AN EVALUATION OF PERFORMANCE OF THE WEST BENGAL STATE CO-OPERATIVE BANK LTD.

Co-operative banks have come to constitute an important segment of the financial system, occupy a unique position and organized on co-operative principles. Present study evaluates the performance of the West Bengal State Co-operative bank Ltd. from the year 2001-02 to 2010-11. The West Bengal State Co-operative Bank Ltd. is performing its role of leading the co-operative movement of the state of West Bengal. The objectives of the paper are to explore and evaluate the growth prospect, operational profitability, stability and recovery performance of the WBSCB Ltd. In order to measure the growth prospect of the banks some important parameters like deposits, loans and advances, and business are analysed from the year 2001-02 to 2010-11. The study shows that all the variables exhibited positive and significant growth during the period of study. It is found that overall profitability of the bank during the study period is satisfactory as "Burden Coverage Ratio" in all the years is more than 1. Results obtained in the study shows that WBSCB Ltd. have satisfactory Z score that means probability of book-value insolvency has decreased during the study period, suggesting that banks are sufficiently stable during the period of study. The study finds that recovery performance of WBSCB Ltd. is satisfactory during the period of study. The management of WBSCB Ltd. should focus on diversification of business activities of the banks, modernization of the services rendered by the bank, proper methods of borrower appraisal and credit management. [ABSTRACT FROM AUTHOR]