ABSTRACT:
This paper explores the Financial Performance and importance of Co-operative banks in Himachal Pradesh. The present study is based on secondary data. The main objective of the study is to compare the performance and study the present financial position of the two Co-operative Banks in Himachal Pradesh i.e. HPSCB and KCCB. HPSCB and KCCB are the two largest Co-operative sector Banks of the state. Performance and efficiency of Co-operative banks are the key elements of the country’s Financial system at primary level. The co-operative societies in India in fact are playing multifunctional role in both rural as well as urban areas the basic structure of cooperative societies is organised on three tier basis. There are primary credits societies working at village level, above them are central Co-operative Bank workings at the district level and then at the top, there are State Co-operative banks, the apex co-operative institutions working at state level. The study is set out to apply growth rate for evaluate performance of banks through different variables like Share capital, Shareholder funds, Deposits, Outstanding advances, Borrowing, Profit and Profitability and check the management efficiency of the banks through operating ratio. This comparative study of HPSCB and KCCB demonstrates that there are significant differences on the performance of the banks in term of share capital, deposits, borrowing and profitability, market coverage but their performance is equally in term of outstanding advances, profits, shareholder funds and management quality.