 65.00 0.58 64.85 4.26 6.57 % share 7.85 7.85 7.88 7.82 8.99 8.13 8.26 8.38 8.37 7.87 8.07 8.07 8.08 Tarn Taran 42.00 35.00 42.00 42.00 43.00 43.00 42.00 40.00 40.00 40.00 40.00 40.00 40.00 -0.10 40.69 2.10 5.15 % share 5.41 4.82 5.34 5.30 5.15 5.22 5.18 5.01 5.00 4.99 4.96 4.96 4.97 Total 777.00 726.00 787.00 793.00 834.00 824.00 811.00 799.00 800.00 801.00 806.00 806.00 804.00 0.41 797.54 25.96 3.26 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 14.95 15.33 14.34 14.75 14.72 14.03 14.78 14.70 14.63 14.18 14.30 14.30 14.44
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
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5.1.1 GROWTH IN BRANCHES OF CENTRAL COOPERATIVE BANKS IN PUNJAB
Table 5.1 exhibits the trends in branch expansion of Central
Cooperative Banks in Punjab during the period of study. Branch
expansion has shown a fluctuating trend during the study period. The
table provides that the number of branches increased from 777 in
1997-98 to 834 in 2001-02 and then decreased to 804 in the year
2009-10 at an exponential growth rate of 0.41 per cent. Kapurthala
Central Cooperative Bank has shown the highest exponential growth
rate of 2.25 per cent. Ferozepur Central Cooperative Bank, Amritsar
Central Cooperative Bank, Tarn Taran Central Cooperative Bank and
Ludhiana Central Cooperative Bank have shown exponential decline
during the study period. The exponential growth rate of Gurdaspur
Central Cooperative Bank is zero as there is no change in the number
of branches throughout the study period. Kapurthala Central
Cooperative Bank, Moga Central Cooperative Bank, Muktsar Central
Cooperative Bank, Faridkot Central Cooperative Bank, Fazilka
Central Cooperative Bank, Hoshiarpur Central Cooperative Bank,
Sangrur Central Cooperative Bank, Bathinda Central Cooperative
Bank, N. Shahr Central Cooperative Bank, Fatehgarh Sahib Central
Cooperative Bank and Ropar Central Cooperative Bank have the
exponential growth rate greater than the growth rate of all the Central
Cooperative Banks in Punjab. The growth rate of Gurdaspur Central
Cooperative Bank, Patiala Central Cooperative Bank, Jalandhar
Central Cooperative Bank and Mansa Central Cooperative Bank is
lower than the growth rate of all the Central Cooperative Banks. In
2009-10, Jalandhar Central Cooperative Bank had the maximum
number of branches, i.e., 72 (8.96 per cent share in total) followed by
Sangrur Central Cooperative Bank and Hoshiarpur Central
Cooperative Bank with 65 branches each (8.08 per cent share each in
total), while Muktsar Central Cooperative Bank and Mansa Central
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Cooperative Bank have the lowest number of branches, i.e., 22 each
(2.74 per cent share each in total). Statistical analysis reveals that
average number of branches was maximum for Jalandhar Central
Cooperative Bank (71.54) followed by Sangrur Central Cooperative
Bank (64.85) and Hoshiarpur Central Cooperative Bank (62.69) during
the study period. During the study period the average number of
branches was minimum for Muktsar Central Cooperative Bank (21.08)
followed by Mansa Central Cooperative Bank (22.38) and Faridkot
Central Cooperative Bank (23.15). The degree of variation in terms of
dispersion was lowest in Patiala Central Cooperative Bank (C.V. =
1.21) followed by N. Shahr Central Cooperative Bank (C.V. = 2.14),
Jalandhar Central Cooperative Bank (C.V. = 2.33) and the variation
was highest in Ferozepur Central Cooperative Bank (C.V. = 16.63)
followed by Moga Central Cooperative Bank (C.V. = 10.60) and
Kapurthala Central Cooperative Bank (C.V. = 10.47) during the period
of study.
The table also presents the data relating to coefficient of
concentration. The coefficient of concentration ranges from 14 to 16
per cent. The analysis of coefficient of concentration shows that there
is no concentration of branches in few districts.
5.2 DEPOSIT MOBILIZATION Deposits form the mainstay of bank resources and they
constitute the life blood of the bank. Deposit mobilization is an
important function of the bank. The amount of deposits depends upon
the saving habits of the people and the rate of interest. If the rate of
interest on deposits is high, it encourages saving among people and
there will be large volume of deposits. The banks have to take
initiatives to attract deposits because lending operations of the bank
depends upon the amount of deposits mobilized by the bank. Deposit
mobilization is a challenge to all bankers and banking institutions in
India (Desai, 1980). The mobilization of deposits by banks serves as
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the basis for capital formation and facilitates the process of economic
development. Increased deposits mean enlarged resources of banks
and consequential expanded opportunities for employment of funds in
the development of economy in accordance with the priorities set out
in plans (Pasricha, 1993).
The volume of deposits is important but the composition and
source of deposits is also equally important from the aspect of cost.
The Central Cooperative Banks accept deposits mainly on three
accounts:
Fixed Deposits: - Such deposits are not payable on demand but at
a fixed date or a period of notice. A high rate of interest is paid as
compared to other types of deposits.
Savings Deposits: - Such deposits are meant to encourage the
saving habits in the people by providing facilities for savings at
attractive terms and provide liberal withdrawal facilities.
Current Deposits: - These deposits provide the facility of
depositing money in the account without any restriction as
regards the amount or the number of withdrawals. No interest is
paid on such accounts but sometimes the banks charge
incidental charges for servicing such accounts.
As far as the cost of deposits is concerned, fixed deposits cost
the banks most and current deposits the least because banks have to
pay a very high rate of interest on fixed deposits, while no interest is
paid on current deposits. A nominal interest is paid on savings
deposits.
5.2.1 GROWTH IN DEPOSIT MOBILIZATION OF CENTRAL COOPERATIVE BANKS IN PUNJAB
The data related to deposits mobilized by all the Central
Cooperative Banks in Punjab is presented in Table 5.2. It can be
observed from the table that the amount of deposits of all the Central
Cooperative Banks in Punjab have moved from Rs. 177243.32 lac in
1997-98 to Rs. 751261.51 lac in 2009-10 listing an exponential
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growth rate of 11.92 per cent. Mansa Central Cooperative Bank
recorded the highest exponential growth rate of 16.58 per cent
followed by Muktsar Central Cooperative Bank with 15.85 per cent
growth rate. On the other hand, Jalandhar Central Cooperative Bank
has the lowest exponential growth rate of all Central Cooperative
Banks in the state, i.e., 9.44 per cent and N. Shahr Central
Cooperative Bank is little ahead with growth rate of 10.18 per cent.
The banks showing lower exponential growth rate in total deposits as
compared to growth rate of all Central Cooperative Banks taken
together are Jalandhar Central Cooperative Bank, N. Shahr Central
Cooperative Bank, Gurdaspur Central Cooperative Bank, Amritsar
Central Cooperative Bank, Ferozepur Central Cooperative Bank and
Ludhiana Central Cooperative Bank. However, the Central Cooperative
Banks exhibiting higher exponential growth rate in total deposits as
compared to the growth rate of all the Central Cooperative Banks
taken together are Mansa Central Cooperative Bank, Muktsar Central
Cooperative Bank, Bathinda Central Cooperative Bank, Fatehgarh
Sahib Central Cooperative Bank, Faridkot Central Cooperative Bank,
Fazilka Central Cooperative Bank, Sangrur Central Cooperative Bank,
Moga Central Cooperative Bank, Ropar Central Cooperative Bank,
Hoshiarpur Central Cooperative Bank, Kapurthala Central
Cooperative Bank, Tarn Taran Central Cooperative Bank and Patiala
Central Cooperative Bank.
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TABLE 5.2 DEPOSITS MOBLISED BY CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac)
Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 11618.53 13355.25 14691.35 19092.47 21436.88 22863.68 24617.46 24862.95 27199.06 29769.13 32687.71 37220.56 42682.88 10.41 24776.76 9225.49 37.23 % share 6.56 6.44 6.11 6.47 6.41 6.21 6.28 5.95 5.83 5.83 5.66 5.54 5.68 Bathinda 7098.29 8248.76 10077.81 12136.73 13761.14 15697.88 18067.51 20915.01 23014.75 24942.73 28805.60 32418.88 37446.31 14.41 19433.18 9540.76 49.10 % share 4.00 3.98 4.19 4.11 4.11 4.26 4.61 5.00 4.93 4.89 4.98 4.82 4.98 F.Sahib 3442.90 4215.39 4641.85 6796.84 7819.75 8600.48 8751.89 9169.02 11918.84 12970.14 14176.31 16237.75 18605.12 14.21 9795.87 4714.77 48.13 % share 1.94 2.03 1.93 2.30 2.34 2.33 2.23 2.19 2.55 2.54 2.45 2.42 2.48 Fazilka 4005.74 4977.97 5089.48 6874.19 7883.63 8457.61 9392.78 10279.15 11272.07 12743.44 15080.09 18637.08 21456.10 13.96 10473.03 5324.67 50.84 % share 2.26 2.40 2.12 2.33 2.35 2.30 2.40 2.46 2.41 2.50 2.61 2.77 2.86 Ferozepur 3230.61 3768.93 4440.87 3521.47 4377.77 5002.96 4844.20 4957.89 6023.85 7095.71 8719.39 11265.14 12479.69 11.01 6132.96 2962.87 48.31 % share 1.82 1.82 1.85 1.19 1.31 1.36 1.24 1.19 1.29 1.39 1.51 1.68 1.66 Faridkot 2610.31 3102.61 3848.68 5343.44 6075.87 6290.98 6854.80 7513.28 8448.66 9264.14 11017.39 12415.30 14337.93 14.00 7471.03 3564.01 47.70 % share 1.47 1.50 1.60 1.81 1.81 1.71 1.75 1.80 1.81 1.82 1.91 1.85 1.91 Gurdaspur 9931.87 11204.70 14765.02 16849.42 18183.83 19881.41 21534.37 22554.49 22759.04 23908.20 29198.20 35332.48 37236.94 10.41 21795.38 8296.76 38.07 % share 5.60 5.40 6.14 5.71 5.43 5.40 5.50 5.40 4.87 4.68 5.05 5.26 4.96 Hoshiarpur 18275.70 21228.55 22820.29 29385.10 33624.66 37452.62 39860.88 43383.34 48329.42 54585.22 61964.55 73228.05 82602.10 12.83 43595.42 20013.06 45.91 % share 10.31 10.23 9.49 9.95 10.05 10.17 10.17 10.38 10.35 10.69 10.72 10.89 11.00 Jalandhar 29323.05 32710.97 35657.33 43258.43 49044.29 54560.92 57590.47 58615.13 61512.37 66588.51 74224.82 86037.24 91478.56 9.44 56969.39 19393.78 34.04 % share 16.54 15.77 14.84 14.66 14.65 14.81 14.70 14.03 13.17 13.04 12.85 12.80 12.18 Kapurthala 14353.65 16288.38 19865.89 22957.99 27023.57 30421.81 32496.80 36112.08 39736.89 45321.59 49852.68 57913.41 63978.97 12.83 35101.82 15697.08 44.72 % share 8.10 7.85 8.27 7.78 8.08 8.26 8.29 8.64 8.51 8.88 8.63 8.61 8.52 Ludhiana 13727.35 16600.25 18123.76 21628.36 24285.75 26794.19 28515.25 31351.57 37749.18 39358.81 41357.30 48945.97 53428.93 11.43 30912.82 12503.67 40.45 % share 7.75 8.00 7.54 7.33 7.26 7.27 7.28 7.50 8.08 7.71 7.16 7.28 7.11 Mansa 1712.23 2281.14 2860.32 4126.29 5056.60 6009.56 6017.52 6841.96 7399.68 6737.65 10528.69 11580.13 13124.94 16.58 6482.82 3524.52 54.37 % share 0.97 1.10 1.19 1.40 1.51 1.63 1.54 1.64 1.59 1.32 1.82 1.72 1.75 Moga 5239.12 6126.71 7042.63 10259.99 11952.47 12815.60 13128.96 14054.95 16065.48 16324.40 19673.21 23260.33 27242.93 13.31 14091.29 6521.54 46.28 % share 2.96 2.95 2.93 3.48 3.57 3.48 3.35 3.36 3.44 3.20 3.41 3.46 3.62 Muktsar 1404.32 1978.98 2880.59 4010.27 4647.63 5324.60 5293.79 5843.03 6209.15 7986.04 8361.46 8957.62 10770.26 15.85 5666.75 2790.02 49.24 % share 0.79 0.95 1.20 1.36 1.39 1.44 1.35 1.40 1.33 1.56 1.45 1.33 1.43 N.Shahr 20356.93 22705.43 26895.60 30264.12 33196.68 36913.68 39109.92 41451.20 44176.51 50206.34 55285.56 63599.82 69966.49 10.18 41086.79 15288.95 37.21 % share 11.48 10.95 11.19 10.25 9.92 10.02 9.98 9.92 9.46 9.83 9.57 9.46 9.31 Patiala 8124.46 10010.63 13033.94 16439.07 17726.74 18917.03 20250.47 20995.42 25407.81 26861.41 31206.50 34237.27 38946.58 12.44 21704.41 9288.13 42.79 % share 4.58 4.83 5.42 5.57 5.30 5.13 5.17 5.02 5.44 5.26 5.40 5.09 5.18 Ropar 9579.94 12256.73 14909.40 16499.64 19596.05 20561.40 21990.15 24036.15 30748.21 33279.31 37027.36 40384.68 46697.68 13.01 25197.44 11497.66 45.63 % share 5.41 5.91 6.20 5.59 5.86 5.58 5.61 5.75 6.58 6.52 6.41 6.01 6.22 Sangrur 8839.61 10735.78 12222.22 16365.37 18463.26 20490.39 21960.42 23178.11 26507.47 28943.37 32772.38 40072.75 44401.40 13.33 23457.89 10912.52 46.52 % share 4.99 5.18 5.09 5.54 5.52 5.56 5.61 5.55 5.68 5.67 5.67 5.96 5.91 Tarn Taran 4368.71 5624.78 6485.94 9358.73 10486.51 11338.26 11526.65 11794.13 12507.79 13628.93 15845.37 20536.66 24377.70 12.78 12144.63 5647.75 46.50 % share 2.47 2.71 2.70 3.17 3.13 3.08 2.94 2.82 2.68 2.67 2.74 3.05 3.24
Total 177243.32 207421.94 240352.97 295167.92 334643.08 368395.06 391804.29 417908.86 466986.23 510515.07 577784.57 672281.12 751261.51 11.92 416289.6
9 175884.01 42.25 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 29.64 28.44 27.83 26.22 25.85 25.91 26.05 25.75 25.73 26.06 24.70 24.44 23.82
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
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At the end of the year 2009-10, Jalandhar Central Cooperative
Bank contributed maximum to the total deposits Rs. 91478.56 lac
(12.18 per cent of total deposits) but the growth rate of this bank in
total deposits is lower than the growth rate of all Central Cooperative
Banks taken together. Throughout the period of study, the
contribution of Jalandhar Central Cooperative Bank was maximum to
the total deposits. This was followed by Hoshiarpur Central
Cooperative Bank with Rs.82602.10 lac (11.00 per cent share). On
the other hand, the contribution of Muktsar Central Cooperative Bank
to total deposits is minimum Rs. 10770.26 lac (1.43 per cent). During
the period of study, the average amount of deposits mobilized by
Central Cooperative Banks was the highest for Jalandhar Central
Cooperative Bank (Rs. 56969.39 lac) followed by Hoshiarpur Central
Cooperative Bank (Rs. 43595.42 lac), N. Shahr Central Cooperative
Bank (Rs.41086.79 lac) and the average was lowest for Muktsar
Central Cooperative Bank (Rs. 5666.75 lac) followed by Ferozepur
Central Cooperative Bank (Rs. 6132.96 lac) and Mansa Central
Cooperative Bank (Rs. 6482.82 lac). The degree of variation in the
growth of deposits was highest for Mansa Central Cooperative Bank
(C.V. = 54.37) followed by Fazilka Central Cooperative Bank (C.V. =
50.84) and Muktsar Central Cooperative Bank (C.V. = 49.24) and the
consistency in the growth of deposits was highest in Jalandhar
Central Cooperative Bank (C.V. = 34.04) followed by N. Shahr Central
Cooperative Bank (C.V. = 37.21) and Amritsar Central Cooperative
Bank (C.V. = 37.23). The exponential growth of deposits is more than
the growth rate of branch expansion. This is probably due to the
improved banking habits in Punjab.
The table also highlights the extent of concentration of total
deposits. The data related to coefficient of concentration ranged from
23 to 30 per cent. It was highest in 1997-98, i.e., 29.64 per cent and
lowest in 2009-10, i.e., 23.82 per cent. The data of coefficient of
concentration shows that there was no concentration of deposits in
few districts.
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TABLE NO. 5.3 TYPE OF DEPOSITS (Rs, in Lac)
Type of
Deposits 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV
Fixed deposit 100916.06 117428.52 135218.92 162745.74 182038.65 188170.95 185680.08 182454.74 185140.52 203026.49 259383.24 328993.04 371094.24 9.33 200176.25 77923.01 38.93
% share 56.94 56.61 56.26 55.14 54.40 51.08 47.39 43.66 39.65 39.77 44.89 48.94 49.40
Saving
Deposit 69467.03 82290.49 96814.12 119804.88 140202.81 166299.90 190242.87 219413.50 262549.45 288043.60 298807.86 323379.26 355226.39 14.92 200964.78 97420.54 48.48
% share 39.19 39.67 40.28 40.59 41.90 45.14 48.56 52.50 56.22 56.42 51.72 48.10 47.28
Current
deposit 6860.23 7702.93 8319.93 12617.30 12401.62 13924.21 15881.34 16040.62 19296.26 19444.98 19593.47 19908.82 24940.88 10.54 15148.66 5488.76 36.23
% share 3.87 3.72 3.46 4.27 3.70 3.78 4.05 3.84 4.13 3.81 3.39 2.96 3.32
Total 177243.32 207421.94 240352.97 295167.92 334643.08 368395.06 391804.29 417908.86 466986.23 510515.07 577784.57 672281.12 751261.51 11.92 416289.69 175884.01 42.25
%share in
total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Coeff. of
concentration 29.47 29.62 29.88 29.07 29.64 29.56 29.29 29.50 29.21 29.53 29.95 30.38 30.02
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
215
5.2.2 BREAK UP OF DEPOSITS MOBILIZED BY CENTRAL COOPERATIVE BANKS IN PUNJAB
Table 5.3 presents the break up of total deposits into fixed,
current and savings deposits. It is evident from the table that savings
deposits have shown an increasing trend during the period of study.
The amount of savings deposits increased from Rs. 69467.03 lac in
1997-98 to Rs. 355226.39 lac in 2009-10. The percentage share of
savings deposits in total deposits increased from 39.19 per cent in
1997-98 to 47.28 per cent in 2009-10. The amount of fixed deposits
increased from Rs. 100916.06 lac to Rs. 371094.24 lac during the
period under study. The share of fixed deposits in total deposits
decreased from 56.94 per cent in 1997-98 to 49.40 per cent in 2009-
10. The amount of Current deposits increased from Rs. 6860.23 lac to
Rs. 24940.88 lac during the study period. Current deposits have
shown a fluctuating trend. The percentage share of current deposits
increased from 3.87 per cent in 1997-98 to 4.27 per cent in 2000-01
but decreased to 3.32 per cent in 2009-10. Savings deposits recorded
the highest growth rate of 14.92 per cent of all types of deposits, while
the fixed deposits recorded the lowest growth rate of 9.33 per cent.
Statistical analysis reveals that average deposits of all the Central
Cooperative Banks in Punjab is Rs. 119684.8 lac and the mean of
savings deposits is maximum (Rs. 200964.78 lac) and the mean of
current deposits is minimum (Rs. 15148.66 lac). Consistency in the
growth of current deposits (CV=36.23) was the highest and the
variation was the highest in savings deposits (CV=48.48).
