Co-operative banks which form the backbone of agriculture lending in India have dismal statistics and if we compare them with SCBs they have certainly missed the process of banking evolution. Co-operative banks, which have had the advantage of low cost establishment, 100% refinancing facility from NABARD (leading to cheaper crop loans to farmers), and most importantly local feel and familiarity, have faired well on lending parameter, but pathetic on the recovery front. Perhaps, that’s the reason, why these banks have exorbitant NPAs and are consequently ‘undercapitalised’.
For complete IIPM article click here
Source:- IIPM Editorial
An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative
For complete IIPM article click here
Source:- IIPM Editorial
An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative
