CHAPTER - II

REVIEW OF LITERATURE

2.1 INTRODUCTION
2.2 REVIEWS OF VARIOUS COMMITTES
2.3 REVIEWS OF ARTICLES AND JOURNALS
2.4 CONCLUSION
REFERENCES
2.1 INTRODUCTION
Researcher has made reviews of various committees appointed by the
State and Government of India. The main objective of the reviews is to understand
the research gaps and methodological gaps of present study. It gives comprehensive
overview of other relevant research studies. The researcher has also review the
published articles, M. Phil dissertations and PT. D. thesis etc.

2.2 REVIEWS OF VARIOUS COMMITTES:-

1. Co-operative Planning Committee (Saraiya committee), 1945, the committee
stated that it is very much expensive to give small loans and to recover them.
Therefore, Joint Stock Banks have no interest at all in giving loans and advances
to small businessmen. On the contrary, the co-operatives banks cordial and
affectionate relations with the people having lo ver income. Therefore, such type
of co-operative banks feels trustworthy from the point of fulfilling the credit
requirements of the low level income groups.
2. “Rural Banking Enquiry Committee (P. Das committee), 1950, Mr.Purshottam
Das, in 1950 also stated absolute importance of Urban Co-operative Banking in
the Indian Banking System. This committee expressed its view that Urban Co­
operative Banks can fulfill the credit requirements of not only urban people but of
the rural people also. As these types of banks and societies have lower
administrative expenses, they can perform wed in the small sections at taluka
level also. The committee suggested that tc make the banking facilities available
in rural areas and to develop the banking business.
3. All India Rural Credit Review Committee (1969), Government of India had
appointed the committee under the chairmanship of B.Venkatappiah. Main
objective of the committee was to suggest measures for the reorganization of rural
credit. The Committee found that there is marked increase in the co-operative
credit between 1951-52 and 1967-68 i.e. from Rs.24 crore to 500 crore. However,
there was a lag in dispersal of co-operative credit in the backward states of
Assam, Bihar, Orissa, West Bengal, Rajasthan and Jammu & Kashmir. In other
parts of the country too, there were weaknesses in co-operative banking system by

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way of low deposits, high overdue and general lack of business, management etc.
recognizing such weaknesses but the need for increased requirement of finance
for agriculture in the wake of green revolution technology. The Committee
suggested the following points and recommendations- a) The establishment of
Agricultural Credit Board, b) Setting up of a Small Farmers Development
Agency, c) Creation of Electrification Corporation for the benefit of
underdeveloped areas, d) Formulation of a more active and much bigger role for
ARDC, e) Adoption of various measures for ensuring the timely and adequate
How of credit for agriculture through co-operatives and through commercial
banks. As per recommendations, small fanners’ development agencies were set
up in selected districts as well as Rural Electrification Corporation was also
established in 1969. Most of the recommendations of the committee were
accepted by the government and included in the Fourth Five Year Plan i.e. SFDA.
MFAL, were launched with active involvement of institutional credit agencies.
4. "Committee on Problems of Urban Co-operative Banks in Maharashtra State”
(Jogalekar committee), 1976, the committee has praised the Urban Co-operative
Banks. "Maharashtra the working of Urban Co-operative Banks is very much
satisfactory. The number of these banks is increasing day by day in the past some
years and its credit go to the selfless and hardworking social workers. It shows the
participation of the people in this movement the same thing is about the deposit.
The deposit collected from the non-members is more than the deposit from
members. It is an evidence of the fact the Urban Co-operative Banks has been
qualified to the trust of the depositors in urban and rural areas.”

2.3 REVIEW OF ARTICLESIN JOURNALS:-

5. Patel P. (1995), in hisarticle studied on "Viability of rural banking", he found that
the low volume of business per branchandper employee andhighlevel oferedit
deposit ratiowere two majorfactors causinglosses in rural bankingsystem.He
observedthat relative share ofnon-farmsector loansin rural bankswasgoingup. Also
he was found that there were mismanagement in the recovery of loans and
advances of the rural banks.
6. “Survey of Institutes of Marketing Research Bureau” which was appeared in
Economics Times on May, 1993, Banks involve lot of paper work, offer limited
range of facilities their officials are lazy and slow and bribes are way of life. The
survey describes that bank in India are not customer friendly and fail to provide
quick service. The general satisfaction of findings of the survey shows that
average customers are still confident of dealing with banks. Therefore, banks have
to act as friend of the customer and try to provide quick service. The survey
elucidates that banks are lacking in making use of various component of
marketing mix and integrated marketing approach in winning the confidence of
customers.
7. Reshma B. Khatavkar and Chandrakant B.Kamble, (2012) the research article
entitled on “Performance Evaluation of the RayatSevak Co-operative Bank Ltd.
Satara: A Case Study of Karad Branch”The main objective of the study is to
evaluate the deposits and trends of loans and advances of the bank. After the
analyzed the data the researcher has observed the total deposits and loans and
advances of the Karad branch increased during the study period.
8. Deepak Shah (2007) conducted a case study entitled "Evaluating Financial Health
of Credit Co-operatives in Maharashtra State of India",The study conducted of
Sangli and Buldana District Central Co-operative Banks regarding the financial
health of credit co-operatives in Maharashtra and found NPAs or overdues as the
main factors for deterioration in health of these banks. The study revealed that
both these banks showed a decline in their financial health and economic viability
during the late nineties as against the early nineties period.
9. Bhaskaran& Josh (2000), stated that the recovery performance of co-operative
banks continues to be unsatisfactory which contributes to the growth of NPA even
after the introduction of prudential regulation. They suggested legislative and
policy prescriptions to make co-operative bans more efficient, productive and
profitable organization in tune with competitive commercial banking.
10. Niranjanraj and Chitanbaram (2000), in their study titled, "Measuring the
Performance of DCCBs" it is found that the researcher has developed models to
evaluate the overall performance of co-operative banks. For the puipose of this