The data related to coefficient of concentration ranges from
29.00 to 31.00 per cent. It was the highest in 2008-09, i.e., 30.38 per
cent and the lowest in 2000-01, i.e., 29.07 per cent. The coefficient of
concentration shows that there is no concentration of deposits in one
kind of deposits but it was in fixed and savings deposits.
216
TABLE 5.4 SAVING DEPOSITS OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac)
Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 4783.74 5627.33 6386.55 8623.23 10324.25 11831.33 13924.15 14624.91 17332.76 19638.83 20375.45 22192.75 25369.96 14.87 13925.79 6710.70 48.19 % share 6.89 6.84 6.60 7.20 7.36 7.11 7.32 6.67 6.60 6.82 6.82 6.86 7.14 Bathinda 2517.08 3138.62 3371.23 4044.28 4735.23 5950.62 7782.23 10126.16 10670.06 11947.99 12919.46 12861.98 16063.95 17.24 8163.76 4522.44 55.40 % share 3.62 3.81 3.48 3.38 3.38 3.58 4.09 4.62 4.06 4.15 4.32 3.98 4.52 F.Sahib 1346.03 1638.81 1853.12 2808.79 3195.99 3662.37 4172.90 4814.29 6842.33 7906.36 7472.74 7753.89 8356.22 17.41 4755.68 2600.37 54.68 % share 1.94 1.99 1.91 2.34 2.28 2.20 2.19 2.19 2.61 2.74 2.50 2.40 2.35 Fazilka 1456.13 1863.40 1573.49 2285.38 2817.82 2902.85 3489.07 4493.89 4880.51 5630.81 5969.78 6840.99 7751.31 15.43 3996.57 2090.23 52.30 % share 2.10 2.26 1.62 1.91 2.01 1.75 1.84 2.05 1.86 1.95 2.00 2.11 2.18 Ferozepur 1655.27 1907.48 2377.45 1664.76 2256.23 2724.22 2646.41 2835.59 3651.64 4084.72 4346.67 5028.77 5635.63 10.58 3139.60 1296.71 41.30 % share 2.38 2.32 2.45 1.39 1.61 1.64 1.39 1.29 1.39 1.42 1.46 1.55 1.59 Faridkot 1155.38 1362.59 1577.22 1998.93 2586.36 2676.07 2929.67 3594.50 4413.17 4341.32 4584.19 4837.44 5570.60 13.93 3202.11 1457.84 45.53 % share 1.66 1.65 1.63 1.67 1.84 1.61 1.54 1.63 1.68 1.51 1.53 1.49 1.57 Gurdaspur 4532.79 5051.67 6783.97 7784.72 8914.96 10910.77 11941.14 13508.93 14065.75 15231.35 15097.18 17511.08 18937.00 12.31 11559.33 4675.02 40.44 % share 6.52 6.14 7.01 6.50 6.36 6.56 6.28 6.16 5.36 5.29 5.05 5.42 5.33 Hoshiarpur 7165.13 8859.69 9641.66 12604.72 14855.71 17764.57 20303.94 23794.47 27950.24 31670.51 33318.95 36805.51 40343.05 15.85 21929.09 11260.05 51.35 % share 10.31 10.77 9.96 10.52 10.60 10.68 10.67 10.85 10.65 10.99 11.15 11.38 11.36 Jalandhar 10236.70 12065.35 13371.96 16476.54 19554.69 23522.82 26905.19 28534.13 34514.40 38220.65 41623.40 43777.22 44632.41 13.89 27187.34 12445.01 45.78 % share 14.74 14.66 13.81 13.75 13.95 14.15 14.14 13.01 13.15 13.27 13.93 13.54 12.57 Kapurthala 5097.29 6299.56 8193.24 9521.21 11528.58 13809.68 15865.91 19316.40 22661.35 26001.19 27657.09 30180.85 33157.56 17.04 17637.69 9541.98 54.10 % share 7.34 7.66 8.46 7.95 8.22 8.30 8.34 8.80 8.63 9.03 9.26 9.33 9.33 Ludhiana 6217.10 7376.44 7665.48 9985.18 11426.26 13274.10 15455.19 18104.80 23109.58 23844.87 22865.79 25363.39 26365.96 13.81 16234.93 7429.81 45.76 % share 8.95 8.96 7.92 8.33 8.15 7.98 8.12 8.25 8.80 8.28 7.65 7.84 7.42 Mansa 754.49 1025.17 1101.37 1427.43 1601.07 2347.01 2415.07 2873.75 3280.21 3201.13 3660.17 3752.31 4386.02 15.30 2448.09 1184.75 48.39 % share 1.09 1.25 1.14 1.19 1.14 1.41 1.27 1.31 1.25 1.11 1.23 1.16 1.24 Moga 2179.05 2556.80 2922.30 4339.90 5592.73 6519.18 7309.33 8498.99 10454.44 10842.67 11745.92 13309.27 14937.81 17.68 7785.26 4235.41 54.40 % share 3.14 3.11 3.02 3.62 3.99 3.92 3.84 3.87 3.98 3.76 3.93 4.12 4.21 Muktsar 663.86 756.25 1178.06 1657.28 1936.93 2322.39 2546.10 3319.75 3512.40 3772.54 4080.01 4388.59 4585.23 17.51 2670.72 1371.41 51.35 % share 0.95 0.92 1.22 1.38 1.38 1.40 1.34 1.51 1.34 1.31 1.36 1.36 1.29 N.Shahr 7913.93 8396.35 10647.43 11898.44 12997.36 14954.60 17001.48 19419.70 21935.10 25424.12 26809.52 28784.86 30543.25 12.57 18209.70 7873.20 43.24 % share 11.39 10.20 11.00 9.93 9.27 8.99 8.94 8.85 8.36 8.83 8.97 8.90 8.60 Patiala 2601.27 3116.73 4049.26 5327.10 6136.29 7784.66 8720.97 10179.73 12478.76 12881.51 12725.07 12670.68 15537.25 15.77 8785.33 4294.94 48.89 % share 3.75 3.79 4.18 4.45 4.38 4.68 4.59 4.64 4.75 4.47 4.26 3.92 4.37 Ropar 3733.21 4585.01 6091.56 6719.86 7407.52 8505.29 9837.72 11714.25 17939.20 18935.51 19304.49 19163.14 21610.12 16.31 11965.14 6484.29 54.19 % share 5.37 5.57 6.29 5.61 5.28 5.11 5.17 5.34 6.83 6.57 6.46 5.93 6.08 Sangrur 3335.12 3841.93 4827.40 5984.31 7264.93 8924.94 10356.10 12465.52 14821.47 15461.42 14435.60 16460.16 18371.21 15.68 10503.85 5174.66 49.26 % share 4.80 4.67 4.99 5.00 5.18 5.37 5.44 5.68 5.64 5.37 4.83 5.09 5.17 Tarn Taran 2123.46 2821.31 3201.37 4652.82 5069.90 5912.43 6640.30 7193.74 8036.08 9006.10 9816.38 11696.38 13071.85 15.10 6864.78 3390.81 49.39 % share 3.06 3.43 3.31 3.88 3.62 3.56 3.49 3.28 3.06 3.13 3.29 3.62 3.68 Total 69467.03 82290.49 96814.12 119804.88 140202.81 166299.90 190242.87 219413.50 262549.45 288043.60 298807.86 323379.26 355226.39 14.92 200964.78 97420.54 48.48 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 29.40 28.69 28.94 27.68 27.08 27.03 27.14 26.24 26.65 27.08 27.39 27.09 25.72
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
217
(i) SAVINGS DEPOSITS Savings deposits are the most important component of total
deposits. At the end of the study period, savings deposits contributed
Rs. 355226.39 lac (47.28 per cent) to the total deposits. Savings
deposits recorded the highest growth rate among all types of deposits.
Trend in savings deposits of all the Central Cooperative Banks in the
state during the study period is depicted in Table 5.4. Savings
deposits showed an upward trend during the period of study. The
table shows that the amount of savings deposits increased from Rs.
69467.03 lac in 1997-98 to Rs. 355226.39 lac in 2009-10 registering
an exponential growth rate of 14.92 per cent. There is five-fold
increase in savings deposits during the period of study. Moga Central
Cooperative Bank recorded the highest exponential growth rate of
17.68 per cent. The exponential growth rate of Ferozepur Central
Cooperative Bank was the lowest, i.e., 10.58 per cent. Moga Central
Cooperative Bank, Muktsar Central Cooperative Bank, Fatehgarh
Sahib Central Cooperative Bank, Bathinda Central Cooperative Bank,
Kapurthala Central Cooperative Bank, Ropar Central Cooperative
Bank, Hoshiarpur Central Cooperative Bank, Patiala Central
Cooperative Bank, Sangrur Central Cooperative Bank, Fazilka Central
Cooperative Bank, Mansa Central Cooperative Bank and Tarn Taran
Central Cooperative Bank have the exponential growth rate in savings
deposits higher than that of state level. On the other hand Ferozepur
Central Cooperative Bank, Gurdaspur Central Cooperative Bank, N.
Shahr Central Cooperative Bank, Ludhiana Central Cooperative Bank,
Jalandhar Central Cooperative Bank, Faridkot Central Cooperative
Bank and Amritsar Central Cooperative Bank have exponential
growth rate of savings deposits lower than the growth rate of all
Central Cooperative Banks taken together. By the end of the study
period, the contribution of Mansa Central Cooperative Bank was
minimum, i.e., 1.24 per cent share in savings deposits. On the other
218
hand, the contribution of Jalandhar Central Cooperative Bank was
maximum, i.e. 12.57 per cent share in savings deposits, followed by
Hoshiarpur Central Cooperative Bank with 11.36 per cent share in
savings deposits. The contribution of Jalandhar Central Cooperative
Bank was highest throughout the study period but the growth rate of
the bank was lower than the growth rate of all the Central Cooperative
Banks. The average savings deposits of all the Central Cooperative
Banks during the period of study is Rs. 10577.09 lac. Jalandhar
Central Cooperative Bank has shown the maximum average in saving
deposits, while Mansa Central Cooperative Bank has shown the lowest
average. Overall eight Central Cooperative Banks have recorded
average more than the average of all the Central Cooperative Banks in
Punjab. In terms of dispersion, the variation in the growth of saving
deposits was lowest for Gurdaspur Central Cooperative Bank (C.V. =
40.44) followed by Ferozepur Central Cooperative Bank (C.V. = 41.30),
N. Shahr Central Cooperative Bank (C.V. = 43.24) and the variation
was highest in Bathinda Central Cooperative Bank (C.V. = 55.40)
followed by Fatehgarh Sahib Central Cooperative Bank (C.V. = 54.68)
and Moga Central Cooperative Bank (C.V. = 54.40) during the period
of study.
The table also highlights the extent of concentration of savings
deposits. The Coefficient of concentration in savings deposits of all the
Central Cooperative Banks ranged from 25 to 30 per cent during the
study period. It was highest in 1997-98 (29.40 per cent) and lowest is
2009-10 in (25.72 per cent). The coefficient of concentration declines
from 29.40 per cent to 25.72 per cent during the study period which
shows that there is marginal reduction in inter district disparities in
savings deposits. A careful analysis of coefficient of concentration
shows that there is no concentration of saving deposits in few
districts.
219
TABLE NO. 5.5 FIXED DEPOSITS OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac)
Central Coop Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 6659.22 7462.37 8048.27 9938.37 10721.03 10531.57 10042.29 9618.56 9276.82 9603.30 11668.00 14046.46 16419.73 5.41 10310.46 2616.61 25.38 % share 6.60 6.36 5.95 6.11 5.89 5.60 5.41 5.27 5.01 4.73 4.50 4.27 4.43 Bathinda 4010.12 4575.33 6182.57 7398.49 8388.54 9041.49 9260.63 9663.26 10029.99 10685.40 14126.36 18108.34 19998.95 12.45 10113.04 4777.36 47.24 % share 3.98 3.90 4.57 4.55 4.61 4.80 4.99 5.30 5.42 5.26 5.45 5.50 5.39 F.Sahib 1965.56 2422.95 2669.62 3780.91 4451.24 4724.32 4468.08 4212.32 4867.18 4880.31 6470.31 8200.37 9915.52 11.72 4848.36 2242.50 46.25 % share 1.95 2.06 1.97 2.32 2.44 2.51 2.41 2.31 2.63 2.41 2.49 2.49 2.67 Fazilka 2138.58 2794.60 3192.80 4209.33 4614.64 5082.14 5256.31 4876.83 5324.14 6047.58 8260.04 10599.95 12352.25 13.05 5749.94 2987.65 51.96 % share 2.12 2.38 2.36 2.59 2.54 2.70 2.83 2.67 2.88 2.98 3.18 3.22 3.33 Ferozepur 1424.85 1743.58 1889.41 1553.35 1923.99 2101.42 1970.85 1895.38 1968.26 2567.60 3918.12 5653.98 6275.87 11.09 2683.59 1586.36 59.11 % share 1.41 1.49 1.40 0.96 1.06 1.12 1.06 1.04 1.06 1.27 1.51 1.72 1.69 Faridkot 1313.34 1616.49 2161.07 3191.99 3375.84 3523.57 3764.31 3720.15 3807.32 4513.35 6074.47 7149.32 8320.96 14.08 4040.94 2058.63 50.94 % share 1.30 1.38 1.60 1.96 1.85 1.87 2.03 2.04 2.06 2.22 2.34 2.17 2.24 Gurdaspur 5118.10 5872.26 7612.61 8346.58 8643.13 8278.76 7972.98 7881.11 7704.68 7876.96 12521.90 16853.00 17189.45 8.04 9374.73 3790.47 40.43 % share 5.07 5.00 5.63 5.13 4.75 4.40 4.29 4.32 4.16 3.88 4.83 5.12 4.63 Hoshiarpur 10660.62 11922.42 12719.53 15920.11 17966.68 18799.00 18609.77 18797.80 19365.46 21602.43 27618.59 35088.26 40950.14 10.18 20770.83 8901.92 42.86 % share 10.56 10.15 9.41 9.78 9.87 9.99 10.02 10.30 10.46 10.64 10.65 10.67 11.03 Jalandhar 17894.39 19287.17 20959.51 24305.48 26616.85 27551.17 27033.53 26624.05 23699.54 24452.99 28390.72 38588.20 41526.92 5.35 26686.96 6770.64 25.37 % share 17.73 16.42 15.50 14.93 14.62 14.64 14.56 14.59 12.80 12.04 10.95 11.73 11.19 Kapurthala 8492.83 9080.56 10707.46 12059.26 14044.80 14870.82 14881.96 14794.39 15186.53 17501.22 20176.03 25847.46 27653.29 9.26 15792.05 5831.97 36.93 % share 8.42 7.73 7.92 7.41 7.72 7.90 8.01 8.11 8.20 8.62 7.78 7.86 7.45 Ludhiana 6991.06 8803.12 9823.67 10952.00 12204.02 12901.76 12450.75 12620.21 13849.72 14715.87 17590.36 22394.85 25898.12 9.17 13938.12 5299.49 38.02 % share 6.93 7.50 7.27 6.73 6.70 6.86 6.70 6.92 7.48 7.25 6.78 6.81 6.98 Mansa 890.76 1099.74 1641.33 2383.92 2972.94 3202.91 3176.25 3132.97 3071.18 3030.06 6515.38 7198.50 8370.28 17.35 3591.25 2321.33 64.64 % share 0.88 0.94 1.21 1.46 1.63 1.70 1.71 1.72 1.66 1.49 2.51 2.19 2.26 Moga 2884.63 3433.77 3946.95 5638.71 6067.62 5993.63 5475.93 5164.58 5154.38 5079.98 7461.19 9464.80 11623.98 8.71 5953.09 2396.45 40.26 % share 2.86 2.92 2.92 3.46 3.33 3.18 2.95 2.83 2.78 2.50 2.88 2.88 3.13 Muktsar 579.60 1002.13 1340.31 1855.12 2284.52 2637.00 2405.33 2126.48 2276.33 2756.04 3276.71 4040.81 5113.00 14.46 2437.95 1217.12 49.92 % share 0.57 0.85 0.99 1.14 1.25 1.40 1.30 1.16 1.23 1.36 1.26 1.23 1.38 N.Shahr 11766.36 13460.31 15242.53 17120.88 18815.01 20422.79 20800.49 20319.65 20664.37 23253.37 26744.26 32846.35 36836.86 8.39 21407.17 7205.82 33.66 % share 11.66 11.46 11.27 10.52 10.34 10.85 11.20 11.14 11.16 11.45 10.31 9.98 9.93 Patiala 5170.41 6564.33 8600.16 10642.01 11359.20 10838.89 11097.28 10553.76 12075.58 13594.45 18106.52 21101.99 22900.92 10.75 12508.12 5263.20 42.08 % share 5.12 5.59 6.36 6.54 6.24 5.76 5.98 5.78 6.52 6.70 6.98 6.41 6.17 Ropar 5687.74 7353.56 8478.05 9436.25 11792.49 11518.61 11683.99 11806.51 12090.84 13849.91 17012.75 20434.29 23826.64 10.22 12690.13 5116.93 40.32 % share 5.64 6.26 6.27 5.80 6.48 6.12 6.29 6.47 6.53 6.82 6.56 6.21 6.42 Sangrur 5085.19 6267.26 6839.94 9486.84 10614.27 10925.05 10669.35 10201.03 10495.14 12610.61 17757.12 22956.41 25154.11 12.02 12235.56 6122.62 50.04 % share 5.04 5.34 5.06 5.83 5.83 5.82 5.75 5.59 5.67 6.21 6.85 6.98 6.78 Tarn Taran 2182.70 2666.57 3163.13 4526.14 5181.84 5226.05 4660.00 4445.70 4233.06 4405.06 5694.41 8419.70 10767.25 9.81 5043.97 2306.56 45.73 % share 2.16 2.27 2.34 2.78 2.85 2.78 2.51 2.44 2.29 2.17 2.19 2.56 2.90 Total 100916.06 117428.52 135218.92 162745.74 182038.65 188170.95 185680.08 182454.74 185140.52 203026.49 259383.24 328993.04 371094.24 9.33 200176.25 77923.01 38.93 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 30.69 29.44 28.21 26.28 26.32 26.17 26.55 26.84 26.87 27.62 24.94 24.78 23.97
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
220
(ii) FIXED DEPOSITS Fixed deposits are the second most important component of
total deposits. Fixed deposits recorded the lowest exponential growth
rate of all types of deposits. The share of fixed deposits in total
deposits declined from 56.94 per cent to 49.40 per cent during the
period of study. Table 5.5 exhibits the trends in fixed deposits of all
the Central Cooperative Banks operating in Punjab during the period
of study. The amount of fixed deposit increased from Rs. 100916.06
lac in 1997-98 to Rs 371094.24 lac in 2009-10 listing an exponential
growth rate of 9.33 per cent. By the end of March 2010 the
contribution of Jalandhar Central Cooperative Bank was maximum to
fixed deposits, i.e., Rs. 41526.92 lac (11.19 per cent share in fixed
deposits) followed by Hoshiarpur Central Cooperative Bank Rs.
40950.14 lac (11.03 per cent share in fixed deposits) and N. Shahr
Central Cooperative Bank Rs. 36836.86 lac (9.93 per cent share in
fixed deposits). On the other hand, the contribution of Muktsar
Central Cooperative Bank was minimum Rs. 5113.00 lac which
accounted mere 1.38 per cent share in fixed deposits and Ferozepur
Central Cooperative Bank was little ahead with 1.69 per cent share in
fixed deposits. Mansa Central Cooperative Bank recorded the highest
exponential growth rate in fixed deposits, i.e., 17.35 per cent, while
Jalandhar Central Cooperative Bank recorded the lowest exponential
growth rate in fixed deposits, i.e., 5.35 per cent.
