1.1.

1 The role of banks in economic development

and prosperity of a nation does not need any emphasis.
It is specially so in developing countries like India.
Banks are not merely dealers in money, but also
manufacturers of money. They act as a link between
those who require finance and those who have finance in
the form.of savings, but are unable to make an effective
and productive use of it. Besides, they becoe manuw
facturers of money by virtue of their lending operations.
It is doubtful whether any bank is confined only to these
primary functions of accepting deposits and lending them.
Most of the banks are discharging a number of other
valuable agency and general utility services.

1.1.2 The role of banks in rural reconstruction,

elimination of poverty and illiteracy, establishment of
primary health centres and the like are considerable.
Banks provide financial help to the needy to persue their
higher education and later on to employ themselves in
some meaningful and useful activity. In India, banks
are the biggest employers, next only to the Railways and

the Postal Department and their potentiality for

employing educated unemployed is increasing with the
establishment of more and more branches, especially in

rural areas. consequent to nationalisation of banks,

the very concept of banking has undergone a sea change.
Security oriented lending has been replaced by purpose
oriented lending.

ganking in India :

1.2.1 Banking is of very ancient origin in India.

Evidences of borrowing and lending of money even during
ancient times have been found. Ancient Indian banking
resembled modern private banking to a great extent.
Like modern banking, ancient banking also operated on the

basic motives of profit making and security. It was

unorganised and it functioned on family lines without
any outside control. However, the fact remains that
ancient banking was not as purposive as modern private
banking.

1.2.2 The unification of currency by the East India

Company, beginning of European banking in India, the
establishment of The General Bank of India" (1786),

establishment of presidency banks, enactment of the

Imperial Bank of India Act 1920', the Reserve Bank of

India Act 1934, The Banking Company's Act 1949 and

its subsequent amendments, nationalisation of banks etc.

are milestones in the development of the Banking
Industry in India.

1.2.3 At present, there are different types of banks

in India. An exhaustive classification of these banks
into various categories is not an easy task. On the
basis of functions, they can be divided into Comercial
Banks, Exchange Banks and Industrial Banks. Taking
ownership and management as the basis, they can be classi
fied into Nationalised Banks, Joint Stock Banks and
Co-operative Banks. From the point of view of inclusion

or otherwise of these banks in Schedule (2) of the

Reserve Bank of India Act, they can again be classified
into scheduled or non-scheduled banks.

1.2.4 CE these banks enumerated above, co-operative

banks have their own salient and distinctive features.
They are set up with built-in-safeguards but are handicapped

by serious infirmities. At the very outset, it is

worthy of stating that they are different from other banks
and co-operative societies. Cooperative Banks in this
study refer to those banks which are registered under
the Co-operative Societies Act 1904 and are controlled

by the provisions of the Banking Regulation Act and

under the direct purview of Reserve Bank of India.
Only co-operative banks have this dual control.
However all cooperative societies do not coe under

the direct purview of Reserve Bank of India. (refer

2.2.1 and 2.3.1)
Cooperative Banking in India :

1.3.1 The concept of co-operative banking in India

was first introduced in the year 1904, when the first
Cooperative credit Societies Act was passed. The Act

gave a legal status to the credit societies. The first

urban co-operative credit society was registered at
Conjeevaram in Madras province. This was followed by

the registration of one society each in Dharwar District

and Bangalore city. But the operations of these societies
were confined only to lending. The Co~operative Credit
Societies Act. 1912. expanded the original idea and
made it possible for the establishment and organisation
of Central Co-operative Banks and unions of non-credit
societies as well.
1.3.2 The development of urban cooperative credit
societies did not receive much attention till 1915.
when the Maclagan Committee referred to the potentialities
for the organisation of such societies as a means for

training the upper and middle urban classes in ordinary

banking principlesl. The failure of several local joint

stock banks in the country at that time gave sufficient
impetus to the growth of urban co~operative credit

societies. It was then realised that urban credit

societies are the institutional agencies best suited for
collecting local savings and for offering relief to
those who were in the clutches of money lenders, by
providing them with financial accommodation.

1.3.3 The passing of the Bombay Co-operative Societies

Act. 1925, was another milestone in this respect. The
economic boom created by the second world war provided a

stimulus to the growth of such societies in India. They

grew not only in number, but also in size, diversifying
their activities considerably.

