pg. 1
“
Adoption of Technology for better Customer
Experience and Growth of Business in Urban Co-
operative Banks
”
A Summer Internship Report
SUBMITTED TO
International Management Institute,
Bhubaneswar
IN PARTIAL FULFILMENT FOR THE AWARD OF POST
GRADUATE DIPLOMA
IN MANAGEMENT
By
PRIYA SINGH
2019
pg. 2
AKOWLEGMENTS
Amidst the pandemic that we are going through, many companies have cancelled their internship as
we all know is a massive part of the learning curve of a B-school program and one’s career path to
becoming a successful manager.
The Reserve Bank of India (RBI) has made this internship possible for me by on-boarding me during
these unprecedented times. It’s my privilege of a lifetime to work as a management Intern for Reserve
Bank of India (RBI), in fact, an opportunity to learn Bankers to Banks and Government in depth. Being
a part of Department of Supervision, RBI Bhubaneswar and working on the topic title ‘Adoption of
Technology for better Customer Experience and Growth of Business in Urban Co-operative Banks’
helped me to learn the nuances of the banking sector in general and Urban Co-operative Banks in
particular with special focus on technology integration thereat.
I would like to thank Smt. Sonali Das for being a mentor to me and providing me the opportunity to
practice my theoretical knowledge in pragmatic purview.
I feel privileged to have Shri. Aloka Ranjan Ranarahu as my industry mentor who provided me with
the phased opportunities during my internship tenure to demonstrate my aptitude in this. I appreciate
sir’s unwavering support by providing me with all the necessary data and making it possible to complete
the project from home. He made it easier by floating the survey in different co-operative banks on my
behalf and guided me in the entire project, I am deeply indebted to him, who was always a call or text
away and ready to guide me at any time of my project, without his support and guidance, this would
have not been possible for me.
Thanks to Shri. Sushant Kispotta for making it possible to reach out to the Urban Co-operative Banks
and ensuring all the necessary feedbacks.
I am thankful to RBI’s Human Resource team for a seamless virtual onboarding, thank you to Shri.
Ashish Kumar Verma was in constant touch and there for any help from beginning to ending of this
Internship.
At last, I extend the gratitude to my faculty mentor Shri. Devesh Baid from IMI Bhubaneswar for being
a source of guidance.
I hope I have done justice to the project framework. As a result of this experience, I am more exhilarated
than ever to pursue a career in the Banking Industry.
Priya Singh
International Management Institute Bhubaneswar
pg. 3
Student’s Undertaking
I, Priya Singh, bearing Institute Roll No 19PGDM-BHU049, declare that the summer project
titled ‘Adoption of Technology for better Customer Experience and Growth of Business in
Urban Co-operative Banks’ is my original work and completed under the supervision of Smt.
Sonali Das (General Manager) of Reserve Bank of India, Bhubaneswar, Prof. Devesh Baid
of International Management Institute, Bhubaneswar. Further, I also declare that the report
being submitted herewith is free of any textual plagiarism.
Priya Singh
Place: International Management
Institute, Bhubaneswar
Date:
pg. 4
Successful Internship completion Certificate.
pg. 5
Certificate From Faculty Guide
Recommended that the Summer Internship Report titled ‘Adoption of Technology for better Customer
Experience and Growth of Business in Urban Co-operative Banks’ prepared by Ms. Priya Singh under
my supervision and guidance be accepted as fulfilling this part of requirements for the award of Post
Graduate Diploma in Management. To the best of my knowledge, the contents of this report did not
form a basis for award of any previous degree/diploma to anybody else.
Date:
Signature:
Name of the guide:
pg. 6
Contents
List of Table: ................................................................................................................................................ 8
List of Figures: ............................................................................................................................................. 9
EXECUTIVE SUMMARY: .......................................................................................................................... 10
CHAPTER 1 INTRODUCTION................................................................................................................... 11
1.1 Introduction to Financial System ..................................................................................................... 11
1.2 Significance and Definition ............................................................................................................. 11
1.3 The Concept of the Financial System ............................................................................................. 11
1.4 Inter-relationship in the Financial System ....................................................................................... 11
1.5 Indigenous Banking in India ........................................................................................................... 12
1.6 Rural Financial System .................................................................................................................. 13
1.7 Position of UCBs in banking eco system ........................................................................................ 13
OBJECTIVES OF THE STUDY .................................................................................................................. 14
METHODOLOGY ...................................................................................................................................... 15
BACKGROUND ......................................................................................................................................... 16
4.1 Overview of Banking Sector ........................................................................................................... 16
4.2 Structure of Indian Banking ............................................................................................................ 16
4.3 Some statistics of Scheduled Commercial Banks ................................................................................. 17
COOPERATIVE BANKS ............................................................................................................................ 18
5.1 Co-operative Banks: A Cross-Country Comparison ........................................................................ 19
5.2 Place of UCBs in Indian Banking System ....................................................................................... 20
URBAN CO-OPERATIVE BANKS (UCBs) IN INDIA................................................................................... 21
6.1 Role of Urban Co-operative banks in developments ....................................................................... 21
6.2 RBI’s Role in Empowering UCBs.................................................................................................... 21
6.3 Trends in Urban Co-operative Banking Sector: ............................................................................... 22
CHAPTER 7 .............................................................................................................................................. 29
URBAN CO-OPERATIVE BANKS (UCBs) IN ODISHA .............................................................................. 29
CHAPTER 8 .............................................................................................................................................. 35
EVOLUTION OF BANKING TECHNOLOGIES ........................................................................................... 35
8.1 Role of Technology in development of UCBs: ................................................................................. 35
8.2 Extent of technology integration in Urban Co-operative Banks: ....................................................... 36
8.3 Technologies used by some major Co-operative banks .................................................................. 36
8.4 Technology and UCBs in Odisha. ................................................................................................... 36
CHAPTER 9 FINDINGS ............................................................................................................................. 37
9.1. Questionnaire based Survey: The extent of technological integration in UCBs of Odisha: ............... 37
9.2 The technologies the UCBs wish to adopt in future ......................................................................... 40
9.3 Challenges before UCBs ................................................................................................................ 40
9.4 Problems associated with new technologies ................................................................................... 41
9.6. A comparative analysis through CAMEL Analysis Model ..................................................................... 45
CHAPTER 10 SUGGESTION .................................................................................................................... 47
CHAPTER 11 CONCLUSION .................................................................................................................... 48
CHAPTER 12 LIMITATIONS OF THE STUDY ........................................................................................... 50
pg. 7
CHAPTER 13 ............................................................................................................................................ 50
SCOPE OF FUTURE IMPROVEMENTS.................................................................................................... 50
APPENDICES: .......................................................................................................................................... 51
REFERENCE: ........................................................................................................................................... 51
pg. 8
List of Table:
Table 6.3. 1.Tier-wise Distribution of Urban Co-operative Banks. (as on March 2019) (In crores) ...... 23
Table 6.3. 2.The market share of deposits in India ........................................................................... 23
Table 6.3. 3. State and Union Territories(UT) wise distribution of UCBs ............................................ 24
Table 6.3. 4. Region wise volume of banking business per branch for UCBs .................................... 27
Table 7. 1.Overview of UBCs in Odisha (as on March 2019) .................................................................. 28
Table 7. 2.Details of Urban Co-operative bank based in Odisha (as on March 2020) ........................ 28
Table 7. 3. Details of based on Financial parameters of UCBs in Odisha .......................................... 29
Table 8.1. 1.Important Committes on Bnaking Technology in India by RBI........................................ 38
Table 9.1. 1. showing the summary of the Responses ...................................................................... 42
Table 9.5. 1.Table The comparative financial parameters of these banks ......................................... 46
Table 9.5. 2.Comparison of Lokmangal UCB and Kendrapara UCB ................................................. 47
Table 9.5. 3.Comparison of Cuttack UCB and Pandharpur UCB ...................................................... 48
pg. 9
List of Figures:
Figure 4.3. 1. Scheduled Banks’ Statement of Position in India (as on March 27, 2020) .................... 16
Figure 5. 1. The structure of co-operatives by asset size .................................................................. 18
Figure 5.1. 1. Market share of financial co-operatives....................................................................... 18
Figure 6.3.1. Balance sheet of Urban Co-operative Banks. (as on March 2019) ................................ 21
Figure 6.3. 2. Number of UCBs ........................................................................................................ 22
Figure 6.3. 3. Consolidation and Asset Size of UCBs ....................................................................... 22
Figure 6.3.4. State and UT wise total number of UCB as on March 2019 .......................................... 25
Figure 6.3. 5. Region wise distribution of UCBs at the end of March 2019 ........................................ 25
Figure 6.3.6. State wise number of UCBs in Eastern Region ............................................................ 26
Figure 6.3. 7. Region wise volume of banking business per branch for UCBs ................................... 27
Figure 7. 1.Asset size of all UCBs in Odisha .................................................................................... 30
Figure 7. 2.Deposits of all UCBs in Odisha ....................................................................................... 31
Figure 7. 3.Loans/Advances of all UCBs in Odisha ........................................................................... 31
Figure 7. 4.Net NPA and Gross NPA of UCBs in Odisha ................................................................. 32
Figure 7. 5.Profit of all UCBs in Odisha ............................................................................................ 32
Figure 9.1. 1.The extent of Bank computerization of all UCBs of Odisha........................................... 43
Figure 9.1. 2.The extent of stabilization of Core Banking Solution in all UCBs of Odisha ................... 43
Figure 9.1. 3.Status of Website in all UCBs of Odisha ...................................................................... 44
Figure 9.1. 4.Percentage of banks providing NEFT/RTGS Facilities ................................................. 44
Figure 9.1. 5.Satisfaction level of bankers regarding technology-based services .............................. 45
Figure 9.5. 1.Asset Size: Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB ..................... 48
Figure 9.5. 2.Deposits: Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB ....................... 48
Figure 9.5. 3.Loans/ Advances:Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB ............ 49
Figure 9.5. 4.NNPA: Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB ......................... 49
Figure 9.5. 5.Profit: : Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB .......................... 49
pg. 10
EXECUTIVE SUMMARY:
There iare iseveral ifactors iattributed ito iIndia’s ihigh igrowth iin ithe i recent iperiod i- iimproved iproductivity, igrowing
ientrepreneurial ispirit, iand ihigher isavings ito iname ithe ifew iimportant iones. iBut ione ifactor iusually iunder-
acknowledged i– ithat iis ifinancial iintermediation, iimprovement iin ithe iquantum iand iquality iof ifinancial iintermediation
iranks ialong i with iother ifactors, ia ikey igrowth idriver. iAnd i one iof ithe ikey ifactors ithat idrove ithe iimprovement iin ithe
iquantum iand iquality iof ifinancial iintermediation iis ithe i widespread iand iefficient iuse iof iInformation iTechnology i(IT).
iEver isince ithe i18th icentury, ithe ibanking isector ihas ibeen ievolving, iand iit iis iknown ias ione iof ithe ioldest ibusinesses
iin ithe iworld. iIt ihas iprogressed iand i grown iwith ievery ipassing iyear. i Although, iit iwas ithe iindustry ithat itook ithe ilead ito
itransform iitself i with ithe ihelp iof itechnology, iBanks iwhich iwere igenerally iregarded ias ia iplace i with ilong iqueues iand
ian iunmanageable iamount iof ipaperwork ihas icaught iup ifast ithanks ito itechnological iadvancements iand iquick
iadoption iof ithe isame iin ithe ibanking isector.
The ipresent istudy ifocuses i on ithe i analysis iof ithe iinnovation iin ibanking itechnologies iand itechnology iadoption iin ithe
iUrban iCo-Operative iBanking iSector i with ispecial ireference ito iOdisha iState. iThe imajor iobjective iof ithe istudy iis i to
ifind iout ithe iextent iof iintegration iand iimpact i of ibanking itechnology iinnovations iin iUCBs iand isuggest ihow ithe iUCBs
ican ileverage itechnology ifor isustainable igrowth iand idevelopment. iThe istudy iis ibased iprimarily ion i secondary idata
iapart ifrom ia iquestionnaire-based isurvey.
