CHAPTER 4

PROFITABILITY OF

DISTRICT CENTRAL COOPERATIVE BANKS

CHAPTER 4

PROFITABILITY OF

DISTRICT CENTRAL COOPERATIVE BANKS

Introduction

A bank is an agency that performs varied economic activities like

functioning as a financial intermediary, creating purchasing power, catalysing

social development, providing facilities that promote entrepreneural activities,

acting as an agency that bridges the financial growth with the economic

growth of the country and so on. This multidimensional functioning is a tall

order for any business organisation, especially in a nation where a lot of

changes are taking place at an alarming pace consequent to the introduction of

liberalisation and globalisation of the economy. The banking sector also

witnessed many changes like deregulation, maintenance of transparency and

introduction of prudential norms as recommended by the Narasimhan

committee in recent times as part of the structural adjustment measures

initiated by the government.

The above reformative measures brought in many structural and

functional changes in the banking activities. The traditional economic

functions of the banks remain unchanged. But then, these reforms brought

changes in the institutional structure, the instruments, and the techniques used

in the performance of the economic functions.1 The reforms in India mainly

aim at improving the health and vigour of the financial system through

measures like dismantling administered interest regime, reduction in Cash

89

management process rather than an accounting or analytical procedure. The

nagement of profitability is a process of converting financial objectives into

jrating targets, measuring and controlling results and interpreting them.

JS, profitability management is the sum total of all those activities by the

iks' management in planning, measuring, controlling and interpreting the

fit making ability of the banking organisation.3

)fitability in District Central Cooperative Banks

Cooperative banks are distinctly different from commercial banks as

y are established with the motive of rendering services to the poor and the

:dy. The realisation of this objective by cooperative banks depends on their

bility. To attain viability they must reduce their cost, increase their revenue

[ ensure sufficient margin of profit. The cooperative banks are functioning

an atmosphere which is totally different from the one in which the

nmercial banks are operating.

The cooperative banks practice the principles of cooperation which in

> aim at rendering services to the members at as minimum cost as possible:

ce a cooperative enterprise emerges from the needs of the weaker sections

the society.6 it can be considered as an institution created mainly of the

ik people, for the weak people, and by the weak people.' This perspective

:rs them the patronage of the state. After the enactment of the Montegu

;lmsford Reform Act in the year 1919, cooperation became a provincial

ject. Even after independence, the cooperative sector has been

ninistered by the government. This gave a great stimulus to the growth of

movement in India. However, the state patronage also posed a variety of

90

ctions to the smooth functioning of the cooperative enterprises, which

de regulations on income and expenditure, interference in the

igement by the state bureaucracy, encroachment by political parties in

internal management and so on. Thus, on their own, the cooperative

s can do very little in managing their income from loans and advances,

expenses on deposits and borrowings. Both of these functional areas are

antly supervised and regulated by the Government and the central

:ies like the Reserve Bank of India, the National Bank for Agriculture and

I Development and the State Cooperative Bank. Besides, most of the

natives have been facing problems like mounting overdues, operational

ciency due to lack of professionalism in management, declining ancillary

iie due to poor customer service, inability to accommodate technological

ices in the banking sector, and so on.8

The DCCBs in the middle of the three tier cooperative credit structure

srala, do face such problems. It is against this back drop that the

ability of the DCCBs is analysed and presented. The focus of this

er is to evaluate the profitability of the selected DCCBs in Kerala for a

i often years from 1987-88 to 1996-97. The banks selected for the study

ranakulam DCCB. Pathanamthitta DCCB. Alleppey DCCB and Palakkad

B. (Hereafter, the banks will be referred to as EDCCB. PTDCCB,

CB and PKDCCB respectively.)

K'sis of Profitability

The operating profit of a bank is the difference between its spread and

n. The difference between the two provides the operating results of the

91

Bs in absolute terms. On the other hand profitability is a relative concept.

a ratio of their earnings to the funds used in the business. It shows the

ency with which a bank deploys its total resources to optimize its profits,

hus serves as an index to the degree of asset utilisation and managerial

tiveness.