1.3.4 For the healthy promotion of Co-operative

Banking in India, the Reserve Bank of India, in 1952,
started inspection of State and Central Co-operative Banks
and Central Land Developmnt Banks. But this was on a
voluntary basis, where the institutions had agreed to
allow the Reserve Bank of India to inspect them. All

1 Hajela T.N. - Principles, Problems and Practice of

Co-operation - Shiva Lal Agarwala and Copany
Agra - 3, 1979 - page 220 & 461.

this tim, these institutions were registered and

administered under the Co-operative Societies Acts
in force in various states and remained outside the scope
of Banking Companies Act which came into force in
March 1949 because "co-operation" was a state subject.

1.3.5 However, the rapid growth in the operations of

Co-operative Banks made it necessary to bring them under

the purview of the Reserve Bank of India. In addition,

the statutory control by the Reserve Bank of India was
a prerequisite for extending the benefits of Deposit
Insurance Scheme to the Cowoperative Banks. In view of
these considerations, the Banking Laws (applicable to
co-operative societies) Act, 1965, was enacted to extend

the operations of certain provisions of the Reserve

Bank of India Act. 1934, and the Banking Companies

Act, 1949, to Co-operative Banks. As a result, the

Banking Company's Act 1949 was renamed as the Banking

Regulation Act 1949. It came into force on 1st March 1966.

Thus the enactment of the Act has vested the Reserve
Bank of India with various statutory powers of control
and supervision over the Co~operative Banks. But, the

Registrar of Co-operative Societies of the state concerned

continues to be the authority to decide matters regarding
incorporation and management of these banks. Further

the provisions of the Act are in addition to the

existing rules and regulations of these banks. Thus
Co-operative Banks are required to comply with the
provisions of the Banking Regulation Act as well as

other laws applicable to them. But in respect of

matters specifically provided for in the Banking
Regulation Act, the provisions of the said Act will
prevail over the provisions of the Co-operative Societies
Act. However it is worthwhile to note that a lion's
share of the registered co-operative societies do not
come under the purview of Reserve Bank of India and the

Banking Regulation Act. (refer 1.4.i and ii)

1.3.6 The Co-operative Banking System in India
consists of 3 tiers in a state set up - State Apex Bank
or State Co-operative Bank, Central Banks or District
Co-operative Banks and Primary Co-operative Banks at

the basic level. At present, State Co-operative Banks

and Central Co-operative Banks are under the National
Bank for Agriculture and Rural Development (NABARD).

(refer 1.6.3)

1.3.7 It is to be noted that all primary co-operative

societies do not come under the Banking Regulation Act
and the direct purview of the Reserve Bank of India:

Co-operative Societies at the primary level can generally

be classified into two viz: Agricultural societies and
Non-agricultural Societies. The Non-agricultural
Societies, in turn can again be classified into two :
Non-agricultural Credit Societies and Non-agricultural,
Non-credit Societies. of these, only those Non
agricultural Credit Societies which satisfy certain
prescribed conditions (see 1.4. i and 11) come under
the Banking Regulation Act. As on 30.6.1977, there were

1544 Co-operative Banks in India coming under)%%nking

Regulation Act. The break up is as followsz:

State Co-operative Banks = 28

Central Co-operative Banks = 354
Primary Co-operative Banks = 1162

Total = 1544
==-S'-"=

ggimary Co-operative Banks :

1.4.1 The term Primary Co-operative Banks, in this

study, as stated earlier, refer to those Co-oprative
Banks at the primary level which are governed by the
Banking Regulation Act and are under the direct purview
of the Reserve Bank of India.

2 Davar S.R. - Law and practice of Banking - Progressive

Corporation (P) Ltd. - Bombay ~ 1976 - pages15-17.

Definition and Features :

1.4.2 According to section 5 (c c C) of the Banking

Regulation Act, a Primary Co-operative Bank is given
the meaning assigned to it in the Reserve Bank of India
Act 1934. The Reserve Bank of India Act defines a

Primary Co-operative Bank as a "co-operative society

other than the primary agricultural credit society.

(Section 2 (c iii) ). To have a clearer understanding
of the term, the following salient features of the
important sections of the Banking Regulation Act are
to be examined.

a) The primary object or principal business of a Primary

co-operative Bank is the transaction of banking business.
The forms of bsiness are as specified in section 6 of
the Banking Regulation Act.

b) According to section 8 of the Banking Regulation Act

it should not undertake trading activities.