The itotal ideposits iof ithe iIndian i banking i sector iare i₹1, i28, i87,262 icrores, iand iadvances iare i₹97, i09,829 icrores. iIf
iwe italk iabout ithe iUrban ico-operative ibanks iin iIndia, ithe ideposits iare i₹4, i84,315.85 icrores i(which iis i3.75% iof itotal
ideposits iIndian ibanking isector) iand iAdvances iis i₹3, i 03,017.76 icrores i(3.12% iof itotal iadvances iof ithe ibanking
isector). i The iUCBs iin iOdisha ihad ia itotal ideposits iand iadvances iof
₹1235.2 icrores i(0.25% iof itotal iUCBs ideposits) iand i₹ i742.1 icrores( i0.24% iof itotal iUCBs iadvances) irespectively i as
ion iMarch i2019. iThe ibanking isystem iin iour icounty ihas ibeen ileveraging itechnology ito iimprove inot ionly ithe icustomer
iservices ibut ialso iplayed ia ivital irole iin iachieving ithe iset itargets iof ifinancial iinclusion ito i a igreat iextent.
The iobjective iof ithe istudy iis ito iknow ithe iextent iof ithe iUCBs ihave iadopted itechnologies iwith ithe iprospective iof
iOdisha iand ito isuggest ithe i way iforward iafter istudying ithe iimpediments iof itechnologies.
The iaspects iof ithe istudy iincluded ian iintroduction, iobjective iof ithe istudy, iresearch imethodology, idata iinterpretation,
iand ianalysis, ifindings, i suggestions, iand irecommendations.
The istudy isuggests ithat ithe iUrban i Cooperative i Banks ineed ito iredesign iand ire-structure itheir istrategies ifor ithe
ibusiness iby iadopting iinnovative ibanking itechnologies ifor ibetter icustomer iexperience, igrowth iof ithe ibusiness, iand
iremaining irelevant iin ithe isuper idynamic ibanking isector. iMoreover, itheir icompetitors iare iin ia i constant ichurning
iprocess i of ionboarding itechnologies iin itune i with ithe i market idemand iand icustomers’ iexpectations i to idevelop
icustomized iproducts ito isuit ithe irequirements iof ithe iever- idemanding iclients ito igrow ithe ibusiness iand ialso istriving
itowards i“Customer iDelight”.
pg. 11
CHAPTER 1
INTRODUCTION
1.1 Introduction to Financial System
The ieconomic i scene iin ithe ipost-independence iperiod ihas i seen i a isea ichange; ithe iresult ibeing ithat ithe
ieconomy ihas imade ienormous iprogress iin idiverse ifields. iThere ihas ibeen ia iquantitative iexpansion ias iwell
ias idiversification iof ieconomic iactivities. iThe i experiences iof ithe i1980s ihave iled ito ithe iconclusion ithat ito
iobtain iall ithe ibenefits iof igreater ireliance ion ivoluntary iand imarket-based idecision-making, iIndia ineeds
iefficient ifinancial i systems. iThe ifinancial isystem iis ipossibly ithe imost iimportant iinstitutional iand ifunctional
ivehicle ifor ieconomic itransformation. iFinance iis ia ibridge i between ithe ipresent iand ithe ifuture iand iwhether
iit ibe ithe imobilization iof isavings ior itheir iefficient, ieffective, iand iequitable iallocation ifor iinvestment, iit iis ithe
isuccess i with i which ithe ifinancial i system i performs iits ifunctions ithat i sets i the ipace ifor ithe iachievement iof
ibroader inational iobjectives.
1.2 Significance and Definition
The iterm ifinancial isystem iis i a iset iof iinter-related iactivities/services iworking itogether ito iachieve isome
ipredetermined ipurpose ior i goal. iIt iincludes idifferent imarkets, iinstitutions, iinstruments, i services, iand
imechanisms ithat iinfluence ithe igeneration iof isavings, iinvestment icapital iformation, iand igrowth. iVan
iHorne idefined ithe ifinancial isystem ias ithe ipurpose iof ifinancial imarkets ito iallocate isavings iefficiently iin ian
ieconomy ito iultimate iusers ieither ifor iinvestment iin ireal iassets ior ifor iconsumption. iChristy i has iopined ithat
ithe iobjective iof ithe ifinancial isystem i is ito i"supply ifunds ito ivarious isectors iand i activities iof i the ieconomy iin
iways ithat ipromote ithe ifullest ipossible iutilization iof iresources i without ithe idestabilizing iconsequence iof
iprice ilevel ichanges ior iunnecessary iinterference iwith iindividual idesires." iAccording ito iRobinson, ithe
iprimary ifunction iof ithe isystem iis i"to iprovide ia ilink ibetween isavings iand iinvestment ifor ithe icreation iof inew
iwealth iand ito ipermit iportfolio iadjustment iin ithe icomposition iof ithe iexisting iwealth." iFrom ithe iabove
idefinitions, iit imay ibe i said ithat ithe iprimary ifunction iof ithe ifinancial i system iis ithe imobilization iof i savings,
itheir idistribution ifor iindustrial iinvestment iand i stimulating icapital iformation ito iaccelerate ithe iprocess iof
ieconomic igrowth.
1.3 The Concept of the Financial System
The iprocess iof isavings, ifinance, iand iinvestment iinvolves ifinancial iinstitutions, imarkets, iinstruments, i and
iservices. iAbove iall, isupervision icontrol iand iregulation iare iequally isignificant. iThus, ifinancial
imanagement iis ian iintegral ipart iof ithe ifinancial isystem. iBased ion ithe iempirical ievidence, iGoldsmith isaid
ithat i"... ia icase ifor ithe ihypothesis ithat ithe i separation iof ithe ifunctions iof i savings i and iinvestment iwhich iis
imade ipossible iby ithe iintroduction iof ifinancial iinstruments ias iwell ias ienlargement iof ithe irange iof ifinancial
iassets iwhich ifollows ifrom ithe icreation iof ifinancial iinstitutions, i increase ithe iefficiency iof i investments iand
iraise ithe iratio iof icapital iformation ito inational iproduction iand ifinancial iactivities iand ithrough ithese itwo
ichannels iincrease ithe irate iof igrowth……" iThe iinter-relationship ibetween ivaried i segments iof ithe
ieconomy iare iillustrated ibelow: i-
1.4 Inter-relationship in the Financial System
A ifinancial isystem iprovides i services ithat iare iessential i in ia imodern ieconomy. iThe iuse iof ia i stable, i widely
iaccepted imedium iof iexchange ireduces ithe icosts iof itransactions. iIt ifacilitates itrade iand, itherefore,
ispecialization iin iproduction. iFinancial iassets iwith iattractive i yield, iliquidity iand irisk icharacteristics
iencourage isaving iin ifinancial iform. i By ievaluating ialternative iinvestments iand imonitoring ithe iactivities iof
iborrowers, ifinancial iintermediaries iincrease ithe iefficiency iof iresource iuse. iAccess ito ia
pg. 12
variety iof ifinancial iinstruments ienables ian i economic iagent ito ipool, iprice iand iexchange irisks iin ithe
imarkets. iTrade, ithe iefficient iuse iof iresources, isaving iand irisk itaking iare ithe icornerstones iof ia igrowing
ieconomy. iIn ifact, ithe icountry i could imake ithis ifeasible iwith ithe iactive isupport iof ithe ifinancial isystem. iThe
ifinancial i system ihas ibeen iidentified ias ithe imost icatalysing iagent ifor igrowth iof ithe ieconomy, imaking iit
ione iof ithe ikey iinputs i of idevelopment. iThe iIndian ifinancial isystem iis ibroadly iclassified iinto itwo ibroad
igroups:
(i) Organised sector
(ii) Unorganised sector.
The ifinancial isystem iis ialso idivided iinto iusers iof ifinancial i services iand iproviders. iFinancial iinstitutions
isell itheir iservices ito ihouseholds, ibusinesses iand igovernment. iThey iare ithe iusers iof i the ifinancial
iservices. iThe iboundaries ibetween ithese isectors iare inot i always iclear icut. iIn ithe icase iof iproviders iof
ifinancial iservices, ialthough ifinancial isystems idiffer ifrom icountry ito icountry, ithere iare imany isimilarities.
(i) iOrganised iIndian iFinancial iSystem
The iorganised ifinancial i system icomprises iof ian iimpressive inetwork iof i banks, iother ifinancial i and
iinvestment iinstitutions iand ia irange iof ifinancial iinstruments, iwhich itogether ifunction iin ifairly ideveloped
icapital iand imoney imarkets. iShort-term ifunds iare imainly iprovided iby ithe icommercial iand icooperative
ibanking i structure. iNine-tenth iof i such ibanking ibusiness iis imanaged iby i18 ileading ibanks i(as ion iMarch
i2019) i which iare iin ithe i public isector. iIn iaddition ito icommercial ibanks, ithere iis ithe inetwork iof icooperative
ibanks iand iland idevelopment ibanks iat istate, idistrict iand i block ilevels. iWith iaround itwo- ithird i share iin ithe
itotal iassets iin ithe i financial i system, ibanks i play ian iimportant irole. iOf ilate, iIndian ibanks ihave ialso
idiversified iinto iareas isuch ias imerchant ibanking, imutual ifunds, ileasing iand ifactoring. iThe iorganised
ifinancial isystem icomprises ithe ifollowing i sub-systems:
1. Banking system
2. Cooperative system
3. Development Banking system:
(i) Public sector
(ii) Private sector
4 .Money markets and
5. Financial companies/institutions.
Over ithe iyears, ithe istructure iof ifinancial iinstitutions iin iIndia ihas i developed i and ibecome ibroad ibased.
iThe isystem ihas ideveloped iin ithree iareas i- istate, icooperative iand iprivate. iRural iand iurban iareas iare iwell
iserved iby ithe icooperative isector ias iwell ias iby i corporate ibodies iwith inational istatus. iThere iare imany
inon-banking ifinancial iinstitutions ichannelizing icredit iinto ieconomy inamely idevelopment ifinance
iinstitutions, i investment icompanies ietc.
ii) iUnorganised iFinancial iSystem
On ithe iother ihand, ithe iunorganised ifinancial isystem i comprises iof irelatively iless icontrolled
imoneylenders, iindigenous ibankers, ilending ipawn ibrokers, i landlords, itraders ietc. iThis ipart iof ithe
ifinancial isystem iis inot idirectly iamenable ito icontrol iby ithe iReserve iBank iof iIndia i(RBI). iThere iare ia ihost
iof ifinancial icompanies, iinvestment icompanies, ichit ifunds ietc., iwhich iare ialso inot iregulated iby ithe iRBI ior
ithe igovernment iin ia isystematic imanner. iHowever, ithey iare ialso igoverned iby irules iand iregulations iand
iare, itherefore iwithin ithe iorbit iof ithe imonetary iauthorities.
1.5 Indigenous Banking in India
At independence, India had an indigenous banking system with a centuries-old tradition. This system
had developed the hundi, a financial instrument still in use that is similar to the commercial bill of
pg. 13
Western Europe. Hundi were used to finance local trade as well as trade between port towns and inland centres
of production. They were often discounted by banks, especially if they were endorsed by indigenous bankers.
Indigenous bankers combined banking with other activities, much as the goldsmiths, merchants, and shippers
of eighteenth and nineteenth century Europe had done. They usually belonged to certain castes or communities,
such as the Multanis, Marwaris and Chettiars, and they differed in the extent to which they relied on their own
resources, rather than deposits and other funds for their lending. Some brokers specialized in introducing
indigenous bankers to commercial banks, while others brought together traders and indigenous bankers.
1.6 Rural Financial System
Rural financial system has been evolved over a period of time from the year 1904, when the first Primary
Agricultural Credit Society was organized, by accepting and implementing important recommendations of expert
committees appointed by the Government of India/RBI from time to time. During the pre-reform period, more
particularly, after the advent of the scientific and technological revolution in the sphere of agriculture, the
Government of India and the RBI have evolved several new concepts, innovations and novel approaches, which,
the Rural Financial Institutions (RFls) have responded very favourably by implementing them.
