OPERATIONAL PERFORMANCE OF CENTRAL COOPERATIVE …shodhganga.inflibnet.ac.in/bitstream/10603/10008/12/12... · 2015-12-04 · 205 CHAPTER – V OPERATIONAL PERFORMANCE OF CENTRAL

205

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


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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


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


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


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)



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.


11. Mini Dairy Scheme. Beneficiary : Members of Coop. Milk Producers Societies/PACS.

Purpose : Purchase of up to 25 Milch Cattle.


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.


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.


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.


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


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.


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.

229

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)



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


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


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


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


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


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


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


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.

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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


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


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


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

REFERENCES Chawla, A.S. (1987), Nationalization and Growth of Indian Banks, Deep

& Deep Publications, New Delhi, pp. 65, 182.

Desai, Vasant (1980), Indian Banking; Nature & Problems, Himalaya

Publishing House, Bombay, pp. 91, 112.

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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