Report of the Task Force to Study the Cooperative Credit System and Suggest Measures for its Strengthening (Part 2 of 2) - ആർബിഐ - Reserve Bank of India
Report of the Task Force to Study the Cooperative Credit System and Suggest Measures for its Strengthening (Part 2 of 2)
- Annexure 1.1
- Annexure 1.2
- Annexure 1.3
- Annexure 2.1
- Annexure 2.2
- Annexure 2.3
- Annexure 2.4
- Annexure 3.1
- Annexure 3.2
Format to elicit information from
CEOs/Chairmen of select SCBs
Name of the state : _________________________
Name of the CEO/Chairman of the SCB : _____________________________________
_____________________________________________________________________
- Please give in the enclosed formats data on certain financial parameters of the SCBs/ DCCBs.
- Give information in brief on the Cooperative Credit Structure in the State.
- Developmental role played by the SCBs in regard to DCCBs and in the State
- How many DCCBs in the State have elected boards.
- How to make the SCBs/DCCBs member driven professional business enterprises.
- Please offer comments on the effectiveness or otherwise of layers in the cooperative credit structure.
- In your opinion which structure - Unitary/Federal is more appropriate - give reasons/ recommendations.
- Please furnish the following data for different tiers -
No. of DCCBs
No. having elected Boards
SCBS |
DCCBS |
PACS |
- Average Cost of funds
- Average return on loans/investments (together)
- Spread
- Average transaction Cost
- Net spread
- Share in the interest margin
- Do you think the spread and sharing of interest margin indicated above are appropriate? Yes/No
- Give reasons for their appropriateness or other wise and offer suitable recommendations for their rationalisation and improvements.
- Please indicate the amounts of imbalances between SCBs and DCCBs in you state during the last 3 years
- What is the impact of imbalances in loaning operations, recoveries, accumulated losses, profitability, etc. at each level in the structure.
- Please offer comments on the factors responsible for erosion in the capital base of cooperative banks in the state.
- Please suggest measures to strengthen capital base of the cooperative banks to reach prudential level over time.
- What are the arrangement available in regard to internal checks and controls in the banks in the following areas :
(Rs. in lakh)
-------------------------------------------------------------------------------------------------------------
Year |
Imbalances |
Loans Outstanding |
Deposits |
|
SCBs |
DCCBs |
SCBs |
DCCBs |
1996-97
1997-98
1998-99
-------------------------------------------------------------------------------------------
- Internal inspections
- Internal audit
- Concurrent audit
- Statutory audit
- Compliance on internal inspections, statutory audit and inspections conducted by NABARD.
- You think the present arrangement in regard to internal checks and controls are adequate in the bank? Yes/No
- If not adequate, please suggest measure to strengthen the internal checks and controls.
- Please offer comments on the duality of control in the cooperatives (i.e. democratic bodies, bank executives and government officials).
- Do you think the cooperative banks (ST structure) are working as per the B.R.Act 1949 AACS)?
- If not, reasons therefor.
- Is the state Cooperative Act/Bye-laws affecting the working of the cooperative banks in the state.
- If yes, please indicate the areas which are affecting the working of cooperative banks in the state
- Are the roles and responsibilities between the bank executives on the one hand and elected leaders and Govt. Officials on the other hand clearly defined and followed or not.
- If not, please offer suggestions for clear demarcation of roles and responsibilities including matters relating to duality of control.
- Any other comments/suggestions may be made on the revival/restructuring of the cooperative banks.
Format to elicit information from
CEOs/Chairmen of select SCARDBs
Name of the state : _________________________
Name of the CEO/Chairman of the SCARDB : _____________________________________
________________________________________________________________________
- Please give in the enclosed formats data on certain financial parameters of the SCARDBs/ PCARDBs.
- Give information in brief on the Cooperative Credit Structure in the State.
- Developmental role played by the SCARDBs in regard to PCARDBs and in the State
- How many PCARDBs in the State have elected boards.
