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ZENITH International Journal of Business Economics & Management Research
Year : 2014, Volume : 4, Issue : 12
First page : ( 45) Last page : ( 55)
Online ISSN : 2249-8826.

Analysis of financial performance of urban co-operative banks: a case study

Dr. Behera Bhagabata

Assistant Prof. in Commerce, School of Commerce and Management Studies, Ravenshaw University, Cuttack

Online published on 28 January, 2015.


Urban co-operative banking sector is an important constituent of Multi Agency system operation in the country. They essentially cater to the credit needs of persons of small means. The Reserve Bank of India in its annual report on trend and progress in banking, state that urban banks are purveyor of credit to small borrowers and weaker section of the society, but it is not coming out with any supportive policies that will strengthen the role of USB. Although some UCBs have been shown remarkable in the recent years, still a large number of banks have shown measurable performance. The operational efficiency is unsatisfactory and characterized by low profitability, ever growing non-performing assets (NPA) and relatively low capital base. Over a long period of time, the performance of UCBs has been deteriorating due to non recovery of interest and installments of loan portfolio. Probably the biggest challenge facing the banking sector, especially the UCBs, is the availability of quality assets. The organization is now at cross road. The growing NPA tendency put the bank into liquidity crunch. Major concerns suffering this sector include high levels of loan delinquency, erosion of capital base, paucity of funds for fresh deployment, ineffective credit planning, lack of professionalism in application of computerized system, lack of HRD policies, poor management information system etc. Prolonged sickness in most of the USB loose customers confidence and the society at large. One of the most disturbing features of this moment is that it is increasingly passing into the hands of nasty politicians, who misuses their position with undue interference. A co-operative bank is cooperative first and then bank. Co-operative Bank needs to remain profitable within co-operative framework. In this context, the paper makes an attempt to examine the working and financial performance of the urban cooperative banks. To make our study more extensive and imperial we have considered working of Cuttack Urban Cooperative Bank Ltd. Cuttack of Odisha as a case study.



Working capital, UCB, Global competition, Rate of return, Repayment schedule.


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