Spread is defined as the difference between the average gross interest

ed on average earning assets and the average gross interest paid on

ge liabilities. The spread contains two essential components. The first

onent is the interest and discount income from loans and advances and

:st from investments. The second component of the spread is the interest

ises which consist of interest paid on deposits and other borrowings by

ank. Spread is the difference between these two components. The net

nt arrived after deducting the interest expenses from the interest income

lilable to the banks for meeting their operating, administrative and other

gement expenses.

The second factor that affects the operating profit of the banks is the

n." It is defined as the difference between the non-interest expenses and

)n-interest income. Since it is the reminder of the expenses, it is a burden

i banks and it is charged from the net interest spread. The burden

;ents the amount of non-interest expenditure which is not covered by the

merest income. Non-interest expenses consist of items like establishment

ises and other expenses of current arid noneurrent nature. Non-interest

le includes commission, exchange, brokerage and other miscellaneous

93

ipts by the banks (See fig.4.1). In simple terms, the above concepts can be

eseed as follows :

SPREAD (S) = Interest earned (R) - Interest Paid (K)

BURDEN (B) = Manpowerexpenses(M)+Other expenses(O)

- Non interest income (C)

PROFIT (P) = Spread (S) - Burden (B)

Each of the above components are divided by the volume of business to

ert the absolute values into relative values. Here, the volume of business

s defined as the balance sheet total less the contra items. Small letters are

to represent the ratios thus obtained, and they are:

ad Analysis

Spread is the net amount available to the DCCBs for meeting their

.tive. administrative and management expenses. As stated earlier, the

" components of the spread are the interest earned and interest paid by the

;. The interest income consists of interest and discount earned on loans

clvances and interest income from investments. The interest expenses of

)CCBs are mainly incurred on deposits" of various kinds and other

94

swings. The rates of interest on deposits and borrowings are fixed by the

orities. Hence, the banks can neither manipulate nor control the interest

nses. The interest income of the bank is also of a regulated nature.

An increase in the income enhances the profits of the DCCBs and their

itability. As the interest on the loans and advances are mostly regulated,

increase in income is possible only by enhancing the volume of deposit

its deployment. Increase in interest income signifies the efficiency of the

it management also. Any decrease in the interest expenses marks an

;ase in the profit margin of a bank. Thus, the spread analysis is mainly

ed to two items, viz., analysis of interest earned and analysis of interest

Interest Income: Interest earned denotes the return from pure banking

ness. i.e., lending and investment. Increase in interest income reflects the

:ient credit management by the DCCBs. The trends in the interest income

le selected DCCBs are presented in Table 4.1.

The two good working banks. EDCCB and PTDCCB have

brmed well in terms of interest earned over the years. Of the two, the

TCB has registered a steady and sharp growth in interest earned with a

• mild decline in the year 1991-92. The growth in the interest income

• be due to the general business conditions in the state, availability of

leient resources or the efficiency of the bank in deploying their

nirccs. The EDCCB has recorded a seven fold increase in interest

une over a period of ten years. The other good working bank,

95

FDCCB. also recorded a five fold growth during the study period. It

so experienced a decline in interest earnings in 1991-92.

The banks with poor performance also registered a steady growth in

erest. recording less than four fold growth over the years under review.

Interest earned as percentage to volume of business has been calculated

i presented in Table 4.2. The interest earned ratio exhibits a fluctuating

id for all the four banks and it does not provide a definite trend. Of the two

)d performing banks, PTDCCB has a higher interest earned ratio throughout

period under review. Incidentally it is the second good performing bank.

96

e average interest earned ratio for the second good performing bank

rDCCB) is 10.15 per cent while that of the first good performing bank

DCCB) is only 8.59 per cent. The averages for the poor performing banks

: 7.95 per cent (PKDCCB) and 9.79 per cent (ADCCB). On a comparison,

: second good performing bank earned more interest followed by the

)CCB. which is the lowest ranked bank in performance.