The Central Cooperative Banks showing higher growth rate in
fixed deposits compared to growth rate of all the Central Cooperative
Banks in Punjab are Mansa Central Cooperative Bank, Muktsar
Central Cooperative Bank, Faridkot Central Cooperative Bank, Fazilka
Central Cooperative Bank, Bathinda Central Cooperative Bank,
Sangrur Central Cooperative Bank, Fatehgarh Sahib Central
Cooperative Bank, Ferozepur Central Cooperative Bank, Patiala
Central Cooperative Bank, Ropar Central Cooperative Bank,
Hoshiarpur Central Cooperative Bank and Tarn Taran Central
221
Cooperative Bank. However, Jalandhar Central Cooperative Bank,
Amritsar Central Cooperative Bank, Gurdaspur Central Cooperative
Bank, N. Shahr Central Cooperative Bank, Moga Central Cooperative
Bank, Ludhiana Central Cooperative Bank and Kapurthala Central
Cooperative Bank recorded lower exponential growth rate in fixed
deposits compared to the growth rate at the state level. During the
period of study average fixed deposits was highest in Jalandhar
Central Cooperative Bank (Rs.26686.96 lac) followed by N. Shahr
Central Cooperative Bank (Rs. 21407.17 lac), Hoshiarpur Central
Cooperative Bank (Rs. 20770.83 lac), while the average was lowest for
Muktsar Central Cooperative Bank (Rs. 2437.95 lac) followed by
Ferozepur Central Cooperative Bank (Rs.2683.59 lac) and Mansa
Central Cooperative Bank (Rs. 3591.25 lac). The consistency in the
growth of fixed deposits was highest in Jalandhar Central Cooperative
Bank (C.V. = 25.37) followed by Amritsar Central Cooperative Bank
(C.V. =25.38) and N. Shahr Central Cooperative Bank (C.V. = 33.66),
while the consistency was lowest in Mansa Central Cooperative Bank
(C.V. = 64.64), Ferozepur Central Cooperative Bank (C.V. = 59.11) and
Fazilka Central Cooperative Bank (C.V. = 51.96) during the period of
study.
The Coefficient of concentration in fixed deposits of all the
Central Cooperative Banks in Punjab ranged from 23 to 31 per cent
during the study period. It was highest in 1997-98, i.e., 30.69 per cent
and lowest is 2009-10, i.e., 23.97 per cent. The coefficient of
concentration declines during the study period; it shows reduction in
inter district disparities in fixed deposits. The value of Coefficient of
concentration is very low which shows that there is no concentration
of fixed deposits in few districts.
222
TABLE 5.6 CURRENT DEPOSITS OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac)
Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 175.57 265.55 256.53 530.87 391.60 500.78 651.02 619.48 589.48 527.00 644.26 981.35 893.19 12.22 540.51 235.19 43.51 % share 2.56 3.45 3.08 4.21 3.16 3.60 4.10 3.86 3.06 2.71 3.29 4.93 3.58 Bathinda 571.09 534.81 524.01 693.96 637.37 705.77 1024.65 1125.59 2314.70 2309.34 1759.78 1448.56 1383.41 12.72 1156.39 645.84 55.85 % share 8.32 6.94 6.30 5.50 5.14 5.07 6.45 7.02 12.00 11.88 8.98 7.28 5.55 F.Sahib 131.31 153.63 119.11 207.14 172.52 213.79 110.91 142.41 209.33 183.47 233.26 283.49 333.38 6.21 191.83 65.21 33.99 % share 1.91 1.99 1.43 1.64 1.39 1.54 0.70 0.89 1.09 0.94 1.19 1.42 1.34 Fazilka 411.03 319.97 323.19 379.48 451.17 472.62 647.40 908.43 1067.42 1065.05 850.27 1196.14 1352.54 13.52 726.52 363.56 50.04 % share 5.99 4.15 3.89 3.01 3.64 3.39 4.08 5.66 5.53 5.48 4.34 6.01 5.42 Ferozepur 150.49 117.87 174.01 303.36 197.55 177.32 226.93 226.92 403.95 443.39 454.60 582.39 568.19 13.23 309.77 161.59 52.16 % share 2.19 1.53 2.09 2.40 1.59 1.27 1.43 1.42 2.10 2.28 2.32 2.93 2.28 Faridkot 141.59 123.53 110.39 152.52 113.67 91.34 160.82 198.63 228.17 409.47 358.73 428.54 446.37 13.44 227.98 133.22 58.43 % share 2.06 1.60 1.33 1.21 0.92 0.66 1.01 1.24 1.18 2.11 1.83 2.15 1.79 Gurdaspur 280.98 280.77 368.44 718.12 625.74 691.88 1620.25 1164.45 988.61 799.89 1579.12 968.40 1110.49 12.86 861.32 437.62 50.81 % share 4.10 3.65 4.43 5.69 5.05 4.97 10.22 7.26 5.12 4.11 8.06 4.87 4.45 Hoshiarpur 449.95 446.44 459.10 860.27 802.27 889.05 947.17 791.07 1013.72 1312.28 1027.01 1334.28 1308.91 9.62 895.50 313.92 35.06 % share 6.56 5.80 5.52 6.82 6.47 6.38 5.96 4.93 5.25 6.75 5.24 6.70 5.25 Jalandhar 1191.96 1358.45 1325.86 2476.41 2872.75 3486.93 3651.75 3456.95 3298.43 3914.87 4210.70 3671.82 5319.23 11.74 3095.09 1225.83 39.61 % share 17.38 17.64 15.94 19.63 23.16 25.04 22.99 21.55 17.09 20.13 21.49 18.44 21.33 Kapurthala 763.53 908.26 965.19 1377.52 1450.19 1741.31 1748.93 2001.29 1889.01 1819.18 2019.56 1885.10 3168.12 9.58 1672.09 621.60 37.17 % share 11.13 11.79 11.60 10.92 11.69 12.51 11.01 12.48 9.79 9.36 10.31 9.47 12.70 Ludhiana 519.19 420.69 634.61 691.18 655.47 618.33 609.31 626.56 789.88 798.07 901.15 1187.73 1164.85 6.97 739.77 228.93 30.95 % share 7.57 5.46 7.63 5.48 5.29 4.44 3.84 3.91 4.09 4.10 4.60 5.97 4.67 Mansa 66.98 156.23 117.62 314.94 482.59 459.64 426.20 835.24 1048.29 506.46 353.14 629.32 368.64 14.83 443.48 276.98 62.45 % share 0.98 2.03 1.41 2.50 3.89 3.30 2.68 5.21 5.43 2.60 1.80 3.16 1.48 Moga 175.44 136.14 173.38 281.38 292.12 302.79 343.70 391.38 456.66 401.75 466.10 486.26 681.14 12.03 352.94 151.41 42.90 % share 2.56 1.77 2.08 2.23 2.36 2.18 2.16 2.44 2.37 2.07 2.38 2.44 2.73 Muktsar 160.86 220.60 362.22 497.87 426.18 365.21 342.17 396.80 420.42 1457.46 1004.74 528.22 1072.03 13.54 558.06 380.05 68.10 % share 2.35 2.86 4.35 3.94 3.44 2.62 2.15 2.47 2.18 7.50 5.13 2.65 4.30 N.Shahr 676.64 848.77 1005.64 1244.80 1384.31 1536.29 1307.95 1711.85 1577.04 1528.85 1731.78 1968.61 2586.38 8.84 1469.92 496.37 33.77 % share 9.86 11.02 12.09 9.87 11.16 11.03 8.24 10.67 8.17 7.86 8.84 9.89 10.37 Patiala 352.78 329.57 384.52 469.96 231.25 293.48 432.42 261.93 853.47 385.46 374.91 464.60 508.41 3.19 410.98 156.28 38.03 % share 5.14 4.28 4.62 3.72 1.86 2.11 2.72 1.63 4.42 1.98 1.91 2.33 2.04 Ropar 158.99 318.16 339.79 343.53 396.04 537.50 468.44 515.39 718.17 493.88 710.12 787.25 1260.92 12.94 542.17 280.35 51.71 % share 2.32 4.13 4.08 2.72 3.19 3.86 2.95 3.21 3.72 2.54 3.62 3.95 5.05 Sangrur 419.30 626.59 554.88 894.22 584.06 640.40 934.97 511.56 1190.86 871.34 579.66 656.18 876.08 3.32 718.47 216.79 30.17 % share 6.11 8.13 6.67 7.09 4.71 4.60 5.89 3.19 6.17 4.48 2.96 3.30 3.51 Tarn Taran 62.55 136.90 121.44 179.77 234.77 199.78 226.35 154.69 238.65 217.77 334.58 420.58 538.60 13.43 235.88 129.07 54.72 % share 0.91 1.78 1.46 1.42 1.89 1.43 1.42 0.96 1.24 1.12 1.71 2.11 2.16 Total 6860.23 7702.93 8319.93 12617.30 12401.62 13924.21 15881.34 16040.62 19296.26 19444.98 19593.47 19908.82 24940.88 10.54 15148.66 5488.76 36.23 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 30.81 29.93 28.90 28.89 31.44 33.89 33.91 33.05 27.33 32.11 31.35 26.91 29.04
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
223
(iii) CURRENT DEPOSITS Table 5.6 depicts the trend in current deposits of Central
Cooperative Banks operating in Punjab during the study period. The
contribution of current deposits is lowest to total deposits. The share
of current deposit in total deposits ranged from 3 to 5 per cent during
the period of study. The amount of current deposits increased from
Rs. 6860.23 lac to Rs. 24940.88 lac during the period of study. It can
be observed from the table that at the end of the study period,
Jalandhar Central Cooperative Bank recorded the highest
contribution to the current deposits (Rs. 5319.23 lac) which
accounted 21.33 per cent share in total current deposits. The
contribution of Jalandhar Central Cooperative Bank to current
deposits was maximum throughout the study period. On the other
hand, minimum contribution in respect of current deposits pertained
by Fatehgarh Sahib Central Cooperative Bank Rs. 333.38 lac (1.34 per
cent share). The exponential growth rate in current deposits was
highest for Mansa Central Cooperative Bank, i.e., 14.83 per cent
followed by Muktsar Central Cooperative Bank with 13.54 per cent
and Fazilka Central Cooperative Bank with 13.52 per cent growth
rate. The exponential growth rate was lowest for Patiala Central
Cooperative Bank, i.e., 3.19 per cent. Overall exponential growth rate
in current deposits taking all the Central Cooperative Banks in Punjab
is 10.54 per cent which is lower than the exponential growth rate in
total deposits. Patiala Central Cooperative Bank, Sangrur Central
Cooperative Bank, Fatehgarh Sahib Central Cooperative Bank,
Ludhiana Central Cooperative Bank, N. Shahr Central Cooperative
Bank, Kapurthala Central Cooperative Bank and Hoshiarpur Central
Cooperative Bank have shown lower growth rate in current deposits
than the growth rate all the Central Cooperative Banks. Central
Cooperative Banks exhibiting higher growth rate in current deposits
compared to the growth rate at the state level are Mansa Central
Cooperative Bank, Muktsar Central Cooperative Bank, Fazilka Central
224
Cooperative Bank, Faridkot Central Cooperative Bank, Tarn Taran
Central Cooperative Bank, Ferozepur Central Cooperative Bank, Ropar
Central Cooperative Bank, Gurdaspur Central Cooperative Bank,
Bathinda Central Cooperative Bank, Amritsar Central Cooperative
Bank, Moga Central Cooperative Bank and Jalandhar Central
Cooperative Bank.
The average current deposits of all the Central Cooperative
Banks during the period of study is Rs. 797.31 lac. Jalandhar Central
Cooperative Bank has the maximum average in current deposits,
while Fatehgarh Sahib Central Cooperative Bank has the lowest
average. Overall only six (6) Central Cooperative Banks has average
more than the average of all the Central Cooperative Banks in Punjab.
In terms of dispersion, the consistency in the growth of current
deposits, was highest for Sangrur Central Cooperative Bank (C.V. =
30.17), Ludhiana Central Cooperative Bank (C.V. = 30.95), Fatehgarh
Sahib Central Cooperative Bank (C.V. = 33.99) while the variation was
maximum in Muktsar Central Cooperative Bank (C.V. = 68.10)
followed by Mansa Central Cooperative Bank (C.V. = 62.45) and
Faridkot Central Cooperative Bank (C.V. = 58.43) during the period of
study.
The Coefficient of concentration of current deposits of all the
Central Cooperative Bank operating in Punjab ranged from 26 to 34
per cent. It was highest in 2003-04 (33.91 per cent) and was lowest in
2008-09 (26.91 per cent). The Coefficient of concentration shows that
there is no concentration of current deposits in few districts.
5.3 CREDIT DEPLOYMENT Credit is the cornerstone of the banking business. The basic
function of credit is to enable individual and business enterprises to
purchase ahead of their ability or desire to pay (Chawla, 1987). Credit
policy of banks gives them a special status in the economic system of
a country. A judicious use of bank credit can be instrumental in
economic growth, at the same time its reckless use may spell perils. It
225
is the manner in which it lends money entrusted to it that its capacity
and usefulness to the community is judged (Vashisht, 1991). The
strength of the banking system thus primarily depends upon the
soundness of the advances. In fact advances inspire confidence in the
depositors and prospective customers of banking sectors (Desai, 1980)
Loans and advances are the main source of working capital,
which earn interest for the bank and can be construed as an
important determinant of profit. Central Cooperative Banks are
expected to meet the credit requirements of Primary Agricultural
Credit Societies (PACS) at the grass root level. The volume of credit is
important because it affects the earning of the bank, but the
qualitative aspect of credit i.e. disbursement of credit in accordance to
the purposes and programmes is more important. The classification of
loans and advances according to the purpose is given below:
1. Revolving Cash Credit to Farmers(RCC) Beneficiary : Any individual farmer holding the agricultural land.
Purpose : Credit facility for meeting out socio-economic needs.
Loan Limit : Maximum amount Rs. 6.00 lac subject to Rs. 1.00
lac per acre.
2. Non Farmer Sector Scheme(NFS) Beneficiary : Individual, Sole Proprietorship Firm, Cooperative
Societies or a company.
Purpose : For the establishment of cottage, tiny and SSI unit.
Loan Limit : Maximum loan up-to Rs. 50.00 lac at CCB level
Personal Loan Scheme.
3. PERSONAL LOAN SCHEME Beneficiary : Employees of Punjab Govt. PSU, Boards,
Corporation etc.
Purpose : Credit Facility for meeting out socio- economic
needs.
Loan Limit : 12 times of gross monthly salary or Rs. 2.00 lac,
whichever is less.
226
4. Consumer Durable Loan Beneficiary : Individual salary earners and non salary earners.
Purpose : For the purchase of Consumer Durables.
Loan Limit : Maximum loan up to Rs. 1.00 lac.
5. Two- Wheeler Loan to Farmers Beneficiary : Any agriculturist having land in his own name or
his Family member.
Purpose : For the Purchase of new two wheeler.
Loan Limit : Maximum loan up-to Rs. 50 lac.
6. Cash Credit Facility to Traders. Beneficiary : Individual, Sole Proprietorship, Firm. Cooperative
Societies or a Company
Purpose : For meeting working Capital Requirement of
business.
Loan Limit : Maximum loan up-to Rs. 25.00 lac.
7. Vehicle Loan Scheme Beneficiary : Individual, Firm, HUF, Trust, Coop. Societies or a
Company.
Purpose : For the purchase of new vehicle for business and
personal use.
Loan Limit : Maximum amount up-to Rs. 10.00 lac or 80 per cent
of cost of the vehicle.
8. Second Hand Vehicle loan Scheme Beneficiary : Individual, Sole Prop., Professionals and Partnership
firms.
Purpose : For the purchase of Second hand vehicle should not be
more than 3 years old. .
Loan Limit : Maximum amount up-to Rs. 5.00 lac or 75 per cent of
cost of the vehicle.
9. Rural Housing Scheme. Beneficiary : Individual and members of Coop. Housing Societies.
Purpose : Purchase of Built up house or flat, construction of
new house, Repairs / renovation and addition of
existing house in Urban area.
227
Loan Limit : Maximum amount up-to Rs. 15.00 lac.
10. Urban Housing Scheme. Beneficiary : Individual and Members of Coop. Housing Societies.
Purpose : Purchase of Built up house or flat, construction of
new house, repairs/ renovation and addition of
existing house in Urban area.
Loan Limit : Maximum amount up-to Rs. 25.00 lac.
11. Mini Dairy Scheme. Beneficiary : Members of Coop. Milk Producers Societies/PACS.
Purpose : Purchase of up to 25 Milch Cattle.
Loan Limit : Maximum amount up-to Rs. 5.00 lac.
12. Commercial Diary Development Scheme. Beneficiary : Any Individual, Partnership firm, corporate body
and any other cooperative Organization.
Purpose : To increase the income of milk producers by helping
the to purchase high yielding milch cattle and to
purchase of equipments.
Loan Limit : Maximum amount up-to Rs. 25.00 lac.
13. Education Loan Scheme Beneficiary : Salaried employees of Cooperative Bank, Punjab
Govt/ Chandigarh Administration and its Boards
and corporation.
Purpose : To provide financial assistance to deserving and
meritorious students for pursing higher studies in
India or abroad.
Loan Limit : Maximum amount up-to Rs. 10.00 lac.
14. Cooperative Educational Loan Scheme Children of Poor Farmers, Dalits, BC, etc.
Beneficiary : Children of poor Farmer, Dalits, B.C. and other
poor sections.
228
Purpose : To provide financial assistance to deserving and
meritorious students for pursing higher studies in
India or abroad.
Loan Limit : Maximum amount up-to Rs. 10.00 lac.
15. Loan against Rental Income Scheme.
Beneficiary : Owner of property who have let out or proposed to
be let out the same to reputed company.
Purpose : For meeting business/personal use
Loan Limit : Maximum to the extent of 75 per cent of post TDS
rent Receivable for a period not exceeding 120
months or un-expired period of lease.
16. Dairy Loan Scheme to Purchase a Cow
Beneficiary : Members of Coop. Milk Producers Society
Purpose : Purchase a Cow
Loan Limit : Maximum amount up-to Rs. 0.50 lac.
17. Loan against Property
Beneficiary : Any Individual.
Purpose : To offer instant solutions relating to socio-economic
and Business needs such as children’s higher
education, travel, daughter’s marriage, medical
emergencies etc.
Loan Limit : Maximum amount up-to Rs. 25.00 lac.
18. Loan Scheme for Earnest Money
Beneficiary : Any Individual.
Purpose : To meet the financial requirements towards earnest
money deposit to book residential plot/built up
house or flat by Govt. Approved Agency
Loan Limit : As per schemes of the agency.
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19. Mai Bhago Istri Shakti Scheme Beneficiary : Any women beneficiaries member of the PACS.
Purpose : To establish the micro or small business in rural
area
Loan Limit : Rs. 25000.00 through PACS
20. Bhai Lalo Sehkari Kirt Shakti Scheme Beneficiary : Any men/women beneficiaries’ member of the
PACS.
Purpose : To establish the micro or small business in rural area
Loan Limit : Rs. 25000.00 through PACS.
5.3.1 GROWTH IN CREDIT DEPLOYMENT OF CENTRAL COOPERATIVE BANKS IN PUNJAB
Central Cooperative Banks operating in Punjab provide loans to
the agriculture and allied sector, for the development of small scale
industries, for retail business, home loans and loans for other
activities also. The data relating to credit deployed by Central
Cooperative Bank in Punjab is depicted in Table 5.7. It can be
observed from the table that the amount of loans advanced has
increased from Rs. 232396.08 lac in 1997-98 to Rs. 1126892.49 lac in
the year 2009-10 listing an exponential growth rate of 12.71 per cent
which is more than the exponential growth rate in deposits. There is
about five fold increase in credit during the period under study.
Overall exponential growth rate of the loans advanced by the Central
Cooperative Banks ranges from 8 to 18 per cent. Fatehgarh Sahib
Central Cooperative Bank registered the highest exponential growth
rate (18.07 per cent) followed by Hoshiarpur Central Cooperative Bank
with 17.80 per cent growth rate, while Jalandhar Central Cooperative
Bank registered the lowest exponential growth rate, i.e., 8.90 per cent.