1.7 Position of UCBs in banking eco system
Credit is an essential requirement of any society. With economic development, banking institutions also evolved to
fulfil the demand for credit. The origin of urban co-operative credit movement in India can be traced to the close of
the 19th century. The origin of urban co-operative credit movement in India dates back to 5 February 1889 when
under the guidance of Late Shri Vithal Laxman Kavthekar, a mutual aid society was formed by same middle-class
Maharashtrian families in Baroda state. The name of the bank was “Anyonya Sahakari Mandali”. When the Co-
operative Credit Society Act 1904 conferred legal status on credit societies, the first Urban Co-operative Credit
Society was registered in October 1904. This happened in Conjeevaram in Madras province (now known as
Chennai). Since then the UCBs in India have passed through many phases. Co-operatives occupy an important
position in the Indian financial system and were the first formal institution to be conceived and developed to purvey
credit to rural India. Thus far, co-operatives have been key instrument of financial inclusion in reaching out to the
last mile in rural areas. The Urban counterparts of rural cooperatives, the Urban Co-operative Banks (UCBs) too
have traditionally been an important channel of financial inclusion for the middle- and low- income sections in the
semi-urban and urban areas. These banks are formed to serve the common man for encouraging self-help and
thrift in the semi urban and urban areas. The UCBs are regulated and supervised by State Registrars of Co-
operative Societies, Central Registrar of Co-operative Societies in case of Multi-state co-operative banks and by
Reserve Bank. The Registrars of Co- operative Societies of the States exercise powers under the respective Co-
operative Societies Act of the States in regard to incorporation, registration, management, amalgamation,
reconstruction or liquidation. In case of the urban co-operative banks having multi-state presence, the Central
Registrar of Co-operative Societies, New Delhi, exercises such powers. The banking related functions, such as
issue of license to start new banks / branches, matters relating to statutory reserves, interest rates, investments,
income recognition and asset classification, prudential exposure norms etc. are regulated and supervised by the
Reserve Bank of India under the provisions of the Banking Regulation Act, 1949.
pg. 14
CHAPTER 2
OBJECTIVES OF THE STUDY
The study is conducted with the objectives of understanding the level of technology integration and adoption in
UCBs along with impediments. An attempt has been made to achieve the following key objectives of this study.
The conclusion and suggestion part of the report gives an overview of the extent of fulfilment of these objectives:
I. To what extent UCBs has adopted the banking technologies
II. To understand the prospective of Odisha.
III. To identify the impediments to technology adoption
IV. To suggest the way forward.
pg. 15
CHAPTER 3
METHODOLOGY
The adopted procedure for the conduct of research assumes significance as it has a direct bearing on the
reliability, accuracy, and adequacy of the obtained results. The methodology is the science of studying how the
study is carried out scientifically, it also talks about the logic behind the method is used in the context of the study.
The methodology adopted for studying the project was surveying the Urban Co-operative Banks in Odisha.
Research design used in this study
In this study, the descriptive research design is used to ensure the maximization of reliability and minimization of
bias of data collected.
Data collected method
The process of data collection begins after a research problem has been defined and research design has been
chalked out. There are two types of data secondary and primary data. For the fieldwork a survey is done to
understand the extent of integration of banking technology in UCBs of Odisha.
PRIMARY DATA:
It is first-hand data, which is collected by the researcher itself. Primary data is collected by various approaches to
get precise, accurate, realistic, and relevant data. The main tool is gathering primary data was Questionnaire
Survey. It was achieved by a direct approach and observation from the officials of the banks.
SECONDARY DATA:
It is the data that is already collected by someone else. The researcher has to analyse the data and interprets the
results. It has always been important for the completion of any report. It provides reliable, suitable, adequate, and
specific knowledge. The secondary data is collected by using banks' annual reports and authorized websites of
banks.
Method of Data Analysis
For analysing the collected data and measuring various phenomena efficiently and effectively to draw sound
suggestions and conclusions, certain statistical techniques were used. The data collected were tabulated, edited,
and classified for analysis.
ANALYTICAL TOOL:
CAMEL Analysis Model
The data collected were tabulated, edited, and classified for analysis. The analytical tool used in this study is
CAMELS Analysis to compare the performance of Indian banks. To analyze the data MS- EXCEL tool is used.
Further the Analysis is divided into two steps:
1.Questionnaire method : to know the extent of technology integration in Odisha.
2. CAMEL Analysis: to know the Overall performance of the bank and the correlation between performance and
technological adoption of the bank.
pg. 16
CHAPTER 4
BACKGROUND
4.1 Overview of Banking Sector
A ibank iis ia i financial iinstitution iand ia ifinancial iintermediary ithat iaccepts ideposits i and ichannels
ithose ideposits iinto ilending iactivities, ieither i directly ior ithrough icapital imarkets. iA ibank iconnects
icustomers ithat ihave icapital ideficits ito icustomers iwith icapital isurpluses. iDue ito itheir icritical istatus
iwithin ithe ifinancial i system iand ithe ieconomy igenerally, i banks i are ihighly iregulated iin imost
icountries. iThey iare igenerally i subject ito iminimum icapital irequirements i which iare ibased ion ian
iinternational iset iof icapital istandards, iknown ias ithe iBasel iAccords.
Banking iin iIndia ioriginated iin ithe ilast idecades iof ithe i18th icentury. iThe ifirst ibanks iwere iThe
iGeneral iBank iof i India, iwhich istarted iin i1786, iand iBank iof iHindustan, iwhich istarted iin i1790; iboth
iare inow idefunct. iThe ioldest ibank iin iexistence iin iIndia iis ithe iState iBank iof iIndia, iwhich ioriginated
iin ithe iBank iof iCalcutta iin iJune i1806, iwhich ialmost iimmediately ibecame ithe iBank iof i Bengal. iThis
iwas ione iof ithe ithree ipresidency ibanks, ithe iother itwo ibeing ithe iBank iof iBombay iand ithe iBank iof
iMadras, iall ithree iof i which i were iestablished iunder icharters ifrom ithe iBritish iEast iIndia iCompany.
iFor imany iyears ithe iPresidency ibanks iacted ias iquasi-central ibanks, ias idid itheir isuccessors. iThe
ithree ibanks imerged iin i1921 ito iform ithe iImperial iBank iof iIndia, iwhich, i upon iIndia's
iindependence, ibecame ithe iState iBank iof iIndia iin i 1955.
4.2 Structure of Indian Banking
As iper iSection i5(b) iof ithe iBanking iRegulation iAct i1949: i“Banking” imeans ithe iaccepting, ifor
ilending ior iinvestment, iof ideposits iof imoney ifrom ithe ipublic, irepayable ion idemand ior iotherwise,
iand i withdrawal iby icheque, idraft, i order ior iotherwise.” iAll ibanks i which iare iincluded iin ithe iSecond
iSchedule ito ithe iReserve iBank iof iIndia iAct, i1934 i are ischeduled ibanks. iThese ibanks icomprise
iScheduled iCommercial iBanks iand iScheduled iCooperative iBanks. iScheduled iCommercial
iBanks iin iIndia iare icategorized iinto ifour idifferent igroups iaccording ito itheir iownership iand/or
inature iof i the ioperation. iThese ibank igroups iare:
Public Sector Banks
Private Sector Banks,
Foreign Banks
Small finance bank
Payment ibanks iare ithe inew iintroduction i to ithe icategory. iBesides ithe iNationalized ibanks
i(majority iequity iholding iis iwith ithe iGovernment), ithe icommercial i banks icomprise iforeign iand
iIndian iprivate ibanks. iNationalized ibanks iand iRegional iRural iBanks iare iconstituted iunder
irespective ienactments iof ithe i Parliament, ithe iprivate isector ibanks iare ibanking icompanies ias
idefined iin ithe iBanking iRegulation iAct. iThese ibanks, i along i with iregional irural ibanks, iconstitute
ithe ipublic i sector i(state-owned) ibanking isystem iin iIndia. iThe iPublic iSector iBanks iin iIndia iare ithe
ibackbone iof ithe iIndian ifinancial isystem. iThe icooperative icredit iinstitutions iare ibroadly i classified
iinto iurban icredit icooperatives iand irural icredit icooperatives. iScheduled iCo-operative iBanks
iconsist iof iScheduled iState iCo-operative iBanks iand i Scheduled iUrban iCo-operative iBanks.
iRegional iRural iBanks i(RRB’s) iare istate-sponsored, iregionally i based, i and irural ioriented
icommercial ibanks. iThe iGovernment iof iIndia ipromulgated ithe iRegional iRural iBanks iOrdinance
ion i26th iSeptember i1975, i which i was ilater ireplaced iby ithe iRegional iRural iBank iAct i1976. iThe
ipreamble ito ithe iAct istates ithe i objective ito idevelop i the irural ieconomy iby iproviding icredit iand
ifacilities i for ithe idevelopment iof iagriculture, itrade, icommerce, iindustry iand iother iproductive
iactivities iin
pg. 17
the rural areas, particularly to small and marginal farmers, agricultural laborers, artisans, and small
entrepreneurs.
1. 4.3 Some statistics of Scheduled Commercial Banks
Figure 4.3. 1. Scheduled Banks’ Statement of Position in India (as on March 27, 2020)
pg. 18
CHAPTER 5
COOPERATIVE BANKS
People who come together in conjunction to serve their common interests frequently form a co-operative
society under the Co-operative Societies Act. When a co-operative society occupies itself in the banking
business then these co-operative societies are called a cooperative Bank. Society has to acquire a license
from the Reserve Bank of India (RBI) before starting the banking business. Any cooperative bank as a society
is to function under the overall administration of the registrar, cooperative societies of the state. As regards the
banking business, society must go along with the guidelines set and issued by the Reserve Bank of India (RBI).
In keeping with their ‘grassroots’ integration into the life and essence of the widest sections of society, co-
operative banks in India are invested with developmental goals among which financial inclusion has assumed
crucial importance. These institutions play a critical role in last-mile credit delivery and in extending financial
services across the length and breadth of the country through their geographic and demographic outreach.
At the end of March 2019, credit cooperative banks comprised 1,544 urban co-operative banks (UCBs) and 96,248
rural co-operative banks (end-March 20181), with the latter accounting for 64.7 percent of the total assets of co-
operatives. UCBs and among the rural co-operatives, the State Co-operative Banks (SCBs), and the District
Central Co-operative Banks (DCCBs) are registered either under the Co-operative Societies Act of the state
concerned or under the Multi-State Co-operative Societies Act, 2002. Banking laws were made significant to co-
operative societies since March, 1966. Currently, there is a duality of control over SCBs/DCCBs/UCBs between
the Registrar of Cooperative Societies (RCS) or the Central Registrar of Cooperative Societies (CRCS) and the
Reserve Bank. While the mandates of the RCS/CRCS encompass incorporation, registration, management,
recovery, audit, the supersession of Board of Directors, and liquidation, the Reserve Bank is invested with
regulatory functions. The Reserve Bank is also entrusted with the responsibility of supervision of UCBs, entailing
prescription of prudential norms for capital adequacy, income recognition, asset classification and provisioning,
liquidity requirements, and single/group exposure norms. Also, it helps in the capacity building of employees and
assists in the implementation of IT infrastructure in UCBs.
Primary Agricultural Credit Societies (PACS) and long-term co-operatives are outside the purview of the Banking
Regulation Act, 1949. The NABARD has been given power under Section 35 (6) of the Banking Regulation Act to
conduct inspections of SCBs and DCCBs. The NABARD also conducts voluntary inspections of State Co-
operative Agriculture and Rural Development Banks (SCARDBs).
The growth of these co-operative institutions has not been commensurate with that of other constituents of the
banking sector in India. At the end of March 2019, the combined assets of urban and rural co- operatives were10.6
percent of the total assets of scheduled commercial banks (SCBs), down from
19.4 percent in 2004-05. Several operational and governance-based impediments have operated as drags on
their performance, stunting their growth.
pg. 19
Figure 5. 1. The structure of co-operatives by asset size
5.1 Co-operative Banks: A Cross-Country Comparison
The financial co-operative (FC) institutions, which trace back their origins to the 19th century,
were established across jurisdictions to extend loans at affordable prices to the unbanked
population. Amongst the FCs, the services of credit unions are exclusive for their members,
who share a common profession, entrepreneurship interests, or in some cases, just their
location. In contrast, co-operative banks offer services to non-members as well (Birchall, 2013).
While there are co-operatives based on a simple business model of deposit-taking and lending,
others, such as those in Europe, form federations by pooling their resources resembling large
banking groups and provide a large array of services (for example, Rabobank Group in
Netherlands, Credit Agricole Group in France and Op- Pohjola Group in Finland).
Figure 5.1. 1. Market share of financial co-operatives
Market share of financial co-operatives all over world
60
50
40
30
20
10
France Germany kenya India
US
Country
Ireland
China
Brazil Australia
Assets Loans Deposits
Percentage
pg. 20
5.2 Place of UCBs in Indian Banking System
Inspired by the success of experiments which was related to the Co-operative credit movement in Germany and
the co-operative movement in Britain formed the origin of UCBs. Mutual help, open membership, and
democratic decision making are the principle of Co-operative Societies. “Anyonya Sahakari Mandali” was the
first known mutual aid society in India. Initially, UCBs came to meet the consumption-oriented credit needs of
the members but at present, it mobilizes the savings of middle and low-income urban groups to their members
from whom many belong to the weaker section.