The banks do not have much control over the interest as they are fixed

the central banking authorities. However, banks can earn more interest by

>viding loans to those purposes which fetch more interest income. For

tance, interest charged on consumer loans in the non-agricultural sector is

jher than the interest charged on production loans in the agricultural sector.

97

It is true in the case of medium and long-term loans also. Table 4.3 and 4.4

show the consumer loans and medium and long term loans of the selected

DCCBs in relation to their total loans and advances. PTDCCB had higher

ratios in both and it had the highest interest earned ratio. The ADCCB which

had the second highest interest earned ratio also recorded the second highest

ratio in medium and longterm loans to the total loans and advances. No

doubt, banks with higher proportion of consumer loans can earn more interest.

However, it must be remembered that cooperative banks are established to

protect the interests of the farm and production sectors and they are to

concentrate more and more on production and purpose-oriented farm and non-

farm credit.

Interest Expenses: Interest expense is the cost of funds used by the

DCCBs and mainly incurred on deposits of various kinds and borrowings. As

the deposits form the major component of the banks' funds, it is natural for the

interest expenses to grow in tune with the volume of deposit mobilised. The

major reason for declining profitability is the growth in expenditure compared

to their income. Hence it is essential to study the behaviour of the interest

expenses as a part of the profitability analysis.

The interest expenses of all the four banks recorded a steady growth

over the period. EDCCB recorded a six fold increase. PTDCCB around five

fold. PKJDCCB three fold and ADCCB four fold. The increase was much in

good performing banks than in poor performing banks. (See Table 4.5). The

r

~he interest expenses to the volume of business ratio was calculated for the

elected DCCBs and presented in Table 4.6. The increase in the interest

Apenses in relation to the volume of business indicates growth in the ratio.

Compared to the first good performing EDCCB. the interest paid ratio was l*gh for the second good performing PTDCCB though it spent less on interest

Expenses. So also was the case with the poor performing PKDCCB. It spent

^$s on interest expenses than the other poor performing bank ADCCB. but lltd a high interest paid ratio. Of the four banks, EDCCB has a lower interest

^ id ratio as it was hovering between 5 and 6 per cent in many of the years

100

under review. In ' ill the other banks it was more than 6 per cent. In fact, the

ratio was more than 8 per cent for PTDCCB for two years (1992-93 and 1996-

97) and it recorded an average of 7.17 per cent during the study period. These

variations in the ratio is mostly due to increased borrowings and / or increased

deposit mobilisation.

The Spread: It is the net amount available to the DCCBs after meeting

their interest obligations. Technically, it is the difference between interest

'"".:' earned and interest paid by the DCCBs.- The reminder of the spread after

deducting the burden constitutes the profit of the DCCBs.

101

Table 4.7 shows the growth trends in the spread of the selected DCCBs.

A. comparison of the increase in spread among the four banks revealed that the

spread is found to be consistent and high in EDCCB. i.e., more than eight fold

growth over a period often years. It was low in ADCCB, a poor performing

:>ank. A comparison of the growth indices of the four banks indicated that the

Door performing PKDCCB had a higher growth (594 per cent from the base

/ear) than the good performing PTDCCB (which shows 558 per cent). This

nay be due to the increase in the interest expenses of the PTDCCB which has

he highest (7.17 per cent) average interest paid ratio during the study period.

102

calculated. It is computed by taking the difference between the interest earned

ratio and the interest paid ratio (See Table 4.8).

