financial status and performance of district...
TRANSCRIPT
CCHHAAPPTTEERR IIIIII
FFIINNAANNCCIIAALL SSTTAATTUUSS AANNDD PPEERRFFOORRMMAANNCCEE
OOFF DDIISSTTRRIICCTT CCEENNTTRRAALL CCOO--OOPPEERRAATTIIVVEE
BBAANNKKSS ((DDCCCCBBss)) IINN IINNDDIIAA AANNDD
AANNDDHHRRAA PPRRAADDEESSHH
–– AANN AAPPPPRRAAIISSAALL
58
FINANCIAL STATUS AND PERFORMANCE OF DISTRICT
CENTRAL CO-OPERATIVE BANKS (DCCBs) IN INDIA AND
ANDHRA PRADESH – AN APPRAISAL
3.1 Introduction:
As was already mentioned, the co-operatives perform
commercial and other functions related to rural development in
general and agricultural development in particular. They are
organized and operated on the basis of co-operative principles,
which provide objectives and methods of operation that distinguish
them from other organizations. The evaluation of co-operatives,
therefore requires approaches somewhat different from those
applied to other types of enterprises.
Mobilization of more deposits, improvement in granting loans,
speedy recovery of overdues, maintenance of adequate and limited
resources, keeping of adequate margin between borrowing and
lending rates so as to build a strong reserve fund and making of
proper scrutiny and provision for bad and doubtful reserves are
some of the reforms that were already announced and implemented
by the co-operative banks.
In the light of above, this chapter is devoted to examine the
trends in the financial status, growth and performance of DCCBs in
India and Andhra Pradesh.
59
3.2 Financial Status and Growth Trends of DCCBs in India:
The financial status and growth trends of the DCCBs in India
have been discussed briefly in this section.
3.2.1 Per Bank Membership Trends of District Central
Co-operative Banks in India:
Table 3.1 deals with the growth in the membership of the
DCCBs at the all India level during 2004-05 and 2008-09. The
number of DCCBs has gone up very marginally from 368 to 373
only during the said 5 years. In other words, there is a marginal
growth rate of 1.36% with regard to the number of DCCBs.
However, there was an impressive growth rate with regard to the
total membership of DCCBs which grew from about 21.5 lakhs in
2004-05 to about 35.3 lakhs by 2008-09, which marked an annual
average growth rate of 64.45%.
Similarly, per bank membership was also shown in the same
Table. The per bank membership of the DCCBs has impressively
gone up from just less than 6,000 in 2004-05 to more than 9,400
in 2008-09. This amounts to an annual growth rate of 62.25%.
This shows that though there was a marginal growth in the
number of DCCBs, there was a tremendous growth registered in
the total membership and per bank membership of the DCCBs in
India. This status provides a positive impression that the
co-operative movement in India has been absorbing more number
of members into its fold.
60
Table 3.1 Per Bank Membership of DCCBs in India
(in Numbers)
S.No Years Total Membership
No of DCCBs
Per Bank Membership
1. 2004-05 21,45,876
368 5,831
2. 2005-06 22,67,850
(5.68)
370
(0.54)
6,129
(5.11)
3. 2006-07 32,64,849
(43.96)
371
(0.27)
8,800
(43.58)
4. 2007-08 33,96,881
(4.04)
372
(0.27)
9,131
(3.76)
5 2008-09 35,28,802
(3.88)
373
(0.27)
9,461
(3.61)
Source: National Federation of State Co-operative Banks Ltd. Per Bank Membership=Total Membership/No of DCCBs Note: Figures in brackets show the Annual Growth Rates
Chart 3.1 Per Bank Membership of DCCBs in India
(in Numbers)
0
2,000
4,000
6,000
8,000
10,000
Per Bank Membership
Series1 5,831 6,129 8,800 9,131 9,461
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
61
3.2.2 Trends in the Growth of Owned Funds of DCCBs in India:
Table 3.2 elicits the position of owned funds of the DCCBs in
India. Owned funds constitute the total share capital and reserves
of a bank. The strength of any DCCB is reflected through its
strength in owned funds only. The larger the owned funds, the
stronger are its financial position.
