Performance of Rural Cooperative Credit Institutions of Ambala District

Many banks and financial institution in India face the problem of Non-performing Assets. This issue is becoming more and more uncountable, some steps have taken recently non-performing Asset have a direct impact on banks profitability’s many time banks are forced to make certain previous as per the reserve bank of India guidelines and increase in deposits. R.B.I. successfully create excess liquidity through various cuts rates and institutions fail to take the benefit due to non-performing Assets. Definition of Non – performing Assets. Non-Performing Assets is a Assets including a Leased Asset that become non-performing when for the bank Assets is classified as non-performing Asset if dues in the form of principal and interest are not paid by the people of 180 instead of 90 days. Credit or interest income on non-performing Assets REVIEW of LITERATURE - the overview of researches that have already been existing in the Field over a period of time. It help the formulating the methodology of study finding out the cause and effect relationship. However. Being made to review some relevant studies on rural co-operative credit.

under the chairmanship of B.Venkatappiah appointed by the Reserve bank of India to review the spply of Agriculture credit. In the field of technological changes the committee laid stress on the clear inadequacy of cooperative societies for credit needs of agriculture it prepared the way for a multi-agency approach to agriculture and rural credit . Kandasani (1992) joint effords of the supervisors of the district central bank officers of the primary society in the government of Tamilnadu the periyar district central cooperative bank was able to get top position in the state of recovery performance of crop loan. PATEL (1999). It revealed that cooperative banking system should also be freed from the interference of state government registrars. It should be under the purview of RBI if they does not offer prospect of viabilities. The should be closed down merge with adjoining branches. Hooda and vijay (2011). It evaluate the performance of schedule commercial banks and forwarded comparative assessment between them with the help selected financial ratio. GUPTA and JAIN (2012). Examined that improved the financial performance of urban cooperative banks in 2010-11 within the rural cooperative sector, state cooperative banks and district central cooperative banks reported profit. The Agriculture credit societies continued increase huge losses. The financial performance of long term cooperatives was found to be even weaker then short term. Also found that branch network of cooperative, through wide spread across the country. KAVITHA. N. (2012). It is main assessment of non-performing assets on profitability. The credit of total advances was in the farm of doubtful assets in past and adverse impact on profitability. The study

After the review of Literature it has been found that the above studies has not given much attention to the factors responsible for poor performance of rural cooperative institution. The factors lack of business approach, highly political interference, non-availability of infrastructure, lack of financial resources, inadequate deposits, lack of supervision and inspection, competition with nationalized banks. The various affords has been made the strength and weakness of these bank in term of their capital borrowings, overdue interest, deposits etc. Objectives of the Study Following are the main objective of study. - The study the growth functioning cooperative banks operating in Ambala district. - To evaluate the Financial position of Rural cooperative credit institutions in Ambala district. - To evaluate the operational performance in Ambala district. - To suggest measure for strengthening the role of cooperative credit institution in rural development.

This study is based on secondary data which is collected from the annual financial reports of the Ambala central cooperative bank Ltd. In addition to this various journals books and information provided by government agencies have been taken to complete the study.

The rural cooperative credit institutions in cooperative credit institutions in Ambala district are providing various benefit to society in the following ways. Shareholders. With the help of study shareholders can know that the financial soundness of the banks and they can get information how safe and rewarding the proposed investment. Creditors with the help of these study their principal and interest will be repaid when due or not. Employee Groups. The study will help them in assessing the abilities of the banks and to pay higher bonus and remunerations. Public With the help of present study public can know the future plan of these bank towards the society also given some opportunity for employment in these banks. Helpful for researchers. It will also helpful for the future researchers for futures research. Limitation of the study. The every possible efford has been made in this study to show on Analytical picture of performance of Rural Cooperative credit institutions in Ambala district the resources of disposal of researches were limited. The Researcher could not hve access to all records and documents needed for the study. The finding of study cannot be generalized for all the rural cooperative credit institution in Haryana. The time of study is also limited because it covers only ambala district.

CREDIT INSTITUTIONS IN AMBALA DISTRICT

Financial position of RCC is in Ambala District. The Financial position of RCCIs can be well assessed by analysis the balance sheet of bank. Balance sheet is actually a picture of the Financial position. Here analysis and interpretation of the financial position of RCCIs in Ambala is done by computed items of balance sheet on different dates. Balance sheet have been taken to analyze the financial position of RCCIs in Ambala from the year 2009-10 to 2011-12.

(Amounts in Rs. Lacs)

Paid up share capital. It is sum total of subscription made by state government associate memberand cooperative societies in the paid up share capital of RCCIs in Ambala. Table. II show the pattern of shareholding of Rccis in Ambala during the period fomr 2009-10 to 2011-12.

(Amount in Rs. Lacs) Base year – 2009 – 10 Sources:- Annual reports of Ambala central cooperative bank Ltd. Note:- Figure in brackets show the percentage of each them to total

Operational performance can be Analyzed by taking various operational items like deposits loan, borrowing recovery position, non-performing Assets to advances etc.

Amount in Rs. Lacs Base year – 2009 – 10 Sources:- Annual Reports of Ambala Central cooperative bank Ltd. Table – III show the deposits of RCCIs in ambala have been increased with increase in percentage. Finding & Suggestions The present study is related to the financial and operational performance of rural cooperative credit institution in Ambala Distt. Finding and suggestion of the study are given below : - Findings : - By analyzing data some importance points come out which are given below.  Total resources is terms of share capital, reserve fund deposits, borrowing of RCCIs in Ambala district show increasing trend. Profit show decreasing trand in 2009-2010 to 2011-2012. capital 3.80%(103.80-100)  Growth rate of reserve fund and other reserve show decreasing trend growth rate of agriculture credit stabilization fund of RCCIs in Ambala Distt. Showing increasing trend.  Percentage of borrowing funds to total sources is showing increasing trend.  The growth rate of deposit of RCCIs in Ambala Distt.showing increasing trend.  The growth rate of Loan and advances is showing increasing trend.  The growth rate of income is showing mixed trend.  The Non-Performing assets (NPA) of RCCIs in Ambala Distt. Is showing decreasing trend.

To solve the problem some suggestions based on finding are given below : -  Profits of RCCIs in Ambala distt. Show decreasing trend so efforts should be made to increase profit.  Percentage of paid up capital to total resources should decreasing trend so corrective measures would be taken to increase it.  Growth rated of expenditure is very high so measuring should be taken to control it.  The modern techniques of banking including use of ATM should also be extended.  The process of advancing loans to the people should be made simple.

 Annual reports of central co-operative bank of Ambala  Bagchi (2006), “Agriculture and Rural Development are synonymous in reality. Suggested Role of CAs in Accelerating process” The chartered Accountant, Journal of Institute of Chartered Accountant of India. Vol.54, No 08(Feb.) New.  Govt. of India, Report of Royal Commission on Agriculture, Calcutta, 1928.  Hoods Vijay 2011 International journal of company and business research : SCBs Vs St. CBs A comparison of three financial ratio Vol.2 (may)  Patel A.R. Agriculture credit policy Need For Fresh look and intiative IBA Bulletin Oct.1999 Vol XXI, No.10 P.P. 27, 28  Report of planning committee (1946) P.4  Reserve bank of India, Report of The Rural Credit Review Committee, Bombay, 1966

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