The spread ratios of the selected DCCBs show a mixed trend with ups

and downs. At the beginning of the study period ADCCB had the maximum

spread ratio (3.79 percent) followed by PTDGCB (3.08 percent). ADCCB

enjoyed the highest spread ratio throughout the study period barring 1994-95

when PTDCCB moved to the top spot with 3.43 per cent. PKDCCB has the

lowest ratio throughout the period - the ratio being less than two in all the

years. Fluctuations in the ratio could be observed for all the selected banks

during the first half of the study period. It may be due to the increase in the

borrowings by the banks. However, during the second half, especially after

103

1993-94 the spread ratios of all the banks exhibited rising trend. A

comparison of the average ratio for the four banks shows the highest ratio for

the ADCCB, a poor performing bank. In fact, the first ranking EDCCB had a

lower ratio than the poor performing ADCCB. This is mainly due to the

higher interest income and the relatively lower interest expenses of the

ADCCB.

Burden Analysis

Burden means the difference between non-interest expenses and the

non-interest income. The former consists of the aggregate of manpower

expenses and other general operating expenses. And the latter includes

commission, exchange, brokerage and other miscellaneous receipts. In this

sense, burden is in the nature of the operating cost of a bank for a particular

operating year.

Though the burden is in the nature of the operating costs of a bank,

there is no need for it to grow in tune with the volume of business transacted

by the bank, but at a slower pace. Hence it is semivariable in nature.

The burden plays a significant role in determining the size of the bank

profits. As mentioned earlier, the burden of the banks has three components,

viz.. man power expenses, other operating expenses, and the banks" income

from ancillary services. Therefore, the magnitude of the burden is normally

influenced by :

• efficiency of manpower management in the banks; • its operations; and • its ancillary business.

104

If the banks' personnel are less productive, if their management is less

cost conscious, and if the quality and quantum of their other banking sendees

are poor, there is no doubt, that the magnitude of the banks' burden skyrockets

and thereby reduces the profitability of the banks. On the other hand, if the

above mentioned elements are efficient and productive it would result in

increased profits.

Thus, the analysis of the burden of the DCCBs revolves around the

analysis of the following :

® manpower expenses;

® other operating expenses; and

• the non-interest income.

Man Power Expenses: Human resources in any organisation, be it

public, private or cooperative, constitute the most vital asset of that

organisation. The most important and valuable resource that any organisation

possesses, is in the form of its employees. " The proper motivation of this

resource and its utilisation is of vital importance, especially in a service

industry like banking. Bank customers normally demand personalised

services. Their satisfaction, to a great extent, rests on the performance of the

bank staff. Thus, the bank has to select, train, place and motivate the right

kind of people who are capable of bringing more customers and their business.

The sum total of all those expenses incurred by the bank for the recruitment.

selection, training, placement, development, compensation and motivation of

their personnel constitutes the man power expenses.

105

Thus, the man power expenses of a bank includes various kinds of

monetary incentives and other expenses for promoting the general welfare and

the efficiency of the bank staff. This item of expenditure is expected to grow

gradually over a period of time due to advancements in salary, employment of

additional staff, agreements with trade unions, etc. However, it is not expected

to grow at a pace equal to the volume of business.

Increase in the man power expenses is unavoidable, especially in a time

when collective bargaining enjoys social recognition. If the manpower

expenses grow, it naturally increases the burden of the bank and ultimately

influences its profitability. Table 4.9 shows the growth trends in the man

power expenses of the selected DCCBs in Kerala from 1987-88 to 1996-97.

106

The man power expenses are found to have increased in all the banks

However, the increase was found to be swift and high in PTDCCB which

registered more than five fold increase over a period often years. This may be

due to the branch expansion and consequent recruitment of more personnel to

meet the enhanced volume of business. The other banks too witnesed increase

in the manpower expenses - PKDCCB recorded a four fold increase; ADCCB

registered a three fold increase and EDCCB had a little less than three fold

increase.

The above trend in the manpower expenses is reflected in the

manpower expenses ratio too (See Table 4.10). Though there has been ups

and downs in the ratio, the EDCCB's ratio was less than one per cent towards

107

the end of the study period. Similarly, the PTDCCB has been able io keep the

ratio fairly under control. The other two banks have not been able to check the

ratio, especially PKDCCB which had the ratio hovering around two for most

of the years under review. The ratio was high in ADCCB too.

