Financial Performance Trends in Cooperative Bank: An Analytical Study
Shubham Kaushal, Research Scholar
Himachal Pradesh University Business School, Himachal Pradesh University,
Summerhill, Shimla – 171005, Himachal Pradesh, India.
*Corresponding Author E-mail: kaushalanirudh14@gmail.com
ABSTRACT:
In the evolving landscape of India’s banking sector, cooperative banks continue to play a pivotal role in delivering financial services to underserved populations, making performance evaluation a crucial area of inquiry. This study presents a comprehensive five-year trend analysis (2020-2025) of the financial performance of the H.P. State Co-operative Bank, focusing on the key parameters: deposits, loans and advances, profit, total business, and corresponding per employee metrics. Drawing upon audited annual reports and official financial statements, the research evaluates both absolute performance and operational efficiency to uncover patterns of growth, stagnation, and volatility. The compound growth rates indicate sustained improvement in most indicators, with notable gains in loans and advances and total business. Per employee analysis further highlights the bank’s evolving productivity and institutional effectiveness in resource utilization. However, fluctuations in annual profit figures reflect underlying operational challenges that require strategic management attention. The findings underscore the relevance of cooperative banks in regional financial ecosystems and provide actionable insights for bank administrators, policymakers, and scholars interested in cooperative banking efficiency, financial planning, and rural credit delivery.
KEYWORDS: Banking Efficiency, Cooperative Banks, Employee Productivity, Financial Performance, Trend Analysis.
INTRODUCTION:
The Indian banking sector is a vital pillar of the country’s economic infrastructure, supporting inclusive growth, financial stability, and rural development. While commercial and nationalized banks dominate in terms of scale and visibility, cooperative banks have carved out a crucial role by catering to the underserved and unbanked segments of the population.
As community-centric institutions, cooperative banks are known for their accessibility, grassroots reach, and achieving the desired social, economic changes in rural India (Maheswari, 2018).1 Their structure and functioning are particularly important in states with difficult terrains and rural predominance, such as Himachal Pradesh. The Himachal Pradesh State Co-operative Bank Ltd. (HPSCB), as the apex cooperative bank of the state, plays a key role in delivering financial services to rural and semi-urban areas. Originating from the cooperative movement, it supports farmers, small entrepreneurs, self-help groups, and low-income populations through its extensive branch network by offering deposits, loans, and financial literacy programs aimed at fostering grassroots economic development. In the last five years, India’s banking sector has seen major changes due to digitalization, regulatory shifts, fintech competition, and evolving customer expectations. In this context, assessing HPSCB’s performance across key financial indicators is crucial. Additionally, analysing per employee performance offers deeper insights into the bank’s operational efficiency and workforce productivity, often missed in traditional evaluations. The financial performance of APSFC was analysed by examining trends in sanctions and disbursements across periods, purposes, industries, and districts. It found that while gross sanctions and disbursements declined initially and then increased, net effective sanctions consistently decreased. Purpose-wise and industry-wise analysis showed higher assistance for rehabilitation, diversification, services, and non-metallic sectors.2 The five-year balance sheet performance of Tamil Nadu Cement Corporation Limited was found to be satisfactory, with a focus on increasing fixed assets and reducing liabilities while efficient stock management boosted production, indicating potential for higher future profits.3 The economic sustainability of ten Indian public sector banks from 2006 to 2013 was evaluated using the CAMEL model, revealing notable improvements in the post-reform period. Bank of Baroda ranked highest overall, excelling in asset quality, management efficiency, and liquidity. Indian Bank led in earnings quality, while Andhra Bank topped in capital adequacy. The findings highlight the positive impact of banking reforms on operational performance and financial strength.4 The relationship between corporate sustainability components and financial performance in Indian companies was examined, revealing no significant overall link, but identifying varying impacts from individual sustainability factors such as governance, environment, and employee relations.5 Regression models were used to estimate the impact of NPAs and macroeconomic variables on the ROA of public sector banks in India, confirming an inverse relationship between NPAs and Return on Assets (ROA), indicating that rising NPAs reduce profitability in public sector banks; however, NPA reconstruction, though initially impacting profits, might support long-term growth..6 The financial performance of HPSCB and KCCB in Himachal Pradesh was compared to identify key differences and similarities. It revealed notable differences in areas such as share capital, deposits, borrowings, profitability, and market reach, while both banks showed similar performance in outstanding advances, profits, shareholder funds, and