The exponential growth rate of loans advanced by Fatehgarh Sahib
Central Cooperative Bank, Hoshiarpur Central Cooperative Bank,
Moga Central Cooperative Bank, Patiala Central Cooperative Bank,
Kapurthala Central Cooperative Bank, Gurdaspur Central Cooperative
Bank, Muktsar Central Cooperative Bank, Amritsar Central
Cooperative Bank,
230
TABLE 5.7 CREDIT DEPLOYMENT OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac)
Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 9138.67 11383.87 15771.14 16884.72 20338.85 23958.86 27428.17 28984.42 31078.19 33873.48 41193.53 40195.38 48834.28 13.68 26851.04 12127.57 45.17 % share 3.93 3.66 4.38 4.04 4.30 4.45 4.80 4.91 4.54 4.33 4.39 4.08 4.33 Bathinda 15933.89 20447.71 18262.48 21685.43 24332.02 23294.27 28371.65 31542.32 40190.02 47616.73 57846.43 53547.71 61704.18 12.36 34213.45 16063.92 46.95 % share 6.86 6.57 5.07 5.19 5.15 4.33 4.97 5.34 5.88 6.09 6.16 5.43 5.48 F.Sahib 6770.30 10684.45 13542.54 14715.76 17348.80 20139.62 21807.07 25441.32 31420.22 34438.04 45150.08 52238.51 64262.86 18.07 27535.35 17328.00 62.93 % share 2.91 3.43 3.76 3.52 3.67 3.74 3.82 4.31 4.59 4.40 4.81 5.30 5.70 Fazilka 12074.91 12029.16 14285.70 14851.37 17726.62 16560.20 20681.68 20871.46 25894.78 29387.06 36549.02 37152.57 43672.48 11.71 23210.54 10492.31 45.20 % share 5.20 3.86 3.97 3.56 3.75 3.08 3.62 3.54 3.79 3.76 3.90 3.77 3.88 Ferozepur 14852.16 17975.43 14382.50 13120.03 14860.23 16108.76 18009.52 18721.13 22771.48 27038.99 33873.53 45257.67 58227.22 11.26 24246.05 13757.55 56.74 % share 6.39 5.77 3.99 3.14 3.14 2.99 3.15 3.17 3.33 3.46 3.61 4.59 5.17 Faridkot 8511.02 8321.45 10001.13 12933.55 15007.46 17125.75 19118.99 20356.88 19435.33 22812.75 26013.63 24390.89 30319.80 11.14 18026.82 6903.77 38.30 % share 3.66 2.67 2.78 3.10 3.17 3.18 3.35 3.45 2.84 2.91 2.77 2.47 2.69 Gurdaspur 7244.44 9911.20 13211.06 17409.11 20239.55 23695.15 26499.81 27072.37 31427.15 33318.49 40115.34 44563.87 48030.71 15.53 26364.48 12904.70 48.95 % share 3.12 3.18 3.67 4.17 4.28 4.41 4.64 4.59 4.60 4.26 4.27 4.52 4.26 Hoshiarpur 7994.37 14428.78 16354.60 19910.08 26538.23 30240.26 29898.55 33859.97 37789.00 44465.75 62409.99 70518.23 73376.48 17.80 35983.41 21252.12 59.06 % share 3.44 4.63 4.54 4.77 5.61 5.62 5.24 5.74 5.53 5.68 6.65 7.15 6.51 Jalandhar 20222.06 35106.75 40836.14 49002.24 50183.22 72053.09 67580.65 48675.30 53454.86 59366.86 78259.56 79808.71 83296.85 8.90 56757.41 18913.43 33.32 % share 8.70 11.27 11.34 11.73 10.62 13.40 11.83 8.25 7.82 7.59 8.34 8.09 7.39 Kapurthala 5066.88 10501.97 15819.07 15185.47 17185.10 19143.59 19994.76 21833.28 27310.13 31935.90 38278.26 39616.58 46477.90 15.84 23719.15 12254.11 51.66 % share 2.18 3.37 4.39 3.64 3.64 3.56 3.50 3.70 3.99 4.08 4.08 4.02 4.12 Ludhiana 25519.99 33340.48 39577.96 43491.85 44369.12 48136.39 52053.59 52452.12 54215.73 59671.80 74565.26 79046.56 88624.30 9.04 53466.55 18182.60 34.01 % share 10.98 10.71 10.99 10.41 9.39 8.95 9.11 8.89 7.93 7.63 7.94 8.02 7.86 Mansa 7781.25 8858.89 9450.68 11760.26 12460.48 13521.16 14965.19 17413.57 22629.07 26232.03 29497.10 27631.66 31193.15 13.11 17953.42 8408.76 46.84 % share 3.35 2.84 2.62 2.82 2.64 2.51 2.62 2.95 3.31 3.35 3.14 2.80 2.77 Moga 4821.75 15034.25 16731.38 19082.80 20576.89 23053.89 25458.77 30998.70 35157.36 41377.79 48178.17 51385.14 54450.44 17.02 29715.95 15417.58 51.88 % share 2.07 4.83 4.64 4.57 4.35 4.29 4.46 5.25 5.14 5.29 5.13 5.21 4.83 Muktsar 7530.69 7702.63 10546.74 11325.01 12740.49 14079.88 16836.22 19473.66 24478.53 27519.22 30712.72 34687.15 37934.30 15.23 19659.02 10394.56 52.87 % share 3.24 2.47 2.93 2.71 2.70 2.62 2.95 3.30 3.58 3.52 3.27 3.52 3.37 N.Shahr 14440.95 17467.14 24472.87 33481.27 34122.95 42636.41 35840.44 31411.07 38172.98 40939.24 45822.25 54336.09 45714.71 8.96 35296.80 11423.23 32.36 % share 6.21 5.61 6.79 8.02 7.22 7.93 6.27 5.32 5.58 5.23 4.88 5.51 4.06 Patiala 18301.72 21139.37 23482.39 26554.52 33998.60 42336.42 47780.43 55678.23 62737.33 74370.53 84833.60 88186.84 111420.83 16.44 53140.06 29601.03 55.70 % share 7.88 6.79 6.52 6.36 7.19 7.87 8.37 9.43 9.17 9.51 9.04 8.94 9.89 Ropar 9981.36 13016.75 15510.45 19982.61 24696.92 28421.94 28984.72 31452.27 36567.55 42976.77 44053.19 44262.92 49888.12 13.55 29984.27 13042.27 43.50 % share 4.30 4.18 4.31 4.78 5.23 5.28 5.08 5.33 5.35 5.49 4.69 4.49 4.43 Sangrur 26781.73 31793.61 35211.52 40999.68 48278.17 44404.71 47603.47 50252.39 63167.89 79215.49 88073.72 86872.52 110464.22 11.51 57932.24 25632.71 44.25 % share 11.52 10.21 9.77 9.82 10.21 8.26 8.33 8.52 9.24 10.12 9.38 8.81 9.80 Tarn Taran 9427.94 12305.65 12763.19 15234.17 17680.00 18997.86 22197.01 23679.52 25905.22 25797.39 33327.68 32355.24 38999.66 11.47 22205.43 8978.33 40.43 % share 4.06 3.95 3.54 3.65 3.74 3.53 3.89 4.01 3.79 3.30 3.55 3.28 3.46 Total 232396.08 311449.54 360213.54 417609.93 472683.70 537908.21 571110.69 590169.98 683802.82 782354.31 938753.06 986054.24 1126892.49 12.71 616261.43 275136.23 44.65 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 21.69 20.08 19.08 20.01 18.65 20.46 17.58 14.71 14.39 15.29 15.92 15.14 15.78
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
231
Ropar Central Cooperative Bank and Mansa Central Cooperative
Bank is higher than the growth rate of all Central Cooperative Banks
in Punjab which stands at 12.71 per cent. Jalandhar Central
Cooperative Bank, N. Shahr Central Cooperative Bank, Ludhiana
Central Cooperative Bank, Faridkot Central Cooperative Bank,
Ferozepur Central Cooperative Bank, Tarn Taran Central Cooperative
Bank, Sangrur Central Cooperative Bank, Fazilka Central Cooperative
Bank and Bathinda Central Cooperative Bank pertained the growth
rate in advances lower than that of state level. At the end of March
2010, the contribution of Patiala Central Cooperative Bank in loans
advanced was highest (Rs. 111420.83 lac) which accounted for nearly
9.89 per cent of the total loans. On the other hand, the contribution of
Faridkot Central Cooperative Bank was lowest (Rs. 30319.80 lac)
which accounted mere 2.69 per cent to the total loans advanced by all
the Central Cooperative Banks in Punjab. The average amount of
loans advanced during the study period was highest for Sangrur
Central Cooperative Bank (Rs. 57932.24 lac) followed by Jalandhar
Central Cooperative Bank (Rs. 56757.41 lac) and Ludhiana Central
Cooperative Bank (Rs. 53466.55 lac) while the average was lowest for
Mansa Central Cooperative Bank (Rs. 17953.42 lac) followed by
Faridkot Central Cooperative Bank (Rs. 18026.82 lac) and Muktsar
Central Cooperative Bank (Rs. 19659.02 lac). The consistency in the
growth of loans advanced was highest in N. Shahr Central Cooperative
Bank (C.V=32.36) followed by Jalandhar Central Cooperative Bank
(C.V=33.32) while the consistency was lowest in Fatehgarh Sahib
Central Cooperative Bank (C.V=62.93) followed by Hoshiarpur Central
Cooperative Bank (C.V=59.06).
The Coefficient of concentration of loans advanced of all the
Central Cooperative Bank operating in Punjab ranges from 14 to 22
per cent during the study period. It was highest in 1997-98 i.e. 21.69
per cent and was lowest in 2005-06 i.e. 14.39 per cent. The coefficient
of concentration declines from 21.69 per cent to 15.78 per cent during
the period of study. The coefficient of concentration shows that there
is no concentration of loans advanced in few districts.
232
TABLE 5.8 TYPE OF LOANS (Rs. in Lac)
Type of Loans 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV
Short term 142158.19 215955.73 247615.06 283889.39 318048.12 355617.34 398829.21 447083.85 542075.91 627635.58 763605.09 799229.60 973664.60 15.53 470415.97 254327.53 54.06
% share 61.17 69.34 68.74 67.98 67.29 66.11 69.83 75.76 79.27 80.22 81.34 81.05 86.40
Medium term 70759.65 55760.40 88465.64 102544.38 119166.29 140638.05 122927.51 88793.21 90909.17 99669.87 115797.74 124833.24 89522.69 3.03 100752.91 23581.65 23.41
% share 30.45 17.90 24.56 24.56 25.21 26.15 21.53 15.04 13.30 12.74 12.34 12.66 7.95
Long term 19478.24 39733.41 24132.84 31176.16 35469.29 41652.82 49353.97 54292.92 50817.74 55048.86 59350.23 61991.40 63705.20 8.96 45092.54 14411.29 31.96
% saher 8.38 12.76 6.70 7.46 7.50 7.74 8.64 9.20 7.43 7.04 6.32 6.29 5.65
Total 232396.08 311449.54 360213.54 417609.93 472683.70 537908.21 571110.69 590169.98 683802.82 782354.31 938753.06 986054.24 1126892.49 12.71 616261.43 275136.23 44.65
%share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Coeff. of 27.84 36.01 35.41 34.65 33.96 32.78 36.50 42.43 45.94 46.89 48.01 47.72 53.07
concentration
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
233
5.3.2 BREAK UP OF CREDIT DEPLOYED BY THE CENTRAL COOPERATIVE BANKS IN PUNJAB
Table 5.8 shows the break up of total loans into short-term,
medium-term and long-term loans. Short-term advances have shown
an increasing trend during the period of study. The amount of short-
term advances increased from Rs. 142158.19 lac in 1997-98 to Rs.
973664.60 lac in 2009-10. The percentage share of short-term
advances in total advances increased from 61.17 per cent in 1997-98
to 86.40 per cent in 2009-10. The amount of medium-term advances
increased from Rs. 70759.65 lac to Rs. 89522.69 lac during the study
period. The share of medium-term advances in total advances
decreased from 30.45 per cent in 1997-98 to 7.95 per cent in 2009-
10. The amount of long term advances increased from Rs. 19478.24
lac to Rs. 63705.20 lac during the study period. Long-term loans have
shown fluctuating trend. The percentage share of long term advances
decreased from 8.38 per cent to 5.65 per cent during the period of
study. Short-term advances recorded highest exponential growth rate,
i.e., 15.53 per cent, while the medium term advances recorded lowest
exponential growth rate, i.e., 3.03 per cent. Statistical analysis reveals
that average loans of all the Central Cooperative Banks in Punjab is
Rs. 205420.48 lac and the average of short term advances is
maximum (Rs. 470415.97 lac) while the average is minimum for long-
term advances (Rs. 45092.54 lac). Consistency in the growth of
medium term advances (CV=23.41) was highest and the variation was
highest in short term advances (CV=54.06).
The data related to coefficient of concentration ranges from 27
to 53 per cent. It was highest in 2009-10, i.e. 53.07 per cent and was
lowest in 1997-98, i.e., 27.84 per cent. The value of coefficient of
concentration increases during the study period which shows that
there is concentration of advances in short term advances.
234
TABLE 5.9
SHORT TERM ADVANCES OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac) Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 5840.29 8412.18 10295.58 12156.38 14521.88 17193.72 19354.94 21578.97 25355.26 27791.71 33161.88 32915.62 42621.09 16.15 20861.50 11040.72 52.92 % share 4.11 3.90 4.16 4.28 4.57 4.83 4.85 4.83 4.68 4.43 4.34 4.12 4.38 Bathinda 9343.03 13739.22 15829.67 18574.79 18229.07 19658.40 22917.62 25628.85 33914.58 41760.65 51588.92 45922.33 54980.69 14.93 28622.14 15302.02 53.46 % share 6.57 6.36 6.39 6.54 5.73 5.53 5.75 5.73 6.26 6.65 6.76 5.75 5.65 F.Sahib 5802.09 9789.06 11465.94 12302.37 14532.64 17517.77 18232.53 22655.52 28248.05 30978.17 42039.20 48066.47 58559.54 18.82 24629.95 16212.97 65.83 % share 4.08 4.53 4.63 4.33 4.57 4.93 4.57 5.07 5.21 4.94 5.51 6.01 6.01 Fazilka 6823.35 9564.17 11283.95 11902.90 12164.88 12624.22 15293.14 17638.25 22151.28 23735.11 29726.20 28712.75 36833.58 13.53 18342.60 9148.48 49.88 % share 4.80 4.43 4.56 4.19 3.82 3.55 3.83 3.95 4.09 3.78 3.89 3.59 3.78 Ferozepur 9677.62 12582.80 13600.53 11971.99 12262.41 12808.19 14555.17 16311.33 21125.36 25861.68 32615.11 36227.80 46614.67 12.76 20478.05 11493.81 56.13 % share 6.81 5.83 5.49 4.22 3.86 3.60 3.65 3.65 3.90 4.12 4.27 4.53 4.79 Faridkot 4898.76 6724.04 8086.67 8986.19 10041.71 11200.63 12663.04 14071.28 16571.15 19903.80 23854.65 22807.33 27973.34 14.41 14444.81 7245.72 50.16 % share 3.45 3.11 3.27 3.17 3.16 3.15 3.18 3.15 3.06 3.17 3.12 2.85 2.87 Gurdaspur 3684.60 8803.57 7592.97 9381.34 10564.69 12353.46 13632.72 15528.97 20469.86 23868.72 28641.08 31493.55 38253.58 17.97 17251.47 10500.85 60.87 % share 2.59 4.08 3.07 3.31 3.32 3.47 3.42 3.47 3.78 3.80 3.75 3.94 3.93 Hoshiarpur 5705.96 8835.90 10261.72 13882.40 17605.09 19915.99 23462.54 25809.05 31042.53 36506.45 48503.00 54108.52 64470.14 20.62 27700.71 18460.74 66.64 % share 4.01 4.09 4.14 4.89 5.54 5.60 5.88 5.77 5.73 5.82 6.35 6.77 6.62 Jalandhar 9490.12 12966.88 15514.48 18338.21 21673.18 25430.35 27208.79 28839.86 33064.12 35811.38 44270.07 51454.63 59500.29 14.77 29504.80 15083.49 51.12 % share 6.68 6.00 6.27 6.46 6.81 7.15 6.82 6.45 6.10 5.71 5.80 6.44 6.11 Kapurthala 3962.96 6603.42 7999.49 9667.77 10535.61 12243.79 14177.98 15152.56 19799.25 22661.67 28415.27 31046.66 38962.11 18.28 17017.58 10561.13 62.06 % share 2.79 3.06 3.23 3.41 3.31 3.44 3.55 3.39 3.65 3.61 3.72 3.89 4.00 Ludhiana 14910.89 25593.55 29238.11 31806.05 33916.74 39392.09 42128.53 42288.30 48086.83 54023.49 63413.78 69162.34 81022.51 11.97 44229.48 18659.47 42.19 % share 10.49 11.85 11.81 11.20 10.66 11.08 10.56 9.46 8.87 8.61 8.31 8.65 8.32 Mansa 6623.79 8236.74 8799.78 10961.88 10389.04 11220.54 11449.96 14343.21 19279.85 24584.82 27804.03 25974.32 29515.92 13.61 16091.07 8210.93 51.03 % share 4.66 3.81 3.55 3.86 3.27 3.16 2.87 3.21 3.55 3.92 3.64 3.25 3.03 Moga 4152.55 11709.20 12511.98 17659.30 18727.53 19417.47 22683.13 28187.43 32712.99 36706.67 43426.78 44806.08 49744.38 18.09 26341.96 14213.76 53.96 % share 2.92 5.42 5.05 6.22 5.89 5.46 5.69 6.30 6.03 5.85 5.69 5.61 5.11 Muktsar 4817.17 7336.13 10015.47 10094.81 11240.53 12667.76 14602.05 17171.14 22114.24 25170.48 28663.84 31820.15 34875.33 16.51 17737.62 9819.39 55.36 % share 3.39 3.40 4.04 3.56 3.53 3.56 3.66 3.84 4.08 4.01 3.75 3.98 3.58 N.Shahr 5651.52 8269.91 10240.03 12355.74 14737.30 16310.73 16577.09 16274.83 18087.02 19445.33 24677.29 28075.80 33937.38 12.94 17280.00 7922.54 45.85 % share 3.97 3.83 4.14 4.35 4.63 4.59 4.16 3.64 3.34 3.10 3.23 3.51 3.49 Patiala 13404.56 18175.01 19330.53 21244.51 27094.60 32163.26 36922.66 43805.81 51294.57 61231.38 72621.27 76519.94 96115.53 17.31 43840.28 26057.60 59.44 % share 9.43 8.42 7.81 7.48 8.52 9.04 9.26 9.80 9.46 9.75 9.51 9.58 9.87 Ropar 5062.58 7749.35 9470.39 10356.88 10617.83 12790.47 15619.09 17784.70 20787.65 24174.63 28115.69 30214.71 38514.72 16.34 17789.13 10036.08 56.42 % share 3.56 3.59 3.82 3.65 3.34 3.60 3.92 3.98 3.83 3.85 3.68 3.78 3.96 Sangrur 15511.09 21711.86 25177.43 29558.68 34196.78 34553.96 39593.36 44599.01 55678.33 70639.89 82752.62 80907.49 105080.53 15.77 49227.77 27631.31 56.13 % share 10.91 10.05 10.17 10.41 10.75 9.72 9.93 9.97 10.27 11.25 10.84 10.12 10.79 Tarn Taran 6795.26 9152.74 10900.34 12687.20 14996.61 16154.54 17754.87 19414.78 22292.99 22779.55 29314.41 28993.11 36089.27 13.14 19025.05 8663.33 45.54 % share 4.78 4.24 4.40 4.47 4.72 4.54 4.45 4.34 4.11 3.63 3.84 3.63 3.71 Total 142158.19 215955.73 247615.06 283889.39 318048.12 355617.34 398829.21 447083.85 542075.91 627635.58 763605.09 799229.60 973664.60 15.53 470415.97 254327.53 54.06 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 19.30 17.08 16.35 16.72 17.05 16.73 17.04 16.63 15.87 16.79 16.66 16.82 16.52
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
235
(i) SHORT TERM ADVANCES
Short-term loans are an important component of total loans
advanced by Central Cooperative Banks in Punjab. More than half of
the total loans advanced by Central Cooperative Banks in Punjab fall
in this category. The table 5.9 exhibits the trends in short-term loans
advanced by the Central Cooperative Banks during the period of
study. The table presents that the amount of loans has increased from
Rs. 142158.19 lac in 1997-98 to Rs. 973664.60 lac in 2009-10. The
contribution of short- term loans to the total loans has increased from
61.17 per cent in 1997-98 to 86.40 per cent in 2009-10. The
exponential growth rate of short-term advances was 15.53 per cent
which is more than other types of advances. Hoshiarpur Central
Cooperative Bank had registered the highest exponential growth rate,
i.e., 20.62 per cent followed by Fatehgarh Sahib Central Cooperative
Bank 18.82 per cent. On the other hand, Ludhiana Central
Cooperative Bank had the lowest exponential growth rate, i.e., 11.97
per cent and Ferozepur Central Cooperative Bank is just little ahead
with 12.76 per cent growth rate. The Central Cooperative Banks
showing lower growth rate as compared to growth rate of all Central
Cooperative Banks are Ludhiana Central Cooperative Bank, Ferozepur
Central Cooperative Bank, N. Shahr Central Cooperative Bank, Tarn
Taran Central Cooperative Bank, Fazilka Central Cooperative Bank,
Mansa Central Cooperative Bank, Faridkot Central Cooperative Bank,
Jalandhar Central Cooperative Bank and Bathinda Central
Cooperative Bank. Other Central Cooperative Banks, i.e., Hoshiarpur
Central Cooperative Bank, Fatehgarh Sahib Central Cooperative Bank,
Kapurthala Central Cooperative Bank, Moga Central Cooperative
Bank, Gurdaspur Central Cooperative Bank, Patiala Central
Cooperative Bank, Muktsar Central Cooperative Bank, Ropar Central
Cooperative Bank, Amritsar Central Cooperative Bank, and Sangrur
236
Central Cooperative Bank exhibited the exponential growth rate higher
than the growth of all the Central Cooperative Banks.