From the above, it seems that the two good performing banks have been

able to bring the man power expenses under control whereas the other two

banks have not done so. As mentioned earlier, the volume of business of the

DCCBs in the state registered growth. But the manpower expenses did not

grow at the same pace. It indicates manpower efficiency in the banks.

Other Operating Expenses: The operating expenses of a bank

consists of all those expenses incurred by the banks on items like stationery,

postage, technology updating, communications, etc. It is generally semi-

variable in nature. Being a component of the burden, any increase in the

operating expenses increases the burden and that affects the profitability of the

banks.

The operating expenses of the good performing banks have registered a

steady increase compared to the poor performing banks. ( See Table 4.11). Of

the good performing banks, the EDCCB has registered a very steep increase in

the operating expenses. It registered a growth from Rs.34 Lakh in 1987-88 to

Rs.926 Lakh in 1996-97, with a twenty seven fold increase during the period.

The two poor performing banks have registered more or less similar growth

(three fold increase) in operating expenses. Of the four banks, EDCCB had •

the highest operating expenses, followed by PTDCCB, PKDCCB and

108

ADCCB. But then there was a wide variation between the good performing

EDCCB and the other three banks.

A better picture of the operating expenses can be drawn by relating it to

the volume of business of the DCCBs. The ratio provided a totally contrasting

picture. The banks which exhibited a sharp rise in other expenses, have low

other expenses ratios. For instance, the EDCCB has witnessed a very sharp

rise in the other expenses. But its other expenses ratio has been as low as 0.54

per cent in 1987-88. It is less than 2 per cent in many of the years under

review. The PTDCCB also exhibited a consistently low ratio over the years.

(See Table 4.12). It was less than-1.5 per cent in majority of the years under

review. The two poor performing banks had higher ratios in all the years under

Non-interest Income: Besides accepting deposits and lending of

money, banks render a number of ancillary services to their customers. They

include remittance of funds, telegraphic transfers, issue of bank drafts,

purchase and sale of securities, travellers' cheques and credit cards.

consultancy, safe deposit lockers, etc. Exchange, commission and brokerage

are some of the major sources of non interest income received by. the'banks

from such transactions. It is possible for the banks to enhance their ancillary

income by providing quality service to their customers.14 Income of any sort

110

br'ngs profit provided expenditures are under control.15 A high level of

ancillary income is a pre-requisite for improving the profitability of the banks.

It can be attained through good customer service.

Table 4.13 exhibits the trends in the non-interest income earned by

selected DCCBs in Kerala. The two good performing banks have registered a

substantial growth in non-interest income. Of the two, the EDCCB had

registered a thirteen fold increase during a period of ten years. The increase

has been consistent and steady. Similar trends could be noticed in PTDCCB

with a slight setback in the last two years. The two poor performing banks

also exhibited increased non-interest income, the increase being around

fourfold over a period often years.

HI

T h e non-interest income as a percentage of the volume of business oV

t h e D C C B s is shown in Table 4.14. It is quite interesting to note that the

b a n k s which had growth in non-interest income recorded low non-interest

i n c o m e ratio. The ratio was less than 0.2 per cent in PTDCCB for many years

u n d e r review. For the EDCCB, it was less than 2 per cent. On the other hand.

t h e b a n k s which recorded a low profile in the non-interest income have a high

r a t i o du r ing the period. The poor performing banks, especially PKDCCB had

a v e r y high ratio when compared to the good performing banks. The average

ra t io w a s around five per cent for the PKDCCB while the same for the

P 1 D C C B stood at 0.21 per cent. This may be due to the adoption of non-

traditional lines of business16 such as leasing17, arrangements for technical

112

consultancy and portfolio management like management of NRI investments

in Kerala ' . In the case of banks with low ratio, it seems that they are

depending a lot on lending business rather than income from quality customer

service.