C) As per section 11, the aggregate value of its paid

"up capital and reserves should not be less than onelakh
rupees. Here, value means real or exchangeable value.
and not nominal value as per books of accounts.

d) A Primary co-operative Bank cannot admit any other

co-operative society as a member.

10

1.4.3 However, societies which are not governed

by the Banking Regulation Act, may also use the term
'Bankas part of their name. Eg. Co-operative Land
Mortgage Banks and Service Cooperat1ve Banks. Many

of them are undertaking trading activities side by side

with banking business and all of them are Agricultural
Credit Societies. Hence, such societies, though generally
called Co-operative Banks, are excluded from the scope

of this study.
Egimary Co-operative Banks in Kerala :

1.5.1 There are 55 Primary Co-operative Banks in Kerala

as on 30.4.1986, which are governed by the Banking
Regulation Act and are under the direct purview of Reserve

Bank of India (see appendix - 1). Of them 4 are Employee's

Co-operative Banks. Needless to say, they are expanding
with a useful framework. of banking facilities which have
their own place of importance in the banking structure
in this part of our country. All the Primary Co-operative
Banks in Kerala, except the four Employee's Co-operative
Banks, are called Urban Co-operative Banks. But a number

of them are located at semi-urban or rural areas. Teir

distribution is uneven and many urban areas do not
have Urban Co-operative Banks. At the same time, when
compared to Agricultural Credit Societies, Urban Banks

11

have not progressed much. One of the reasons for this

is that a major part of village population is agricul

turists and the village population out-weighs urban
population.
Central Co-operative Banks :

1.6.1 Central Co-operative Banks, otherwise called

District Co-operative Banks, lie at the middle in the
pyramidal structure of the Co-operative Banking System

in India. It is expected to act as a friend, philosopher

and guide to the registered primary co-operative societies
in the District. The main object of the District Co
operative Banks is to arrange the supply of finance to
the constitutent member societies for distribution to
their members in different types of loans and to exercise
proper supervision and control over affiliated societies.
They collect deposits from members and nonmembers and do

banking business. All Primary Co-operative Societies

can get affiliated to the Central Co-operative Banks,
irrespective of whether they are governed by the Banking
Regulation Act or not.

1.6.2 Apart from financial assistance, control and

supervision, they conduct periodical conferences of the
representatives of the primary societies3. They provide
3 Development Role of State & Central Co-operative Banks
Reserve Bank of India (Agricultural Credit Department).
Bombay - Edn. 1973 - page 18.

12

the necessary guidelines on lending policy and procedures

of the Bank, on matters relating to the development of
primaries, resource mobilisation, recovery of dues etc.
A number of incentives like rebate on interest and

fertiliser distribution grant are provided towards

strengthening and stabilising the societies.

1.6.3 To discharge the rural credit functions which

were carried out by the Agricultural credit Department of
the Reserve Bank of India in relation to Co-operatives
(other than Primary Co-operative Banks), the Central Banks
and State Co-operative Banks are now brought under NABARD

(National Bank for Agricultural and Rural Development).

As a result, central Banks have played a vital role in

the field of institutional credit in rural India.

1.6.4 These "secondary credit institutions at the

District Level not only bring about an equalisation of
credit requirements of their co-operatives, but most
of them, are closely associating themselves with the
I.R.D.P./D.R.D.P. Programmes of the Agricultural

Department. In the field of Industrial Finance,

their contribution is highly commendable.

4 Hagan K.S. & Blythe L.N. - Banking in India

Macdonald and Evans - Estover, plymouth. 1979 - P - 370

13

1.6.5 As on 30th June 1986, there-were 13 District

Co-operative Banks in Kerala. Kasarcode District
does not have its own Central Bank. (see appendix II)
State Co-operative Bank :

1.7.1 The State Co-operative Bank or the State Apex

Bank is the top most bank in the cooperative banking

system in a state set up. It acts as the advisor and

supervisor of all cooperative banks and societies in

the state. Besides the usual banking business, it issues

necessary directions and guidelines to the Central Banks

and tries to bring about a uniformity in the activities

of co-operative societies in the state.

1.7.2 As the leader of the co-operative credit

structure in the state, it has to accept the responsibility
to identify weaktaentral Co-operative Banks and draw

programmes of rehabilitation or revitalisation for them.