- How to make the SCARDBs/PCARDBs member driven professional business enterprises.
- Please offer comments on the effectiveness or otherwise of layers in the cooperative credit structure.
- In your opinion which structure - Unitary/Federal is more appropriate - give reasons/ recommendations.
- Please furnish the following data for different tiers -
SCARDBs PCARDBs
- Average Cost of funds
- Average return on loans/investments (together)
- Spread
- Average transaction Cost
- Net spread
- Share in the interest margin
- Do you think the spread and sharing of interest margin indicated above are appropriate? Yes/No
- Give reasons for their appropriateness or other wise and offer suitable recommendations for their rationalisation and improvements.
- Please indicate the amounts of imbalances between SCARDBs and PCARDBs in you state during the last 3 years
- What is the impact of imbalances in loaning operations, recoveries, accumulated losses, profitability, etc. at each level in the structure.
- Please offer comments on the factors responsible for erosion in the capital base of cooperative banks in the state.
- Please suggest measures to strengthen capital base of the cooperative banks to reach prudential level over time.
- What are the arrangement available in regard to internal checks and controls in the banks in the following areas :
(Rs. in lakh)
Year |
Imbalances |
Loans Outstanding |
Deposits |
||
SCARDBs |
PCARDBs |
SCARDBs |
PCARDBs |
1996-97
1997-98
1998-99
- Internal inspections
- Internal audit
- Concurrent audit
- Statutory audit
- Compliance on internal inspections, statutory audit and inspections conducted by NABARD.
- You think the present arrangement in regard to internal checks and controls are adequate in the bank? Yes/No
- If not adequate, please suggest measure to strengthen the internal checks and controls.
- Please offer comments on the duality of control in the cooperatives (i.e. democratic bodies, bank executives and government officials).
- Do you think the cooperative banks (ST structure) are working as per the B.R.Act 1949 AACS)?
- If not, reasons therefor.
- Is the state Cooperative Act/Bye-laws affecting the working of the cooperative banks in the state.
- If yes, please indicate the areas which are affecting the working of cooperative banks in the state
- Are the roles and responsibilities between the bank executives on the one hand and elected leaders and Govt. Officials on the other hand clearly defined and followed or not.
- If not, please offer suggestions for clear demarcation of roles and responsibilities including matters relating to duality of control.
- Any other comments/suggestions may be made on the revival/restructuring of the cooperative banks.
Format for information from Secretary, Cooperation/RCS
Name of the State:
Secretary, Cooperation/Registrar of Cooperative Societies
1. Briefly indicate the developmental role played by the SCB/SCARDB in the State
2. How to make the cooperative banks `member-driven professional business enterprises ? Please mention specific action points relating to legislative, administrative and financial aspects.
3. In your opinion, which structure is more appropriate in the long term cooperative credit system - unitary or federal ? Give reasons/recommendations
4. Please indicate the rationale and appropriateness of sharing of interest margin among the tiers of the cooperative banks: Short term and long term cooperative credit system
5. Please suggest measures to strengthen the capital base of the cooperative banks to reach prudential level over time (ST and LT credit structure)
6. (a) What are the present arrangements for audit in the State ?
(b) Arrears, if any, in conducting the statutory audit at different levels?
(c) Please indicate the feasibility of entrusing the statutory audit to Chartered Accountants/professionals
7. Please indicate the major aspects which are affecting the working of cooperative banks in the State.
8. Please offer suggestions for clear demarcation of roles and responsibilities including matters relating to duality of control
9. What measures you suggest to make PACS strong and viable ? Do you feel that `exit route will be desirable for non-performing/non-viable PACS ? If so, what arrangements at grass-root level you consider for providing financial services to the rural population ?
10. Please suggest if PACS can function as `mini banks with appropriate incentives for deposits including linkage with borrowings, as also measures to ensure safety of members deposits.
