Profitability Performance of State Co-operative Banks in India

"This study is an attempt to examine the profitability position of all 31 State Co-operative Banks (StCBs) from 2002–2011. The level of profitability determines the operational efficiency and strength of the organization. Profitability ratios are considered as reliable variables for judging the efficiency and effectiveness of an organization. Besides achieving the objectives, two hypotheses pertaining to profits are also tested. The study finds that profits of StCBs are going down. Though the average level of profitability in relation share capital is quite good but the amount of cost of management in proportion to profits is matter of concern. Both hypotheses has cleared that there is no significant relation between the growth in amount of profits and share capital and also working capital. Without compromising and disturbing the compensation amount of employees, StCBs should take measures to reduce the cost of management so that the extent of profits may be increased."