The State Co-operative Banks should also concern themselves

with the re-organisation and revitalisation of primary

agricultural credit societies in different regions of

their area of operation. In fact there is already, a

programme for.the rehabilitation and revitalisation of
central co-operative banks, including the central sector
plan schem"5.
5 Developmental Role of State & Central co-op. Banks"
Reserve Bank of India (Agricultural Credit Department),
Bombay - Edn. 1973-page ~ 18.

14

1.7.3 Apart from these special functions, the

State Co-operative Banks are in close and constant touch
with Central Co-operative Banks through periodical

conferences, seminars etc. It is also one of the basic

duties of the State Co-operative Banks to ensure that
the defects and weaknesses pointed out by the Reserve

Bank of India, in its inspection reports on central

co-operative banks and urban co-operative banks are
remedied by them and that suggestions for development are
carried out by these banks"6.

1.7.4 For Kerala, the State Co-operative Bank is

"The Kerala State Co-operative Bank Ltd. Its Head office
is at M.G. Road, Trivandrum, with Regional office at
Ernakulam, Calicut and Trivandrum and has eleven branches.
Membership is restricted to District/Central Co-operative
Banks in Kerala and the Government of Kerala.
Need for the Study 2

1.8.1 when compared to other firms in the banking

industry. co-operative banks have a number of distinctive
features like dual control, open membership, democratic
management etc. Again, from the point of view of the
Banking Regulation Act, there were only 51 Primary
Co-operative Banks in Kerala as on 30.6.1984, 48 of them

6 ibid

15

being urban banks. "The Reserve Bank of India has now

apparently come to the conclusion that, with the growth
of branches to over 50,000 and each branch on an average
serving a population of 13,000 in urban areas and 16,000

in rural and semi-urban areas, there is no need for banks

to grow in terms of number of branches, but, on the
other hand, they must enter a stage of conso1idation"7.
The Reserve Bank of India feels that even "the commercial
banks have to build a new image, as far as their
operational efficiency and customer service are concerned8.
According to Mr. Goiporia, Chairman, Indian Banks Association,
"only about 20% of the resources raised by banks were

available for lending at commercial rates of interest9.

1.8.2 If this is the situation in commercial banks,

still worse is the case with the co-operative banks. In
the predominantly agricultural economy of our country,
State co-operative Banks and.centra1 co-operative Banks
have been traditionally dealing mainly with the provision

of agricultural credit. The financial, functional and

organisational strengthening of co-operative institutions
was strongly emphasised by the All India Rural Credit
Survey Committee 195410.

7 ibid
8 ibid
9 ibid
10 ibid

16

1.8.3 Regarding the operational aspects of

co-operative banks, especially at primary and central

levels, the situation is not pleasant. This is reflected

by slackness in internal checks, misappropriation of
funds by staff and management, under-utilisation or non
utilisation of financial assistance from apex banks, etc.
In addition, 20% of Primary Co-operative Banks are
classified as weak and rehabilitation comittees are
constituted by the Registrar of Co-operative Societies
for closer supervision of their operations and for taking
steps to improve their functioning. The operational

efficiency of a bank is related to its internal organisational

system, quickness with which it transects its business,
the degree of service it provides to its constituents etc.
Thus to make a comment on the operational efficiency, a

study of these factors is necessary.

1.8.4 The developmental aspects include mobilisation

of resources, employment of funds, loan policies and
procedures and management and administration. The funds
of a bank can.be own funds, deposits and borrowings.
when compared to commercial banks, co-operative banks are

too backward in the mobilisation of resources. The

plea that branches of other banks exist in the area,
should not be an excuse for this. Realistic planning and
dynamic approach are highly necessary. Here, much depends

17

on the efficiency of management. Equally important is

that the quality and variety of services rendered by
these banks should improve.

1.8.5 It is doubtless that there is a large quantitative

increase in co-operative credit. But when it is examined

in relative terms, the score is not so pretty.

1.8.6 In Kerala, there were 51 Primary Banks as on
30.6.1984, 13 Central Banks and one State Cooperative
Bank. Action has been taken to organise new urban

co-operative banks in 20 municipal towns. As on 30th June

1984 there were 3.25 lakhs members in the primary banks

with a total of m. 5,153.75 lakhs of deposits ie. average

number of 'A' class membership is 6,430 and average

deposit per bank is B. 101.05 lakhs. The total deposits

of 12 Central Co-operative Banks as on 30.6.1984 was
Rs. 19,173.75 lakhs. (Data collected by Survey)

1.8.7 lhe Central Banks are district level apex banks

for all the co-operative societies in the district concerned
and State Cooperative Bank is the apex bank for all

co-operative societies in the state concerned. Thus,

for cooperative banking system and co-operative credit

system the difference is only at the primary level.