The data clearly shows the DCCBs at the all India level have
registered a significant growth in the owned funds. In 2004-05, the
owned funds of all the DCCBs amounted to 16,788 crores only.
This figure has gone up considerably to touch a level of
23,879 crores in 2008-09. In other words there was 42.24% rise
in these funds.
It reveals that the growth in the total reserves has mainly
contributed to the strength of its own funds. The reserves have
gone up from 12,673 crores in 2004-05 and have touched
17,808 crores mark by 2008-09. The share capital has also
progressed considerably during that period. It is found that the
DCCBs at the all India level are projecting a strong position related
to funds.
62
Table 3.2 Owned Funds of DCCBs in India
( in Crores) S.No Years Total Share
Capital Total Reserves Owned Funds
1. 2004-05 4,115
12,673 16,788
2. 2005-06 4,511
(9.62)
14,083
(11.13)
18,594
(10.76)
3. 2006-07 5,098
(13.01)
15,505
(10.10)
20,603
(10.80)
4. 2007-08 5,829
(14.34)
16,436
(6.00)
22,265
(8.07)
5 2008-09 6,071
(4.15)
17,808
(8.35)
23,879
(7.25)
Source: National Federation of State Co-operative Banks Ltd. Note: Owned Funds= Total Share Capital +Total Reserves Note: Figures in brackets show the Annual Growth Rates
Chart 3.2 Owned Funds of DCCBs in India
( in Crores)
0
5,000
10,000
15,000
20,000
25,000
Share Capital 4,115 4,511 5,098 5,829 6,071
Reserves 12,673 14,083 15,505 16,436 17,808
Owned Funds 16,788 18,594 20,603 22,265 23,879
2004-05 2005-06 2006-07 2007-08 2008-09
63
3.2.3 Credit Deposit Ratio (C-D Ratio) of DCCBs in India:
Credit Deposit Ratio plays a significant role in the operations
of the banking business. The higher the C-D ratio the greater is
said to be the lending performance of a banking institution.
The C-D ratio of the DCCBs in India was nearly 90% from
2004-05 up to 2007-08. The DCCBs were able to maintain more or
less the same percentage. It was only in 2008-09 the C-D ratio has
fallen down to less than 80%.
In other words, when compared to the volume of deposits, the
size of advances has declined. Therefore, the DCCBs have to
improve the C-D ratio in future.
Table 3.3 Credit Deposit Ratio of DCCBs in India
( in Crores)
S.No Years Total Deposits Total Loans
Outstanding
C-D Ratio
1. 2004-05 80,476
72,090
89.58
2. 2005-06 86,652
(7.67)
76,737
(6.45)
88.56
3. 2006-07 92,081
(6.27)
85,461
(11.37)
92.81
4. 2007-08 1,05,994
(15.11)
95,974
(12.30)
90.55
5 2008-09 1,23,722
(16.73)
97,207
(1.28)
78.57
Source: National Federation of State Co-operative Banks Ltd. Note: C-D Ratio is calculated as Ratio of Loans Outstanding to Deposits Note: Figures in brackets show the Annual Growth Rates
64
Chart 3.3 Credit Deposit Ratio of DCCBs in India
70
75
80
85
90
95
C-D Ratio
C-D Ratio 89.58 88.56 92.81 90.55 78.57
2004-05 2005-06 2006-07 2007-08 2008-09
3.2.4 Working Capital and Borrowings of DCCBs in India:
Table 3.4 shows the particulars pertaining to the working
capital and borrowings of the DCCBs in India.
The percentage of borrowings in the working capital of the
bank should be brought down to a minimum level, if a bank had to
minimize the interest commitment to borrowers. It is interesting
that the DCCBs in India have brought down their share of
borrowings in the gross working capital from 17.58% in 2004-05 to
less than 15.5% in 2008-09. This is naturally a welcoming trend so
far as the reduction in the outside borrowings is concerned.
