The Financial Performance and Viability of Primary Agricultural Cooperative Credit Societies in West Bengal

Cooperation is the ischolar_main of cooperative movement, Cooperation is older than cooperative movement as human beings are antecedent to the human civilization. Cooperation is a view or an ideal, "We are all for others" is the main motto of cooperation. In ancient society men accepted the idea of cooperation for their survival against all odds. Mr. Fay defines, "cooperative society is an association for the purpose of joint trading, originating among the week and conducted always in an unselfish spirit, on such terms that all who are prepared to assume the duties of the membership may share in its rewards in proportion to the degree in which they make use of their association", This paper highlights the financial viability, financial performance, efficiency of loan recovery, loan overdue, and profit earning capacity over the eight-year period (from 2002-03 to 2009-10). It also expresses the role of debt capital in the capital structure and its utilization to magnitude the return to the members. Compound rate of growth debt capital, owned capital, total capital and net profit are discussed in this paper. The correlation between debt capital and net profit, owned capital and net profit, total capital and net profit are also discussed in this paper. It signifies the relationship between capital and net profit. The regression slope of net profit on capital is discussed which signifies that magnitude of change of net profit due to change in capital. At the end it is found the management's failure to utilize the debt capital properly. Inefficient loan recovery process reduces the amount of working capital to the society and hence financial capability also. Efficient management is needed to utilize the capital with an efficient manner.