The primary co-operative bank in the urban and semi-urban areas are termed as Urban Co-operative banks
(UCBs). Till 1996 these banks were allowed to lend their money for the only purpose of non- agriculture, small
borrowers, and businesses. Today the scope of their operation has widened considerably.
There is a duality of control in the Urban Co-operative banks as the banking-related functions (viz. area of
operation, licensing, interest rates, IRAC, etc.) were to be governed by RBI and management, registration, audit,
and liquidation, etc were to be governed by the state acts of the state government.
Over the years, primary (urban) cooperative banks have registered a significant growth in number, size, and
volume of business handled. As of March 2019, there are 1544 UCBs of which 54 are banks that are scheduled.
About 79 percent of these are located in five states i.e. Tamil Nadu, Andhra Pradesh, Karnataka, Gujarat, and
Maharashtra. Recently the problems faced by a few large UCBs have highlighted some of the difficulties these
banks face and policy endeavours are geared to consolidating and strengthening this sector and improving
governance.
pg. 21
CHAPTER 6
URBAN CO-OPERATIVE BANKS (UCBs) IN INDIA
There are over 1,544 UCBs in the country. Yet they form a tiny part of the banking system
accounting for less than 3% of the total banking assets and deposits and less than 3.5% of total
advances. They also follow the 80-20 rule. The top 20% of UCBs accounts for almost 80% of
its deposits. In spite of being present in 25 states, much (almost 80%) of the action happens in
the five states of Gujarat, Maharashtra, Andhra Pradesh, Karnataka, and Tamil Nadu with the
largest share going to Maharashtra. Till March 2019, Maharashtra stood first among all UCBs,
there 56.18 percent of all UCB branches, around 59 % of total extension counters of UCBs and
more than 70% of all its automated teller machines (ATMs) are in Maharashtra. As a result, more
than 60% of the total banking business of the UCBs sector was concentrated in Maharashtra
but their numbers have been decreasing in recent years. During 2000-2010, 132 banks had
their licenses cancelled and 62 merged with other banks. In this scenario, it is perhaps
understandable why this sector does not exactly steal the limelight in banking policy.
6.1 Role of Urban Co-operative banks in developments
As far as financial inclusion is concerned, ignoring the value of this sector would be a serious
mistake. By their nature, UCBs in India can play a critical role in this area. They have traditionally
played an important role in mobilizing resources from lower and middle-income groups and in
providing direct finance to small entrepreneurs and traders. The UCBs, with their deep-rooted
connections with specific communities, can easily inspire the trust of small savers and
borrowers. By being local in nature and intricately interwoven with the local community, the
UCBs have a clear advantage over commercial banks. It is easier for the UCBs to break the
psychological barrier that proves prohibitive in the last mile of financial inclusion i.e. to create a
trust for the bank among its target community and bring customers within its fold. Today, when
large commercial banks are working hard to set up branches and employing technology to reach
out to these far untouched regions of the country, it is time for the UCBs to step into the game
that is naturally theirs.
6.2 RBI’s Role in Empowering UCBs
In order to empower the cooperative banks in their commercial/managerial functioning, RBI in
its Memorandum of Understanding (MoUs) with the State Governments has committed to
facilitate the development of human resources and skills and to provide assistance in
information technology (IT) initiatives undertaken by the UCBs. The UCBs here have to take a
lead and play a more pro-active role in order to utilize the services and assistance provided by
the Reserve Bank to make themselves more competitive by bringing efficiency in their
functioning. This has to be achieved through cultivating Capital Adequacy and Non-Performing
Assets (NPA) Provisioning Standards; better Corporate Governance; introducing Professional
Management and following best practices in banking operations.
The Reserve Bank committed itself to strengthen the sector and to protect the depositors’
interests. The Reserve Bank’s Vision Document for UCBs brought out in March 2005 with the
objective of maintaining the viability and competitiveness of the cooperative sector. RBI felt the
need to have more effective interaction with the State Government to address some of the
systemic issues hindering the growth and functioning of the cooperative banks. In view of this,
RBI has signed Memorandum of Understanding (MoU) with 26 States so far, which provides
the basis for the constitution of Task Force for Urban Cooperative Banks (TAFCUB), the forum
for the consultative decision-making process. The various TAFCUB meetings across the States
have generated the desired effects and have helped in the strengthening of the UCB sector.
pg. 22
The Central Government vide Notification dated 29
th
June 2020 while exercising the power conferred by
sub-section (2) of section 1 of the Banking Regulation(Amendments) Ordinance, 2020 (12 0f 2020) has
notified that the provisions of section 4 of the said Ordinance shall come into force for Primary Co-
operative banks (UCBs). The said amendments might help RBI to bring the much needed reform in UCB
sector, which otherwise was not possible due to limitation to the existing statutory powers vested upon
RBI.
6.3 Trends in Urban Co-operative Banking Sector:
Figure 6.3.1. Balance sheet of Urban Co-operative Banks. (as on March 2019)
(Amt in ` Crores)
Items
Scheduled UCBs
Non-Scheduled UCBs
All UCBs
2018
2019
2018
2019
2018
2019
Growth
(%) in
2019 over
No. of UCBs
54
54
1497
1490
1551
1544
Liabilities
1) Capital
4,118.32
4,348.16
8,851.80
9,234.77
12,970.12
13,582.93
4.72
(1.56)
(1.53)
(2.97)
(2.94)
(2.30)
(2.27)
2) Reserves and Surplus
16,662.54
18,447.27
18,625.88
19,341.68
35,288.41
37,788.96
7.09
(6.29)
(6.47)
(6.24)
(6.15)
(6.27)
(6.31)
3) Deposits
2,12,041.12
2,25,687.51
2,44,465.72
2,58,628.34
4,56,506.84
4,84,315.85
6.09
(80.09)
(79.21)
(81.90)
(82.29)
(81.05)
(80.83)
4) Borrowings
4,628.15
4,907.73
367.19
333.31
4,995.34
5,241.04
4.92
(1.75)
(1.72)
(0.12)
(0.11)
(0.89)
(0.87)
5) Other Liabilities and Provisions
27,307.59
31,538.04
26,183.21
26,746.90
53,490.80
58,284.94
8.96
(10.31)
(11.07)
(8.77)
(8.51)
(9.50)
(9.73)
Total Liabilities
2,64,757.71
2,84,928.72
2,98,493.79
3,14,285.00
5,63,251.51
5,99,213.72
6.38
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
Assets
1) Cash in Hand
1481.58
1341.74
3,982.39
4,046.17
5,463.97
5,387.92
-1.39
(0.56)
(0.47)
(1.33)
(1.29)
(0.97)
(0.90)
2) Balances with RBI
10,359.76
11,079.83
2,143.54
2,698.84
12,503.31
13,778.67
10.20
(3.91)
(3.89)
(0.72)
(0.86)
(2.22)
(2.30)
3) Balances with Banks
16,155.16
17,065.43
46,813.23
43,779.76
62,968.39
60,845.19
-3.37
(6.10)
(5.99)
(15.68)
(13.93)
(11.18)
(10.15)
4) Money at Call and Short Notice
3,080.81
4,290.84
1,380.70
1,580.15
4,461.51
5,871.00
31.59
(1.16)
(1.51)
(0.46)
(0.50)
(0.79)
(0.98)
5) Investments
68,927.94
72,305.33
80,906.05
84,637.84
1,49,833.98
1,56,943.17
4.74
(26.03)
(25.38)
(27.10)
(26.93)
(26.60)
(26.19)
A) SLR Investments
61,068.33
61,394.03
74,795.09
78,055.89
1,35,863.42
1,39,449.92
2.64
(23.07)
(21.55)
(25.06)
(24.84)
(24.12)
(23.27)
B) Non-SLR Investments
7,859.60
10,911.30
6,110.96
6,581.95
13,970.56
17,493.26
25.22
(2.97)
(3.83)
(2.05)
(2.09)
(2.48)
(2.92)
6) Loans and Advances
1,36,822.38
1,46,571.55
1,43,637.21
1,56,446.21
2,80,459.59
3,03,017.76
8.04
(51.68)
(51.44)
(48.12)
(49.78)
(49.79)
(50.57)
7) Other Assets
27,930.09
32,273.99
19,630.67
21,096.03
47,560.76
53,370.02
12.21
(10.55)
(11.33)
(6.58)
(6.71)
(8.44)
(8.91)
Total Assets
2,64,757.71
2,84,928.72
2,98,493.79
3,14,285.00
5,63,251.51
5,99,213.72
6.38
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
Despite their large number, only 3.6 percent of the total asset of SCBs are accounted for by UCBs. With
limited avenues to raise capital, most of them are single branch entities.
pg. 23
Enabled by a liberal licensing policy, the period 1991-2004 saw phenomenal growth in UCBs’ number
and asset size. Subsequently, this expansion turned unsustainable and some of them became weak
and unviable over time.
Figure 6.3. 2. Number of UCBs
Notwithstanding the fall in the number of UCBs, however, their combined asset continuously increased
Figure 6.3. 3. Consolidation and Asset Size of UCBs
UCBs in march 2019
Fall in Numberof UCBs
UCBs in march 2004
Years
100
90
80
70
60
50
40
30
20
10
12
11
10
17
12
27
29
47
43
40
49
54
90
1926
2000
1800
1600
1400
1200
1000
800
600
400
200
Number of UCBs
1544
Years
Assets in Rs.crore Number of UCBs
2000
1500
1000
500
600000
500000
400000
300000
200000
100000
UCBs: Consolidation and Asset Size
Amount in crores
No.of UCBs
Fall in No.of UCBs
Number of UCBs
pg. 24
UCBs are classified for regulatory purposes into Tier-I and Tier-II (deposit below and more than ₹ 100
crores respectively) categories, based on their depositor bases. Tier II UCBs have larger depositor
bases and wider geographical presence than their Tier I counterparts. During 2018-19, the number of
Tier II UCBs increased sharply
Table 6.3. 1.Tier-wise Distribution of Urban Co-operative Banks. (as on March 2019) (In crores)
Tier
Type
Number of
Banks
Deposits
Advances
Total Assets
Number
%total
Amount
%total
Amount
%total
Amount
%total
Tier I
UCBs
917
59.4
43,588
9.0
25,076
8.3
54,591
9.1
Tier II
UCBs
627
40.6
4,40,728
91.0
2,77,942
91.7
5,44,622
90.1
All
UCBs
1544
100.0
4,84,316
100.0
3,03,018
100.0
599,214
100.0
The SCBs share in the total bank deposits has been 93.56 and 93.36 percent in the year 2018 and
2019 as compared to UCBs 2.73 and 2.82 percent in the corresponding period, displaying a downward
trend.
Table 6.3. 2.The market share of deposits in India
Deposits Share (%)
Year
2018
2019
Schedule Commercial Banks
93.56
95.36
UCBs
2.73
2.82
Other Banks
3.72
3.82
Total
100.0
100.0
Uneven geographical dispersal of UCBs had resulted in 80 percent of the total presence and 75 percent
of total deposits concentrated in five states such as Tamil Nadu, Gujarat, Maharashtra, undivided
Andhra Pradesh, and Karnataka as on March 2019. The predominant concentration of Urban
Cooperative Banks in these 5 states is mainly on account of the emergence of strong cooperative
leadership.
pg. 25
Table 6.3. 3. State and Union Territories(UT) wise distribution of UCBs.