management quality.7 It was concluded that while BDCCB lagged behind other DCCBs in Karnataka across most parameters, it performed better in controlling overdues and NPAs.1 A review of existing literature on financial performance analysis identified three primary approaches: financial ratio analysis, and the impact of operational and structural indicators (e.g., capital structure, JIT), and internal KPIs. It emphasized the prevalence of the first two methods and noted key gaps in sector-specific research, particularly in Ghana’s telecommunications sector.8 It was found that Indian banks, overall, were inefficient in converting inputs into outputs, indicating suboptimal operational performance. Public sector banks (PSBs) showed the highest efficiency scores, followed by foreign banks, while private banks were the least efficient of all.9 The financing patterns of 306 Indian infrastructure companies across four sectors were analysed using 20 financial ratios. The study found that most companies, particularly in construction, steel, cement, and power, relied heavily on short-term debt, often without generating sufficient revenue to service it and also significant differences were noted across sectors, suggesting the need for deeper sector-specific analysis.10 The financial performance of HDFC and SBI was assessed using various accounting ratios such as capital adequacy ratio, debt-equity ratio, and leverage ratios, revealing that HDFC outperformed SBI in both ratio analysis and customer satisfaction.11 SBI's financial performance was compared with industry averages from 2016-17 to 2020-21, revealing that the bank outperformed in solvency, asset utilization, shareholders' fund employment, and CASA ratio.12 The financial impact of bank mergers on four bidder banks was analysed for the period from 2016-17 to 2022-23. The study found a mixed but significant effect on key financial ratios, with improvements observed in capital adequacy, debt-to-equity, loan-to-deposit, and NPA ratios across the banks.13 In summary, the reviewed literature highlights the dynamic landscape of cooperative banking in India, offering insights that are particularly relevant for understanding and evaluating the performance of institutions like the Himachal Pradesh State Co-operative Bank.
SCOPE AND OBJECTIVES:
This study undertakes a five-year financial performance assessment of H.P. State Co-operative Bank, covering the period from 2020-21 to 2024-25. The evaluation is grounded in an analysis of key financial indicators, namely deposits, loans and advances, profits, and total business volume. Beyond the aggregate financial metrics, the study also incorporates an analysis of per employee performance data to gain nuanced insights into operational efficiency and human resource productivity. The primary objective is to systematically examine the bank’s performance across these parameters over the specified period and to interpret the relevance of per employee metrics in understanding the institution’s overall financial and operational effectiveness.
MATERIAL AND METHODS:
The present study adopts a qualitative and descriptive research design to analyse the performance trends of the H.P. State Co-operative Bank Ltd. over a five-year period. The analysis focuses on key financial parameters including total deposits, loans and advances, profits and total business volume. Additionally, the study also evaluates performance efficiency through per employee indicators to provide deeper insights into human resource productivity and the bank's operational effectiveness over the five-year period. Secondary data for the period 2020-21 to 2024-25 were systematically collected from the bank’s audited annual reports, financial statements, and published income records. Trend analysis techniques, supported by percentage change computation, were employed to interpret the bank’s financial trajectory. The data were further subjected to comparative year-on-year evaluation to assess growth patterns and strategic implications for future performance.
RESULTS AND DISCUSSION
The analysis of bank performance focuses on six key parameters, deposits, loans and advances, profit, and total business, to evaluate the financial stability and growth trajectory of the Himachal Pradesh State Co-operative Bank.
The five-year analysis of deposit trends and per employee productivity at the H.P. State Co-operative Bank as depicted in Table 1 reveals a consistent upward trajectory in both total deposits and workforce strength. Between 2020-21 and 2024-25, the bank's deposits increased from ₹12,316.87 crore to ₹16,334.37 crore, reflecting a compound growth rate (CGR) of 9.05%. This indicates a stable and expanding deposit base, with the highest annual growth of 10.76% occurring in 2022-23. During the same period, the number of employees also rose steadily from 1,550 to 1,808, suggesting an ongoing effort by the bank to strengthen its operational capacity through human resource enhancement. A closer look at deposits per employee shows an overall improvement in productivity, increasing from ₹7.94 crore in 2020-21 to ₹9.03 crore in 2024-25, with a CGR of 7.55%. The average deposit per employee over the five years stood at ₹6.77 crore. However, a slight decline in 2023-24 (-1.24%) was observed, likely due to a significant increase in staff size during that year, which momentarily reduced individual employee productivity despite overall deposit growth. This underlines the importance of managing workforce expansion in tandem with deposit growth to maintain efficiency.
