Study on the financial performance of District Cooperative Agriculture and Rural Development Bank (DCARDB), Hoshangabad, Madhya Pradesh

Cooperative banks are small size units organized in the cooperative sector which operate both in urban and rural regions. District Cooperative Agriculture and Rural Development Banks (DCARDBs) are mostly working in the rural and semi-urban areas. They are the backbone of banking system and contribute for growth of the agriculture in rural areas. The present study was undertaken with the objective to study about membership of the selected DCARDB, Hoshangabad during 2003–04 to 2012–13 and work out the linear and compound growth rate of share capital, reserves, deposits, borrowed capital and working capital during the 10 years. The data revealed that there was significant growth in the reserves and owned funds (share capital and reserves) and deposits with reference to DCA and RDB. There was moderately significant growth in workingcapital per member. But the EPS of DCA and RDB was not enhanced. There was non-significant growth in the paid up share capital. The data also revealed that there was non-significant growth in the borrowing capital and working capital. There was no increase in the growth of principal and nominal members with reference to DCA and RDB. Therefore the performance of DCA and RDB was not satisfactory. For improving its performance it has to concentrate on recovery performance, controlling expenses, robust risk management practices and diversifying their operations.