S. No.
State
No. of UCBs
No. of UCBs (% in Total)
Years
2016
2017
2018
2019
2016
2017
2018
2019
1
Maharashtra
508
502
498
496
32.27
32.14
32.11
32.12
2
Karnataka
265
264
264
263
16.84
16.9
17.02
17.03
3
Gujarat
224
220
220
219
14.23
14.08
14.18
14.18
4
Tamil Nadu
129
129
129
129
8.2
8.26
8.32
8.35
5
Uttar Pradesh
67
66
63
62
4.26
4.23
4.06
4.02
6
Kerala
60
60
60
60
3.81
3.84
3.87
3.89
7
Telangana
52
52
51
51
3.3
3.33
3.29
3.3
8
Madhya
Pradesh
51
51
49
49
3.24
3.27
3.16
3.17
9
Andhra
Pradesh
48
48
47
47
3.05
3.07
3.03
3.04
10
West Bengal
43
43
43
43
2.73
2.75
2.77
2.78
11
Rajasthan
37
37
37
35
2.35
2.37
2.39
2.27
12
Delhi
15
15
15
15
0.95
0.96
0.97
0.97
13
Chhattisgarh
12
12
12
12
0.76
0.77
0.77
0.78
14
Odisha
9
9
9
9
0.57
0.58
0.58
0.58
15
Assam
8
8
8
8
0.51
0.51
0.52
0.52
16
Jharkhand
2
2
2
2
0.44
0.45
0.45
0.45
17
Odisha
9
9
9
9
0.38
0.38
0.39
0.39
18
Assam
8
8
8
8
0.32
0.32
0.32
0.32
19
Uttarakhand
5
5
5
5
0.32
0.32
0.32
0.32
20
Jammu and
Kashmir
4
4
4
4
0.25
0.26
0.26
0.26
21
Punjab
4
4
4
4
0.25
0.26
0.26
0.26
22
Bihar
3
3
3
3
0.19
0.19
0.19
0.19
23
Manipur
3
3
3
3
0.19
0.19
0.19
0.19
24
Meghalaya
3
3
3
3
0.19
0.19
0.19
0.19
25
Jharkhand
2
2
2
2
0.13
0.13
0.13
0.13
26
Puducherry
1
1
1
1
0.06
0.06
0.06
0.06
27
Sikkim
1
1
1
1
0.06
0.06
0.06
0.06
28
Tripura
1
1
1
1
0.06
0.06
0.06
0.06
29
Mizoram
1
1
1
1
0.06
0.06
0.06
0.06
Total
All India
1574
1562
1551
1544
100
100
100
100
Maharashtra and Karnataka continued to top the list of UCBs in India since 2016. The Odisha occupies
the 14
th
place with a share of 0.58% as on March 2019. However, the overall growth of UCBs are
constantly in a decline stage in India well as in Odisha due to merger and liquidation of UCBs. The total
UCBs has been declined to 1544 as on March 2019 from 1574 as on March 2016. The states and UTs
like Arunachal Pradesh, Nagaland, Dadar Andaman and Nicobar, Dadra and Nagar Haveli, Daman and
Diu, and Lakshadweep have no presences of UCB.
pg. 26
Figure 6.3.4. State and UT wise total number of UCB as on March 2019:
Figure 6.3. 5. Region wise distribution of UCBs at the end of March 2019:
The western region has the highest number of UCB’s (721 out of 1544) followed by the southern region
(551 out of 1544).
Southern Region
Western Region
North Eastern Region Eastern Region
Northern Region
Central Region
46.70%
PERCENTAGE
4.53%
1.04%
3.76%
8.29%
35.68%
State and UTs
No. of UCBs* % of total
34.00
32.00
30.00
28.00
26.00
24.00
22.00
20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
500
470
440
410
380
350
320
290
260
230
200
170
140
110
80
50
20
-10
state wise total number of UCBs
No. of UCBs
% of total
pg. 27
Figure 6.3.6. State wise number of UCBs in Eastern Region:
In the Eastern region West Bengal state has the largest number of UCBs (43 out of 58) followed by
Odisha (9) and Bihar(3).
The banking business of UCBs captured spatially concentrated in the Western region followed by the
Eastern region. As depicted in Table No.6.3.4, the volume of banking business per branch was
significantly higher in the western and southern regions of India.
Percentage
0.00%
5.20%
3.50%
15.50%
1.70%
74.10%
Bihar Jharkhand Odisha Sikkim West Bengal Andaman and Nicobar
pg. 28
Table 6.3. 4. Region wise volume of banking business per branch for UCBs
Regions
Volume of banking business
per branch (in millions)
Years
2019
2018
2017
Northern Region Total
427
423
408
North Eastern Region Total
49
48
53
Eastern Region Total
138
171
168
Central Region Total
496
500
514
Western Region Total
7577
7265
6898
Southern Region Total
2428
2239
2180
All India
11115
10646
10221
Figure 6.3. 7. Region wise volume of banking business per branch for UCBs
All India
2019
2018
YEARS
Southern Region Total
2017
Northern Region Total
North Eastern Region Total
Eastern Region Total
Central Region Total
Western Region Total
10000
8000
6000
4000
2000
Region wise volume of banking business per branch for UCBs
12000
Volume of banking business per
branch(in millions)
pg. 29
CHAPTER 7
URBAN CO-OPERATIVE BANKS (UCBs) IN ODISHA
Odisha with nine UCBs has occupied the fourteenth place in terms of number of UCBs in India. The
history of the UCBs in Odisha dates back to 1904 when the Co-operative Credit Societies Act was
enacted in the country. Initially, a considerable impact of this movement was witnessed in Ganjam
district. Within a short span, three UCBs were established in the Ganjam District. To be specific the
Paralakhemundi Co-operative Urban Bank, the first urban bank in Odisha, was established in the year
1914 followed by the Utkal Urban Co-operative Bank in 1934. Afterward, a few more banks were opened
in different corners of the state. In Odisha, there was 18 UCBs in between 1950-1951. Most of the banks
amongst these have achieved significant progress in their work.
Table 7. 1.Overview of UBCs in Odisha (as on March 2019)
No. of UCBs
9
No. of Branches
32
No. of Extension Counters
4
Deposits (in Crores)
1235.2
Advances (in Crores)
742.1
Total Districts
30
No. of Districts with a presence of UCB
11
No. of ATMs
0
Table 7. 2.Details of Urban Co-operative bank based in Odisha (as on March 2020)
Sr. No
Name of the bank
Year of
Registration
and Banking
License
Location
No. of Branches
1.
Balasore Co-operative
Urban bank Ltd
1945 & 2009
Balasore
Unit Bank
2.
Berhampur Co-operative
Urban bank Ltd
1945 & 1984
Berhampur
1(Evening branch)
3.
Urban Co-operative bank
Ltd., Cuttack
1981 & 1981
Cuttack
Branch-16.
Extension Counter-
2
4.
Jeypore Co-operative bank
Ltd
1943 & 2002
Jeypore
Unit Bank
5.
Kendrapara Urban Co-
operative bank Ltd
1986 & 1987
Kendrapara
6
6.
Puri Urban Co-operative
bank Ltd
1945 & 2009
Puri
2
7.
The Co-operative Urban
bank Ltd., Parlakhemundi
1915 & 2010
Parlakhemundi
Unit bank
8.
Urban Co-operative bank
Ltd., Rourkela
1988 & 1989
Rourkela
5
pg. 30
9.
Utkal Co-operative bank
Ltd
1934 & 2017
Bhubaneswar
Branch-2,
Extension counter-
2
Table 7. 3. Details of based on Financial parameters of UCBs in Odisha
Financial Parameters(Audited Figures)(in lakhs)
Name of the
Bank
Years
Asset
Size
Deposits
Loans/
Advances
NNPA&
GNPA(%)
Profit
Balasore
UCBL
2019
8070.5
6732.48
2350.71
3.13/18.24
20.57
2018
7571.57
6308.01
2252.95
7.49/21.00
23.47
2017
7196.89
6034.89
2143.36
11.85/23.45
18.53
2016
6237.85
5187.3
2109.07
16.33/26.88
16.42
2015
5627.13
4651.08
1884
15.34/26.88
28.45
Berhampur
UCBL
2019
6582.99
4844.62
3529.72
31.22/41.96
23.92
2018
6353.66
4778.52
3506.01
29.86/39.49
21.5
2017
6265.63
4823.02
3249.53
28.57/37.42
20.45
2016
6133.26
4790.87
3025.13
25.36/34.31
23.1
2015
5786.06
4573.88
2315.6
30.73/40.20
-8.14
Cuttack UCBL
2019
76301
44598.6
26117.1
2.82/16.38
77.1
2018
78144.2
44557.9
24572.3
3.26/18.95
289.41
2017
79665.8
45413.9
21946
2.17/21.46
-581.94
2016
77247
45175.7
21768.9
3.67/23.07
-94.71
2015
73036.7
44049.2
19603.2
4.45/26.31
-561.39
Jeypore UCB
2019
852.63
564.35
239.04
15.42/40.63
3.53
2018
1072.1
600.32
217.05
11.09/39.38
3.26
2017
1119.92
651.07
261.79
18.80/48.92
1.94
2016
1036.22
637.37
286.45
20.88/43.76
2.08
2015
895.54
608.05
309.25
31.89/47.54
-33.78
Kendrapara
UCB
2019
18919.21
15894.25
10446.03
10.22/18.22
34.54
2018
18295.95
14950.34
9765.59
11.66/19.62
40.49
2017
17699.05
14724.72
8932.62
12.09/20.76
29.24
2016
17682.85
14919.14
9604.08
13.39/20.84
8.87
2015
16568.56
14238.78
9424.4
13.70/13.73
152.89
Puri UCB
2019
12043
9208
4786
-0.20/11.99
43.31
2018
11329
8706
4598
0.00/12.64
99.37
2017
11700
9127
4262
4.36/17.43
67.87
2016
10884
8154
4023
5.97/19.84
17.06
2015
10223
7660
3738
8.50/22.46
32.14
Parlakhemundi
UCB
2019
1555.24
1357.4
736.79
19.09/22.06
2.39
2018
1432.89
1247.51
656.64
16.77/21.88
2.3
2017
1281.51
1119.62
532.54
26.94/33.80
2.27
2016
1121.4
985.3
472.04
28.59/34.28
1.16
2015
1210.55
1062.52
555.21
31.01/36.04
1.69
Rourkela UCB
2019
20316.17
13318.59
9949.46
3.07/14.73
173.18
2018
18961.28
12493.4
8364.16
4.65/18.07
163.22
2017
19173.68
12367
7581.11
7.62/23.17
95.78
2016
16944.78
10962.81
6907.35
11.62/27.85
17.25
2015
16169.62
10521.17
7269.98
18.13/30.08
35.19
pg. 31
Utkal UCB
2019
32255.37
27310.5
16208.25
19.09/22.06
357.28
2018
27569.26
14698.94
14698.94
-0.70/3.52
348.65
2017
23262.54
18801.28
13487.29
26.94/33.80
249.09
2016
19638.35
14536.79
11231.21
0.29/4.21
298.55
2015
16953.15
12768.75
9913.6
1.24/5.11
132.16
Different banks function at different levels considering the parameters like asset size, deposit, advances,
NPA and Profit. The reasons could be the geographical presence, management, embracing change over
the period of time etc.
Figure 7. 1.Asset size of all UCBs in Odisha
The Cuttack Co-operative has the highest asset size followed by Utkal co-operative bank, and the lowest
is Jeypore Co-operative Bank. In last five years almost all the banks have increased their Asset Size.
The Co-operative Urban bank Ltd.,
Parlakhemundi
Urban Co-operative bank Ltd.,
Rourkela
Utkal Co-operative bank Ltd
2019
2018
2017
YEARS
2016
2015
20000
10000
Kendrapara Urban Co-operative bank
Ltd
Puri Urban Co-operative bank Ltd
40000
30000
Urban Co-operative bank Ltd.,
Cuttack
Jeypore Co-operative bank Ltd
60000
50000
Berhampur Co-operative Urban bank
Ltd
80000
70000
Balasore Co-operative Urban bank Ltd
90000
Asset size for last 5 years
Assets Size
pg. 32
Figure 7. 2.Deposits of all UCBs in Odisha
The Cuttack Co-operative bank has the highest deposits whereas Jeypore UCB has the lowest since
2015.it is seen that since last 5 years, there is a decline in the deposits of almost all the UCBs. Especially
Jeypore UCB and Parlamekhundi UCB.
Figure 7. 3.Loans/Advances of all UCBs in Odisha
Deposits for last 5 years
50000
Balasore Co-operative Urban bank Ltd
45000
40000
35000
30000
Berhampur Co-operative Urban bank
Ltd
Urban Co-operative bank Ltd.,
Cuttack
Jeypore Co-operative bank Ltd
25000
20000
15000
Kendrapara Urban Co-operative bank
Ltd
Puri Urban Co-operative bank Ltd
10000
5000
The Co-operative Urban bank Ltd.,
Parlakhemundi
Urban Co-operative bank Ltd.,
2015 2016
2017
YEARS
2018
2019
Rourkela
Utkal Co-operative bank Ltd
The Co-operative Urban bank Ltd.,
Parlakhemundi
Urban Co-operative bank Ltd.,
Rourkela
Utkal Co-operative bank Ltd
2019
2018
2017
YEARS
2016
2015
5000
Kendrapara Urban Co-operative bank
Ltd
Puri Urban Co-operative bank Ltd
10000
15000
Berhampur Co-operative Urban bank
Ltd
Urban Co-operative bank Ltd., Cuttack
Jeypore Co-operative bank Ltd
25000
20000
Balasore Co-operative Urban bank Ltd
30000
Loans/advances for the last 5 years
LOANS/ADVANCES
DEPOSITS
pg. 33
Since 2015 Cuttack co-operative Bank has the highest advances and loans followed Utkal Co-operative
Bank and Kendrapara Bank and lowest is Jeypore Co-operative Bank followed by Parlakhemundi.