The performance trend of Loans and Advances at the H.P. State Co-operative Bank reflects significant and steady growth in both overall loan disbursals and per employee productivity. From 2020-21 to 2024-25, total loans and advances grew from ₹7,064.48 crore to ₹11,097.05 crore, indicating a compound growth rate (CGR) of 12.78%, which is a strong indicator of increasing credit outreach and portfolio expansion. The most notable growth was observed in 2022-23 and 2023-24, with annual growth rates of 20.37% and 19.78% respectively, suggesting a period of aggressive lending, possibly due to post-pandemic recovery initiatives or expansion into underbanked areas. The number of employees also increased in tandem, from 1,550 in 2020-21 to 1,808 in 2024-25. Loans and Advances per employee also improved significantly during this period, rising from ₹4.55 crore in 2020-21 to ₹6.13 crore in 2024-25. This represents a CGR of 11.18%, demonstrating enhanced employee-level credit efficiency. The peak per employee growth occurred in 2022-23 at 18.08%, which aligned with the overall spike in loan growth. However, the growth rate moderated in the following years, indicating either a stabilizing portfolio or the effects of increased staffing outpacing proportional loan expansion.
Table 1: Annual Growth Rate Analysis of Deposits and Deposits per Employee
|
Year |
Deposits (In Cr.) |
Deposits Annual Growth Rate |
No. of Employees |
Deposits Per Employee (In Cr.) |
Annual Growth Rate |
|
2020-21 |
12316.87 |
3.99% |
1550 |
7.94 |
7.00% |
|
2021-22 |
12759.26 |
3.59% |
1563 |
8.16 |
2.77% |
|
2022-23 |
14132.72 |
10.76% |
1594 |
8.86 |
8.57% |
|
2023-24 |
15274.38 |
8.07% |
1744 |
8.75 |
-1.24% |
|
2024-25 |
16334.37 |
6.93% |
1808 |
9.03 |
3.2% |
|
Average |
11202.11 |
- |
- |
6.77 |
- |
|
CGR |
- |
9.05% |
- |
- |
7.55% |
Table 2: Annual Growth Rate Analysis of Loans and Advances and Loans and Advances per Employee
|
Year |
Loans and Advances (In Cr.) |
Loans and Advances Annual Growth Rate |
No. of Employees |
Loans and Advances Per Employee (In Cr.) |
Annual Growth Rate |
|
2020-21 |
7064.48 |
3.11% |
1550 |
4.55 |
6.06% |
|
2021-22 |
7187.46 |
1.74% |
1563 |
4.59 |
0.87% |
|
2022-23 |
8652.07 |
20.37% |
1594 |
5.42 |
18.08% |
|
2023-24 |
10363.64 |
19.78% |
1744 |
5.94 |
9.59% |
|
2024-25 |
11097.05 |
7.07% |
1808 |
6.13 |
3.19% |
|
Average |
6477.70 |
- |
- |
3.90 |
- |
|
CGR |
- |
12.78% |
- |
- |
11.18% |
Table 3: Annual Growth Rate Analysis of Profits and Profit per Employee
|
Year |
Profits (In Cr.) |
Profits Annual Growth Rate |
No. of Employees |
Profits Per Employee (In Cr.) |
Annual Growth Rate |
|
2020-21 |
79.34 |
57.17% |
1550 |
0.05 |
66.66% |
|
2021-22 |
121.62 |
53.28% |
1563 |
0.07 |
40% |
|
2022-23 |
159.12 |
30.83% |
1594 |
0.09 |
28.57% |
|
2023-24 |
118.76 |
-25.36% |
1744 |
0.06 |
-33.33% |
|
2024-25 |
175.54 |
47.81% |
1808 |
0.09 |
50% |
|
Average |
86.94 |
- |
- |
0.04 |
- |
|
CGR |
- |
21.15% |
- |
- |
24% |
Table 4: Annual Growth Rate Analysis of Total Business and Total Business per Employee
|
Year |
Total Business (In Cr.) |
Total Business Annual Growth Rate |
No. of Employees |
Total Business Per Employee (In Cr.) |
Annual Growth Rate |
|
2020-21 |
19381.35 |
3.67% |
1550 |
12.50 |
6.74% |
|
2021-22 |
19946.72 |
2.91% |
1563 |
12.76 |
2.08% |
|
2022-23 |
22784.79 |
14.22% |
1594 |
14.29 |
11.99% |
|
2023-24 |
25638.02 |
12.52% |
1744 |
14.70 |
2.86% |
|
2024-25 |
27431.42 |
6.99% |
1808 |
15.17 |
3.19% |
|
Average |
17679.81 |
- |
- |
10.68 |
- |
|
CGR |
- |
10.36% |
- |
- |
8.80% |