65
Table 3.4 Working Capital and Borrowings of DCCBs in India ( in Crores)
S.No Years Total Borrowings
Total Working Capital
Share of Borrowings in Working Capital
1. 2004-05 21,557
1,22,633 17.58
2. 2005-06 23,202
(7.63)
1,31,242
(7.02)
17.68
3. 2006-07 27,941
(20.42)
1,46,084
(11.31)
19.13
4. 2007-08 30,533
(9.28)
1,68,138
(15.10)
18.16
5 2008-09 28,478
(-6.73)
1,84,038
(9.46)
15.47
Source: National Federation of State Co-operative Banks Ltd. Note: Share of Borrowings in Working Capital=Total Working Capital/Total Borrowings×100
Note: Figures in brackets show the Annual Growth Rates
Chart 3.4
Share of Borrowings in Working Capital of DCCBs in India
0
5
10
15
20
Share of Borrowings in Working capital
Share of
Borrowings in
Work ing capital
17.58 17.68 19.13 18.16 15.47
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
66
3.2.5 Investment Trends of DCCBs in India: Table 3.5 shows the investment trends in the DCCBs in India.
The financial growth of the DCCBs is reflected in the growth of their
investments.
It reveals that the total investments of DCCBs have gone up
from 34,783 crores in 2004-05 to as high as 61,041 crores in
2008-09.
In other words the investments have almost doubled
appreciably during a short span of 5 years only.
Table 3.5
Investment Trends of DCCBs in India ( in Crores)
S.No Years Total Investments
1. 2004-05 34,783
2. 2005-06 37,127
(6.74)
3. 2006-07 40,791
(9.87)
4. 2007-08 48,247
(18.28)
5 2008-09 61,041
(26.52)
Source: National Federation of State Co-operative Banks Ltd. Note: Figures in brackets show the Annual Growth Rates
67
Chart 3.5 Investment Trends of DCCBs in India ( in Crores)
0
20,000
40,000
60,000
80,000
Investments
Investments 34,783 37,127 40,791 48,247 61,041
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
3.2.6 Loans Issued and Overdues of DCCBs in India:
The ultimate aim of any bank is to get back all the funds
advanced to the Borrowers along with a rate of return. The higher
the rate of collection, the greater is the efficiency of the bank. In
other words, lower the overdues greater is said to be its efficiency.
When it is observed in this angle the DCCBs in India have shown a
satisfactory performance in minimizing the overdues.
However, a lot is to be achieved by the DCCBs in this
direction, because the share of overdues in the total loans issued
has gone up from 27% in 2004-05 to more than 30% in 2008-09.
The DCCBs, therefore, have to take more stringent measures to
bring down the level of overdues.
68
Table 3.6 Loans Issued and Overdues of DCCBs in India
( in Crores) S.No Years Total Loans
Issued Total Overdues Share of
Overdues in Loans Issued
1. 2004-05 65,356
18,032 27.59
2. 2005-06 69,318
(6.06)
18,136
(0.58)
26.16
3. 2006-07 76,704
(10.66)
21,386
(17.92)
27.88
4. 2007-08 87,229
(13.72)
27,221
(27.28)
31.21
5 2008-09 88,029
(0.92)
26,444
(-2.85)
30.04
Source: National Federation of State Co-operative Banks Ltd. Note: Share of Overdues in Loans Issued=Total Loans Issued/Total Overdues×100 Note: Figures in brackets show the Annual Growth Rates
Chart 3.6
Share of Overdues in Loans Issued by DCCBs in India
22
24
26
28
30
32
Share of Overdues in Loans Issued
Share of
Overdues in
Loans Issued
27.59 26.16 27.88 31.21 30.04
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
69
3.3 Financial Status and Growth Trends of DCCBs in Andhra
Pradesh and their Shares in All India Level:
Since 1985 the co-operative movement in Andhra Pradesh
has achieved noticeable progress in its various activities like the
disbursement of loans, distribution of fertilizers and creation of
employment opportunities to weaker-sections and construction of
houses in urban as well as rural areas. In order to keep these on
the right track, a reorganization programme has been launched as
recommended by the ‘Hazari Committee’ (1967).