1.8.8 Thus, to evaluate the working of Co-operative

Banking System in Kerala, the study should cover primary,

18

central and state co-operative banks. Besides no study

has yet been conducted on the "Co-operative Banking

System in Kerala". Hence, it is proposed to conduct a

systematic study to evaluate the working of the co
operative Banking System in Kerala.

Obiectives of the study :

1.9.1 Co-operative Banks, as stated earlier, have many

distinctive features. Open membership is one of the
fundamental principles or tenets of co-operative enterprise
and endeavour. The Reserve Bank has been pursuading the

urban co-operative banks and Registrars of co-operative

societies to follow the broad policy of open membership.
Similarly, the.District Banks are required to keep member
ship open to every registered primary co-operative society

in its area, unless otherwise disqualified. How far these

banks have succeeded in carrying this out, is one of the
most important objectives of this study.
1.9.2 The membership of urban co-operative banks, at
present, consists of regular or share holder members and
nominal or associate members. The nominal members do not

subscribe to share capital, nor do they have the right of

voting. They are not entitled to dividend and do not have
any liability in the case of the bank being wound up.
Enrolment of a good number of nominal members on a continuing

19

basis and providing them credit facilities on equal

footing with the regular members amount to dilution of
the basic concept of nominal membership. Therefore

another objective of this study is to evaluate the effect

of nominal membership on the performance of these 9
organisations.

1.9.3 Inspite of the various measures adopted by

Reserve Bank of India under the Banking Regulations Act 1949

(As applicable to co-operative societies) and introduction

of statutory inspection at periodical intervals, it is

observed that some banks exhibit serious financial and
operational weaknesses. Those banks whose bad and doubtful
debts, other bad assets and accumulated losses reach 25%
or more of the own funds, or whose overdues as at the end
of the co-operative year included 50% of the loans
outstanding are identified as weak and are brought under
the programme of rehabilitation. There were 26 primary
co-operative banks in 7 states which were identified as
weak, with reference to their financial position as on
30.6.197111. The number gradually increased over the
years and as on 30.6.1982 as many as 94 banks forming 7.4%
of the total number in the country in 14 states have been
classified as weak bankslz. In Kerala, as on 30.6.1984,

11 Report_of the Second meeting of the standing advisory

committee for Urban Co-operative Banks - Reserve Bank
of India (Urban Banks Department), Bombay - 1984

page - 64.

12 ibid

20

11 banks were classified as weak banks13. Hence, the

third objective of this study is to highlight the

problems and prospects of co-operative banks in general
and of weak banks in particular.

1.9.4 A fourth object of the study is to examine the

nature and extent of control and assistance exercised
by the State Co-operative Bank on Central Co-operative
Banks and Primary Banks and by the Central Cooperative
Banks on Primary Banks.

1.9.5 Last but not the least important objective is to

analyse the operational, managerial and financial efficiency
of co-operative banks - State, Central and Brimary and to
make recommendations to tone up their functioning and to
suggest solutions to remove the manifold difficulties which

they face.
gypotheses :

The study seeks to prove or disprove the following

hypotheses.

1.10.1 Cooperative Banking has great scope in the

banking industry. But it has not made much impact on the
banking system of the state.

13 ibid

21

1.10.2 The Government and Reserve Bank of India.have

to give more effective attention to the vast potential

of this industry.
1.10.3 The nature of management and appointment and

administration of staff require serious attention.

1.10.4 The Primary (urban) Co-operative Banks should
be given a separate common cadre as Central Banks are

largely concerned with agricultural societies. The

existence of Central Co-operative Banks has not favoured
the growth of urban Co-operative Banks.

1.10.5 The underlining principle of open or universal

membership is yet unknown to many co-operative banks in

the state. This is a challenge to the principles of

co-operation and therefore more effective measures are
necessary on schemes of membership in co-operative banks.

1.10.6 The co-operative department in the state should

have a separate cell with specially trained staff for
co-operative banks coming under the purview of Reserve
Bank of India and the Banking Regulation Act.

1.10.7 The ranking of banks by the department, should

be based on performance and financial position and not on
working capital alone, as is being done now.

