Analysis of funds management in Cooperative Banks- A Case study of Shri Vijay Mahantesh Co-operative Bank Ltd., Hunagund

Co-operative banking is one of the important segments of Indian banking system. It plays an important role in the economic development of the country. It aims at providing cheap rural credit as compared to the village lenders who exploit the agriculturists by charging high rate of interest. The urban co- operative banking also from important constitute of co-operative banking movement in India. Resources are considered to be prime movers of any economic activity. Co-operative bank, like other economic unit entirely depends on availability of such resources for its successful functioning. Bank needs various sources of funds for its capacity to raise funds and the impact, it makes through mobilizing the funds. The two functions of a bank are mobilization of resources and developing of resources. So funds management is the core sound bank planning and financial management. It encompasses the management of the bank's liquidity position or management of assets and liabilities to provide adequate resources to meet anticipated fund demands. It also ensures management of the bank's assets and liabilities to the rate sensitivity of the bank's assets and liabilities to provide adequate net interest income. Although, it is not a new concept, practices, techniques and norms have been revised substantially in recent years. Funds management is the process of managing balance sheet and off-balance sheet instruments to maximize and maintain the spread between interests earned and paid while ensuring the bank's ability to pay off liabilities and fund asset growth.