Figure 7. 4.Net NPA and Gross NPA of UCBs in Odisha.
Cuttack Cooperative bank has the highest GNPA which ₹4279.19 lakhs at 16.38 % of the total advance
Figure 7. 5. Profit of all UCBs in Odisha
Banks
GNPA(Amt.)
NNPA(Amt.)
GNPA(%)
NNPA(%)
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
4500
4000
3500
3000
2500
2000
1500
1000
500
NNPA AND GNPA
YEARS
Urban Co-operative bank Ltd.,
Rourkela
Utkal Co-operative bank Ltd
-600
-800
The Co-operative Urban bank Ltd.,
Parlakhemundi
-400
Kendrapara Urban Co-operative bank
Ltd
Puri Urban Co-operative bank Ltd
-200
2019
2018
2017
2016
2015
Berhampur Co-operative Urban bank
Ltd
Urban Co-operative bank Ltd.,
Cuttack
Jeypore Co-operative bank Ltd
400
200
Balasore Co-operative Urban bank Ltd
600
PROFIT FOR LAST 5 YEARS
PROFIT
Amount
Percent
pg. 34
The Utkal Co-operative Bank has the highest audited profit followed by Rourkela in 2019. The Cuttack
and Jeypore Co-operative Banks are reeling under accumulated loss of ₹1131.57 lakh and ₹22.83 lakhs
respectively, as on March 2019.
Considering the branch networks, asset size, deposit and advances Cuttack, Utkal, Rourkela, and
Kendrapara UCBs are the major players followed by Puri and Balasore in the UCB sector of Odisha.
pg. 35
CHAPTER 8
EVOLUTION OF BANKING TECHNOLOGIES
Technological innovation in general and information technology (IT) applications in particular, have had
a major effect in banking and finance. Outstanding IT-based innovations are considered and grouped
into four distinct periods based on Indian Scenarios are:
Early adoption (1960-1980),
Specific application (1980-1990),
Emergence (1990-2000) and
Diffusion (2000-till date).
8.1 Role of Technology in development of UCBs:
Technological innovation has not only enabled a broader reach for consumer banking and financial
services but has enhanced its capacity for continued and inclusive growth. Banks and financial
institutions rely on gathering, processing, analyzing information in order to improve its service and meet
the expectations of customers. Banks have been quick to realize and adopt technology in a big way.
The visible benefits of IT in day-to-day banking in India are quite well known. The ‘Anywhere Banking’
through Core Banking Systems, ‘Anytime Banking’ through new, 24/7/365 delivery channels such as
Automated Teller Machines (ATMs), and Net and Mobile Banking, etc. are also increasingly becoming
an integral part of the services provided by the UCBs. In addition, IT has enabled the efficient, accurate,
and timely management of the increased transaction volume that comes with a larger customer base.
Another important aspect with regard to technology implementation for internal purposes in UCBs is the
Management Information System (MIS). The MIS reports so generated help the top management as
effective risk management and a strategic decision-making tool.
The use of IT reduces the costs of financial transactions, improves the allocation of financial resources,
and increases the competitiveness and efficiency of financial institutions. Most importantly, it enables
us to take any product or service to the general masses. The challenge now lies in taking greater
advantage of new technologies and information-based systems and expanding the coverage of the
Indian banking and financial system to under-served markets in rural and semi-urban areas. The use of
Smart Card technology, mobile ATMs, coverage of post offices under electronic payments networks in
remote areas could play a significant role in providing financial services to unbanked and underbanked
people. Today, we all should understand that poor people are bankable and there is tremendous
potential for the business growth of financial institutions by providing banking services to them. What
we need right now is the appropriate business delivery model which will facilitate taking the banking
services to the doorsteps of the people at a lesser cost. The technology-based solution would go a long
way to achieving inclusive growth in India.
In order to enhance the deployment of technology in UCBs, a Working Group was constituted in 2007
to examine the various areas where IT support could be provided by the Reserve Bank of India. Shri.
R. Gandhi, (then Regional Director, RBI, Hyderabad) was the Chairman of the core group. Based on
the recommendations of the Working Group which looked into ways of supporting IT initiatives of the
UCBs, IDRBT was asked to facilitate UCBs availing of Core Banking Platform on an Application Service
Provider (ASP) model. With this, the UCBs will be able to put in place cost-effective, modern technology
so as to render better customer service and sound regulatory compliance
pg. 36
8.2 Extent of technology integration in Urban Co-operative Banks:
There exists a wide disparity with regard to the usage of Information Technology by the Urban
Cooperative Banks. They are working towards the implementation of CBS, there are still many UCBs
that are not under CBS. There are 171 small co-operative banks which are yet to implement the fully
functional CBS as on March 2018. The remaining banks exist somewhere along the continuum between
those that had CBS on the one hand, and those without even PCs on the other. There are still 15 states
which are having Urban Co-operative banks that have no ATMs while 18 states have zero extension
counters as on March 2019. Most banks have solutions based on Total Branch Automation. Several
banks have implemented locally developed and customized application solutions. While some big UCBs
have in-house IT wings to take care of the development and maintenance of systems, most banks have
outsourced these services.
There were several large banks that had their own data centres and were offering core banking solutions
to the smaller banks and that a few successful cases of sharing of data centre facilities among banks
were also known. Some prominent banks are given below and the major technologies that are used by
them.
8.3 Technologies used by some major Co-operative banks
Some major co-operative banks like Saraswat bank, Cosmos Bank, Shamrao Vithal Co-operative Bank,
Abhyudaya Co-operative bank ltd., Bharat Co-operative Bank, TJSB Sahakari Bank, etc. have adopted
the technologies like CBS, ATM, Quick Response Solution, Internet Banking, BHIM UPI, 24*7 Phone
banking, corporate Internet banking, mobile banking, e- passbook, online bill payment, Anywhere
Banking, Electronic Clearing services, electronic fund transfer(NEFT/RTGS), At-Par cheque facility, e-
payment of taxes, telebanking, e-statements, Point of Sale, Rupay chip-based debit card, SMS banking,
etc. However, the sector as a whole is lagging behind the other players of the banking eco-system.
8.4 Technology and UCBs in Odisha.
It is almost impossible to imagine a bank without Technology as core of its operational strategy in the
21
st
Century, so also the UCB sector. The UCBs in Odisha, despite embracing technology at a later
stage, have not yet taken the advantage of available technologies. The reasons are many but poor
corporate governance and duel control mechanism are the two stand out reasons for such scenario
apart from other issues. The CBS system brought in during 2015 for the UCBs in Odisha is yet to be
stabilised. Overall, the technology adoption is at a nascent stage in the UCBs of Odisha in comparison
with some well managed UCBs in other parts of India.
pg. 37
CHAPTER 9
FINDINGS
The grounding of UCBs in Odisha dates back to 1904. The Parlakhemundi Co-operative Urban Bank,
the first Urban bank in Odisha, was established in the year 1914 followed by the Utkal Urban Co-
operative Bank in 1934. Afterward, a few more banks were opened in different corners of the state.
Rourkela and Kendrapara Urban Co-operative bank is the most recent one established in 1988 and
1986 respectively. At present, there are 9 UCBs in Odisha as of 30th June 2020.
Although there is a long history of the UCBs in Odisha, but technology adoption is very recent one.
Computerization followed by CBS in the banking sector has revolutionised the way the banks deliver
their services apart from adding to the satisfaction level of the customers. Computerization by few banks
on their own followed by introduction of CBS mode in 2015 was no way a bad beginning by the UCBs in
Odisha. But the subsequent developments that marred the implementation and stabilization of CBS in
the UCBs in Odisha have prevented the banks to make best use of the CBS platform.
The computerisation by few UCBs in Odisha dates back to 2015 but the benefit from the leveraging of
technology is not satisfactory. There possible reasons could be capital, corporate governance, human
resource, dual control etc. As the CBS acts as the edifice upon which other technology based products
like ATM, Net banking, Mobile banking etc. could have been launched, the proper implementation and
stabilization of CBS should be given utmost important in order to harness the banking technology to the
fullest extent.
In order to find out the issues that the UCBs are struggling with in this regard, we tried through a
Questionnaire method to understand whether technology has any role in the growth and development
of banks. In addition, we also had a comparative analysis with two banks in Odisha and two banks in
Nagpur, Maharashtra for a better understanding of the role of technology in the growth and development
of the banks, as in the matter of technology adoption the banks of Odisha are found almost at a similar
level platform and the banks chosen for comparison from Nagpur are in an advance stage of technology
integration.
9.1. Questionnaire based Survey: The extent of technological integration in UCBs of Odisha:
Technology has a definitive role in facilitating transactions in the banking sector and the impact of
technology implementation has resulted in the introduction of new products and services by various
cooperative banks in India. To understand the extent to which technological integration is there in Urban
Co-operative banks of Odisha a Survey was conducted among all the UCBs Odisha, the questionnaire
for the same is attached at the end of the project.
Table 9.1. 1. Showing the summary of the Responses
The Technologies in use
Name of the bank
Status of
Computerization
Stabilization
of CBS
Status of
Website
ATM/Card
NEFT/RTG
S
Cuttak UCBL
yes
yes
yes
No
yes
Balasore UCBL
yes
Partial
no
No
yes
Kendrapara
UCBL
yes
yes
yes
Yes(debit
card)
yes
Puri UCBL
yes
yes
no
No
yes
Jeypore UCBL
Partial
Partial
no
No
yes
Rourkela UCBL
yes
yes
yes
No
yes
pg. 38
Parlakhemundi
UCBL
Partial
Partial
no
No
No
Berhampur UCBL
yes
Partial
no
No
No
Utkal UCBL
yes
yes
yes
No
yes
The technologies the UCBs wish to adopt in future
• Internet banking
• Mobile banking
• IMPS, NACH & Online Bill Payment
• Core Banking solution with on line banking need to be adopted
• Telebanking etc.
The hurdles that are coming in between adoption of the above technologies
• Due to lack of freedom to take a decision on the selection of technological partners
• Lack of standard operating procedure for data checking & migration audit.
• The cost of Computerization/CBS was not affordable as source of income is very limited.
• due to lack of technological support
• The adopted CBS application is not that much efficient and robust.
Bank computerization: Out of total 9 UCBs of Odisha 77.7% (7 banks) and 22.2% (Jeypore and
Parlakhemundi) are partially computerized as all the activities are not brought under.
Figure 9.1. 1.The extent of Bank computerization of all UCBs of Odisha.
Core Banking Solution (CBS) Facility: CBS is a centralized platform, which creates an environment
where the entire Banks’ operations can be controlled and run from which makes anytime, anywhere,
anyway banking possible. Core Banking Solution (CBS) Facility was initiated in 2015 in all banks,
however, it has not been fully implemented/stabilized in all the UCBs of Odisha. However, the
functioning of CBS was found stabilized to a greater extent at 44.4% of UCBs i.e. Kendrapara, Puri,
Utkal and Rourkela UCBs and rest 55.60% were found partially functional 55.6%.
Figure 9.1. 2.The extent of stabilization of Core Banking Solution in all UCBs of Odisha.
pg. 39
Website of Banks: UCBs having a website are 44.4% (4 Banks) which are:
The Urban Co-Operative Bank, Ltd Cuttack
The Kendrapara urban co-op. Bank
The Urban Co-operative Bank Limited, Rourkela
The Utkal Co-operative Bank, Ltd
Among these 3 Banks reported that their websites are periodically updated and customers are
aware of the same except Cuttack UCB. While remaining 5 UCBs (55.6% ) do not have websites:
Figure 9.1. 3.Status of Website in all UCBs of Odisha.
Automated Teller Machine (ATM) service: None of the UCBs have either their own or shared ATM
facility. However, Kendrapara UCB has recently piloted by issuing around 300 debit cards through
sponsorship arrangement with Odisha State Cooperative Bank. The debit cards are being used at ATMs
and Point of Sale Terminals.
Debit Card Facility: The debit card is issued by only one bank that is Kendrapara bank.