11. Any other comments/suggestions may be made on the revival/restructuring of the cooperative banks
ORGANISATIONAL FRAMEWORK FOR PROVISION |
||||||||||||
OF AGRICULTURE AND RURAL CREDIT* |
||||||||||||
|
As on 31 March 1999 |
|||||||||||
![]() |
||||||||||||
* Compiled by NABARD |
|
||||||||||||
|
PARTICULARS OF DISBURSEMENT OF AGRICULTURAL |
|||||||||||
CREDIT BY VARIOUS AGENCIES - 1995-96 TO 1999-2000 |
||||||||||||
|
||||||||||||
(RS. CRORE) |
||||||||||||
|
||||||||||||
PARTICULARS/ |
1995-96 |
Share |
1996-97 |
Share |
1997-98 |
Share |
1998-99 |
Share |
1999-2000 |
Share |
||
AGENCY |
% |
% |
# |
% |
$ |
% |
* |
% |
||||
|
||||||||||||
I. Production (ST) Credit |
||||||||||||
Co-operative Banks |
8331 |
57 |
9328 |
55 |
10740 |
55 |
12595 |
54 |
15619 |
57 |
||
RRBs |
849 |
6 |
1121 |
7 |
1395 |
7 |
1720 |
7 |
2025 |
8 |
||
Commercial Banks |
5345 |
37 |
6549 |
38 |
7299 |
38 |
9262 |
39 |
9566 |
35 |
||
|
||||||||||||
Sub Total (A) |
14525 |
100 |
16998 |
100 |
19434 |
100 |
23577 |
100 |
27210 |
100 |
||
Growth Rate |
(+17%) |
(+14%) |
(+ 21%) |
|||||||||
|
||||||||||||
II. MT/LT Credit |
||||||||||||
Co-operative Banks |
2148 |
29 |
2616 |
28 |
3227 |
26 |
4392 |
30 |
5046 |
29 |
||
RRBs |
532 |
7 |
563 |
6 |
643 |
5 |
1269 |
9 |
1418 |
8 |
||
Commercial Banks |
4827 |
64 |
6234 |
66 |
8394 |
69 |
8816 |
61 |
11001 |
63 |
||
|
||||||||||||
Sub Total (B) |
7507 |
100 |
9413 |
100 |
12264 |
100 |
14477 |
100 |
17465 |
100 |
||
Growth Rate |
(+25%) |
(+ 30%) |
(+ 18%) |
|||||||||
|
||||||||||||
ST + MT/LT CREDIT |
||||||||||||
Co-operative Banks |
10479 |
48 |
11944 |
45 |
13967 |
44 |
16987 |
45 |
20665 |
46 |
||
RRBs |
1381 |
6 |
1684 |
6 |
2038 |
6 |
2989 |
8 |
3443 |
8 |
||
Commercial Banks |
10172 |
46 |
12783 |
49 |
15693 |
50 |
18078 |
47 |
20567 |
46 |
||
|
||||||||||||
Grand Total (A+B) |
22032 |
100 |
26411 |
100 |
31698 |
@ |
100 |
38054 |
100 |
44675 |
100 |
|
Growth Rate |
(+18%) |
(+20%) |
(+20%) |
(+20%) |
(+17%) |
|||||||
|
||||||||||||
$ Estimated |
||||||||||||
# Provisional |
||||||||||||
* Projections |
||||||||||||
@ Includes disbursement of Rs.1113 crore by 30 private sector banks |
||||||||||||
Source: ROs in respect of Cooperative Banks and RRBs and RPCD, RBI in respect of Commercial Banks |
ST COOPERATIVE CREDIT STRUCTURE - IMPORTANT |
||||||||
