Co-operative banking sector in India has emerged as a significant
component of the financial system, spreading even to the remotest
corner of the country. The State co-operative banks which may also
be called apex bank, stands at the top of the credit structure in a state.
The objective of this paper is to measure the performance of the state
co-operative banks in terms of profitability and the quality of assets.
The measurement of profitability is done using different accounting
ratios. The study shows that the profitability of state co-operative banks
is highly affected by spread, burden and high operating expenses. We
document that the profitability of state co-operative banks is significantly
impacted by non-performing assets and poor recovery of loans. The
study recommends that there is need to increase in non-interest
income, decrease in operating expenses and exercise of careful
scrutiny before advancing loans and proper vigilance afterwards.

Dash, T. R., & Sen, K.K. (1998). Co-operatives and Economic Development. Jaipur: Rawat Publication.
Deshmukh, P.G. Working of Co-operative Banks in India, Overview and Prospective. New Delhi:
Kanishka Publication.
Indian Institue of Banking & Finance. (2007). Technology, Risk management and Supervision in Cooperative
Banks.
Jain, S. C., & Jain, N. K. (1982). An Enquiry to Financing Agriculture, by Co-operative Banks and
Commercial Banks.
Madan, G. R. (2007). Co-operative movement in India: A Critical Appraisal. New Delhi: Mittal Publication.
Misra, B. (1997).Cooperative Movement in India: A Case Study of an Indian State. New Delhi: A.P.H
Publishing.
NABARD. Occasional Paper on Recovery Management in Rural Credit.
Ramesha, K. Co-operative Banking and Financial Sector Reforms in India –Agenda for Future
Research. Paper presented at International Conference on Mapping Co-operative Studies in the
New Millennium. Victoria, BC: British Columbia Institute for Co-operative Studies.
Rao, H.S. (2004). Co-operative Banking in New Millennium. New Delhi: Anmol Publication Private
Limited.
Rathod, C.S. An Enquiry in to the Management of District Central Co-operative Banks in Gujrat.
Vadodara:University of Baroda.
Raut, K.C., & Das, S.K.(1996). Commercial Banks in India— Profitability, Growth and Development.
New Delhi: Anmol Publication.
Ravichandran, K., & Mayilsamny, R. (2008).Non Performing Assets in Co-operative Banking.
Delhi:Abhijeet Publication.
Ravindra Prasad, D. (1976). Co-operative Administration: A Case Study of District Central Co-operative
Bank in Andhra Pradesh. Hyderabad: Osmania University.
Reserve Bank of India. Report on Trend and Progress of banking in India.
Sen, K.K.New Economic Policy and the Future of Co-operatives. Jaipur:Rawat Publication.
Singh, S.P., & Singh, S. Financial Analysis for Bank Lending in Liberalised Economy. Mumbai: Himalaya
Publishing House.
Thirunarayanan, R.(1996).Co-operative Banking in India. New Delhi: Mittal Publication.
Tyaoi,. R.B. (1969). Recent Trends in the Co-operative Movement in India. Asia Publishing House.