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ISSN:- 2231-5063
Keywords:
financial perform of TNSC bank,
www.aygrt.isrj.org
1.0 INTRODUCTION
Co-operative principles are concrete realities and not mere abstractions. They are just a code of
conduct for a Co-operative organization, the practice of which may change according to the local
conditions. Broadly speaking, there have been three types of Co-operative systems, which are based more
or less on the same principles, but which differ from each other in the mode of operation. These three
systems are the Rockdale system, the Raiffeisen system and the Schulze- Delizsch system, concerned with
the consumers, farmers and the traders respectively. Principles laid down by Rockdale pioneers have been
commonly adopted all over the world. They are democratic control, open membership, limited interest on
capital, patronage dividend, cash trading, political and religious neutrality and promotion of education.
With the spread of Co-operative Movement the need was felt for adopting new procedures. Consequently,
international Co-operative alliance provided the following principles
REVIEW OF LITERATURE
Jangid in his doctoral thesis titled Cooperative Banking in Punjab attempted to assess the
progress of cooperative banking in Punjab The study showed that cooperative banks were playing a vital
role as an instrument of development. There was a considerable progress in the resources of cooperative
banks. The operational efficiency of these banks showed signs of improvement. It was suggested that with
wide resources mobilization, rational allocation, and better supervision, cooperative banking can be geared
to achievedsocio economic betterment of Punjab.
Kanagasaba made an attempt to study the Determinants of Profitability A Case Study of a State
Cooperative Bank, For this the parameters, viz. shortterm loans to total loans, time deposits to total
deposits, borrowing to owned funds were taken for a period of 1970-71 to 1979-80. agriculture advances,
proportion of time deposits to total deposits and level of borrowings affect the profitability of the bank or
not. It was found that these factors affect the profits of the bank positively. So, it was suggested that the bank
should design suitable strategies to improve these ratios in order to increase the profitability.
Asaithambi in his Performance Appraisal of Andaman & Nicobar State Cooperative Bank,
assesses the performance of Andaman & Nicobar State Cooperative Bank on different parameters, i.e.,
deposits, advances and overdues. It was found that the bank has been maintaining high degree of efficiency
in every aspect and the success of the bank is due to farsightedness of the management and dedicated
services of its employees.
Central Co-operative Banking in a Developing Economy was undertaken by
GovindParrekin the study was intended to scrutinize the financial viability of District Central Co-operative
Banks in Rajasthan. The study revealed the poor financial position of all Central Co-operative banks in the
state. It also disclosed the critical financial condition and some sort of undeclared insolvency position faced
by eight DCCBs in the state.
OBJECTIVES
1.To analyse the efficiency of funds management by TNSC Bank.
2.To the effectiveness in funds management by TNSC Bank with respect to resource utilization.
METHODOLOGY
Descriptive as well as analytical design is used. The present study is based on the secoundary data.
The secondary data were analysed with the help of appropriate tools of analysis.
Table -1
Compound Model For Own Fund, Deposits, Short Time Liabilities, Working Fund, and
Borrowing
(`In Crores)
Own Fund
Yea
r
Actua
l
value
Predicte
d
Value
2001 253.73
233.12
2002 315.19
284.97
2003 340.98
348.36
2004 384.93
425.84
2005 468.61
520.57
2006 549.08
636.36
Predicte
d
Value
short time
liabilities
Actua Predicte
l
d
value
value
2383.88
257.50
213.86
2585.33
177.03
210.48
2803.80
180.59
207.15
3040.74
205.68
203.88
3297.70
184.68
200.65
3576.37
196.53
197.48
Deposits
Actual
value
2621.8
5
2678.9
9
2910.7
0
3096.2
2
3053.2
9
3115.8
5
Working fund
Actual
value
3877.9
8
3987.2
2
4164.5
5
4504.8
6
4788.7
6
5068.4
3
Borrowing
Predicte
d
Value
Actual
value
Predicte
d value
3637.43
774.88
554.32
3919.22
815.01
586.79
4222.84
132.28
621.17
4549.99
818.03
657.55
4902.48
5282.28
1082.1
8
1206.7
6
696.07
736.85
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
R
square
value
F value
P value
Inter
receipt
(a)
Growth
Rate (b)
787.67
1043.70
1258.45
1427.66
1565.01
1681.95
.
.
.
.
-
777.90
950.93
1162.45
1421.02
1737.10
2123.48
2595.81
3173.20
3879.02
4770.86
5794.01
3226.49
3964.94
5018.36
5901.83
6118.67
7285.46
.
.
.
.
.
3878.60
4206.36
4561.82
4947.32
5365.39
5818.80
6310.52
6843.80
7422.13
8049.67
8729.78
205.91
219.09
346.54
101.67
163.04
191.71
.
.
.
.
.
194.36
191.28
188.26
185.28
182.35
179.47
176.63
173.84
171.09
168.41
166.75
5244.98
5886.94
6964.56
7691.96
9458.82
10827.9
.
.
.
.
.
5691.50
6132.42
6607.51
7119.39
7670.94
8265.21
8905.52
9595.43
10338.80
11144.60
12008.31
878.22
608.40
830.58
896.21
2177.77
2327.91
.
.
.
.
.