The Andhra Pradesh government proposed a new co-operative
structure called the ‘Single Window System’ during 1985 in the
three districts of Andhra Pradesh with the consent of RBI, NABARD
and Government of India on an experimental basis. With the
successful implementation of this system, the Government of India
accepted in principle, on 4th September 1985 to implement this
system in the entire state. The government of Andhra Pradesh has
implemented this scheme on 27th August, 1987.
Under this new co-operative credit structure, the farmers get
the credit facilities (both short-term and long-term) and other
non-credit services such as fertilizers, seeds and other farm
services through a single window. The Andhra Pradesh state has at
present 22 District Central Co-operative Banks to look after the
credit needs of agricultural sector in different districts. These
District Central Co-operative Banks having 562 branches are
providing employment to nearly 5,300 people.
70
The Krishna District Central Co-operative Bank is observed
to be the number one bank in the state in terms of share capital,
reserve funds, deposits and loans issued followed by
Kakinada-DCCB, Eluru-DCCB and Guntur-DCCB. Another
important feature of the DCCBs of the state is that 5 out of 22
banks are running in losses. Thus the progress of the DCCBs of
Andhra Pradesh (A.P) is not exhibiting a consistent picture.
3.3.1 Per Bank Membership Trends of DCCBs in A.P:
As shown in the table 3.7 the number of DCCBs has been
constant during the given period from 2004-05 to 2008-09. Despite
this stagnant position, a tremendous growth has been achieved in
the subscription of membership. The data shows that the size of
membership has grown up from 8.52 lakh in 2004-05 to
20.14 lakhs by 2008-09, marking a growth rate of 136.53%.
Similarly, the membership per bank has also grown up
impressively from just 38,696 in 2004-05 to 91,527 by 2008-09,
registering a growth rate of 136.5%.
The share of the total membership in DCCBs of A.P at the
All India level was about 40% in 2004-05. This has impressively
gone up to 57.06% in 2008-09. The percentage share of number of
DCCBs in A.P at all India level has been stagnant at 5.9%.
71
Table 3.7 Per Bank Membership Trends of DCCBs in A.P
(in Numbers)
Total Membership No. of DCCBs S.No
Years
No. Share in All India Level
No. Share in All India Level
Per Bank
Membership
1. 2004-05 8,51,322
39.67 22 5.98 38,696
2. 2005-06 8,49,284
(-0.24)
37.45 22 5.95 38,604
(-0.24)
3. 2006-07 18,03,785
(112.39)
55.25 22 5.93 81,990
(112.39)
4. 2007-08 17,74,465
(-1.63)
52.24 22 5.91 80,658
(-1.63)
5 2008-09 20,13,596
(13.48)
57.06 22 5.90 91,527
(13.48)
Source: National Federation of State Co-operative Banks Ltd. Per Bank Membership=Total Membership/No of DCCBs Note: Figures in brackets show the Annual Growth Rates
Chart 3.7
Per Bank Membership Trends of DCCBs in A.P (in Numbers)
0
20,000
40,000
60,000
80,000
100,000
Per Bank Membership
Per Bank
Membership
38,696 38,604 81,990 80,658 91,527
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
72
3.3.2 Owned Funds of DCCBs in A.P:
The data pertaining to the position of owned funds of DCCBs
in Andhra Pradesh is presented in table 3.8. The total share capital
and reserves put together constitute the owned funds. As was
already said it is the treasure of owned funds that reflects the
strength of any DCCB. The financial sustenance depends on the
sum of the owned funds.
As shown in the table, there has been an interesting trend
with regard to the sum of owned funds of DCCBs in A.P. The owned
funds of all DCCBs in A.P together amounted to 1,49,646 lakh
only in 2004-05. Though this figure had gone up significantly to
2,02,925 lakh by 2007-08, it had slightly shrinked down to
1,98,420 lakh in 2008-09. In other words there was 32.60% rise
in the owned funds between 2004-05 and 2008-09. The growth in
the amount of total reserves has mainly contributed to the strength
of its own funds. The reserves had gone up to 1,21,142 lakh by
2008-09 from 88,356 lakh in 2004-05, recording more than 37%
rise.
The contribution of share capital had also gone up from
61,290 lakh in 2004-05 to 77,278 lakh by 2008-09 indicating a
rise of 26%. The contribution of DCCBs of A.P to the all India level
with regard to share capital had decreasing trend, from 14.89% in
2004-05 to 12.72% in 2008-09, while the contribution of DCCBs of
A.P to the all India level with regard to reserves had fluctuating
trend.
73
Table 3.8 Owned Funds of DCCBs in A.P
( in Lakhs)
Total Share Capital Total Reserves S. No
Years
Amount Share in All India Level
Amount Share in All India Level
Owned Funds
1. 2004-05 61,290
14.89 88,356 6.97 1,49,646
2. 2005-06 64,642
(5.47)
14.33 1,08,436
(22.73)
7.70 1,73,078
(15.66)
3. 2006-07 73,299
(13.39)
14.38 1,26,633
(16.78)
8.17 1,99,932
(15.52)
4. 2007-08 74,664
(1.86)
12.81 1,28,261
(1.29)
7.80 2,02,925
(1.50)
5 2008-09 77,278
(3.50)
12.72 1,21,142
(-5.55)
6.80 1,98,420
(-2.22)
Source: National Federation of State Co-operative Banks Ltd. Note: Owned Funds= Total Share Capital +Total Reserves Note: Figures in brackets show the Annual Growth Rates
Chart 3.8
Owned Funds of DCCBs in A.P ( in Laksh)
0
50000
100000
150000
200000
250000
Share Capital 61290 64642 73299 74664 77278
Reserves 88356 108436 126633 128261 121142
Owned Funds 149646 173078 199932 202925 198420
2004-05 2005-06 2006-07 2007-08 2008-09
74
3.3.3 Credit Deposit Ratio (C-D Ratio) of DCCBs in A.P:
The size of lending of any financial institution is justified
through its C-D ratio. The C-D ratios of DCCBs in Andhra Pradesh,
have shown fluctuating trend during the given period, but are
found satisfactorily in size. It was as high as 272% in 2006-07 and
as low as 196% in 2008-09.
The contributions of DCCBs with regard to the volume of
deposits at all India level got declined from 3.08 per cent in
2004-05 to 2.71 per cent in 2008-09. Similarly their share of
advances has declined from 8.74 per cent in 2004-05 to
6.77 per cent in 2008-09.
Table 3.9
Credit Deposit Ratio of DCCBs in A.P ( in Lakhs)
Total Deposits Total Loans Outstanding
S. No
Years
Amount Share in
All India Level
Amount Share in
All India Level
C-D Ratio
1. 2004-05 2,47,699
3.08 6,29,956 8.74 254.32
2. 2005-06 2,51,417
(1.50)
2.90 6,72,012
(6.68)
8.76 267.29
3. 2006-07 2,60,849 (3.75)
2.83 7,09,537 (5.58)
8.30 272.01
4. 2007-08 2,73,213
(4.74)
2.58 7,22,350
(1.81)
7.53 264.39
5 2008-09 3,35,604 (22.84)
2.71 6,58,221 (-8.88)
6.77 196.13
Source: National Federation of State Co-operative Banks Ltd. Note: C-D Ratio is calculated as Ratio of Loans Outstanding to Deposits Note: Figures in brackets show the Annual Growth Rates
75
Chart 3.9 Credit Deposit Ratio of the DCCBs in A.P
( in Laksh)
0
50
100
150
200
250
300
C-D Ratio
C-D Ratio 254.32 267.29 272.01 264.39 196.13
2004-05 2005-06 2006-07 2007-08 2008-09
3.3.4 Working Capital and Borrowings of DCCBs in A.P:
The particulars related to working capital and borrowings of
DCCBs in Andhra Pradesh are displayed in Table 3.10.