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researcher considered 23 parametersfalling into fourmajor groupsfornu asuring
the performance of District Central Co-operativeBanksandassignedappropriate
weightsto eachparameter. The researcher suggestedthat perfonnance of co­
operative banksshould notbemeasuredin tennsoffinancial/ economic achie\ ements
only but their perfonnance as co-operativeorganizations (social
achievements)shouldalso beevaluated.
11. Suryan and Veluraj (2005), in their study titled, “Profitability Analysis of the
Pondicherry State Co-operative Bank”, he studied the profitability perfonnance of
the bank from 1999 to 2003. The researcher has used various ratio to measure the
general perfonnance of the bank like cost of management (total expenses) to
working capital ratio, profit to working capital ratio, non-interest income to total
income ratio, etc. They concluded that the profitability performance of the bank
was impressive and bank was able to meet its obligations and nonns. The cost of
management and establishment expenses got reduced during the period of study
which further strengthened the profitability position of the bank.
12. R K Patel,. Desai C. M., (2012), studied on "Growth of Urban Co-operative Banks
in India”, they analyzed financial indicators such as number of UCBs, owned
funds, deposits, loans etc. Also they examine the various ratios related to
profitability and operational efficiency. It is found that the UCBs in India has
plays a significant role in respect of overall performance during the study period.
13. HesseHeiko. Cihak, Martin (2007), works on the role of co-operative banks in
financial stability. They found that co-operative banks are more stable than
commercial banks due to the lower volatility of the co-operative banks returns,
which more than offsets their lower profitability and capitalisation. In this paper
indicate that the co-operative banks in advance economies and emerging markets
have higher Z score than commercial banks and savings banks, using the
regression analysis they also find that a higher share of co-operative banks
increases stability of an average bank in the same banking system.
14. DuttaUttam and BasakAmit (2008), "Appraisal of financial perfonnance of Urban
Co-operative Banks: A Case Study” suggested that co-operative banks should
improve their recovery perfonnance adopt new system of computerized

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monitoring of loans, implement proper prudential norms and organize regular
workshops to sustain in the competitive banking environment.
15. V. Singh. (2008), in a case study analyzed the “Financial Performance of the
Rohtak Central Co-operative Bank ltd (Haryana).'’ The researcher highlights
the deposits, advances, investment, NPA reduction, and profitability position of
the bank. He found that the aggregate deposits of the bank increased with low
growth, rate and bank did not make good performance in terms of advances to the
beneficiaries. The researchers also found that the bank did not reduce NPA
amount of the bank.
16. Chander R. and Chandel J. K. (2010), studied “Financial Viability of an Apex Co­
operative Credit Institution: A Case Study of the HARCO Bank."’ Analyzed the
financial efficiency & viability of the HARCO bank and found that poor
performance of the bank on capital adequacy, liquidity, activity and the
management efficiency parameters.
17. AnupamParua and Lalit Kumar Joshi (2010), in his study entitled, “Trends in
Performance and Profitability of Co-operative Banks: A Case Study of
Vidyasagar Central Co-operative Bank ltd; Midnapore.” They stated that the
present bank facing problems of lower profitability. This lack of profitability is
attributable to different reasons. Notable amongst these are slower rate in
comparison with its burden ratio. This also hints at the banks inefficiency in the
matter of capturing new and different channels of banking businesses. In the
regime of interest rate cut, the bank with its normal banking operations is bound
to suffer in terms of its profitability.
18. R. K. Patel and C. M. Desai (2012), "Financial Performance of Urban Co­
operative Bank”, they stated that the UCBs sector witnessed substantial growth,
possibly encouraged by the liberalized policy environment in post reform period.
They suggested that the UCBs should proactively adopt corporate governance and
should not wait for its imposition by statue for the development of UCBs sector.
The implementation of corporate governance board of director plays very crucial
and vital role. Therefore, the board of directors of UCBs should implement
professional management approach.