The average short-term loans of all the Central Cooperative
Banks during the period of study is Rs. 24758.73 lac. Sangrur Central
Cooperative Bank has shown the maximum average while Faridkot
Central Cooperative Bank has shown the lowest average. In terms of
dispersion, the variation in the growth of short-term loans advanced
was lowest for Ludhiana Central Cooperative Bank (C.V =42.19),
followed by Tarn Taran Central Cooperative Bank (C.V =45.54) and N.
Shahr Central Cooperative Bank (C.V =45.85) while the variation was
maximum in Hoshiarpur Central Cooperative Bank (C.V =66.64)
followed by Fatehgarh Sahib Central Cooperative Bank (C.V =65.83)
and Kapurthala Central Cooperative Bank (C.V =62.06) during the
period of study. By the end of March 2010, Sangrur Central
Cooperative Bank contributed maximum towards short term
advances, i.e., Rs. 105080.53 lac, which accounted for 10.79 per cent
share. The lowest contribution to short term loans pertained to
Faridkot Central Cooperative Bank, i.e., Rs. 27973.34 lac which
accounted mere 2.87 per cent share.
The coefficient of concentration of short-term advances for all
the Central Cooperative Banks taken together ranged from 15 to 19
per cent during the period of study. It was highest in 1997-98, i.e.,
19.30 per cent and lowest in 2005-2006, i.e., 15.87 per cent. The
coefficient of concentration has shown a fluctuating trend. The
analysis of coefficient of concentration shows that there is no
concentration of short-term advances in few districts.
237
TABLE 5.10
MEDIUM TERM ADVANCES OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac) Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 2664.77 1782.16 4241.74 2485.72 2956.78 3312.49 4462.06 4042.38 2816.97 3452.71 5309.32 5614.08 4738.85 6.33 3683.08 1157.88 31.44 % share 3.77 3.20 4.79 2.42 2.48 2.36 3.63 4.55 3.10 3.46 4.58 4.50 5.29 Bathinda 5774.58 5625.55 1833.68 2451.97 5324.44 2309.39 4031.23 4021.46 4546.53 2355.89 2600.19 2663.82 3277.70 -3.04 3601.26 1375.26 38.19 % share 8.16 10.09 2.07 2.39 4.47 1.64 3.28 4.53 5.00 2.36 2.24 2.13 3.66 F.Sahib 606.05 361.19 1017.33 1182.71 1763.01 1545.94 2381.60 1708.94 2037.12 2113.34 1862.20 2661.44 3995.95 15.51 1787.45 940.85 52.64 % share 0.86 0.65 1.15 1.15 1.48 1.10 1.94 1.92 2.24 2.12 1.61 2.13 4.46 Fazilka 4989.34 1924.13 2390.50 2454.93 5006.79 3367.14 4311.60 2130.02 2308.07 3572.88 4463.27 4674.46 2115.63 0.50 3362.21 1199.00 35.66 % share 7.05 3.45 2.70 2.40 4.20 2.39 3.51 2.40 2.54 3.58 3.85 3.74 2.36 Ferozepur 3831.45 3837.89 503.19 891.42 2342.78 2938.02 2632.30 1541.52 569.60 336.73 399.90 7403.71 10697.67 1.18 2917.40 3069.88 105.23 % share 5.42 6.88 0.57 0.87 1.97 2.09 2.14 1.74 0.63 0.34 0.35 5.93 11.95 Faridkot 3589.32 1326.10 1577.42 3659.29 4532.72 5446.00 5823.77 4689.25 1457.36 2139.35 1287.36 805.90 1201.13 -7.35 2887.31 1795.96 62.20 % share 5.07 2.38 1.78 3.57 3.80 3.87 4.74 5.28 1.60 2.15 1.11 0.65 1.34 Gurdaspur 3455.54 530.71 3745.81 5753.45 6504.38 7736.23 9031.34 7343.22 10114.66 6163.82 7855.85 8946.91 5690.10 12.30 6374.77 2632.29 41.29 % share 4.88 0.95 4.23 5.61 5.46 5.50 7.35 8.27 11.13 6.18 6.78 7.17 6.36 Hoshiarpur 929.43 324.74 4024.43 4541.46 7197.38 8201.35 4171.11 5174.50 3369.36 3995.18 9244.85 10921.93 2241.33 13.98 4949.00 3158.55 63.82 % share 1.31 0.58 4.55 4.43 6.04 5.83 3.39 5.83 3.70 4.01 7.98 8.75 2.50 Jalandhar 9022.12 8983.98 20336.09 24719.16 20811.27 39683.68 31388.03 11447.53 11333.35 13810.66 22401.15 16558.36 10299.08 0.02 18522.65 9362.83 50.55 % share 12.75 16.11 22.99 24.11 17.46 28.22 25.53 12.89 12.47 13.86 19.35 13.26 11.51 Kapurthala 288.34 385.62 7006.02 4455.00 5196.95 4015.22 2713.37 3387.03 4298.87 5823.53 6181.56 6063.23 3544.87 17.01 4104.59 2082.53 50.74 % share 0.41 0.69 7.92 4.35 4.36 2.86 2.21 3.81 4.73 5.84 5.34 4.86 3.96 Ludhiana 4934.89 6504.09 9143.41 9343.94 8069.12 6443.72 7373.40 6922.95 4581.10 4064.41 8716.59 7675.47 6100.98 -0.90 6913.39 1702.43 24.63 % share 6.97 11.66 10.34 9.11 6.77 4.58 6.00 7.80 5.04 4.08 7.53 6.15 6.82 Mansa 1031.58 393.10 494.29 284.62 1707.82 971.84 1256.62 1238.71 1344.04 785.94 761.48 754.93 1190.01 4.87 939.61 411.43 43.79 % share 1.46 0.71 0.56 0.28 1.43 0.69 1.02 1.40 1.48 0.79 0.66 0.60 1.33 Moga 234.33 3049.33 3595.61 783.29 1008.52 2816.20 1602.40 1466.18 1429.42 3860.45 4209.98 6081.68 4020.72 15.34 2627.55 1698.82 64.65 % share 0.33 5.47 4.06 0.76 0.85 2.00 1.30 1.65 1.57 3.87 3.64 4.87 4.49 Muktsar 2597.34 197.63 201.19 925.50 977.01 911.47 1290.98 1312.92 1692.60 1291.36 776.09 1465.00 1629.29 8.64 1174.49 636.46 54.19 % share 3.67 0.35 0.23 0.90 0.82 0.65 1.05 1.48 1.86 1.30 0.67 1.17 1.82 N.Shahr 5517.83 1804.11 12357.21 18748.87 16290.88 23288.13 16881.54 11518.34 16425.07 17667.32 16736.17 21777.36 6977.14 8.12 14306.92 6372.58 44.54 % share 7.80 3.24 13.97 18.28 13.67 16.56 13.73 12.97 18.07 17.73 14.45 17.45 7.79 Patiala 3673.62 1990.89 2263.76 3479.74 4431.70 6506.27 6364.58 6602.57 6362.89 6717.53 6216.36 5785.76 9560.12 10.29 5381.21 2110.37 39.22 % share 5.19 3.57 2.56 3.39 3.72 4.63 5.18 7.43 7.00 6.74 5.37 4.63 10.68 Ropar 4066.08 3749.49 3483.53 5678.53 11558.95 12729.73 9581.11 9109.70 10525.34 13678.17 11670.38 10695.13 7328.31 9.03 8758.03 3540.64 40.43 % share 5.75 6.72 3.94 5.54 9.70 9.05 7.79 10.26 11.58 13.72 10.08 8.57 8.19 Sangrur 11097.78 9894.65 8961.70 8881.13 11616.79 6580.60 4702.35 2172.00 3382.08 5998.37 2631.49 3054.10 3331.93 -11.75 6331.15 3403.71 53.76 % share 15.68 17.75 10.13 8.66 9.75 4.68 3.83 2.45 3.72 6.02 2.27 2.45 3.72 Tarn Taran 2455.26 3095.04 1288.73 1823.65 1869.00 1834.63 2928.12 2963.99 2314.74 1842.23 2473.55 1229.97 1581.88 -2.01 2130.83 623.97 29.28 % share 3.47 5.55 1.46 1.78 1.57 1.30 2.38 3.34 2.54 1.85 2.14 0.99 1.77 Total 70759.65 55760.40 88465.64 102544.38 119166.29 140638.05 122927.51 88793.21 90909.17 99669.87 115797.74 124833.24 89522.69 3.03 100752.91 23581.65 23.41 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 27.47 38.12 39.02 39.72 32.00 38.83 34.07 28.62 33.92 33.24 34.77 30.43 26.48
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
238
(ii) MEDIUM TERM ADVANCES
Table 5.10 exhibits the trends in Medium-term loans advanced
by all the Central Cooperative Banks in Punjab for the period of study.
The amount of medium term loans advanced has increased from Rs.
70759.65 lac in 1997-98 to Rs. 89522.69 lac in 2009-10. The
medium-term loans have shown a fluctuating trend during the period
of study. The medium-term loans have registered an exponential
growth rate of 3.03 per cent. Highest exponential growth rate was
recorded by Kapurthala Central Cooperative Bank (17.01 per cent)
followed by Fatehgarh Sahib Central Cooperative Bank (15.51 per
cent) and Moga Central Cooperative Bank (15.34 per cent). There was
an exponential decline in case of Sangrur Central Cooperative Bank,
Faridkot Central Cooperative Bank, Bathinda Central Cooperative
Bank, Tarn Taran Central Cooperative Bank and Ludhiana Central
Cooperative Bank. The exponential growth rate was lowest in case of
Jalandhar Central Cooperative Bank (0.02 per cent). At the end of the
study period, the contribution of Ferozepur Central Cooperative Bank
was maximum to medium-term advances, i.e., Rs. 10697.67 lac which
accounted for 11.95 per cent share, while the contribution of Mansa
Central Cooperative Bank (1.33 per cent share) and Faridkot Central
Cooperative Bank (1.34 per cent) is very marginal. Jalandhar Central
Cooperative Bank, Fazilka Central Cooperative Bank and Ferozepur
Central Cooperative Bank had growth rate lower than that of the state
level. Kapurthala Central Cooperative Bank, Fatehgarh Sahib Central
Cooperative Bank, Moga Central Cooperative Bank, Hoshiarpur
Central Cooperative Bank, Gurdaspur Central Cooperative Bank,
Patiala Central Cooperative Bank, Ropar Central Cooperative Bank,
Muktsar Central Cooperative Bank, N. Shahr Central Cooperative
Bank, Amritsar Central Cooperative Bank and Mansa Central
Cooperative Bank had exponential growth rate higher than that of the
state level. The average medium term loans advanced during the study
period was highest for Jalandhar Central Cooperative Bank (Rs.
18522.65 lac), followed by N. Shahr Central Cooperative Bank (Rs.
14306.92 lac) and Ropar Central Cooperative Bank (Rs. 8758.03 lac)
239
and the average was lowest for Mansa Central Cooperative Bank (Rs.
939.61 lac), Muktsar Central Cooperative Bank (Rs. 1174.49 lac) and
Fatehgarh Sahib Central Cooperative Bank (Rs.1787.45 lac). The
consistency in the growth of medium term loans was highest in
Ludhiana Central Cooperative Bank (C.V =24.63), Tarn Taran Central
Cooperative Bank (C.V =29.28) and the consistency was lowest in
Ferozepur Central Cooperative Bank (C.V =105.23) and Moga Central
Cooperative Bank (C.V =64.65).
The coefficient of concentration of medium term advances of all
the Central Cooperative Banks taken together ranged from 26 to 40
Per cent during the period of study. It was highest in 2000-01, i.e.,
39.72 per cent and lowest in 2009-10, i.e., 26.48 per cent.
(iii) LONG TERM ADVANCES
Table 5.11 exhibits the trends in long term advances during the
study period. The share of long term advances in total loans ranged
from 6 to 13 per cent. The growth rate of long-term advances of all
Central Cooperative Bank in Punjab for the period covered by the
study is 8.96 per cent. Fazilka Central Cooperative Bank had
registered highest exponential growth rate, i.e., 24.12 per cent
followed by Faridkot Central Cooperative Bank showing growth rate of
24.03 per cent. Fazilka Central Cooperative Bank, Faridkot Central
Cooperative Bank, Tarn Taran Central Cooperative Bank, Muktsar
Central Cooperative Bank, Sangrur Central Cooperative Bank,
Gurdaspur Central Cooperative Bank, Bathinda Central Cooperative
Bank, Patiala Central Cooperative Bank, Mansa Central Cooperative
Bank, Kapurthala Central Cooperative Bank, Ropar Central
Cooperative Bank, Hoshiarpur Central Cooperative Bank and
Jalandhar Central Cooperative Bank exhibited higher growth rate in
long-term advances as compared to growth rate of all the Central
Cooperative Banks. The Central Cooperative Banks showing growth
rate lower than the state level are Ludhiana Central Cooperative Bank,
N. Shahr Central Cooperative Bank, Moga Central Cooperative Bank,
Ferozepur Central Cooperative Bank, Amritsar Central Cooperative
Bank and Fatehgarh Sahib Central Cooperative Bank.
240
TABLE 5.11
LONG TERM ADVANCES OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac) Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 634.41 1190.19 1233.82 2242.62 2860.19 3452.65 3611.17 3363.07 2905.96 2629.06 2722.33 1665.68 1474.34 5.87 2306.58 973.61 42.21 % share 3.26 3.00 5.11 7.19 8.06 8.29 7.32 6.19 5.72 4.77 4.59 2.69 2.31 Bathinda 816.08 1082.94 599.13 658.67 778.51 1326.48 1422.80 1892.01 1728.91 3500.19 3657.32 4961.56 3445.79 18.21 1990.03 1420.84 71.40 % share 4.19 2.73 2.48 2.11 2.19 3.18 2.88 3.48 3.40 6.36 6.16 8.00 5.41 F.Sahib 362.16 534.20 1059.27 1230.68 1053.15 1075.91 1192.94 1076.86 1135.05 1346.53 1248.68 1510.60 1707.37 8.94 1117.95 355.04 31.76 % share 1.86 1.34 4.39 3.95 2.97 2.58 2.42 1.98 2.23 2.45 2.10 2.44 2.68 Fazilka 262.22 540.86 611.25 493.54 554.95 568.84 1076.94 1103.19 1435.43 2079.07 2359.55 3765.36 4723.27 24.12 1505.73 1382.95 91.85 % share 1.34 1.36 2.53 1.58 1.56 1.37 2.18 2.03 2.82 3.78 3.98 6.07 7.41 Ferozepur 1343.09 1554.74 278.78 256.62 255.04 362.55 822.05 868.28 1076.52 840.58 858.52 1626.16 914.88 5.49 850.60 471.61 55.44 % share 6.89 3.91 1.16 0.82 0.72 0.87 1.66 1.60 2.12 1.53 1.45 2.62 1.44 Faridkot 22.34 271.31 337.04 288.07 433.03 479.12 632.18 1596.35 1406.82 769.60 871.62 777.66 1145.33 24.03 694.65 466.40 67.14 % share 0.11 0.68 1.40 0.92 1.22 1.15 1.28 2.94 2.77 1.40 1.47 1.26 1.80 Gurdaspur 104.30 576.92 1872.28 2274.32 3170.48 3605.46 3835.75 4200.18 842.63 3285.95 3618.41 4123.41 4087.03 19.94 2738.24 1450.88 52.99 % share 0.53 1.45 7.76 7.30 8.94 8.66 7.77 7.74 1.66 5.97 6.10 6.65 6.42 Hoshiarpur 1358.98 5268.14 2068.45 1486.22 1735.76 2122.92 2264.90 2876.42 3377.11 3964.12 4662.14 5487.78 6665.01 10.14 3333.69 1730.32 51.90 % share 6.98 13.26 8.57 4.77 4.89 5.10 4.59 5.30 6.65 7.20 7.86 8.85 10.46 Jalandhar 1709.82 13155.89 4985.57 5944.87 7698.77 6939.06 8983.83 8387.91 9057.39 9744.82 11588.34 11795.72 13497.48 9.92 8729.96 3373.13 38.64 % share 8.78 33.11 20.66 19.07 21.70 16.66 18.20 15.45 17.82 17.70 19.53 19.03 21.19 Kapurthala 815.58 3512.93 813.56 1062.70 1452.54 2884.58 3103.41 3293.69 3212.01 3450.70 3681.43 2506.69 3970.92 11.07 2596.98 1149.65 44.27 % share 4.19 8.84 3.37 3.41 4.10 6.93 6.29 6.07 6.32 6.27 6.20 4.04 6.23 Ludhiana 5674.21 1242.84 1196.44 2341.86 2383.26 2300.58 2551.66 3240.87 1547.80 1583.90 2434.89 2208.75 1500.81 -2.15 2323.68 1169.56 50.33 % share 29.13 3.13 4.96 7.52 6.72 5.52 5.17 5.97 3.05 2.88 4.10 3.56 2.36 Mansa 125.88 229.05 156.61 513.76 363.62 1328.78 2258.61 1831.65 2005.18 861.27 931.59 902.41 487.22 16.24 922.74 725.96 78.67 % share 0.65 0.58 0.65 1.65 1.03 3.19 4.58 3.37 3.95 1.56 1.57 1.46 0.76 Moga 434.87 275.72 623.79 640.21 840.84 820.22 1173.24 1345.09 1014.95 810.67 541.41 497.38 685.34 3.75 746.44 300.54 40.26 % share 2.23 0.69 2.59 2.05 2.37 1.97 2.38 2.48 2.00 1.47 0.91 0.80 1.08 Muktsar 116.18 168.87 330.08 304.70 522.95 500.65 943.19 989.60 671.69 1057.38 1272.79 1402.00 1429.68 21.84 746.90 463.99 62.12 % share 0.60 0.42 1.37 0.98 1.47 1.20 1.91 1.82 1.32 1.92 2.14 2.26 2.24 N.Shahr 3271.60 7393.12 1875.63 2376.66 3094.77 3037.55 2381.81 3617.90 3660.89 3826.59 4408.79 4482.93 4800.19 2.87 3709.88 1408.12 37.96 % share 16.80 18.61 7.77 7.62 8.73 7.29 4.83 6.66 7.20 6.95 7.43 7.23 7.54 Patiala 1223.54 973.47 1888.10 1830.27 2472.30 3666.89 4493.19 5269.85 5079.87 6421.61 5995.97 5881.14 5745.18 16.93 3918.57 1996.86 50.96 % share 6.28 2.45 7.82 5.87 6.97 8.80 9.10 9.71 10.00 11.67 10.10 9.49 9.02 Ropar 852.70 1517.28 2556.53 3947.20 2520.14 2901.74 3784.52 4557.87 5254.56 5123.98 4267.12 3353.08 4045.09 10.43 3437.06 1326.62 38.60 % share 4.38 3.82 10.59 12.66 7.11 6.97 7.67 8.40 10.34 9.31 7.19 5.41 6.35 Sangrur 172.86 187.10 1072.39 2559.87 2464.60 3270.15 3307.76 3481.38 4107.48 2577.23 2689.61 2910.93 2051.76 20.11 2373.32 1218.05 51.32 % share 0.89 0.47 4.44 8.21 6.95 7.85 6.70 6.41 8.08 4.68 4.53 4.70 3.22 Tarn Taran 177.42 57.84 574.12 723.32 814.39 1008.69 1514.02 1300.75 1297.49 1175.61 1539.72 2132.16 1328.51 22.34 1049.54 575.89 54.87 % share 0.91 0.15 2.38 2.32 2.30 2.42 3.07 2.40 2.55 2.13 2.59 3.44 2.08 Total 19478.24 39733.41 24132.84 31176.16 35469.29 41652.82 49353.97 54292.92 50817.74 55048.86 59350.23 61991.40 63705.20 8.96 45092.54 14411.29 31.96 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 43.27 52.75 31.58 33.33 33.07 29.60 26.20 25.27 30.02 29.32 28.46 28.62 32.66
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
241
At the end of March 2010, Jalandhar Central Cooperative Bank
contributed maximum amount Rs.13497.48 lac towards long term
advances which accounted for 21.19 per cent share in long-term loans
while the contribution of Mansa Central Cooperative Bank was
minimum, i.e, Rs. 487.22 lac which accounted for 0.76 per cent share
in long term advances. Average long term advances of all the Central
Cooperative Banks in Punjab were Rs. 2373.29 lac and Jalandhar
Central Cooperative Bank has recorded the maximum average, while
Faridkot Central Cooperative Bank has the lowest average in long
term advances. The variations in the growth of long term advances
were highest in Fazilka Central Cooperative Bank (C.V =91.85),
followed by Mansa Central Cooperative Bank (C.V =78.67) and
Bathinda Central Cooperative Bank (C.V =71.40) and the variations
were minimum in Fatehgarh Sahib Central Cooperative Bank (C.V
=31.76) followed by N.Shahr Central Cooperative Bank (C.V =37.96)
and Jalandhar Central Cooperative Bank (C.V =38.64) during the
period of study.
