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Source: E-mail dt. 06.09.2012

 

Role of Co-Operative Banks in Empowerment of Women

 

Prof. S. Parthiban

Assistant Professor, Department of Management, Gobi Arts & Science College, Gobichettipalayam, Tamilnadu, India.

 

and

 

Prof. K. Rajendran

Assistant Professor, Department of Management, Gobi Arts & Science College, Gobichettipalayam, Tamilnadu, India.

 

ABSTRACT

 

The study reveals that the women entrepreneurs considered for the study deserve enough capacity to avail the loans, the borrowings and the repayment of loan did not make any hindrance. The borrowings of the select District Central Co-operative Banks(DCCBs) where mainly focusing more on Urban women empowerment. This trend must be acknowledgement and recognized effort need to be made to giving more importance to the women community of the rural regions, to facilitate a stronger the rural women empowerment. In the case of financial inclusionary attitude, the select DCCBs have been rendering good services to the women community by providing loans in promoting new enterprises of the study area.

 

INRODUCTION

 

Empowerment of women in social, Economic and political life of the nation is now on the increase. With the spread of education and new awareness, women entrepreneurs’ role, that is family role and entrepreneurial role. Now the Indian constitution has guaranteed equal opportunity removing equal opportunity removing all discrimination based on gender.

 

However in practice, women were not given social equality and they are deprived of their human rights.  Various acts have also been passed to prevent in equality in economic cultural and social spheres.  Women entrepreneurs are special group of people who enjoy a distinct status and play a crucial role in the success of any business or trade.  The rate of economic growth of a nation depends on the levels of entrepreneurial talents in the country.  To sustain economic growth, development of women entrepreneurship must become imperative.

 

SCOPE OF THE STUDY

 

This study aims at examining the socio-economic impact of the women entrepreneurs on the beneficiaries from District Central Co-operative Banks in the study area. It examines how far the women entrepreneurs perceived their borrowings from the District Central Co-operative Banks and has helped in raising the financial strength and in enabling them to cross the social recognition.  Hence, an attempt is made in the present study “Financing of women Entrepreneurs by DCCB Ltd., in Tamil Nadu” to analyze the perception and to identify the problems faced by women entrepreneurs to obtain borrowings from DCCDs. The present study is from the standpoint at District Central Cooperative Banks in the study area.

 

OBJECTIVES OF THE STUDY

 

  1. To asses the Growth and Role of Entrepreneurs Development in DCCBs in Erode.
  2. To offer suggestions to improve the District Central Co-operative Bank Services

 

SAMPLE PLAN

 

              There are 23 DCCDs in Tamil Nadu.  Among them Madras Central Co-operative Banks Ltd., was excluded from the DCCBs and remaining 22 DCCBs in Tamil Nadu were considered.15%  of these 22 is taken into consideration of the study (that is 3). For the selection of the sample respondents, the researcher approached through the lottery method within the 22 Tamil Nadu District Central Co-operative Banks. From that three DCCBs are selected (Erode DCCB) as the study area. An amount of 6909 women entrepreneurs have availed the credit facilities from the District Central Cooperative Banks in Erode. The study has adopted the stratified random sampling method from the each five years of the study period.

 

MEMBERSHIP PATTERN AND PERFORMANCE OF THE DISTRICT CENTRAL CO-OPERATIVE BANK

 

The District Central Co-operative Bank (DCCB) were started to provide cheap credit to the farmers to relieve them from clutches of money lenders. At present, there are 1, 12,309 DCCB which works out to roughly one PAC for every six villages in the country. The total membership of DCCB is reported to be around Rs.12 cores. The DCCB can be started with ten or more persons, normally belonging to a village to become shareholders of the society. The value of each share is generally nominal so as to enable even the poorest farmer to become a member. The members have unlimited liability and management is honorary, the only paid member being the Secretary-Treasurer. The loans are given for short periods, normally for the harvest season, for carrying on agricultural operations and the rate of interest is fixed. Such societies were expected to attract deposits from well-to-do members which could be used to give loans and advances to needy members. But these failed to promote savings and to attract deposits as a result of which the government has to bring into existence Central and State Co-operative Banks to provide funds to DCCB which, in turn, will lend to farmers.

           

The members of co-operative Bank consist of persons such as businessmen, farmer and employees from various organizations. Persons above eighteen years of age could be admitted as member of the society. The society has two types of members namely ‘A’ class members and ‘B’ class members.  ‘A’ class members share is Rs.10 per share and ‘B’ class members share is Rs.5 per share.