FINANCIAL PARAMETERS - 1994-95 TO 1998-99 |
||||||||
(Rs.in crore) |
||||||||
|
||||||||
Sr. |
Particulars |
March |
March |
March |
March |
March |
||
No. |
1995 |
1996 |
1997 |
1998 |
1999 |
|||
|
||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
||
|
||||||||
1 |
BASIC INFORMATION |
|||||||
(a) |
PACS |
|||||||
(i) |
Total membership (in lakhs) |
942 |
966 |
982 |
997 |
1016 |
||
(ii) |
Borrowing membership (in lakhs) |
347 |
425 |
387 |
411 |
440 |
||
(iii) |
% of borrowing members |
37 |
44 |
40 |
41 |
43 |
||
(b) |
DCCBs |
362 |
363 |
364 |
367 |
29@ |
||
(c) |
SCBs |
28 |
28 |
28 |
28 |
367 |
||
2 |
OWNED FUNDS |
|||||||
(a) |
DCCBs |
3300 |
3948 |
5066 |
5761 |
3721 |
||
(b) |
SCBs |
1949 |
2624 |
2947 |
3319 |
7296 |
||
3 |
DEPOSITS |
|||||||
(a) |
DCCBs |
20829 |
24560 |
30381 |
36558 |
25786 |
||
(b) |
SCBs |
11820 |
13433 |
17491 |
22201 |
45609 |
||
4 |
BORROWINGS |
|||||||
(a) |
DCCBs |
8771 |
10160 |
10505 |
11805 |
9849 |
||
(b) |
SCBs |
6805 |
7905 |
8033 |
8524 |
12783 |
||
5 |
LOANS & ADVANCES |
|||||||
OUTSTANDING |
||||||||
(a) |
DCCBs |
20699 |
24606 |
28373 |
31237 |
21902 |
||
Share of borrowings (%) |
42.5 |
41.3 |
37.0 |
37.8 |
45.0 |
|||
(b) |
SCBs |
13211 |
16585 |
18312 |
19586 |
36909 |
||
Share of borrowings (%) |
43.2 |
47.7 |
43.9 |
43.5 |
34.6 |
|||
6 |
PERCENTAGE OF |
|||||||
OVERDUES TO DEMAND |
||||||||
(a) |
DCCBs |
30 |
31 |
30 |
32 |
29897 |
||
(b) |
SCBs |
10 |
10 |
14 |
16 |
40097 |
||
7 |
LOANS ISSUED |
|||||||
(a) |
DCCBs |
23869 |
26703 |
32311 |
31801 |
19 |
||
(b) |
SCBs |
22286 |
27457 |
28665 |
27805 |
30 |
||
8 |
NPA % Gross |
|||||||
(a) SCBs |
10.20 |
11.76 |
12.55 |
|||||
(b) DCCBs |
17.36 |
18.05 |
17.81 |
|||||
|
||||||||
# Sikkim SCB commenced operation w.e.f. 12 December 1998. |
||||||||
Data for 1998-99 & 1997-98 in respect of SCB/DCCBs is provisional. |
||||||||
PACS data is provisional even for earlier years. Audit in some DCCBs is not complete even for the year 1997-98 |
LT COOPERATIVE CREDIT STRUCTURE - IMPORTANT |
||||||||
FINANCIAL PARAMETERS - 1994-95 TO 1998-99 |
||||||||
(Rs.in crore) |
||||||||
|
||||||||
Sr. |
Particulars |
March |
March |
March |
March |
March |
||
No. |
1995 |
1996 |
1997 |
1998 |
1999 |
|||
|
||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
||
|
||||||||
1. |
BASIC INFORMATION |
|||||||
(a) |
SCARDBs (No) |