The five-year profit performance of the H.P. State Co-operative Bank reveals a fluctuating yet overall positive growth trend in both total profits and per employee profitability. Between 2020-21 and 2024-25, the bank’s net profits increased from ₹79.34 crore to ₹175.54 crore, marking a compound growth rate (CGR) of 21.15%, which is indicative of a healthy long-term financial trajectory despite interim volatility. A strong upward trend was observed during the initial three years: profits rose steadily from ₹79.34 crore in 2020-21 to ₹159.12 crore in 2022-23, showing consistent annual growth rates above 30%. This surge suggests improved operational efficiency, possibly driven by rising business volumes, better cost management, or enhanced interest spreads. However, a notable decline occurred in 2023-24, where profits dropped by 25.36% to ₹118.76 crore. This decline is mirrored in profit per employee, which fell from ₹0.09 crore to ₹0.06 crore, reflecting a 33.33% dip in employee-level profitability. The decline may be attributed to increased provisioning, higher operating costs, or asset quality stress during that fiscal year. In 2024-25, the bank rebounded sharply with a 47.81% growth in profits, reaching ₹175.54 crore, the highest in the five-year span. This recovery brought profit per employee back up to ₹0.09 crore, showing a 50% increase and highlighting improved financial management and workforce efficiency
The analysis of total business performance of the H.P. State Co-operative Bank from 2020-21 to 2024-25 reveals a steady and upward growth trajectory in both aggregate business volumes and per employee efficiency. The bank’s total business expanded from ₹19,381.35 crore in 2020–21 to ₹27,431.42 crore in 2024-25, registering a Compound Growth Rate (CGR) of 10.36%. The year-wise growth shows moderate initial gains of 3.67% and 2.91% in the first two years, suggesting stable operations. However, a significant boost occurred in 2022-23, with a 14.22% increase, reflecting possible strategic shifts, such as aggressive loan disbursement, deposit mobilization, or expanded branch outreach. The upward trend continued into 2023-24 and 2024-25 with growth rates of 12.52% and 6.99%, respectively, indicating sustained momentum and market confidence. In terms of per employee productivity, the total business per employee rose from ₹12.50 crore in 2020-21 to ₹15.17 crore in 2024-25, showing a CGR of 8.80%, which is a positive indicator of workforce efficiency and optimized human capital utilization. The sharpest improvement was noted in 2022-23 with a remarkable 11.99% rise, followed by moderate yet consistent improvements thereafter.
CONCLUSION:
The five-year performance analysis of the H.P. State Co-operative Bank revealed a consistent trajectory of financial growth and operational strengthening across key parameters, deposits, loans and advances, profits and total business. The inclusion of per employee metrics adds depth by highlighting improvements in human resource productivity and institutional efficiency. Despite occasional fluctuations, particularly in profit figures, the overall compound growth rates across indicators reflect HPSCB’s resilience and adaptability in a changing banking landscape. The bank has not only expanded its financial footprint but has also demonstrated prudent resource management. This study underscores the critical role cooperative banks play in state-level financial inclusion and economic development. Continued focus on digital integration, credit risk control, and employee capacity building can further strengthen HPSCB’s performance. Thus, the findings offer valuable insights for policymakers, bank management, and researchers interested in cooperative banking trends and efficiency assessment.
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Received on 26.06.2025 Revised on 22.08.2025 Accepted on 28.09.2025 Published on 18.02.2026 Available online from February 21, 2026 Asian Journal of Management. 2026;17(1):69-73. DOI: 10.52711/2321-5763.2026.00011 ©AandV Publications All right reserved
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