Non-Performing Assets of Co-operative Societies in Dakshina Kannada – A Case Study

Abstract

Co-operative societies play a vital role in India’s economy; they cover more than 97% of rural India. The vast geographic and demographic reach of co-operative societies in rural and urban area makes them one of the most dependable institutes to Indian population to bank on. During past years, the co-operative sector is facing some financial challenges. Events of fraud affected the asset quality and profitability of co-operative societies. During 2020-21 COVID-19, pandemic affected the operations of this sector. The purpose of the study is to find out the impact of NPA on cooperative societies. Three cooperative societies are considered for the study namely, Karavali Credit Cooperative Society Ltd. (KCCS), Shri Venkataramana Credit Cooperative Society Ltd. (SVCCS), and Shri Saraswathi Credit Souharda Sahakari Ltd. (SSCSSL) and the study considers five years financial data from 2017 to 2021. In this paper detailed analysis made to on NPA provisions, Gross NPA, Net NPA, and Gross NPA against the lendings and its impact on cooperative societies. The results show improved NPA management by the cooperative banks and Banks' NPA ratios are lower than industry ratios.