20 |
19@ |
19@ |
19@ |
19@ |
||
(i) |
Total Ground level Membership |
118 |
119 |
128 |
131 |
130 |
||
(In Lakhs) |
||||||||
(b) |
PCARDBs(No) |
732 |
733 |
738 |
745 |
745 |
||
2. |
OWNED FUNDS |
|||||||
(a) |
SCARDBs |
1047 |
1241 |
1429 |
1653 |
2022 |
||
(b) |
PCARDBs |
573 |
617 |
741 |
986 |
1169 |
||
3. |
DEPOSITS |
|||||||
(a) |
SCARDBs |
122 |
158 |
163 |
200 |
240 |
||
(b) |
PCARDBs |
33 |
30 |
62 |
99 |
152 |
||
4. |
BORROWINGS |
|||||||
(a) |
SCARDBs |
6170 |
7202 |
8464 |
9786 |
11093 |
||
(b) |
PCARDBs |
3480 |
4150 |
5010 |
5888 |
6849 |
||
5. |
LOANS & ADVANCES |
|||||||
OUTSTANDING |
||||||||
(a) |
SCARDBs |
5900 |
6857 |
8013 |
9182 |
10442 |
||
Share of borrowings (%) |
104.58 |
105.03 |
105.62 |
106.58 |
106.23 |
|||
(b) |
PCARDBs |
3407 |
4098 |
4954 |
5840 |
6819 |
||
Share of borrowings (%) |
102.14 |
101.27 |
101.13 |
100.82 |
100.44 |
|||
6. |
PERCENTAGE OF |
|||||||
OVERDUES TO DEMAND |
||||||||
(a) |
SCARDBs |
38 |
39 |
38 |
39 |
38 |
||
(b) |
PCARDBs |
33 |
39 |
41 |
45 |
40 |
||
7. |
LOANS ISSUED |
|||||||
(a) |
SCARDBs |
1429 |
1798 |
2079 |
2295 |
2437 |
||
(b) |
PCARDBs |
936 |
1219 |
1477 |
1594 |
1692 |
||
8 |
NPA % (Gross) |
|||||||
(a) |
SCARDBs |
- |
- |
- |
19.44 |
19.19 |
||
(b) |
PCARDBs |
- |
- |
- |
16.78 |
16.05 |
||
|
Comparative position of interest margins recommended by ACRC and obtained by cooperative banks
(as on 31.3.1998)
Name of agency |
Interest margin recommended |
States with interest margins |
|
SCBs |
1.5 |
Less than 1.5 |
More than 1.5 |
Haryana (0.75) |
Assam (4.0-5.5) |
||
Himachal Pradesh (1.0) |
Tripura (3.5-7.0) |
||
J & K (1.5) |
Andaman & Nicobar (3.5-4.0) |
||
Madhya Pradesh (0.5-1.0) |
Goa (3.5) |
||
Punjab (1.0-1.5) |
Gujarat (2.0) |
||
Rajasthan (0.75-1.7) |
|||
Uttar Pradesh (nil) |
|||
West Bengal (1-2) |
|||
Maharashtra (0.5-3.0) |
|||
Andhra Pradesh (1.2-1.5) |
|||
Orissa (1.0) |
|||
Karnataka (1.0-2.5) |
|||
Tamil Nadu (0.25-2.75) |
|||
DCCBs |
3.5 |
Less than 3.5 |
More than 3.5 |
Haryana (3.25) |
Punjab (3.5-6.5) |
||
Himachal Pradesh (2.5) |
MadhyaPradesh (3.5-6.0) |
||
J & K (2.0) |
Karnataka (4.5-8.5) |
||
Rajasthan (2.0-5.4) |
Orissa (4.0-4.5) |
||
Uttar Pradesh (2.75-4.25) |
|||
West Bengal (2-5) |
|||
Gujarat (2-4.5) |
|||
Maharashtra (2.5-5.5) |
|||
Andhra Pradesh (2.5-5.5) |
|||
Tamil Nadu (2.25-4.75) |
