Financial Performance of Peringandoor Service Cooperative Bank

Abstract

Cooperatives in Kerala are well developed and highly democratic in nature. The three tiers Short-Term Cooperative Credit Structure consist of the Kerala State Cooperative Bank (KSCB), 14 District Cooperative Banks (DCB) and the 1587 Primary Agricultural Credit Societies (PACS). The Peringandoor Service Co-operative Bank Ltd No: 297 (PSCB) is situated in Athani of Thrissur District, Kerala. PSCB is one of the few Primary Service Co-operatives that has attained a net profit of one Crore Rupees. Considering its importance in cooperativising the rural economy, the researchers thought of assessing the financial performance of Peringandoor Service Co-operative Bank. Financial performance of Peringandoor Service Co-operative Bank was analyzed with respect to Efficiency in Mobilization of Deposits, Efficiency in Deployment of funds and Efficiency in Operation. From the ratio analysis it is clear that the Bank is Efficient in Mobilization of Funds, Efficient in Deployment of Funds and Efficient in Operations. During the study period the Bank was running on Profit. Spread Ratio, Burden Ratio and the Profitability Ratio are reflecting a favourable result to the Bank. Further, the study reveals the dominance of Borrowed Funds in Working Capital throughout the reference period.