Evaluation of Financial Management and its Impact on Overall Performance of Bank: a Study of State Co-operative Bank

In present scenario of liberalization, privatization, and globalization (LPG) banking sector is one of the most important financial institutions which plays active role in present economic environment by developing trade, commerce and industry. State co-operative banks are one of the financial institutions in co-operative sector which were established for development of co-operative movement in the country and specially in rural India. The SCBs (State Co-operative Banks) co-ordinate and regulate the working of DCCBs (Districts Central Co-operative Banks). They act as custodians of surpluses funds of the DCCBs and supplement them by attracting deposits and by obtaining loans from the RBI. The DCCBs mobilize resources in districts for financing their members, they also channelize funds from the SCBs to primary credit societies. The PACS at the village level form the base of the co-operative banking. Therefore, financial management is very much applicable to co-operative banks to run the organisation efficiently and smoothly. Implication of financial management in state co-operative bank is useful because it deals with raising fund as capital, borrowings, deposits from public and using these funds for granting loan and advances to loanee and investment for generation of income. Through this paper, an attempt is made to evaluate financial performance of state co-operative banks, to examine the overall growth rate, to evaluate use of financial management in state co-operative banks and its real impact on overall performance of state co-operative bank, and to examine the status of state co-operative bank by applying the tools of financial management.