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19. Kadam N. L. (2012), studied the Performance of Sangli District Central Co­
operative Bank ltd; Sangli in respect of agriculture linance. The paper mainly
focused on agriculture finance, particularly, small farmers. He also studied the
problems facing by the bank in respect of administration. He suggested that to
improve speedy loan sanction procedure while loans provided to agriculture
sector.
20. SeemaSant and Dr. P. T. Chaudhari, (2012), Working on "‘A Study of the
Profitability of Urban Co-operative Banks (in Greater Mumbai and Jalgaon for 5
years)", they analyze the financial ratios are employed to measure the
profitability, liquidity and credit quality performance of ten UCBs. They found
that there is a significant change in trend in noticed at the onset of the global
financial crises in 2007. This resulted falling in profitability, less liquidity and
deteriorating credit quality performance of ten UCBs.

Conclusion:
The researcher has concluded after the review of earlier studies on co-operative
bank, various government committees and various articles.lt was found that most
of research works are related to profitability of the co-operative bank, Non-
Performing Assets analysis of banks, financial viability, and the bad and doubtful
debts analysis of the bank etc.The researcher has found that all studies have
focused particularly on only one factor financial analysis. So in the present study
the researcher has decided to study a critical analysis of financial performance of
SatyavijaySahakari Bank Ltd; Kundal.

REFERENCES:-
1. Saraiya committee (1945), Co-operative Planning Committee, Government of
India.
2. Mr. Purshottam Das (1950), “Rural Banking Enquiry Committee”, Government
of India.
3.B.Venkatappiah, (1969), All India Rural Credit Review Committee.
Government of India.

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4Jogalekar Committee, (1976), “Committee on Problems of Urban Co-operative
Banks in Maharashtra State”, Government of Maharashtra.
5. Patel P. (1995), “Viabilityo(Rural Banking”, Prajnan Publications,(Jan-Mar.
1995), Pune.pp - 14-17.
6. “Survey of Institutes of Marketing Research Bureau”, Economics Times on
May, 1993.
7. Reshma B. Khatavkar and Chandrakant B.Kamble, (2012) “Performance
Evaluation of the RayatSevak Co-operative Bank Ltd. Satara: A Case Study of
Karad Branch”, Golden Research Thoughts, Volume 2, Issue. 2, Aug 2012.
8. Shah Deepak (2007), “Evaluating Financial Health of Credit Co-operatives in
Maharashtra State of India”, University Library of Munich, Germany, MPRA
Paper-3949 (July).
9. Bhaskaran R. &Praful Josh P. (2000), “Non-Performing Assets (NPAs) in Co­
operative Rural Financial System: A Major Challenges to Rural Development”,
BIRD’S Eye View, Dec. 2000.
10. Niranjanraj and Chitanbaram(2000), “Measuring the Performance of
DCCBs"',NAFSCOBBulletin (Oct.-Dec.), Mumbai.
11. SuryanK.Uthaya, andVeluraj R.(2005), “ProfitabilityAnalysis otthe
PondicherryState Co-operativeBank”. NAFSCOBBulletin, (April),Mumbai
12. R K Patel, Desai C. M., (2012), "Growth of Urban Co-operative Banks in
India”, The Clute Institute International Academic ConferenceLas Vegas,
Nevada, USA 2012.
13. HesseHeiko, Cihak, Martin (2007), "Co-operative Banks and Financial
Stability”, IMF Working paper No. WP/07/02.
14. DuttaUttam and BasakAmit (2008), “Appraisal of financial performance of
Urban Co-operative Banks: A Case Study”, The Management Accountant, March
2008.pp - 170-174,
15. Singh, Vijay (2008), Appraisal of Financial Performance of the Rohtak
Central Co-operative Banks ltd. M.D. University, Rohtak,Haryana (India).
M.Phil. Dissertation.

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16. Chander Ramesh and Chandel Jai Kishan (2010), " Financial Viability of an
Apex Co-operative Credit Institution: A Case Study of the HARCO Bank” , Asia
Pacific Review, Vol-7 No. 2 June 2010. pp - 61-70.
17. AnupamParua and Lalit Kumar ioshi (2010), in his study entitled, “Trends in
Performance and Profitability of Co-operative Banks: A Case Study of
Vidyasagar Central Co-operative Bank ltd; Midnapore", Journal of Business and
Economic Issues, Vol- 2 No. 1. July 2010.
18. R. K. Patel and C. M. Desai (2012), "Financial Performance of Urban Co­
operative Bank”, Contemporary Research in India, Vol-2 Issue-2, June 2012.
19Nandkumar LaxmanKadam, (20! 2), An Evaluation of Performance of Sangli
District Central Co-operative Bank ltd: Sangli in Respect of Agriculture Finance.
Indian Streams Research Journal, Vol-2 Issue-7 Aug. 2012.
20. SeemaSant and Dr. P. T. Chaudhari, (2012), "A Study of the Profitability of
Urban Co-operative Banks tin Greater Mumbai and Jalgaon for 5 years)”.
International Journal of Multidisciplinary Research, Vol-2 Issue-5, May 2012.

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