Analysis of Agricultural and Non-Agricultural Loan Operations of the District Central Cooperative Banks in Tirunelveli Region, Tamil Nadu

Abstract

Cooperative Banking Structure has a unique position in the rural credit system in the state over the years, with a vast network, wide coverage and outreach extending to the remotest parts of the state. Rural credit cooperatives have remained as the prime Institutional Agencies in dispensation of credit for agriculture and rural development. In the post financial sector reforms, competition from the commercial banks and Regional Rural Banks forces the Cooperatives to become more efficient, vibrant and it is cost effective leveraging technology to reinvent themselves. Loan operation plays an important role in cooperative enterprise. A study of business failures in cooperatives would reveal that majority of such failures resulted from the lack of proper loan repayment. DCCBs occupy a place of significance in the cooperative credit delivery system. They act as a spokesperson of the cooperative movement at district level.  Inefficient functioning of cooperatives is due to bad debts, excessive overdue or otherwise investment. Therefore, the Loan operation occupies an importance place as the functions of these institutions. Hence, the analytical study on the agricultural and non-agricultural loan operations of District Central Cooperative Banks in Tirunelveli Region have been undertaken.  The results of the study will help in identifying the lacuna if any, in the Loan operation performance of the DCCBs and to frame loan operation policies and programme to the benefit of the banks and the community.