The coefficient of concentration ranged from 25 to 53 per cent.
Maximum value was observed in 1998-1999, i.e., 52.75 per cent and
lowest in 2004-2005 i.e. 25.27 per cent. A careful analysis indicates
that there is decrease in concentration of long term advances during
the period of study.
5.4 VOLUME OF BUSINESS OF CENTRAL COOPERATIVE BANKS IN PUNJAB
The main function of the bank is mobilizing deposits and
advancing loans. The growth and development of the bank is seen
through the amount of deposits mobilized and advances made by the
bank. Volume of Business is an indicator which shows the quantum
of business done by the bank.
Volume of Business = Deposits + Advances
242
TABLE 5.12
VOLUME OF BUSINESS OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac) Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 20757.20 24739.12 30462.49 35977.19 41775.73 46822.54 52045.63 53847.37 58277.25 63642.61 73881.24 77415.94 91517.16 12.02 51627.81 21280.15 41.22 % share 5.07 4.77 5.07 5.05 5.17 5.17 5.41 5.34 5.06 4.92 4.87 4.67 4.87 Bathinda 23032.18 28696.47 28340.29 33822.16 38093.16 38992.15 46439.16 52457.33 63204.77 72559.46 86652.03 85966.59 99150.49 13.04 53646.63 25424.39 47.39 % share 5.62 5.53 4.72 4.75 4.72 4.30 4.82 5.20 5.49 5.61 5.72 5.18 5.28 F.Sahib 10213.20 14899.84 18184.39 21512.60 25168.55 28740.10 30558.96 34610.34 43339.06 47408.18 59326.39 68476.26 82867.98 16.99 37331.22 21976.17 58.87 % share 2.49 2.87 3.03 3.02 3.12 3.17 3.17 3.43 3.77 3.67 3.91 4.13 4.41 Fazilka 16080.65 17007.13 19375.18 21725.56 25610.25 25017.81 30074.46 31150.61 37166.85 42130.50 51629.11 55789.65 65128.58 12.36 33683.56 15754.36 46.77 % share 3.93 3.28 3.23 3.05 3.17 2.76 3.12 3.09 3.23 3.26 3.41 3.36 3.47 Ferozepur 18082.77 21744.36 18823.37 16641.50 19238.00 21111.72 22853.72 23679.02 28795.33 34134.70 42592.92 56522.81 70706.91 11.19 30379.01 16671.24 54.88 % share 4.41 4.19 3.13 2.33 2.38 2.33 2.37 2.35 2.50 2.64 2.81 3.41 3.77 Faridkot 11121.33 11424.06 13849.81 18276.99 21083.33 23416.73 25973.79 27870.16 27883.99 32076.89 37031.02 36806.19 44657.73 11.95 25497.85 10405.20 40.81 % share 2.72 2.20 2.31 2.56 2.61 2.58 2.70 2.77 2.42 2.48 2.44 2.22 2.38 Gurdaspur 17176.31 21115.90 27976.08 34258.53 38423.38 43576.56 48034.18 49626.86 54186.19 57226.69 69313.54 79896.35 85267.65 13.01 48159.86 21134.80 43.88 % share 4.19 4.07 4.66 4.81 4.76 4.81 4.99 4.92 4.71 4.43 4.57 4.82 4.54 Hoshiarpur 26270.07 35657.33 39174.89 49295.18 60162.89 67692.88 69759.43 77243.31 86118.42 99050.97 124374.54 143746.28 155978.58 14.86 79578.83 41153.78 51.71 % share 6.41 6.87 6.52 6.92 7.45 7.47 7.25 7.66 7.48 7.66 8.20 8.67 8.30 Jalandhar 49545.11 67817.72 76493.47 92260.67 99227.51 126614.01 125171.12 107290.43 114967.23 125955.37 152484.38 165845.95 174775.41 9.10 113726.80 37326.62 32.82 % share 12.10 13.07 12.74 12.94 12.29 13.97 13.00 10.64 9.99 9.74 10.05 10.00 9.31 Kapurthala 19420.53 26790.35 35684.96 38143.46 44208.67 49565.40 52491.56 57945.36 67047.02 77257.49 88130.94 97529.99 110456.87 13.85 58820.97 27857.53 47.36 % share 4.74 5.16 5.94 5.35 5.48 5.47 5.45 5.75 5.83 5.98 5.81 5.88 5.88 Ludhiana 39247.34 49940.73 57701.72 65120.21 68654.87 74930.58 80568.84 83803.69 91964.91 99030.61 115922.56 127992.53 142053.23 9.89 84379.37 30485.62 36.13 % share 9.58 9.62 9.61 9.14 8.50 8.27 8.37 8.31 7.99 7.66 7.64 7.72 7.56 Mansa 9493.48 11140.03 12311.00 15886.55 17517.08 19530.72 20982.71 24255.53 30028.75 32969.68 40025.79 39211.79 44318.09 13.93 24436.25 11778.61 48.20 % share 2.32 2.15 2.05 2.23 2.17 2.15 2.18 2.41 2.61 2.55 2.64 2.37 2.36 Moga 10060.87 21160.96 23774.01 29342.79 32529.36 35869.49 38587.73 45053.65 51222.84 57702.19 67851.38 74645.47 81693.37 15.50 43807.24 21782.55 49.72 % share 2.46 4.08 3.96 4.12 4.03 3.96 4.01 4.47 4.45 4.46 4.47 4.50 4.35 Muktsar 8935.01 9681.61 13427.33 15335.28 17388.12 19404.48 22130.01 25316.69 30687.68 35505.26 39074.18 43644.77 48704.56 15.29 25325.77 13123.15 51.82 % share 2.18 1.87 2.24 2.15 2.15 2.14 2.30 2.51 2.67 2.75 2.58 2.63 2.59 N.Shahr 34797.88 40172.57 51368.47 63745.39 67319.63 79550.09 74950.36 72862.27 82349.49 91145.58 101107.81 117935.91 115681.20 9.60 76383.59 25930.06 33.95 % share 8.49 7.74 8.55 8.94 8.34 8.78 7.78 7.23 7.16 7.05 6.67 7.11 6.16 Patiala 26426.18 31150.00 36516.33 42993.59 51725.34 61253.45 68030.90 76673.65 88145.14 101231.94 116040.10 122424.11 150367.42 15.20 74844.47 38777.00 51.81 % share 6.45 6.00 6.08 6.03 6.41 6.76 7.07 7.61 7.66 7.83 7.65 7.38 8.01 Ropar 19561.30 25273.48 30419.85 36482.25 44292.97 48983.34 50974.87 55488.42 67315.76 76256.08 81080.55 84647.61 96585.80 13.30 55181.71 24402.12 44.22 % share 4.77 4.87 5.06 5.11 5.49 5.40 5.29 5.51 5.85 5.90 5.35 5.10 5.14 Sangrur 35621.34 42529.39 47433.74 57365.05 66741.43 64895.10 69563.89 73430.50 89675.36 108158.86 120846.10 126945.27 154865.62 12.01 81390.13 36332.91 44.64 % share 8.70 8.20 7.90 8.05 8.27 7.16 7.22 7.28 7.79 8.36 7.97 7.66 8.25 Tarn Taran 13796.65 17930.43 19249.13 24592.90 28166.51 30336.12 33723.66 35473.65 38413.01 39426.32 49173.05 52891.90 63377.36 11.92 34350.05 14490.43 42.18 % share 3.37 3.46 3.20 3.45 3.49 3.35 3.50 3.52 3.34 3.05 3.24 3.19 3.37 Total 409639.40 518871.48 600566.51 712777.85 807326.78 906303.27 962914.98 ####### 1150789.05 1292869.38 1516537.63 1658335.37 1878154.01 12.39 1032551.12 450509.25 43.63 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 20.50 20.18 20.49 20.52 20.12 21.17 19.47 17.96 17.87 18.42 17.69 17.57 16.64
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
243
Trends in Volume of Business for all the Central Cooperative
Banks operating in Punjab is presented in Table 5.12. It can be
observed from the table that Volume of Business of the Central
Cooperative Banks operating in the state moved from Rs. 409639.40
lac to Rs.1878154.01 lac and indicated an exponential growth rate of
12.39 per cent during the study period. The overall exponential growth
of all the Central Cooperative Banks in Punjab in Volume of Business
ranges from 9 to 17 per cent. Fatehgarh Sahib Central Cooperative
Bank has shown the highest exponential growth rate, i.e., 16.99 per
cent followed by Moga Central Cooperative Bank showing 15.50 per
cent growth rate, while Jalandhar Central Cooperative Bank has
shown the lowest exponential growth rate, i.e., 9.10 per cent.
Fatehgarh Sahib Central Cooperative Bank, Moga Central Cooperative
Bank, Muktsar Central Cooperative Bank, Patiala Central Cooperative
Bank, Hoshiarpur Central Cooperative Bank, Mansa Central
Cooperative Bank, Kapurthala Central Cooperative Bank, Ropar
Central Cooperative Bank, Bathinda Central Cooperative Bank and
Gurdaspur Central Cooperative Bank exhibited higher exponential
growth rate than the growth rate of all Central Cooperative Banks
which stands at 12.39 per cent. The Central Cooperative Bank
exhibiting exponential growth rate lower than the of growth rate of all
the Central Cooperative Banks in Punjab are Jalandhar Central
Cooperative Bank, N. Shahr Central Cooperative Bank, Ludhiana
Central Cooperative Bank, Ferozepur Central Cooperative Bank, Tarn
Taran Central Cooperative Bank, Faridkot Central Cooperative Bank,
Sangrur Central Cooperative Bank, Amritsar Central Cooperative
Bank and Fazilka Central Cooperative Bank. At the end of March
2010, maximum contribution to the volume of business pertained to
Jalandhar Central Cooperative Bank i.e., Rs. 174775.41 lac which
accounted 9.31 per cent share, while Mansa Central Cooperative Bank
had the lowest contribution, i.e., Rs.44318.09 lac (2.36 per cent share
in volume of business). Average volume of business of all the Central
244
Cooperative Banks in Punjab during the study period was Rs.
54344.79 lac and Jalandhar Central Cooperative Bank recorded the
highest average volume of business (Rs. 113726.80 lac) while Mansa
Central Cooperative Bank recorded the lowest average volume of
business (Rs. 24436.25 lac). Out of the nineteen Central Cooperative
Banks in Punjab, eight (8) Central Cooperative Bank has average more
than the average of all the Central Cooperative Banks in Punjab. The
variations in the growth of volume of business were minimum in
Jalandhar Central Cooperative Bank (C.V =32.82), followed by N.
Shahr Central Cooperative Bank (C.V =33.95) and the variations were
maximum highest in Fatehgarh Sahib Central Cooperative Bank (C.V
=58.87) and Ferozepur Central Cooperative Bank (C.V = 54.88) during
the study period.
The table also presents the extent of concentration of volume
of business during study period. Coefficient of concentration of volume
of business of all the Central Cooperative Banks ranged from 16 to 22
per cent during the study period. It was highest in 2002-03 (21.17 per
cent) and lowest in 2009-10 (16.64 per cent). The data of coefficient of
concentration shows that there is no concentration of Volume of
Business in few districts.
5.5 WORKING FUNDS OF CENTRAL COOPERATIVE BANKS IN PUNJAB
Working funds refer to the total resources (total liabilities or
total assets) with the bank as on a particular date. Total resources
include capital, reserve and surplus, deposits, borrowings, other
liabilities and provisions. A high average working fund shows a bank’s
total strength. The average working fund represents the sum total of
average assets net of contra items. Contra items include items that
appear on both side of the balance sheet for instance bills sent for
collection being bills receivable.
Working Funds = total of assets/ liability side - contra items
The working funds taken here are the average of monthly
average working funds of the Central Cooperative Banks.
245
TABLE 5.13
WORKING FUNDS OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac) Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amr itsar 17162.28 19161.33 25175.36 25462.12 26079.34 28823.67 32607.30 34850.74 37123.39 40617.81 44679.91 55474.90 61104.38 10.11 34486.35 13250.83 38.42 % share 6.18 5.89 7.21 6.50 5.69 5.46 5.51 5.46 5.31 4.97 4.81 5.07 5.11 Bathinda 11206.16 14701.58 14810.33 17229.91 20414.05 23707.64 26198.46 28973.50 35251.80 40740.43 48524.44 55709.08 58932.13 14.88 30492.27 16096.09 52.79 % share 4.04 4.52 4.24 4.40 4.46 4.49 4.43 4.54 5.04 4.98 5.23 5.09 4.93 F.Sahib 6927.79 9360.21 9335.06 11116.03 13401.76 15802.56 18030.34 19688.53 22273.16 25262.02 30246.85 36137.42 42684.77 15.40 20020.50 11010.41 55.00 % share 2.50 2.88 2.67 2.84 2.93 2.99 3.05 3.08 3.18 3.09 3.26 3.30 3.57 Fazilka 9242.44 12795.21 12215.50 13287.38 15205.10 17676.39 20082.97 20942.16 22147.05 25502.61 31011.27 36380.74 40122.47 12.01 21277.79 9620.85 45.22 % share 3.33 3.94 3.50 3.39 3.32 3.35 3.39 3.28 3.17 3.12 3.34 3.32 3.35 Ferozepur 10553.87 13122.75 14039.22 10894.67 12065.38 14280.16 15913.59 16543.61 18565.12 22249.72 26619.87 31023.76 35390.68 9.96 18558.65 7966.68 42.93 % share 3.80 4.04 4.02 2.78 2.63 2.71 2.69 2.59 2.65 2.72 2.87 2.84 2.96 Faridkot 6361.13 7341.66 7902.66 9852.72 12653.21 15788.43 17267.64 17129.09 17133.79 19934.18 22704.93 25072.48 26772.42 12.72 15839.56 6739.79 42.55 % share 2.29 2.26 2.26 2.52 2.76 2.99 2.92 2.68 2.45 2.44 2.44 2.29 2.24 Gurdaspur 14520.56 16897.87 17266.00 21401.00 26465.00 30402.00 35558.00 38337.00 39219.00 42317.00 48208.00 57802.00 60633.00 12.78 34540.49 15198.64 44.00 % share 5.23 5.20 4.95 5.46 5.78 5.76 6.01 6.00 5.61 5.18 5.19 5.28 5.07 Hoshiarpur 20168.42 23321.89 25454.24 29870.28 34707.03 39598.68 43049.40 46917.15 50829.04 60539.16 71730.31 88392.29 101362.97 13.81 48918.53 25314.86 51.75 % share 7.27 7.17 7.29 7.62 7.58 7.50 7.27 7.35 7.27 7.40 7.73 8.08 8.47 Jalandhar 32116.29 28159.73 39218.62 45011.50 52436.28 58951.94 64015.38 67567.11 68824.76 75997.78 86226.19 107835.81 115993.56 11.51 64796.53 26965.40 41.62 % share 11.57 8.66 11.24 11.49 11.45 11.17 10.82 10.58 9.84 9.30 9.29 9.85 9.70 Kapurthala 16641.29 18316.99 20277.43 24135.24 28709.95 32971.24 36411.64 39887.81 43623.50 51605.79 60415.35 71543.81 79622.83 14.02 40320.22 20360.23 50.50 % share 6.00 5.63 5.81 6.16 6.27 6.25 6.15 6.24 6.24 6.31 6.51 6.54 6.66 Ludhiana 21030.95 28371.99 25743.77 29398.65 33547.47 37544.47 39874.92 42257.09 47472.82 57248.49 67953.17 81548.80 82201.19 11.71 45707.21 20579.07 45.02 % share 7.58 8.73 7.38 7.50 7.32 7.11 6.74 6.62 6.79 7.00 7.32 7.45 6.87 Mansa 6284.44 8398.76 8736.13 9064.11 11578.48 12338.39 14341.06 17568.04 20963.18 25036.27 27811.77 31532.11 32005.97 15.11 17358.36 9176.35 52.86 % share 2.26 2.58 2.50 2.31 2.53 2.34 2.42 2.75 3.00 3.06 2.99 2.88 2.68 Moga 9012.11 10304.65 14032.00 14463.00 16463.99 17342.56 19311.80 21677.55 25204.94 27892.89 32315.33 37989.90 41497.50 12.89 22116.02 10297.61 46.56 % share 3.25 3.17 4.02 3.69 3.59 3.29 3.26 3.39 3.60 3.41 3.48 3.47 3.47 Muktsar 6395.88 9727.26 10438.67 11533.36 13516.69 16643.67 18717.16 20551.65 21985.68 24231.81 27168.70 32495.79 33227.89 13.57 18971.86 8658.20 45.64 % share 2.30 2.99 2.99 2.94 2.95 3.15 3.16 3.22 3.14 2.96 2.93 2.97 2.78 N.Shahr 25155.38 35677.90 33335.79 34775.04 39184.19 45318.19 50030.01 53476.45 54898.84 61798.84 70896.31 85428.85 91656.80 10.22 52433.28 20404.76 38.92 % share 9.06 10.97 9.55 8.88 8.56 8.59 8.45 8.37 7.85 7.56 7.64 7.81 7.66 Patiala 15750.57 19101.44 19930.00 24243.00 29122.00 35355.63 41815.49 46993.45 55591.03 65472.85 73782.54 82633.98 92184.34 16.45 46305.87 25698.76 55.50 % share 5.67 5.87 5.71 6.19 6.36 6.70 7.07 7.36 7.95 8.01 7.95 7.55 7.71 Ropar 19993.28 15492.72 16183.47 19098.80 24629.92 27148.35 28229.89 30748.05 35535.27 54082.14 49779.37 57655.79 65290.12 12.94 34143.63 16955.41 49.66 % share 7.20 4.76 4.64 4.88 5.38 5.14 4.77 4.81 5.08 6.61 5.36 5.27 5.46 Sangrur 17075.03 21215.26 20848.15 24434.36 28559.29 36340.63 46042.23 48623.40 55212.53 67751.59 75494.38 81754.39 94030.28 15.86 47490.89 25718.52 54.15 % share 6.15 6.53 5.97 6.24 6.24 6.88 7.78 7.61 7.89 8.29 8.13 7.47 7.86 Tarn Taran 11975.96 13693.73 14143.35 16480.30 19231.60 21813.95 24326.18 26005.59 27596.04 29320.44 32783.33 37963.39 41242.81 10.70 24352.05 9332.77 38.32 % share 4.32 4.21 4.05 4.21 4.20 4.13 4.11 4.07 3.94 3.59 3.53 3.47 3.45 Total 277573.83 325162.93 349085.75 391751.47 457970.73 527848.55 591823.46 638737.97 699450.94 817601.82 928352.02 1094375.29 1195956.11 12.84 638130.07 296997.62 46.54 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff . of 19.31 17.34 18.05 18.67 18.00 18.05 18.43 18.22 17.38 18.37 17.82 17.93 18.28 concentration
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
246
Growth in working funds for all the Central Cooperative Banks
in Punjab is presented in Table 5.13. It can be observed from the table
that working funds of all the Central Cooperative Banks has increased
from Rs. 277573.83 lac to Rs. 1195956.11 lac during the period under
study. A perusal of the table reveals that growth rate of working funds
of all the Central Cooperative Banks was 12.84 per cent during the
study period. The exponential growth rate of all the Central
Cooperative Banks ranged from 9 to 17 per cent. Patiala Central
Cooperative Bank pertained the highest exponential growth rate i.e.,
16.45 per cent, while Ferozepur Central Cooperative Bank has shown
the lowest exponential growth rate, i.e., 9.96 per cent. Patiala Central
Cooperative Bank, Sangrur Central Cooperative Bank, Fatehgarh
Sahib Central Cooperative Bank, Mansa Central Cooperative Bank,
Bathinda Central Cooperative Bank, Kapurthala Central Cooperative
Bank, Hoshiarpur Central Cooperative Bank, Muktsar Central
Cooperative Bank, Ropar Central Cooperative Bank and Moga Central
Cooperative Bank had the growth rate higher than the growth rate of
all the Central Cooperative Banks taken together. The banks
indicating lower exponential growth rate in working funds as
compared to exponential growth rate of all the Central Cooperative
Banks taken together are Ferozepur Central Cooperative Bank,
Amritsar Central Cooperative Bank, N. Shahr Central Cooperative
Bank, Tarn Taran Central Cooperative Bank, Jalandhar Central
Cooperative Bank, Ludhiana Central Cooperative Bank, Fazilka
Central Cooperative Bank, Faridkot Central Cooperative Bank and
Gurdaspur Central Cooperative Bank. At the end of March 2010,
Jalandhar Central Cooperative Bank contributed maximum, i.e., Rs.