The share of borrowings in the working capital of DCCBs in
A.P has significantly fallen down during the given period of 5 years.
This indicates that the DCCBs in A.P are getting well financially by
reducing outside borrowings. The share of DCCBs of A.P in the
borrowings at all India level had decreased from about 20% in
2004-05 to 14.59% in 2008-09, while their share of working capital
has slightly increased from 5.45% in 2004-05 to 5.70% in 2008-09.
76
Table 3.10 Working Capital and Borrowings of DCCBs in A.P
( in Lakhs)
Total Borrowings Total Working Capital S. No
Years
Amount Share in All India Level
Amount Share in All India Level
Share of Borrowings in Working Capital
1. 2004-05 4,29,748
19.94 6,68,581 5.45 64.28
2. 2005-06 4,57,994 (6.57)
19.74 7,20,756 (7.80)
5.49 63.54
3. 2006-07 5,14,755 (12.39)
18.42 10,31,048 (43.05)
7.06 49.93
4. 2007-08 4,99,196 (-3.02)
16.35 10,26,084 (-0.48)
6.10 48.65
5 2008-09 4,15,556 (-16.75)
14.59 10,49,214 (2.25)
5.70 39.61
Source: National Federation of State Co-operative Banks Ltd. Note: Share of Borrowings in Working Capital=Total Working Capital/Total Borrowings×100. Note: Figures in brackets show the Annual Growth Rates
Chart 3.10
Share of Borrowings in Working Capital of DCCBs in A.P
0
20
40
60
80
Share of Borrowings in Working Capital
Share of Borrowings in
Work ing Capital
64.28 63.54 49.93 48.65 39.61
2004-05 2005-06 2006-07 2007-08 2008-09
77
3.3.5 Investment Trends of DCCBs in A.P:
The data in table 3.11 indicates the investment trends of the
DCCBs in A.P. The data reveals that the total investments of all
DCCBs in A.P had significantly increased from 1.12 lakh in
2004-05 to 1.95 lakh by 2008-09, marking a rise of 74.86%.
However, the share of DCCBs of A.P in the all India investments
has been stagnant.
Table 3.11 Investment Trends of DCCBs in A.P
( in Lakhs) Total Investments Sl.
No Years
Amount Share in All
India Level
1. 2004-05 1,11,537 3.21
2. 2005-06
1,12,304 (0.69)
3.02
3. 2006-07 1,20,217 (7.05)
2.95
4. 2007-08 1,30,588 (8.63)
2.71
5 2008-09 1,95,030 (49.35)
3.20
Source: National Federation of State Co-operative Banks Ltd. Note: Figures in brackets show the Annual Growth Rates
Chart 3.11 Investment Trends of DCCBs in A.P
( in Laksh)
0
50000
100000
150000
200000
Investements
Investements 111537 112304 120217 130588 195030
2004-05 2005-06 2006-07 2007-08 2008-09
78
3.3.6 Loans and Overdues Position of DCCBs in A.P:
During the given five years period, the total of advances got
declined from 3.77 lakh in 2004-05 to 3.40 lakh by 2008-09,
recording a negative growth rate of 10%.
Regarding overdues, there had been an increasing trend
during the period except in 2005-06. The total overdues was
2.09 lakh in 2004-05, which increased to 3.15 lakh by 2008-09.
The increasing share of overdues in the total loans issued which
was 55.36% in 2004-05 and 92.73% in 2008-09 indicates a
declining performance of DCCBs in A.P. Hence it indicates that the
DCCBs in A.P take up required measures to bring down the level of
overdues.
The Share of the total loans of DCCBs in A.P had declined
from 5.78 per cent in 2004-05 to 3.86 per cent in 2008-09 to the all
India level. However, it is worth note that the share of overdues in
all India level had slightly increased from 11.60 per cent during
2004-05 to 11.93 per cent during 2008-09.