Burden: Burden is the difference between non-interest expenditure

consisting of man power and other operating expenses, and the non-interest

income. It is. the excess amount of non-interest expenditure not covered by

non-interest income. A bank's profitability depends a lot on the burden. The

bank has to take measures to cut down non-interest expenses and also to

improve non-interest income. Otherwise burden has very little to do with the

profitability. The banks in order to reduce the burden has either to increase the

non-interest income or to reduce non-interest expenses or perform both

simultaneously.

113

Table 4.15 presents the growth trends in the burden of the selected

DCCBs. The EDCCB has registered a steady growth from Rs.104 Lakh in

1987-88 to Rs.869 Lakh in 1996-97, recording an eight fold growth during the

period. It has been followed by PTDCCB and PKDCCB with more than five

fold growth. Compared to these three banks, ADCCB has registered a low

growth (three fold) during the period under review. The ratio of burden as a

percentage of the volume of business of the DCCBs also calculated and

presented in Table 4.16. Bankwise, the average burden ratio was high for the

ADCCB (3.26 per cent) followed by PTDCCB (2.7 per cent), EDCCB (2.17

per cent) and PKDCCB (1.14 per cent). Incidentally ADCCB and PKDCCB

are poor performing banks and the variations in the ratios are mainly due to the

variations in non-interest expenses and the non-interest income.

114

Profitability Analysis

An important criterion for evaluating the performance of the banks is

their profitability. It is a measure of efficiency with which the operations of a

business are assessed.20 Though the prime motive of the DCCBs is service.

they are basically business organisations. Therefore, they have to improve

their profitability in order to become economically viable organisations.

As mentioned earlier, the profit of a DCCB is fundamentally affected

by its spread and burden, that is, the operating profit for any year. It is the

excess of its spread over the burden. Thus, profitability position of any DCCB

is largely influenced by an increase in its interest and non-interest income or

decline in interest and non-interest expenses or by both. In simple terms,

profit of a bank represents its revenue in excess of its expenditure. The

revenue pan represents the total income from its banking and ancillary

functions. The expenditure part consists of the money spent by the bank for

producing the services rendered by it. Thus, profit in absolute terms, as a

difference between its revenue and cost, does not provide a clear picture of the

bank's ability to produce profits. Hence, the need for profitability analysis.

Profitability is a relative concept and it indicates the net profits of the

banks as a percentage to some vital indicator such as the volume .of business.

Net Profit as a Percentage of the Volume of Business

It is one of the widely used analytical tools for the determination of a

bank's profitability. This ratio indicates the efficiency with which a bank

deploys the total resources so as to maximise its profits. For the computation

of the ratio, the volume of business has been taken as balance sheet total, minus :

the contra items.

The net profit to the volume of business ratios are given in Table 4.17.

It reveals that all the banks are profitable, but it is very low in all of them. In

fact, no bank had the profitability ratio beyond 0.5 per cent. In the beginning

of the study. EDCCB stood top with 0.14 per cent, followed by ADCCB with

0.09 per cent. PTDCCB was closely behind with 0.07 per cent while

PICDCCB had a very low ratio of 0.0001 per cent. Of the good performing

banks the PTDCCB had the ratio at its maximum of 0.49 per cent during 1993-

94, and EDCCB had its maximum of 0.24 per cent in 1995-96. The poor

performing banks performed comparatively well during the second half of the

period under review.

117

The profitability ratio for all the four banks stood bi'tween 0.0001 per

cent (for PKDCCB in 1987-88) and 0.49 per cent (for PTDCCB during 1993-

94). Among the banks, the average ratio of net profit to volume of business

was as high as 0.25 per cent for the PTDCCB during the period under study. It

was followed by EDCCB (0.16 per cent), ADCCB (0.13 per cent), and

PKDCCB (0.05 per cent). The ratio is very low, and the low ratio indicates

poor profitability.