115993.56 lac which accounted 9.70 per cent share to the total
working funds, while Faridkot Central Cooperative Bank had the least
contribution to the working funds, i.e., Rs. 26772.42 lac just 2.24 per
cent of the total working funds. The average working funds of all the
Central Cooperative Banks in Punjab during the study period was Rs.
247
33585.79 lac and Jalandhar Central Cooperative Bank has shown
highest average working funds, while Faridkot Central Cooperative
Bank has the lowest average working funds. The consistency in the
growth of working funds was highest in Tarn Taran Central
Cooperative Bank (C.V =38.32) followed by Amritsar Central
Cooperative Bank (C.V = 38.42) and consistency was lowest in Patiala
Central Cooperative Bank (C.V = 55.50) followed by Fatehgarh Sahib
Central Cooperative Bank (C.V = 55.00).
The table also highlights coefficient of concentration of working
funds of all the Central Cooperative Banks operating in Punjab during
the period of study. The overall coefficient of concentration ranges
from 17 to 20 per cent. It was highest in 1997-98, i.e., 19.31 per cent
and lowest in 1998-99, i.e., 17.34 per cent. The data of coefficient of
concentration shows that there is no concentration of working funds
in few districts.
5.6 OWNED FUNDS OF CENTRAL COOPERATIVE BANKS IN PUNJAB
The primary role of bank capital is to act as a buffer. It acts as
a cushion to absorb possible losses so that the depositors may be fully
protected at all times. Owned funds are an indication of an internal
financial soundness of the organization (Goyal et al., 2006). The real
function of owned funds is to inspire and maintain the public
confidence that enables the bank to continue its business and
prosper. Owned funds represent share capital and reserves. Share
capital of cooperative banks is contributed by the members and the
state government. The participation of the state government in the
share capital not only strengthens the financial structure and profits
of the bank but also helps in creating confidence in the public about
the bank (Koli and Landage, 2007). Reserve funds represent the
reserve created by ploughing back a part of profits.
248
TABLE 5.14
OWNED FUNDS OF CENTRAL COOPERATIVE BANKS IN PUNJAB (Rs. in Lac) Central
Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 784.19 822.11 446.20 672.30 825.66 1042.86 1357.79 1612.14 2023.09 2137.49 2758.34 3717.44 3829.43 17.95 1694.54 1139.40 67.24 % share 3.78 3.40 1.47 1.87 1.93 2.04 2.24 2.23 2.53 2.51 2.97 3.70 3.58 Bathinda 428.24 582.94 859.60 962.84 1216.17 1466.35 1778.98 2195.71 2215.53 2578.50 2683.79 2821.12 2873.09 16.90 1743.30 878.90 50.42 % share 2.06 2.41 2.83 2.67 2.84 2.86 2.93 3.04 2.78 3.03 2.88 2.80 2.68 F.Sahib 454.31 510.37 549.12 666.60 931.84 1204.61 1517.85 1818.46 2129.82 2312.41 2985.23 3113.29 3194.49 20.09 1645.26 1026.55 62.39 % share 2.19 2.11 1.81 1.85 2.17 2.35 2.50 2.52 2.67 2.72 3.21 3.09 2.98 Fazilka 582.19 607.78 1054.49 1212.37 1387.57 1528.60 1811.33 2105.36 2356.10 2454.72 2543.12 2811.39 3018.47 14.44 1805.65 813.43 45.05 % share 2.81 2.51 3.48 3.36 3.24 2.99 2.98 2.92 2.95 2.88 2.73 2.80 2.82 Ferozepur 832.04 899.79 1539.73 1522.98 1558.06 1457.88 1593.45 1743.49 1798.43 1703.18 1873.21 1914.84 1957.67 5.94 1568.83 350.15 22.32 % share 4.01 3.72 5.08 4.23 3.64 2.85 2.63 2.42 2.25 2.00 2.01 1.90 1.83 Faridkot 646.86 878.04 1024.65 1059.45 1166.64 1333.01 1476.94 1671.68 1692.16 1715.28 1746.65 1764.46 1787.98 8.08 1381.83 389.36 28.18 % share 3.12 3.63 3.38 2.94 2.72 2.60 2.43 2.32 2.12 2.02 1.88 1.75 1.67 Gurdaspur 1427.65 1954.75 1181.79 1561.37 2057.99 2509.80 2962.95 3309.00 3533.49 3689.82 3814.18 3993.48 4780.86 11.28 2829.01 1131.62 40.00 % share 6.88 8.08 3.90 4.33 4.80 4.90 4.88 4.59 4.43 4.33 4.10 3.97 4.47 Hoshiarpur 812.89 1120.84 1937.61 2501.59 3090.82 3831.38 4389.83 5054.54 5742.89 6015.90 6394.35 6986.20 7337.65 18.75 4247.42 2220.38 52.28 % share 3.92 4.63 6.39 6.94 7.21 7.48 7.23 7.00 7.20 7.07 6.88 6.95 6.86 Jalandhar 1644.18 2066.39 2094.28 2571.76 2730.11 3796.73 4739.39 6813.76 7449.44 8133.37 8890.03 9356.29 9618.33 17.91 5377.24 3076.41 57.21 % share 7.92 8.54 6.90 7.14 6.37 7.42 7.81 9.44 9.34 9.56 9.56 9.30 8.99 Kapurthala 1227.66 1259.54 2122.11 2633.45 3120.20 3678.03 4475.29 5302.09 5984.14 6397.07 7637.70 9142.95 9759.60 19.09 4826.14 2843.92 58.93 % share 5.92 5.21 7.00 7.31 7.28 7.18 7.37 7.35 7.50 7.52 8.21 9.09 9.12 Ludhiana 1895.94 1989.49 3729.77 4551.44 5664.77 6734.21 7837.09 8844.67 9444.74 9895.41 9958.03 10253.94 10615.30 15.41 7031.91 3169.63 45.08 % share 9.14 8.22 12.30 12.63 13.22 13.15 12.91 12.26 11.84 11.63 10.71 10.20 9.92 Mansa 531.66 548.84 569.20 752.53 833.95 901.14 1149.32 1369.09 1564.09 1643.08 1775.96 1847.68 2488.67 14.03 1228.86 609.18 49.57 % share 2.56 2.27 1.88 2.09 1.95 1.76 1.89 1.90 1.96 1.93 1.91 1.84 2.32 Moga 594.13 668.28 917.38 1187.95 1351.89 1613.59 1854.98 2191.28 2457.46 2545.82 2727.49 3043.12 3205.18 15.25 1873.73 893.41 47.68 % share 2.86 2.76 3.03 3.30 3.15 3.15 3.06 3.04 3.08 2.99 2.93 3.03 2.99 Muktsar 792.78 980.21 1538.47 1647.31 1968.99 2379.89 2538.21 2884.94 3178.56 3409.26 3651.16 4015.13 4096.01 13.90 2544.69 1108.73 43.57 % share 3.82 4.05 5.07 4.57 4.59 4.65 4.18 4.00 3.98 4.00 3.93 3.99 3.83 N.Shahr 3914.97 4383.96 5796.58 6716.72 7618.48 8303.80 9505.41 10548.94 11094.75 11820.55 12514.31 13767.47 14635.15 11.25 9278.55 3486.37 37.57 % share 18.87 18.12 19.11 18.64 17.78 16.22 15.66 14.62 13.90 13.89 13.46 13.69 13.68 Patiala 906.19 996.66 1012.62 1180.66 1666.36 2170.20 2823.85 3602.15 4324.38 4805.23 5605.03 5655.71 6581.75 20.57 3179.29 2036.76 64.06 % share 4.37 4.12 3.34 3.28 3.89 4.24 4.65 4.99 5.42 5.65 6.03 5.62 6.15 Ropar 716.92 1114.02 1582.16 2028.36 2668.64 3413.57 4074.54 4912.95 5688.88 6382.96 7399.74 7923.39 8368.31 21.90 4328.80 2660.75 61.47 % share 3.46 4.60 5.22 5.63 6.23 6.67 6.71 6.81 7.13 7.50 7.96 7.88 7.82 Sangrur 1220.33 1306.68 824.95 902.69 1257.90 1863.83 2482.88 3327.13 3983.47 4309.39 4800.17 5158.43 5533.44 18.28 2843.95 1745.16 61.36 % share 5.88 5.40 2.72 2.50 2.93 3.64 4.09 4.61 4.99 5.06 5.16 5.13 5.17 Tarn Taran 1334.50 1505.02 1542.67 1700.92 1739.70 1972.92 2338.14 2844.46 3132.26 3158.60 3236.76 3291.68 3338.79 9.06 2395.11 788.87 32.94 % share 6.43 6.22 5.09 4.72 4.06 3.85 3.85 3.94 3.93 3.71 3.48 3.27 3.12 Total 20747.63 24195.71 30323.38 36033.29 42855.74 51202.40 60708.22 72151.84 79793.68 85108.04 92995.25 100578.01 107020.17 15.11 61824.10 29892.03 48.35 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 24.19 22.99 25.37 26.70 26.50 26.53 26.10 25.89 25.48 25.97 25.96 25.88 25.69
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
249
Growth in owned funds for all the Central Cooperative Banks in
Punjab is presented in Table 5.14. From the table it can be observed
that owned funds of all the Central Cooperative Banks increased from
Rs. 20747.63 lac to Rs. 107020.17 lac during the period under study.
A perusal of the table reveals that exponential growth of owned funds
of all the Central Cooperative Banks was 15.11 per cent during the
study period. The growth rate of all the Central Cooperative Banks
ranges from 5 to 22 per cent. Ropar Central Cooperative Bank has
shown the highest exponential growth rate, i.e., 21.90 per cent
followed by Patiala Central Cooperative Bank with growth rate of
20.57 per cent. On the other hand, Ferozepur Central Cooperative
Bank has shown the lowest exponential growth rate, i.e., 5.94 per
cent. Ropar Central Cooperative Bank, Patiala Central Cooperative
Bank, Fatehgarh Sahib Central Cooperative Bank, Kapurthala Central
Cooperative Bank, Hoshiarpur Central Cooperative Bank, Sangrur
Central Cooperative Bank, Amritsar Central Cooperative Bank,
Jalandhar Central Cooperative Bank, Bathinda Central Cooperative
Bank, Ludhiana Central Cooperative Bank and Moga Central
Cooperative Bank exhibited growth rate higher than the growth rate of
all the Central Cooperative Banks. The banks showing lower
exponential growth rate as compared to growth rate of all the Central
Cooperative Banks taken together are Ferozepur Central Cooperative
Bank, Faridkot Central Cooperative Bank, Tarn Taran Central
Cooperative Bank, N. Shahr Central Cooperative Bank, Gurdaspur
Central Cooperative Bank, Muktsar Central Cooperative Bank, Mansa
Central Cooperative Bank and Fazilka Central Cooperative Bank. At
the end of March 2010, N. Shahr Central Cooperative Bank
contributed maximum Rs. 14635.15 lac which accounted 13.68 per
cent share to the owned funds while Ferozepur Central Cooperative
Bank had the least contribution to the owned funds i.e. 1.83 per cent
250
share of the owned funds. Average owned funds of all the Central
Cooperative Banks in Punjab during the study period was Rs. 3253.90
lac and N. Shahr Central Cooperative Bank has the highest average
owned funds while Mansa Central Cooperative Bank has the lowest
average owned funds. The consistency in the growth of owned funds
was highest in Ferozepur Central Cooperative Bank (C.V =22.32)
followed by Faridkot Central Cooperative Bank (C.V =28.18) and was
lowest in Amritsar Central Cooperative Bank (C.V =67.24) followed by
Patiala Central Cooperative Bank (C.V = 64.06) during the study
period.
The table also highlights coefficient of concentration of owned
funds of all the Central Cooperative Banks operating in Punjab during
the period of study. The overall coefficient of concentration ranges
from 22 to 27 per cent during the study period. It was highest in
2000-01 (26.70 per cent) and lowest in 1998-99 (22.99 per cent).The
data of coefficient of concentration shows that there is no
concentration of owned funds in few districts.
5.7 HUMAN RESOURCES (MANPOWER) OF CENTRAL COOPERATIVE BANKS IN PUNJAB
The effectiveness of an organization depends largely on the
quality of the manpower especially in service industry like banking. So
the system of manpower planning should aim at the right number and
of right quality. The banks should select its staff that has rural
orientation. They should be encouraged to reside in villages where
branch is located in order that they develop personal rapport with the
clients. The success of cooperative banks as an instrument of
economic development depends upon human resources, their skill
and attitude is also important.
251
TABLE 5.15
MANPOWER OF CENTRAL COOPERATIVE BANKS IN PUNJAB Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 EG MEAN SD CV Amritsar 421.00 415.00 424.00 429.00 415.00 418.00 407.00 400.00 389.00 370.00 359.00 346.00 324.00 -2.05 393.62 33.60 8.54 % share 8.07 7.83 8.10 8.35 8.25 8.49 8.46 8.48 8.53 8.47 8.64 8.71 8.57 Bathinda 213.00 215.00 214.00 215.00 209.00 206.00 205.00 204.00 197.00 193.00 176.00 165.00 151.00 -2.51 197.15 20.67 10.48 % share 4.08 4.05 4.09 4.18 4.15 4.18 4.26 4.33 4.32 4.42 4.24 4.15 4.00 F.Sahib 185.00 172.00 175.00 172.00 170.00 165.00 160.00 155.00 149.00 140.00 143.00 136.00 130.00 -2.73 157.85 17.11 10.84 % share 3.54 3.24 3.34 3.35 3.38 3.35 3.33 3.29 3.27 3.20 3.44 3.42 3.44 Fazilka 180.00 179.00 179.00 171.00 170.00 167.00 162.00 153.00 151.00 143.00 133.00 128.00 125.00 -3.20 157.00 19.74 12.57 % share 3.45 3.38 3.42 3.33 3.38 3.39 3.37 3.24 3.31 3.27 3.20 3.22 3.31 Ferozepur 173.00 169.00 166.00 142.00 133.00 133.00 132.00 124.00 125.00 119.00 106.00 103.00 93.00 -4.68 132.15 25.21 19.08 % share 3.31 3.19 3.17 2.76 2.64 2.70 2.74 2.63 2.74 2.72 2.55 2.59 2.46 Faridkot 143.00 144.00 146.00 146.00 145.00 140.00 135.00 134.00 128.00 128.00 123.00 116.00 115.00 -2.05 134.08 11.20 8.35 % share 2.74 2.72 2.79 2.84 2.88 2.84 2.81 2.84 2.81 2.93 2.96 2.92 3.04 Gurdaspur 313.00 307.00 311.00 309.00 294.00 292.00 289.00 264.00 252.00 254.00 237.00 222.00 194.00 -3.55 272.15 38.26 14.06 % share 6.00 5.79 5.94 6.01 5.84 5.93 6.01 5.60 5.52 5.82 5.71 5.59 5.13 Hoshiarpur 431.00 517.00 502.00 485.00 482.00 475.00 463.00 458.00 447.00 433.00 405.00 376.00 361.00 -2.20 448.85 46.87 10.44 % share 8.26 9.75 9.59 9.44 9.58 9.64 9.63 9.71 9.80 9.91 9.75 9.46 9.55 Jalandhar 610.00 582.00 573.00 570.00 565.00 550.00 547.00 533.00 514.00 500.00 479.00 463.00 444.00 -2.38 533.08 50.00 9.38 % share 11.69 10.98 10.94 11.09 11.23 11.17 11.37 11.30 11.27 11.45 11.53 11.66 11.75 Kapurthala 342.00 334.00 330.00 317.00 317.00 316.00 317.00 312.00 299.00 287.00 278.00 273.00 269.00 -1.94 307.00 23.79 7.75 % share 6.55 6.30 6.30 6.17 6.30 6.42 6.59 6.62 6.55 6.57 6.69 6.87 7.12 Ludhiana 378.00 376.00 363.00 359.00 356.00 345.00 323.00 316.00 299.00 290.00 271.00 262.00 246.00 -3.58 321.85 45.05 14.00 % share 7.24 7.09 6.93 6.99 7.08 7.01 6.72 6.70 6.55 6.64 6.52 6.60 6.51 Mansa 92.00 86.00 87.00 83.00 82.00 77.00 77.00 73.00 68.00 64.00 59.00 56.00 60.00 -4.02 74.15 11.84 15.96 % share 1.76 1.62 1.66 1.62 1.63 1.56 1.60 1.55 1.49 1.47 1.42 1.41 1.59 Moga 184.00 183.00 184.00 204.00 202.00 202.00 194.00 179.00 168.00 158.00 151.00 137.00 129.00 -3.04 175.00 24.79 14.17 % share 3.53 3.45 3.51 3.97 4.02 4.10 4.03 3.80 3.68 3.62 3.64 3.45 3.41 Muktsar 82.00 87.00 87.00 93.00 87.00 78.00 78.00 77.00 73.00 67.00 69.00 61.00 57.00 -3.37 76.62 10.87 14.18 % share 1.57 1.64 1.66 1.81 1.73 1.58 1.62 1.63 1.60 1.53 1.66 1.54 1.51 N.Shahr 351.00 351.00 340.00 331.00 298.00 289.00 277.00 308.00 305.00 287.00 278.00 267.00 259.00 -2.34 303.15 31.36 10.34 % share 6.73 6.62 6.49 6.44 5.92 5.87 5.76 6.53 6.69 6.57 6.69 6.72 6.85 Patiala 299.00 297.00 297.00 278.00 263.00 255.00 247.00 237.00 243.00 221.00 191.00 200.00 190.00 -3.98 247.54 39.12 15.80 % share 5.73 5.60 5.67 5.41 5.23 5.18 5.13 5.02 5.33 5.06 4.60 5.03 5.03 Ropar 223.00 213.00 214.00 214.00 216.00 203.00 201.00 200.00 193.00 185.00 176.00 168.00 158.00 -2.56 197.23 20.20 10.24 % share 4.27 4.02 4.09 4.17 4.29 4.12 4.18 4.24 4.23 4.24 4.24 4.23 4.18 Sangrur 390.00 400.00 374.00 362.00 364.00 361.00 346.00 339.00 330.00 307.00 297.00 283.00 266.00 -3.08 339.92 41.39 12.18 % share 7.47 7.54 7.14 7.05 7.24 7.33 7.19 7.19 7.23 7.03 7.15 7.12 7.04 Tarn Taran 209.00 275.00 271.00 258.00 263.00 253.00 250.00 250.00 232.00 222.00 223.00 211.00 208.00 -1.55 240.38 23.99 9.98 % share 4.01 5.19 5.17 5.02 5.23 5.14 5.20 5.30 5.08 5.08 5.37 5.31 5.51 Total 5219.00 5302.00 5237.00 5138.00 5031.00 4925.00 4810.00 4716.00 4562.00 4368.00 4154.00 3973.00 3779.00 -2.73 4708.77 507.25 10.77 %share in total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Coeff. of concentration 20.37 20.13 19.73 19.58 19.33 19.75 19.62 20.06 20.10 20.35 20.68 20.67 20.79
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
252
Table 5.15 exhibits the manpower position of Central
Cooperative Banks during the study period. The table exhibited that
the total number of staff members decreased from 5219 in 1997-98 to
3779 in 2009-10 and registered a decline of 2.73 per cent during the
study period. There is reduction in the number of staff members for all
the Central Cooperative Banks in Punjab during the study period.
There is an exponential decline for all the Central Cooperative Banks.
At the end of March 2010, Jalandhar Central Cooperative Bank has
the maximum number of staff members, i.e., 444 (11.75 per cent of
the total staff members) while Muktsar Central Cooperative Bank has
the lowest number of staff members. The average staff members were
highest in Jalandhar Central Cooperative Bank and were lowest in
Mansa Central Cooperative Bank during the period of study. The
growth of staff members was less consistent in Mansa Central
Cooperative Bank (C.V = 15.96) followed by Patiala Central
Cooperative Bank (C.V = 15.80) and Muktsar Central Cooperative
Bank (C.V = 14.18) and was more consistent in Kapurthala Central
Cooperative Bank (C.V = 7.75), Faridkot Central Cooperative Bank
(C.V = 8.35), Amritsar Central Cooperative Bank (C.V = 8.54)
respectively during the period of study.
The table presents the data of coefficient of concentration also.
It ranges from 19 to 21 Per cent during the study period. It was
highest in 2009-10 (20.79 per cent) and was lowest in 2001-02 (19.33
per cent).
5.8 NON PERFORMING ASSETS AS PERCENTAGE TO TOTAL ADVANCES OF CENTRAL COOPERATIVE BANKS IN PUNJAB
The introduction of prudential norms to strengthen the banks
balance sheet and enhance transparency is considered as a milestone
measure in the financial sector reforms. On the recommendation of
Narasimham Committee I (1991) the RBI advanced the banks to
classify their advances in four categories: - (i) standard asset (ii) sub
253
standard asset (iii) doubtful asset (iv) loss asset. The first type of asset
is considered as performing asset and the other three types are
considered as Non Performing Assets (NPA). Classification of assets
depends upon the performance of asset in generating income. As long
as the asset generates income expected of it, it is treated as
performing asset and when it fails to generate income on the due date
is treated as Non Performing Asset. An asset becomes non performing
when it ceases to generate income for the bank. A non performing
asset is defined generally as a credit facility in respect of which
interest and or installment of principal has remained “past due” for
two quarters or more. An amount due under any credit facility is
treated as past due when it has not been paid with in 30 days from
the due date. It was however decided to dispense with past due
concept w.e.f.31st March 2001. Accordingly, as from that date a NPA
shall be an advance where:-
(i) interest and or installment of principal remain overdue for more
than 180 days in respect of a term loan;
(ii) The account remains ‘out of order’ for more than 180 days, in
respect of overdraft/cash credit;
(iii) The bill remains overdue for more than 180 days in case of bill
purchased and discounted;
(iv) Interest or installment of principal remains overdue for two
harvest seasons, but for a period not exceeding for two half years
in case of an advance granted for agricultural purposes;
(v) Any amount to be received remains overdue for more than 180
days in respect of other accounts;
The banks are to adopt the 90 day norm for asset classification
instead of 180 days (except for agricultural loans), with effect from 31st
March 2006.
254
TABLE 5.16
NON PERFORMING ASSETS AS PERCENTAGE TO ADVANCES OF CENTRAL COOPERATIVE BANKS IN PUNJAB (in per cent) Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Average Rank Amritsar 8.80 6.90 6.20 7.15 10.67 9.30 11.88 15.00 17.01 16.78 15.98 16.76 13.62 12.00 18
Bhatinda 2.20 1.70 1.90 2.81 3.78 3.49 3.30 3.25 3.67 3.60 4.62 6.47 5.93 3.59 3
F. Sahib 5.61 3.68 4.34 4.33 5.92 7.92 8.29 8.31 7.30 7.60 6.20 6.50 4.96 6.23 11
Fazilka 1.54 1.29 4.50 3.73 6.16 5.72 5.03 5.52 5.26 4.96 4.92 4.90 4.75 4.48 7
Ferozepur 7.36 7.77 7.26 7.65 6.84 6.39 6.56 6.82 6.67 5.52 4.78 5.47 4.11 6.40 12
Faridkot 1.83 2.35 2.31 1.68 1.68 1.68 4.21 5.26 6.42 6.10 7.30 6.37 4.77 4.00 4
Gurdasur 24.02 14.70 11.47 9.15 11.50 12.84 18.59 15.09 21.36 16.90 13.91 14.90 20.32 15.75 19
Hoshiarpur 13.90 9.53 7.49 6.96 6.72 6.87 9.90 7.87 8.62 8.80 5.95 5.23 6.24 8.01 15
Jalandhar 3.08 1.42 0.92 1.10 1.52 1.41 1.75 3.03 5.94 4.82 3.12 3.87 3.81 2.75 2
Kapurthala 5.26 3.74 3.09 2.58 3.60 3.36 4.62 5.48 4.98 4.86 4.05 4.23 3.28 4.09 5
Ludhiana 3.31 2.40 4.44 6.41 7.79 8.39 7.72 9.28 9.05 7.38 6.96 6.90 5.50 6.58 13
Mansa 4.77 3.93 7.64 7.49 7.09 8.04 7.86 9.95 10.67 8.57 7.95 8.45 13.95 8.18 16
Moga 4.05 4.10 2.75 3.85 6.03 5.10 4.72 5.15 5.93 5.09 4.65 4.53 4.32 4.64 8
Muktsar 2.80 3.16 3.34 3.17 3.83 3.07 3.02 3.00 5.39 6.19 6.69 6.92 6.47 4.39 6
N.Shahr 1.60 1.30 1.60 1.64 1.96 2.47 2.60 3.84 5.09 3.85 2.88 3.00 3.58 2.72 1
Patiala 3.61 3.68 3.49 4.86 5.24 6.52 7.38 7.27 8.24 6.83 6.31 7.32 5.69 5.88 10
Ropar 10.30 6.74 7.17 6.60 7.16 8.06 6.21 7.66 6.56 8.36 7.52 9.82 8.46 7.74 14
Sangrur 8.83 4.68 3.20 4.64 4.76 3.68 4.48 5.34 4.98 5.25 5.22 5.45 5.14 5.05 9
Tarn Taran 20.02 13.70 10.58 11.08 11.44 11.51 11.72 11.03 11.28 11.03 9.54 9.50 8.82 11.63 17
Average 6.99 5.09 4.93 5.10 5.98 6.10 6.83 7.27 8.13 7.50 6.77 7.19 7.04 6.53
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
255
Table 5.16 presents that the average non performing assets as
percentage to total assets of the Central Cooperative Banks taken
together, at the state level is 6.53 per cent. The average has shown a
fluctuating trend. Gurdaspur Central Cooperative Bank, Amritsar
Central Cooperative Bank, Tarn Taran Central Cooperative Bank,
Mansa Central Cooperative Bank, Hoshiarpur Central Cooperative
Bank, Ropar Central Cooperative Bank and Ludhiana Central
Cooperative Bank have exhibited higher NPA as percentage to total
advances compared to that of state level. The banks exhibited lower
NPA percentage as compared to state level are N. Shahr Central
Cooperative Bank, Jalandhar Central Cooperative Bank, Bathinda
Central Cooperative Bank, Faridkot Central Cooperative Bank,
Kapurthala Central Cooperative Bank, Muktsar Central Cooperative
Bank, Fazilka Central Cooperative Bank, Moga Central Cooperative
Bank, Sangrur Central Cooperative Bank, Patiala Central Cooperative
Bank, Fathehgarh Sahib Central Cooperative Bank and Ferozepur
Central Cooperative bank. On the basis of percentage of NPA to total
advances, from 1997-98 to 2009-10, ranking of banks has been done.
N. Shahr Central Cooperative Bank exhibited (2.72 per cent) the
lowest percentage of NPA to total advances followed by Jalandhar
Central Cooperative Bank (2.75 per cent). The highest percentage of
NPA to total advances pertained to Gurdaspur Central Cooperative
Bank, i.e., 15.75 per cent during the same period. 5.9 RECOVERY PERFORMANCE OF CENTRAL COOPERATIVE
BANKS IN PUNJAB
Recovery of advances made by the banks is very important
linking point in the entire financing gemut as it initiates the recycling
of funds for the big coverage of prospective borrower as well as control
the actual utilization of money for increased production. (Pasricha,
1993) The success and prosperity of the bank depends upon the
recovery of its loans. For any credit society, repayment of credit is of
crucial importance as it not only ensures recycling of public money for
development and building up confidence among the clientele, but also
256
the success and performance of any lending agency depends upon its
recovery level (Koli and Landage, 2007). Timely recovery of credit not
only keeps the business running with uninterrupted flow of funds but
also reduces bad debts and keeps the borrower eligible for obtaining
next time credit. The efficiency of the Central Cooperative Banks
depends upon their recovery performance so proper steps should be
taken to ensure that loan amount is used for the purpose for which it
is sanctioned and proper supervision is necessary.
Recovery performance of Central Cooperative Banks operating in
Punjab is exhibited in Table 5.17. From the table it is observed that
recovery performance of the Central Cooperative Bank operating in
Punjab is quite satisfactory. Average recovery percentage has shown a
fluctuating trend during the study period. Average recovery
performance of all the Central Cooperative Banks in Punjab during
the study period was 87.37 per cent. The banks indicating higher
recovery percentage as compared to recovery percentage at the state
level were Jalandhar Central Cooperative Bank, N. Shahr Central
Cooperative Bank, Kapurthala Central Cooperative Bank, Moga
Central Cooperative Bank, Ludhiana Central Cooperative Bank,
Fatehgarh Sahib Central Cooperative Bank, Bathinda Central
Cooperative Bank, Sangrur Central Cooperative Bank, Patiala Central
Cooperative Bank, Faridkot Central Cooperative Bank and Hoshiarpur
Central Cooperative Bank. On the other hand Gurdaspur Central
Cooperative Bank, Tarn Taran Central Cooperative Bank, Muktsar
Central Cooperative Bank, Amritsar Central Cooperative Bank, Mansa
Central Cooperative Bank, Ferozepur Central Cooperative Bank,
Fazilka Central Cooperative Bank and Ropar Central Cooperative
Bank showed lower recovery percentage as compared to the recovery
percentage at the state level. Ranking of the Central Cooperative Banks
has been done on the basis of the recovery percentage during the study
period. Jalandhar Central Cooperative Bank indicated highest average
recovery (96.99 Per cent) followed by N. Shahr Central Cooperative Bank
(96.53 Per cent). Gurdaspur Central Cooperative Bank indicated lowest
average recovery (69.64 Per cent) during the same period.
257
TABLE 5.17
RECOVERY PERFORMNACE OF CENTRAL COOPERATIVE BANKS IN PUNJAB (in per cent) Central Coop. Bank 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Average Rank
Amritsar 80.07 83.34 84.83 81.76 84.86 79.67 79.26 80.81 79.59 78.17 80.47 78.21 86.94 81.38 16
Bhatinda 97.14 88.03 89.31 87.96 88.00 87.93 90.48 89.86 90.56 89.99 91.25 89.42 91.93 90.14 7
F. Sahib 93.05 93.62 95.99 89.64 91.92 91.39 91.90 91.60 91.58 91.62 94.23 94.46 96.03 92.85 6
Fazilka 94.37 86.24 84.18 86.19 81.26 81.86 84.72 85.74 85.69 84.55 88.98 85.32 87.98 85.93 13
Ferozepur 82.00 82.09 81.93 79.89 80.37 77.69 81.54 81.71 84.48 84.91 88.49 87.47 92.09 83.44 14
Faridkot 86.48 88.07 88.26 89.19 89.30 90.72 88.62 89.65 88.18 90.63 92.15 91.93 92.44 89.66 10
Gurdasur 59.16 59.91 63.67 65.10 67.34 74.62 72.27 69.54 72.59 73.21 74.23 75.35 78.37 69.64 19
Hoshiarpur 79.23 83.34 84.41 86.68 88.54 89.56 90.10 91.52 92.35 92.72 94.38 92.17 92.82 89.06 11
Jalandhar 97.18 98.04 98.20 97.83 97.69 97.44 97.42 95.43 96.40 96.15 96.52 96.49 96.12 96.99 1
Kapurthala 88.73 89.32 92.19 94.27 94.87 95.01 95.24 94.57 94.76 95.07 95.49 95.67 96.56 93.98 3
Ludhiana 95.17 95.57 93.61 92.72 91.56 91.30 91.67 92.28 92.26 92.27 93.23 93.68 94.83 93.09 5
Mansa 92.56 84.70 82.37 84.61 82.84 76.78 79.21 78.46 79.33 79.46 81.76 81.02 86.65 82.29 15
Moga 97.33 96.19 96.30 91.79 92.36 92.80 93.51 93.33 93.07 92.15 93.75 92.87 94.92 93.87 4
Muktsar 86.28 79.69 78.24 81.59 83.85 83.89 84.27 82.43 77.89 71.30 75.21 68.86 82.71 79.71 17
N.Shahr 97.24 96.73 97.15 97.26 96.98 96.42 96.71 95.38 95.65 95.79 96.61 96.59 96.42 96.53 2
Patiala 89.16 89.41 89.53 87.54 87.83 89.02 89.15 89.97 90.73 90.06 92.33 90.54 92.07 89.80 9
Ropar 85.40 86.35 87.71 85.88 85.59 84.55 84.52 86.61 88.69 89.98 88.44 83.16 89.33 86.63 12
Sangrur 93.60 92.26 92.34 91.54 91.07 66.07 92.07 90.51 92.80 92.11 92.17 90.49 92.90 89.99 8
Tarn Taran 69.80 72.35 74.24 73.63 76.70 76.53 78.56 76.06 77.90 75.91 74.09 72.14 77.57 75.04 18
Average 87.58 86.59 87.08 86.58 87.00 85.43 87.43 87.13 87.61 87.16 88.62 87.15 90.46 87.37
Source: Published Reports of Punjab State Cooperative Bank, Chandigarh.
172
5.10 CONCLUSION The above analysis leads us to conclusion that Central
Cooperative Banks in Punjab have made a slow progress as far as the
programme of branch expansion is concerned. The number of
branches increased from 777 in 1997-98 to 834 in 2001-02, and then
decreased to 804 in the year 2009-10, thus, showing a fluctuating
trend in the case of branch expansion. Central Cooperative Banks in
Punjab have been successful in deposit mobilization. Deposits of
Central Cooperative Banks in Punjab increased with an exponential
growth rate of 11.92 per cent during the period under study. Savings
deposits recorded the highest exponential growth rate of 14.92 per
cent whereas fixed deposits recorded the lowest exponential growth
rate of 9.33 per cent. The Central Cooperative Banks in Punjab have
shown a considerable success in the growth of advances. Advances of
Central Cooperative Banks in Punjab increased with an exponential
growth rate of 12.71 per cent. There is about five-fold increase in
loans. The growth rate of advances is more than the growth rate of
deposits during the period under study. The volume of business
presents the total of deposits and advances. The volume of business of
Central Cooperative Banks operating in Punjab increased from Rs.
409639.40 lac in 1997-98 to Rs. 1878154.01 lac in 2009-10 and
indicated exponential growth rate of 12.39 per cent during the period
under study. Throughout the period of study Jalandhar Central
Cooperative Bank contributed the most in total volume of business.
The working funds of Central Cooperative Banks operating in Punjab
have increased from Rs. 277573.83 lac in 1997-98 to Rs. 1195956.11
lac in 2009-10 listing an exponential growth rate of 12.84 per cent.
Owned funds of the bank represent share capital and reserve funds.
The owned funds increased from Rs. 20747.63 lac in 1997-98 to Rs.
107020.17 lac in 2009-10 at an exponential growth rate of 15.11 per
cent. Ropar Central Cooperative Bank recorded the highest
exponential growth rate of 21.90 per cent, while Ferozepur Central
173
Cooperative Bank registered the lowest growth rate of 5.94 percent.
The number of staff members of Central Cooperative Banks in Punjab
decreased during the study period. The exponential growth rate is
negative for all the Central Cooperative Banks. Non-performing assets
as percentage to advances ranged from 4.00 to 8.00 per cent. The top
rank in NPAs as percentage to total advances pertained to N. Shahr
Central Cooperative Bank, while Gurdaspur Central Cooperative Bank
appeared at the bottom. The recovery performance of Central
Cooperative Banks in Punjab was quite satisfactory, as the percentage
of recovery against demand ranged from 85.00 to 90.00 percent.
Jalandhar Central Cooperative Bank appeared on the top as far as
recovery percentage is concerned, while Gurdaspur Central
Cooperative Bank remained at the bottom.
174
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Desai, Vasant (1980), Indian Banking; Nature & Problems, Himalaya
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Goyal, S.K.; Kaur, Satnam; and Suhag, K.S. (2006), “Performance and
Regional Variability in Primary Agricultural Cooperative Credit
Societies in Haryana”, Indian Cooperative Review, Vol. 43, No.
4, April, pp. 697-705.
Koli, P.A.; and Landage, P.B. (2007), “Financial Performance of District
Central Cooperative Bank: A Case of Ratnagiri District Central
Cooperative Bank”, Indian Cooperative Review, Vol. 45, No. 1,
July, pp. 69-88.
Pasricha, J.S. (1993), Banking and Rural Development, Anmol
Publications, New Delhi, pp. 105, 241.
Shoora, Vandana (2005), Performance Appraisal of Cooperative Banks
in Haryana, Doctoral Thesis, UBS, Panjab University,
Chandigarh.
Vashist, A.K. (1991), Public Sector Banks in India, H. K. Publishers,
Delhi, p. 108.
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