Electronic Fund Transfer Facility (NEFT/RTGS): The EFT is a system whereby anyone who wants
to make payment to another person can approach his bank and give instructions to transfer funds
directly from his account to the bank account of the receiver/beneficiary.
Seven UCBs(77.8%) provide electronic fund transfer facility through the sponsored banks and
remaining two (22.2%) of banks i.e. Berhampur and Parlakhemundi do not provide this facility
Figure 9.1. 4.Percentage of banks providing NEFT/RTGS Facilities.
pg. 40
Risk Management and Information Security: as technology is not established there is not use in
these aspects.
The banks’ own satisfaction level regarding the level and extent of technology-based services offered
to its customers varied from being satisfied to dissatisfied. Two banks- 22.2% responded as satisfied,
6 banks-66.7% are neutral and one -11.1% are dissatisfied.
Figure 9.1. 5.Satisfaction level of bankers regarding technology-based services
9.2 The technologies the UCBs wish to adopt in future
The responding banks wised to adopt the following in the future or are in process of the same consists
of basic technologies like ATM services, issuing Debit/Credit Card to the customers to withdraw money
from ATMs.
Internet banking
Mobile banking
IMPS, NACH & Online Bill Payment
Core Banking solution with on line banking need to be adopted
Telebanking etc.
9.3 Challenges before UCBs
.
The hurdles that are coming in between adoption of the above technologies as responded by
UCBs are:
Due to lack of freedom to take a decision on the selection of technological partners
Lack of standard operating procedure for data checking & migration audit.
the cost of Computerization/CBS was not affordable as source of income is very limited.
due to lack of technological support
The adopted CBS application is not that much efficient and robust.
pg. 41
9.4 Problems associated with new technologies
For the management, it’s not the easy task to deploy the technologies in the Urban Co-operative Banks
mainly because of the non -competency of the existing staff, the non -availability of required qualified
professionals, to make use of IT for performing various activities of the banking. Despite these problems
to get the benefits of efficiency, speed, increased volume of activity and customized development of
products UCBs are adopting new technology. There is no doubt that positive results and the process of
improvements come with the new technologies but it needs proper identification of its utilization and the
benefits. The major risks associated with innovative technology are;
Cost of software/ Cost-effectiveness
Cybersecurity system needs to be monitored
Convenience operation
No Technically Qualified staff in IT or Computer Science/manpower
Lack of Adequate Training to management staffs
Integration of data in a systematic way
Customer awareness/ lack of technological knowledge of our valued customers.
Legal Aspects
Vulnerability to fraudsters/hackers
Robust functionality
Improper MIS control
Redundancy
9.5. Is adoption of Technology an Enabler? A comparative analysis of two banks of Odisha with
that of two banks of Maharashtra.
As because technology adoption in UCBs of Odisha is too little too late and much has not been taken
place apart from introduction of CBs in the year 2015(the full potential of which is yet to be harnessed
by the banks), an attempt was made to have an understanding of the impact of technology on the key
financial parameters of banks. Accordingly, two banks under Nagpur, Regional Office of RBI having
similar type of branch network but having relatively advance stage of technology adoption were selected
for the comparison. The comparative financial parameters analysis of Pandharpur Urban Co-operative
Bank Ltd, Solapur vis-à-vis Cuttack Urban Co-operative Bank and Lokmangal Co-operative Bank Ltd
Solapur vis-à-vis Kendrapara Urban Co-operative bank Ltd was attempted.
Table 9.5. 1.Table The comparative financial parameters of these banks
Name of the banks
Pandharpur
UCBL
Cuttack
UCBL
Lokmangal
UCBL
Kendrapara
UCBL
Location
Nagpur
Odisha
Nagpur
Odisha
Year of establishment
1912
1981
1997
1986
No. of branches
18
16
7
8
List of technology used by the
banks
NEFT/RTGS
CBS yet to
stabilized
Core banking,
IMPS,
ATM,POS,
ECOM,
NEFT/RTGS,
Mobile
banking
CBS yet to be
stabilized,
debit card
facility
pg. 42
Financial Parameters (as on march 2019)(in lakhs)
Parameters
Year
Pandharpur
UCBL
Cuttack
UCBL
Lokmangal
UCBL
Kendrapara
UCBL
Asset Size
2019
174730.2
76301
83337.04
18919.21
2018
146117.8
78144.17
76349.59
18295.95
2017
130618.2
79665.78
62494.14
17699.05
2016
120309.1
77247.04
52492.94
17682.85
2015
101849.2
73036.65
41695.91
16568.56
Deposits
2019
1519403
44598.55
75101.69
15894.25
2018
126018.3
44557.91
69684.85
14950.34
2017
113262.5
45413.92
57747.93
14724.72
2016
105586.5
45175.74
47928.29
14919.14
2015
88903.1
44049.2
37500.32
14238.78
Loans/
Advances
2019
91649.08
26117.11
45123.77
10446.03
2018
80959.88
24572.31
41866.21
9765.59
2017
70021.8
21945.98
36955.05
8932.62
2016
64728.67
21768.9
28888.95
9604.08
2015
55359.08
19603.15
20879.61
9424.4
NNPA
2019
16.7
634.12
6.66
972.03
2018
8.84
671.24
6.03
1035.93
2017
9.94
382.16
5.73
973.39
2016
8.24
637.75
3.53
1153.21
2015
6.21
673.05
3.09
233.18
Profit
2019
993.65
77.1
388.06
34.54
2018
983.56
289.41
317.88
40.49
2017
934.56
-581.94
307.82
29.24
2016
803.65
-94.71
282.13
8.87
2015
746.32
-561.39
276.44
152.89
Table 9.5. 2.Comparison of Lokmangal UCB and Kendrapara UCB
Parameters
Lokmangal Co-operative Bank Ltd
Solapur
Kendrapara Urban Co-
operative Bank Ltd
Branches
7
6
It based services and
Products offered
Core Banking
Fully Computerized
Immediate Payment
Service(IMPS)
Automated Teller Machine (ATM)
Point Of Sale(POS)
E-Commerce
RTGS/NEFT through Sub member
Mobile Banking
Core Banking
Fully Computerized
RTGS/NEFT
through sponsored
bank
Debit Card facility
( just piloted)
pg. 43
Table 9.5. 3.Comparison of Cuttack UCB and Pandharpur UCB
Parameters
Cuttack Urban Co-operative Bank
Pandharpur Urban Co-
operative Bank Ltd,
Branches
16 + 2 Extension Counters
18
It based services and
Products offered
Core Banking not fully stabilized
NEFT/RTGS through sponsor
bank
ATM Services
NEFT/RTGS
NFS Network
Core Banking
Figure 9.5. 1.Asset Size: Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB
Figure 9.5. 2.Deposits: Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB
Asset Size for last 5 years
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
Pandharpur UCBL, Solapur
Urban Co-operative bank Ltd.,
Cuttack
LOKMANGAL CO OPERATIVE BANK
LTD SOLAPUR
Kendrapara Urban Co-operative bank
Ltd
2015
2016
2017
YEARS
2018
2019
Urban Co-operative bank Ltd.,
Cuttack
LOKMANGAL CO OPERATIVE BANK
LTD SOLAPUR
Kendrapara Urban Co-operative bank
Ltd
2019
2018
2017
YEARS
2015 2016
Pandharpur UCBL, Solapur
1600000
1400000
1200000
1000000
800000
600000
400000
200000
Deposits for last 5 years
DEPOSITS
Assets Under Management
pg. 44
Figure 9.5. 3.Loans/ Advances:Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB
Figure 9.5. 4.NNPA: Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB
Figure 9.5. 5.Profit: : Pandharpur vs Cuttack and Kendrapara vs Lokmangal UCB
Loans/Advances for last 5 years
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
Pandharpur UCBL, Solapur
Urban Co-operative bank Ltd., Cuttack
2015 2016
2017
YEARS
2018
2019
LOKMANGAL CO OPERATIVE BANK
LTD SOLAPUR
Kendrapara Urban Co-operative bank
Ltd
LOKMANGAL CO OPERATIVE BANK
LTD SOLAPUR
Kendrapara Urban Co-operative bank
Ltd
2019
2018
2017
YEARS
2015 2016
Pandharpur UCBL, Solapur
Urban Co-operative bank Ltd., Cuttack
1400
1200
1000
800
600
400
200
NNPA for last 5 years
Profit for last 5 years
1200
1000
800
600
400
200
-200
-400
-600
-800
Pandharpur UCBL, Solapur
Urban Co-operative bank Ltd., Cuttack
2015
2016
2017
2018
2019
LOKMANGAL CO OPERATIVE BANK
LTD SOLAPUR
Kendrapara Urban Co-operative bank
Ltd
YEARS
NPA
LOANS/ADVANCES
pg. 45
The comparative financial analysis shows a remarkable variation in the performance of the two
banks of Nagpur with that of Odisha. Although, factors other than the technology such as
corporate governance, quality human resource, support from the State Govt., prevailing
business environment, customer profile etc. cannot be ignored for such variation in
performance, but the technology as a key enabler can also not be ruled out.
9.6. A comparative analysis through CAMEL Analysis Model
CAMEL is an international rating system used by regulatory banking authorities to rate
financial institutions, according to the five factors represented by its acronym.
The CAMEL acronym stands for "Capital adequacy, Asset quality, Management, Earnings, and
Liquidity”.
Financial performance of Selected UCBs in India on different parameters of CAMEL model.
Through the study we would came to know the financial position of the selected 11 Urban
Co-operative banks operating in India taken as sample.
The study covers a period of three financial years i.e. from 2016-17 to 2018-19.
CAMEL rating is a subjective model which assesses financial strength of a bank, whereas
CAMEL ranking indicates the banks comparative position with reference to other banks.
Ratios and averages have been used for analysis. Averages are calculated using MS-Excel.
Composite Ranking (Overall Performance) of Selected Banks.
The selected banks are :
1. Abhyudaya Co-operative Bank Limited, Mumbai
2. Apna Sahakari Bank Limited
3. Bharat Co-operative Bank Limited , Mumbai
4. Cosmos Co-operative Bank Ltd.
5. Goa Urban Co-operative Bank.
6. Sangli Urban Co-operative Bank, Sangli
7. Sarwaswat Co-operative Bank, Bank
8. SBPP Co-operative Bank, Killa Pardi
9. Shamrao Vithal Co-operative Bank ltd
10. TJSB Sahakari Bank
11. Utkal Co-operative Bank
Overall Financial Performance of the Banks
Banks that have lower average are ranked 1st and are considered to be less-than-satisfactory institutions
Banks with scores greater and are ranked high and they are considered to be high-quality institutions.
Figure 9.6.1 Composite Ranking(Overall Performance)
Amongst all UCBs, Saraswat Co-operative bank, Shamrao Vithal Co-operative Bank are the high quality banks with
highest average whereas the Utkal and Sangli Urban Co-operative Banks are less than satisfactory Institutions.
Composite Ranking (Overall Performance)
BANK C A M E L AVG RANK
Abhyudaya Co-operative Bank Limited, Mumbai 28.55 0.10 14.20 0.66 1.36 8.97 8.00
Apna Sahakari Bank Limited 12.68 0.10 15.56 0.95 1.27 6.11 3.00
Bharat Co-operative Bank (Mumbai) Limited, Mumbai 16.26 0.05 24.05 1.07 1.28 8.54 7.00
Cosmos Co-operative Bank Limited 17.00 0.09 17.74 0.63 1.39 7.37 6.00
Goa Urban Co-operative Bank Limited 16.79 0.49 13.04 1.02 1.37 6.54 4.00
Sangli Urban Co-operative Bank Limited, Sangli 13.41 0.12 7.87 0.87 1.33 4.72 2.00
Saraswat Co-operative Bank Limited, Bombay 52.22 0.06 28.27 0.82 1.37 16.55 11.00
SBPP Co-operative Bank Limited, Killa Pardi 18.21 0.20 15.69 1.20 1.43 7.35 5.00
Shamrao Vithal Co-operative Bank Limited 52.00 0.09 21.60 0.96 1.25 15.18 10.00
TJSB Sahakari Bank 29.78 0.07 21.25 1.17 1.32 10.72 9.00
Utkal Co-operative bank Ltd 11.01 0.11 3.41 0.57 0.53 3.13 1.00
pg. 46
Technology in use
Banks that have lowest total their technology adoption is too little too late, (the full potential of
which is yet to be harnessed by the banks).
Banks that have highest in total have relatively advance stage of technology adoption.
Figure 9.6.2 Technology in Use
Banks that are given low total score are ranked 1
st
, whereas Banks with high scores are ranked high.