22

Methodology :

1.11.1 No study has yet been conducted on the

Co-operative Banking System in Kerala. The Report of the
Madhavadas Committee (1978) covered Urban Co-operative

Banks alone and that also for all the banks in the country.
In this project, which is a census study, survey method
and interview method mrarelied upon. This is mainly
descriptive and analytical in character and tables have
been incorporated wherever necessary. The population
size as on 30.6.1984 was as follows :

Primary (urban) Go-operative Banks 51

District Co-operative Banks - 12

State Co~operative1Bank 1

The number was arrived at from the records of the Reserve

Bank of India, Kerala State Co-operative Bank, District
Co-operative Banks and Co-operative Department Offices.

For availability of data and reliability of conclusions

all the units are taken into consideration. Many visits
were made to each bank to interview the members of the

board of directors, the chief executive officer and the

staff members.

1.11.2 To study the working of the banks, reports andv

accounts from 1.7.1980 were collected and examined, Depth

23

interviews were conducted at all banks, using pre

constructed and pre-tested interview schedules.
Besides, the Bye-laws, Annual accounts and reports were
collected for 4 years.

1.11.3 The primary data collected were classified and

tabulated before making statistical and logical analysis.
1.11.4 For documentary evidence, sufficient footnotes
are given wherever secondary data are used.

Scope and Limitations of the Thesis :

1.12.1 The co-operative credit structure in a state

set up consists of 3 tiers Primary Societies at the base,
District Co-operative Banks at the middle and State Co
operative Bank at the top. But, some societies at the
primary level are governed by, in addition to Co-operative
Societies Act, the Banking Regulation Act. Thus they are
under dual control. In addition, they are working under
the direct purview of Reserve Bank of India. The scope
of this study is restricted to such Primary Societies,
District Co-operative Banks and State Co-operative Bank.

For the evaluation of the working of Co-operative

Banks, the board of directors and staff were interviewed
with the help of pre-constructed and pre-tested interview
schedules. However, the share holders and customers were

24

not interviewed mainly because almost all respondents

were reluctant to provide copies of an exhaustive list

of share holders and non-share holder customers, for
the purpose of maintaining secrecy. This being an
individual work, it was found physically and financially
very difficult to extend the study so as to cover the
share holders and non-share holder customers. Limitations
of time were also responsible for restricting this study.
The period of study was restricted to 1980-'81
to 1983-'84 as the data relating to earlier periods were
firstly not available from all banks and secondly the
prior data was considered out of date for the purpose of
the study.
Scheme cg the Report :

1.13.1 The thesis is divided into five chapters and

the following are the chapter headings :
1
Chapter Introduction
2
Chapter Primary
Co-operative Banks
Chapter 3 District Co-operative Banks

4 State Co-operative Bank

5
Chapter Conclusions
and Recommendations

Chapter

1.13.2 The first chapter introduces the subject of the

study. It explains why the study was undertaken and the

25

objectives, hypotheses, methodology etc. of the study

are explained.

1.13.3 The second chapter traces the evolution and

history of primary (urban) co-operative banks in Kerala.
A careful attempt is made to explain the position of
these banks in Kerala against the all India background.
The respurces position, managerial and personnel aspects,
financial and operational features etc. of these banks
are examined in this chapter. The second chapter ends by
briefly reviewing the present problems and prospects of
the primary banks and suggesting measures for further
expansion and development.

1.13.4 Chapter III is concerned with the working of

District Co-operative Banks/Central Banks. In the
agricultural sector of the Indian economy, these banks have
been traditionally dealing mainly with the provision of

agricultural credit. The agricultural sector has been

accorded a high priority in development plans. The effici
ency with which a Central Cooperative Bank carries on with

its dayto-day operations would indicate its ability to

shoulder greater responsibilities. It is the net effect of

various factors such as quality of administration, pattern of
its membership, nature of personnel administration, availabi~
lity and utilisation of funds etc. These factors are examined

26

in this chapter, as also, the position and performance

of these banks in the pyramidal structure of co-operative
banks.

1.13.5 Chapter IV deals with the Kerala State

Co-operative Bank. Being the state level apex bank for

covoperative institutions, its activities like assistance

extended to and control exercised on District Co
operative Banks and Primary Banks are examinedin addition

to tracing its history and development. Its contribution

to the co-operative movement in the state is also examined.
based on which suitable recommendations are made for

further development.

1.13.6 Chapter V summarises the conclusions and

recommendations of the study.