780.01
825.71
874.08
925.28
979.48
1036.86
1097.60
1161.90
1229.96
1302.40
1379.22
0.978
0.826
0.24
0.950
0.077
350.52
<0.001**
37.91
<0.001**
0.20
.668
152.82
<0.001**
0.670
0.438
190.701
2198.12
217.297
3375.89
523.644
1.2224
1.0845
0.9842
1.0775
1.0586
unit TNSC bank functioning in Chennai, Tamil Nadu. The main aim of the bank is to develop the economy
by providing credit for the purpose of the development of agriculture and allied activities, animal
husbandry, industrial development and other productive activities. Moreover, the bank plays a very
important role in developing the banking facilities in Chennai. The researcher has made an attempt to
evaluate the customer relationship management of the bank as the primary motives of the bank are to satisfy
the customer needs. necessary, so that, a poor man can have access to assets and services. The institutions
especially co-operative institutions must support as it has poverty reducing capacity, providing
employment opportunities and lead to an increase of income and improved standard of living of the poor.
Eradication of
ORIGIN AND STAGE OF TNSC BANK
The establishment of TNSC Bank in 1905 was not a chance event, neither was it the result of a
mammoth deal brought off at a single stroke. It was rather the fulfilment of a long cherished idea which
developed and took shape over a period of years, motivated step by step by a single mastermind like Sir P
Rajagopalachariar, who was the first Registrar of Cooperative Societies in the old Madras Presidency. The
idea of organizing a bank for financing Cooperative Credit Societies emanated from him.
In this grand mission, the man who guided him was DewanBahadur S SubramanianAyer (18421922). It was a brilliant and original idea because the Cooperative Societies Act X of 1904 which became
law on 25 March, 1904, whether by design or oversight, merely contemplated the establishment of Primary
Societies which were expected to finance themselves. It was Sir V C Desikachariar, the first Secretary of the
Madras Central Urban Bank Limited who gave a practical shape to the proposals formulated by the first
Registrar of Cooperative Societies, Sir P.Rajagopalachariar
STATEMENT OF THE PROBLEM
The Central government announced a number of programmes which would help in meeting the
credit requirements of the urban and rural sector. In order to augment the flow of credit to the poor. With the
adoption of multi-agency approach, TNSC Bank is facing a stiff competition from other financial
institutions such as commercial banks and regional rural banks in mobilizing deposits and lending. Hence,
the bank should make efforts for tapping deposits from urban and rural areas. So that, these resources may
be made available for agricultural and rural development.
Over recent years, the financial health of the urban co-operative sector has shown an
improvement. In 2011-12, the sector showed an increased return on assets and a further fall in the ratio of
Non- Performing Assets (NPAs). As per the new CAMELS rating model, 61 per cent of the UCBs,
accounting for about 78 per cent of the total banking business of the UCB sector, had ratings of A and B,
indicating the good financial health of this sector. As regards rural co-operatives, State Co-operative Banks
and District Central Co-operative Banks showed some signs of improvement in profitability and asset
quality in 2010-11, partly attributable to the prudential regulatory reforms and implementation of the
revival package for the short-term rural co-operative sector. However, long-term rural co-operatives, such
as State and Primary Co-operative Agriculture and Rural Development Banks, showed very weak financial
health. Going forward, it is necessary to persevere with recapitalisation and regulatory reforms so that the
rural co-operative sector can lend support to financial inclusion and agriculture.
REFERENCE
1.Statement on the Co-operative identify, ICA, Geneva, 2006, p 1-2.
2.Report of the Co-operative Planning Committee, 1946.
3. R. Philips, Economic Nature of Co-operative Association, p.74.
4. http://www.nabard.org/introduction.asp
5.India banking sector: http://www.scribd.com/doc/8361020/india-banking-sector
6.http://www.rbi.org.in/scripts/fun_urban.aspx
7.www.TNSC.com
8.Aggarwal, R.C.; Prasad, B.; and Arora, V.P.S. Problems and Prospects of Cooperative Credit: A Case
Study, IndianCooperative Review, Vol. IX, No. 3, April, pp. 417-422.
9.Jangid, SatyaNarayanCooperative Banking in Punjab, Doctoral Thesis, University Business School,
Panjab University, Chandigarh.
10.Kanagasabai, N. (1984), Determinants of Profitability A Case Study of a State Cooperative Bank,
Indian Cooperative Review, Vol. XXI, No. 3, January, pp. 221-224.
11.Asaithambi, K. (1988), Performance Appraisal of Andaman & Nicobar State Cooperative Bank,
Indian Cooperative Review, Vol. XXV, No. 4, April, pp. 395-402.
12.GovindParrek, Central Co-operative Banking in a Developing Economy, (Jaipur: National
Publishing House), 1990, P.45.
13.Chakaraborty, study on Maharashtra state co-operative bank, International Journal of Consumerism.
Vol.1(1), 1996, pp.34-35.
14.Debabrata Das, Co-operative Banking in Arunachal Pradesh, - A Case Study, Indian Co-operative
Review, July 2000, pp.48-53.
15.Ganesan, N. A Study on the Performance Analysis of the State Cooperative Banks in India, Prajnan,
Vol. XXXIV, No. 4,pp. 311-321.