Amongst all UCBs, Saraswat Co-operative bank, Cosmos Co-operative Bank and Shamrao Vithal Co-operative
Bank are the high quality banks with highest total in number of technology in use whereas the Utkal and Sangli
Urban Co-operative Banks have less in number of technology in use.
Correlation Between the Rank of Composite rating of Overall performance and Technology in use is 0.69
which shows:
An attempt was made to have an understanding of the impact of technology on the key financial
parameters of banks.
There is very high positive correlation of 0.69 between the average score of all selected UCBs in
CAMEL analysis and total score of technology in use of all selected banks Shows that UCBs having
high average score in camel and which are high performing banks also have highest score in technology
adoption.
There is remarkable variation in the overall performance of banks having high CAMEL score with
that of Banks having low CAMEL score.
Although, factors other than the technology such as corporate governance, quality human resource,
support from the State Govt., prevailing business environment, customer profile etc. cannot be
ignored for such variation in performance, but the technology as a key enabler can also not be ruled out.
BANK
RTGS/NEFT
CBS
ATM services
NET Banking
debit/credit card facility
UPI enabled payments facilities
e-Bill payments
Mobile banking
Any banch banking
SMS/Tele Banking
total Rank
Abhyudaya Co-operative Bank Limited, Mumbai 1 1 1 1 1 0 0 1 1 1 8 5
Apna Sahakari Bank Limited 1 1 0 0 0 0 0 1 0 1 4 2
Bharat Co-operative Bank (Mumbai) Limited, Mumbai 1 1 1 1 0 0 0 0 0 0 4 2
Cosmos Co-operative Bank Limited 1 1 1 1 1 1 1 1 1 1 10 6
Goa Urban Co-operative Bank Limited 1 1 1 0 0 0 0 0 1 0 4 2
Sangli Urban Co-operative Bank Limited, Sangli 1 1 0 0 0 0 0 0 1 1 4 2
Saraswat Co-operative Bank Limited, Bombay 1 1 1 1 1 1 1 1 1 1 10 6
SBPP Co-operative Bank Limited, Killa Pardi 1 1 0 1 1 0 0 1 0 1 6 3
Shamrao Vithal Co-operative Bank Limited 1 1 1 1 0 0 0 1 1 1 7 4
TJSB Sahakari Bank 1 1 1 1 0 1 1 1 0 1 8 5
Utkal Co-operative bank Ltd 1 1 0 0 0 0 0 0 0 0 2 1
Technology in use
pg. 47
CHAPTER 10
SUGGESTION
The success of the UCBs depends ultimately upon their ability to fulfill the expectations of their
stakeholders and perform their duties. It is a challenge and opportunity for UCBs to function in a highly
technologically advanced banking environment and to focus on more business opportunities and render
better customer service. An impetus for growth is provided by these technologies. The importance of
educating and training not only the staff but also the customers about the various available technology-
based banking services also plays an important part here. For the growth of UCBs, RBI is also trying to
facilitate the technology integration and imparting training to the key players responsible for
implementation. Coming across the findings we came to know the extent to which the different
technology-based services that UCBs in Odisha are providing which can be said that is on very primary
stage also came across many problems; challenges that UCBs are facing be it lack of trained staff or
the cost management. We came to know the various technology the UCBs wish to adopt in the future
or are in progress like ATM, Net banking, etc. Apart from the problems and challenges in adoption of
new technologies, there is one more aspect after the technology are adopted the problem associated
with the usage of new technologies like cybersecurity, robust functionality, etc. at last we saw what
differences the technology brings in the functioning and performance of the bank through the
comparison of UCBs of Odisha with Nagpur. Based on the findings and other background data the
primary suggestions can be:
The efficiency in corporate governance, emphasis on prudential decision making and support
by the regulator considering the SWOT (strength, weakness, opportunity and threat) of the
UCBs need to be emphasized.
Immediate stabilization of CBS for maximizing the benefits of Technology through distribution
of financial products and services through multiple channels like A.T.M. facilities, internet and
Mobile banking.
A proper cost management structure or framework to suit the requirements of the bank need
to be established.
Skilling of Human Resource by imparting training to handle computerized operations in banks.
Technically qualified personnel need to be recruited, to reduce redundancy and fill the gap in
banks regarding proper manpower.
The customer need to be made aware of the technology adopted for deriving benefits out of
the technology integration.
A robust cybersecurity framework to take care of emerging cyber threats as part of banks’ risk
management strategy.
Proper back up plan in case of failure of the primary set up technology.
The bank management should prevent frequent machine failure in ATM as well as computers.
Proper MIS control should be established.
Customer complaint cell should be created in every cooperative bank and its branches, so that
customer can express their grievances and solve their problems.
Legal and regulatory back up are essential for the effective adoption of technologies…
In addition, Urban cooperative banks would need to take measures to have appropriate technology for
access control and security the area of great concern in today’s highly competitive environment. The
cooperative banks thus to have more attention on Information Technology deployment with IT policies
and procedures in place to guide these banks on the lines of prevailing standards and solutions.
pg. 48
CHAPTER 11
CONCLUSION
Today, the focus should be on more and more simplifying the technologies which can be used anywhere
anytime and on any platform. The IT solutions should be user friendly and without much intervention of
third party or support required for operating the same, it should be secure and cost and time effective
for both the user as well as the service provider. In this context, the Urban Co-operative Banks need to
redesign and re-structure their strategies for the business, as the banks from other categorize like
commercial banks, small finance banks, etc. are developing their technologies with changing market
scenario and customer’s need because the focus is shifting to the class banking from mass banking
with the value-added and customized products to grow the business and for better customer
satisfaction. In this regard, it is important to adopt e-banking technologies. Some of the importance of
technologies are as follows:
In today’s competitive world of banking, to be in there, it’s mandatory to adopt E-banking
services to attract young age customers and also add to the customer delight.
To retain and enhance its market share.
To cope with increased customer expectations by developing better and newer products and
services.
The banks are providing various digital services online which is accepted by their customer to
compete with other Banks
Due to customer satisfaction of easy and immediate banking also safe banking.
It saves time spent in banks, provides 24*7 banking to customers.
In the modern era of science and information technology providing E-Banking services to the
customers are highly essential on the part of the bank to encourage banking business and
dignity.
E-Banking is the stepping stone and the crown to activate all the functions of banking easy and
smooth with transparency.
The technology became an integral part of every sphere of life. The use of technology is time
effective and error-free.
The branch banking has lost charm. Customers are more techno-savvy and they have less time
to visit branches for banking. Also, the use of technologies has saved time and energy. To cope
with the other market players, it is very much important to adopt modern e-banking services
and to cater to the customers.
Functioning in a highly technologically advanced banking environment in the country is in itself a
challenge and an opportunity for the UCBs to upgrade to a computerized environment to focus on more
business opportunities and render better customer service. These technological platforms provide an
impetus for growth. The role of training and educating not only the staff but also the customers about
the various technology-based banking and financial services also play an important part here. Apart
from this the Governance, Management, and Control structure also play a major role, which is pivotal
to integrate technology in the UCBs and keep adopting the innovations. The control structure,
Management play an important role in facilitating a focused and continuous system of supervision
through enhanced use of technology. Most of the problems faced by the UCBs are due to governance
issues and connected lending. In UCBs borrowers have a significant say in the management of the
banks. This has the potential of influencing the Boards to make decisions that may not always be in the
interest of the depositors who constitute the most important stakeholders of a bank. Also, unlike the
case of institutions the shares of which can be listed in a stock exchange and can change hands without
affecting the capital base, in case of UCBs, the shareholders can withdraw their contribution to capital
and shrink the capital of the bank and thereby limit its ability to increase risk-weighted assets and
pg. 49
expand the business. Cooperative banks should be professional and work on sound managerial
systems, taking care of future projections to retain and improve their market share and identity. The
dual control led to governance and managerial failure leading in turn to severe financial impairment.
The very concept of banking is changing the present competitive environment and the conventional
framework for management with which UCBs are comfortable is not sufficient. Good governance is
critical to the efficient functioning of an entity and more so for a banking entity.
To enhance access to technology for UCBs, Reserve Bank have been facilitating the acquisition of basic
hardware and software for conducting routine operations. Further, the software has also been
developed to enable the UCBs to prepare and submit all returns to Reserve Bank, electronically. The
software has been implemented free of cost in the banks and the officials of banks are also being
provided adequate training in using the software, which enables banks to maintain a database of returns
submitted to the supervisor which in turn acts as an MIS for the UCBs. The stronger UCBs also are
members of clearinghouses and of the Real-Time Gross Settlement System.
It is unknown and difficult to guess the technology that will come in coming near future but it is very
important to integrate and adapt and make use of the technologies which are known to us and present
and should be used appropriately with proper environmental scanning and mentoring with right strategic
measures. It is worth mentioning here that the commercial and other banks are taking bold initiative for
the deployment of new and advanced technologies. The Co-operative banks are also in no expectation
of this race in technology like The Cosmos Bank Pune, The Shamrao Vithal Co-operative Bank is shifting
to advance technology from basic one and they have established a good network.
The technology enables the banks to reach the place where the customer is present. By adopting
technology, it enables the banks to raise their financial conditions by growth in the business and raise
the standard of living of the customers and provide better customer satisfaction.
The UCBs in Odisha cannot turn a blind eye to the rapid changing banking scenario particularly in the
sphere of technology led service delivery by their peers as well as competitors. The present technology
led banking scenario for the UCBs in Odisha, by any means, is not at all comfortable and much need to
be addressed to make it competitive and remain relevant in highly dynamic banking eco-system. A
proactive regulation, effective corporate governance, efficient management and quality human resource
will definitely help the UCBs in Odisha to overcome the challenges and re-establish their relevance in
the banking eco-system in Odisha.
pg. 50
CHAPTER 12
LIMITATIONS OF THE STUDY
The study is likely to have certain limitations due to constraints of resources and time. To understand
the study in proper perspective some of the limitations are mentioned below:
1. We have taken the assumption that the respondents have given the response true to their
knowledge.
2. The nature of research and objective is considered to be narrow.
3. As the study time was short so, the sample size and other parameters were selected
accordingly, so that in the given time frame the work could be finished.
4. There are chances of biasness in the information provided by the respondents because there is
a possibility that they might be unwilling to provide correct information.
5. Since the study was conducted during the pandemic, it was difficult to study the every each
aspect of the study.
6. Since the researcher has not conducted much pieces of researches, this report cannot be
compared to the works of experienced scholars.
7. Since the study is also upon the secondary data, there are chances that it can be vague and
information could not be accurate.
8. The study was conducted according to our limited understanding.
CHAPTER 13
SCOPE OF FUTURE IMPROVEMENTS
1. There is a lot of scope for future research so that the unanswered aspects of the research
problem could be addressed.
2. There can be future research to address the limitations of the study.
3. This research is specifically with the perspective of UCBs in Odisha State, further, the studies
can be done to address the same research problem in different settings, locations, and
contexts.
4. By using new evidence or theories or other recent phenomena the same research problem can
be addressed, by expanding theory and re-assessing the model used in the study.
pg. 51
APPENDICES:
1. Questionnaire floated is given below:
questionnaire.docx
2. Responses from all 9 Urban Co-operative Bank of Odisha:
Responses.docx
REFERENCE:
1. Dr K.C.Chakrabarty, Deputy Governor of the Reserve Bank of India, at the Foundation Day and
Inauguration of the "Core Banking Solution Project" of the A.P. Mahesh Co-op Urban Bank Ltd.,
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2. Article on "Banking on Information Systems” - By A. Vasudevan.
3. Article on "Information Technology for Cooperative banks” - By Dr.Y.S.Patil.
4. Article on “Information technology development in cooperative banks” by Dr. Yashwant Patil
5. RBI annual report on trend and progress of banking in India
6. Scherer, 1982; quintas (1991).
7. Sources: Morris (1086) and Quintas (1991)
8. Websites of the co-operative banks mentioned
9. Secondary data collected from RBI Bhubaneswar data warehouse
10. A Study Of Information Security Systems for core Banking in urban co-operative Banks Of Pune
& Mumbai
11. Source: Birchall, J. (2013). Resilience in a downturn: The power of financial cooperatives.
Geneva: International Labour Office.
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13. European Association of Co-operative Banks (EACB). Key statistics – Financial indicators
2018.
14. Reserve Bank of India (2009). Report of the Working Group on Umbrella Organization and
Constitution of Revival Fund for Primary (Urban) Co-operative Banks
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