Credit portfolio dynamics and risk management approaches in district central cooperative banks across India

This research investigates the sustainable finance landscape in rural economies, focusing on the credit portfolio dynamics and risk management approaches employed by District Central Cooperative Banks (DCCBs) across India. Through a comprehensive analysis of 7 years’ data spanning from 2014-15 to 2020-21, based on both quantitative and qualitative data, the study explores the evolving composition of credit portfolios, with a particular emphasis on the sustainable financial support provided to rural communities. The findings reveal nuanced patterns in the allocation of short-term and medium-term loans, emphasizing the strategic importance of supporting agricultural activities. The research also delves into the risk management practices adopted by DCCBs, examining elements such as credit scoring models, stress testing, and technology integration. The study concludes with actionable recommendations to enhance the sustainability and effectiveness of DCCBs in promoting financial inclusion and stability in rural India.