Agriculture including allied activities accounted for 13.9% of GDP at 2004-5 prices in 2011–12 as compared to 14.5% in 2010–11. In terms of composition, out of a total share of 14.5% in GDP in 2010–11, agriculture alone accounted for 12.3%, followed by forestry and logging at 1.4%, and fishing at 0.7%. Notwithstanding the declining trend in agriculture's share in GDP, the importance of the sector to the economy is best understood with reference to its share in employment and in terms of its criticality for macroeconomic stability. While the former was well known, the latter became manifest with rising growth in incomes since the mid-2000s. Hence the Planners considered cooperation as an instrument of economic development of the disadvantaged; particularly in the rural areas. One of the basic objectives of the fourth five year plan was to establish a socialistic pattern of society in the country, so that the Development with economic stability could be accomplished through Panchayati Raj and cooperatives.
The planners considered cooperation as an instrument of economic development of the disadvantaged, particularly in the rural areas and also the theme of the 12th five year plan is “faster, sustainable and more inclusive growth. To attain this noble cause the credit management of cooperatives must be sound in general and DCC Banks in particular. It is in this backdrop, it is an attempt to evaluate the performance of Chitradurga District Central Cooperative Bank in respect of its credit management. And this study entirely depends on secondary data.
Credit management, Criticality for macroeconomic stability, Socialistic pattern of society, SLR, CRR, Reasonable rate, Reserve funds