79
Table 3.12 Loans Issued and Overdues of DCCBs in A.P
( in Lakhs) Total Loans Issued Total Overdues SL.
No Years
Amount Share in All India Level
Amount Share in All India Level
Share of Overdues in Loans Issued
1. 2004-05 3,77,907
5.78 2,09,210 11.60 55.36
2. 2005-06 4,19,763 (11.08)
6.06 1,81,565 (-13.21)
10.01 43.25
3. 2006-07 4,12,218 (-1.80)
5.37 2,72,094 (49.86)
12.72 66.01
4. 2007-08 3,68,383 (-10.63)
4.22 3,03,345 (11.49)
11.14 82.35
5 2008-09 3,40,088 (-7.68)
3.86 3,15,347 (3.96)
11.93 92.73
Source: National Federation of State Co-operative Banks Ltd. Note: Share of Overdues in Loans Issued=Total Loans Issued/Total Overdues×100 Note: Figures in brackets show the Annual Growth Rates
Chart 3.12
Share of Overdues in Loans Issued of DCCBs in A.P
0
20
40
60
80
100
Share of Overdues in Loans Issued
Share of
Overdues in
Loans Issued
55.36 43.25 66.01 82.35 92.73
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09
80
3.4 Findings:
� The total membership in DCCBs grew impressively from
about 21.5 lakhs in 2004-05 to about 35.3 lakhs by
2008-09 at an annual average growth rate of 64.45%. It is
clear indication that the co-operative movement in India
has been absorbing more number of members into its fold.
� During 2004-05 the owned funds of all the DCCBs
amounted to 16,788 crores only. This figure had gone up
considerably to touch a level of 23,879 crore in 2008-09.
The DCCBs at the all India level thus are projecting a
strong position interms of owned funds.
� The DCCBs in India had brought down their share of
borrowings in working capital from 17.58% in 2004-05 to
16% in 2008-09. Naturally it can be a positive feature as
the outside borrowings shrink down.
� The higher the C-D ratio the greater is said to be the
lending performance of a banking institution. The
C-D ratio of the DCCBs in India was nearly 90% during
2004-05 to 2007-08. The DCCBs in A.P were able to
maintain more or less the same percentage.
� Total investments of DCCBs in India had gone up from 34,783 crores in 2004-05 to as high as 61,041 crores
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in 2008-09, which indicates a healthy financial position of
the DCCBs.
� The share of overdues in the total loans issued had gone
up from 27% in 2004-05 to more than 30% in 2008-09 in
India, indicating the need for initiating corrective
measures.
� The share of DCCBs of A.P in the all India level
membership was 39.67% in 2004-05. This had
impressively gone up to 57% in 2008-09.
� The share of borrowings in the working capital of DCCBs
in A.P had significantly fallen down during the given period
of 5 years. Their share at the all India level had decreasing
trend from about 20% in 2004-05 and 14.59% in 2008-09.
This indicates that the DCCBs in A.P are showing healthy
signs by reducing outside borrowings.
� The total investments of all DCCBs in A.P had significantly
increased from 1.12 lakh in 2004-05 to 1.95 lakh by
2008-09, marking a rise of 74.86%. However, the
contributing share regarding total investments of DCCBs
in A.P to the all India level had shown almost stagnant
position.
� The size of advances had been large enough when
compared to the volume of deposits, indicating the lending
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performance of DCCBs in A.P. The C-D ratio of DCCBs in
A.P was high as 272% in 2006-07 and as low as 196% in
2008-09. However, the contributions of DCCBs in A.P with
regard to volume of deposits and size of advances to the all
India level have been decreasing.
� Regarding overdues there had been an increasing trend
during the period except in 2005-06. The total overdues
was 2.09 lakh in 2004-05, which had increased with a
size of 50.73% amounting to 3.15 lakh by 2008-09.
However, the share of DCCBs in A.P with regard to the
volume of overdues at the all India level have been
increasing.
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