|||
PACS |
6 |
Less than 6.0 |
More than 6.0 |
Haryana (3.0) |
|||
Himachal Pradesh (2.5) |
|||
Punjab (3.5) |
|||
Jammu & Kashmir (3.0) |
|||
Orissa (3.0-4.5) |
|||
Rajasthan (1.75-3.4) |
|||
Uttar Pradesh (4.0-7.5) |
|||
Assam (2.0-2.5) |
|||
Tripura (2.0) |
|||
West Bengal (2.0-3.5) |
|||
Andaman & Nicobar (2.0-3.0) |
|||
Madhya Pradesh (3.0-5.5) |
|||
Maharashtra (2.5-6.5) |
|||
Goa (2.0) |
|||
Gujarat (1.0-2.0) |
|||
Andhra Pradesh (2.0-3.5) |
|||
Karnataka (2.0-4.0) |
|||
Tamil Nadu (3.00-6.00) |
Name of agency |
Interest margin recommended |
|
|
SCARDBs (Federal) |
2.0 |
Less than 2.0 |
More than 2.0 |
Haryana (1.5) |
Orissa (6.0-6.5) |
||
Himachal (1.0) |
West Bengal (2.0-2.5) |
||
Punjab (0.75-2.0) |
Karnataka (2.25-2.5) |
||
Rajasthan (1.0) |
Tamil Nadu (1.1-3.4) |
||
MP (1.5-2.0) |
|||
SCARDBs (Unitary) |
5.5 |
Less than 5.5 |
More than 5.5 |
Bihar (2.0-2.5) |
Tripura (6.0-6.5) |
||
UP (5.5-8.5) |
|||
Gujarat (6.0-6.5) |
|||
Maharashtra (5.5-9.0) |
|||
PCARDBs |
5.0 |
Less than 5.0 |
More than 5.0 |
Haryana (4.0) |
HP (3.0-7.0) |
||
Punjab (3.25-3.5) |
Orissa (4.0-6.0) |
||
Rajasthan (3.5-4.5) |
|||
Bihar (3.0-3.5) |
|||
WB (3.0-3.5) |
|||
MP (4.5-5.0) |
|||
TN (1.10-3.40) |
|||
Source : Responses received from Coop. Banks through Task Force Questionnaires
Net margins available to cooperative banks as on 31.3.1998
SCBs
<1 |
1 - 2 |
>2 |
0.29 (Guj) |
1.25 (J&K) |
2.03 (AP) |
0.49 (WB) |
1.26 (KAR) |
2.35 (Assam) |
0.52 (MP) |
1.29 (HAR) |
2.77 (A&N) |
0.71 (TN) |
1.53 (UP) |
|
0.79 (CHG) |
1.76 (HP) |
|
0.80 (Tripura) |
1.88 (Goa) |
|
0.86 (Punjab) |
1.95 (Raj) |
DCCBs
(-) |
<1 |
1 - 2 |
>2 |
(-) 2.51 (J&K) |
0.11 (AP) |
1.0 (KAR) |
2.28 (HP) |
0.48 (TN) |
1.35 (PUN) |
||
0.50 (MP) |
1.45 (HAR) |
||
0.55 (HP) |
|||
0.65 (Goa) |
|||
0.70 (Raj) |
|||
0.84 (UP) |
|||
0.89 (Guj) |
PACS
(-) |
0 |
>0 |
(-) 3.80 (J&K) |
0 (PUN) |
0.40 (MP) |
(-) 1.21 (WB) |
||
(-) 0.72 (TRI) |
||
(-) 0.21 (TN) |
SCARDBs
(-) |
<1 |
1 - 2 |
>2 |
(-) 0.286 (HP) |
0.93 (Haryana) |
1.6 (Punjab) |
2.7 (UP) |
(-) 0.41 (Maha.) |
0.47 (MP) |
1.5 (Rajasthan) |
2.1 (TN) |
(-) 2.4 (Tripura) |
1.04 (WB) |
2.3 (Kerala) |
|
(-) 5.16 (Bihar) |
1.93 (Gujarat) |
PCARDBs
(-) |
<1 |
1 - 2 |
(-) 0.05 (Orissa) |
0.03 (WB) |
1.09 (HP) |
(-) 0.93 (MP) |
1.52 (Punjab) |
|
(-) 1.86 (Karnataka) |
1.42 (Kerala) |
|
1.53 (TN) |