Conclusions

Profitability is an important criterion of efficiency. The profitability of

DCCBs is analysed with reference to its components such as spread and

burden. The interest spread of the selected banks was discouraging, as there

was no substantial growth in the interest income of the banks. The analysis of

the burden also revealed increase in the manpower and other operating

expenses over the years. All the banks are profitable. But the analysis of the

profit in relation to volume of business shows low profitability for the DCCBs

during the period under study. It seems that the banks have tried their level

best to increase their interest spread. But they failed to manage their burden.

The inefficiency in the day-to-day operations of DCCBs are caused by many

factors such as poor deposit mobilisation, dependence on borrowings, low

interest income, high interest expenses, mounting over-dues, and so on. The

identification and elimination of these determinants of profitability alone can

help the DCCBs to reach higher levels of profitability.

I I S

There might be several causes for poor profitability: Prominent among

them may be the low level of deposits, increased dependence on borrowings,

high incidence of overdues, mounting expenses and so on. Identification ot

the factors responsible for low profitability would help the banks to strengthen

the weak spots and improve the overall performances and therefore

profitability. The succeeding chapter dwells upon the factors influencing the

profitability of the DCCBs.

119

Notes and Reference

Bhattacharya. Hrishikesh., Banking Strategy, Credit Appraisal and Lending Decisions: - A Risk - Return Framework, Delhi, Oxford University Press. 1999. p. xv

Narasimhan. M., Financial Sector Reform, Journal of Indian Institute of Bankers, Vol.63. No.2, April-June, 1992, p. 79

Rangarajan. C. Banking and Profitability, in Chandhary, N., (Ed), Dynamics of Indian Banking, New Delhi, Deep and Deep Publications, 1985, p. 108

4 A New Look at Banking Supervision, IBA Bulletin, Vol.18, No.7, July, 1996, Pp.37-41

Kiran, Profitability and Productivity in Public Sector Banks, Jullandar, ABS Publications, 1987, p. 1

Fay, C.R.. Cooperation at Home and Abroad, London, Staple Press, 1948, p. 19

Kulkarni. P.B.. Distortions in Cooperation, Bombay, Himalaya Publishing House, 1991. p. 5

8

Syal.H.S.. Cooperative Banking in India, in Bhatia, Verma and Garg (Ed), Encyclopaedia of Cooperative Management, Vol.3, Cooperative Banking, New Delhi, Deep and Deep Publications, 1994, Pp. 120-129.

Verghese.S.K... Profits and Profitability of the Indian Commercial Banks in the Seventies. Bombay, National Institute of Bank Management, 1983, p. 19

10 Amandeep. Profits and Profitability in Commercial Banks, New Delhi, Deep and Deep Publications. 1993. p.96

11 Ibid, p.225

12 Goel.B.B.. Cooperative Management and Administration, New Delhi, Deep and Deep Publications. 1988. p. 139

13 Ramaehandran Nair, K., Industrial Relations in Kerala, NevvDelhi, Sterling Publishers Pvt. Ltd., 1973, p.147

120

Raghavan. Vijayalakhsmi, More Bang from Your Bank, Intelligent Investor, Vol.3. No.18, September 22, 1999, p.18

Rangarajan. C, Op.Cit., p.44

'Nagarajan. N., Commercial Banks in Non-traditional Areas, in Hugar, S.S., (Ed). Trends and Challenges to Indian Banking. New Delhi, Deep and Deep Publications, 1993, Pp.121-125

Patil and Kohok. Leasing - A Source of Finance for Cooperative Sector, in Bhatia. Verma and Garg, (Ed), Encyclopaedia of Cooperative Management, Vol.4. NewDelhi, Deep and Deep Publications, 1994, p.364

18

Balakrishnan, Diversification of Commercial Banking Scenario by 2000 A.D., in Vinayakam, N., (Ed), Indian Banking by 2000 A.D., Delhi, Kanishka Publishers, 1995, p.94

19

Amandeep. Op.cit., p.54

Wright, M.G.. Financial Management, New Delhi, Tata McGraw Hill Publishing Company Ltd., 1981, p.ll