 

GROWTH IN DISTRICT CENTRAL CO-OPERATIVE BANK

 

            The growth of the District Cenral Co-operative bank like number of societies, membership, borrowers is depicted in Table 1, Table 2 and Table 3. These indicators show the expansion and coverage area of District Central Co-operative bank during the study period. Average Compound Growth Rate is used this formula,

Y=abt

Where,

            Y=Dependent variables

a=constant

b=slope of trend lines, t=time

Table 1

Growth of DCCB in Erode: 2001-2002 to 2010-2011

Year

Share Capital

Investment

Net Profit

Interest Received

Interest Payable

 

2001-02

1355.41

20910.25

167.65

4757.87

2672.11

2002-03

1415.96

18098.16

201.5

4843.44

2527.47

2003-04

1478.11

18662.58

212.3

4667.84

1591.64

2004-05

1687.49

16819.82

277.15

4326.64

1356.79

2005-06

1888.66

14473.81

320.92

4307.7

1178.76

2006-07

3645.69

15863.01

268.02

4858.6

928.83

2007-08

5578.37

14029.85

1183.42

4462.86

1321.42

2008-09

7456.83

21515.26

1205.52

7369.09

1909.45

2009-10

9421.48

24687.48

1326.75

7583.58

1581.21

2010-11

10502.55

29066.53

1379.08

8656.21

1639.84

Mean

4.4431

1.9413

6.5423

5.5834

1.670

SD

3560.830

4745.347

537.599

1622.29

559.96

ACGR

13.521

3.324

 

31.367

 

1.81

-4.203

 

                                                                                                                                     Sources: Annual Report DCC Bank Erode.

 

Table 2

Growth of DCCB in Erode: 2001-2002 to 2010-2011

Year

Interest paid

Other Expenditure

Loan & Advance

Borrowings

2001-02

3453.56

891.54

24471.97

8518.7

2002-03

3173.66

1265.47

25460.89

4851.53

2003-04

2697.27

1393.04

27138.81

8591.89

2004-05

2482.93

1733.67

29886.34

7353.1

2005-06

2416.72

1270.92

35538.98

7039.37

2006-07

2950.58

1258.83

38598.38

7696.61

2007-08

3276.73

1173.85

52127.72

6674.1

2008-09

4791.61

955.44

62156.52

6212.12

2009-10

5240

894.2

69959.38

7817.76

2010-11

5651.9

916.59

82476.62

16605.74

Mean

3.613

1.175

4.478

8.1361

SD

1179.00

270.44

20691.52

3560.830

ACGR

7.444

 

-3.129

 

15.59

 

4.665

 

                                                                                                                                    Sources: Annual Report DCC Bank Erode.

 

Table 3

Growth of DCCB in Erode: 2001-2002 to 2010-2011

Year

Agricultural Loan

Premises

Furniture& Fixtures

Deposits

 

2001-02

954.22

160.16

35.73

32027.07

2002-03

968.09

150.27

20.56

33357.53

2003-04

1375.89

140.38

6.5

31546.7

2004-05

1610.37

130.48

6.09

32750.39

2005-06

1856.22

120.82

3.32

35335.55

2006-07

1888.56

112.32

9.36

37770.64

2007-08

837.48

103.69

11.31

46155.48

2008-09

953.42

95.62

41.19

61555.16

2009-10

1233.15

87.74

90.38

70079.47

2010-11

1671.54

86.21

199.4

77458.81

Mean

1.334

1.1877

42.384

4.580

SD

401.660

26.122

61.161

17423

ACGR

1.81

-7.02759

25.87

0.04628

                                                                                                                                    Sources: Annual Report DCC Bank Erode.

 

The above table reveals that deposits that the owned funds of District Central Co-operative Bank has been increased from Rs. 7379.34 lakhs, average compound growth rate of 0.04628%. The owned funds comprise of capital and reserves. The share capital of District Central Co-operative Bank has been increased with higher growth rate as compared to reserves. The total borrowings of these societies has been increased to Rs.47, 84,797 lakhs in 2011 from Rs. 17, 32,644 lakhs in 2001 with average compound growth rate of  13.521%. The total deposits of District Central Co-operative Bank were Rs. 7, 06,170 lakhs in 2001. It increased to Rs. 25, 44,926 lakhs in 2010. It shows the growth of 0.04628% in terms of average compound growth rate. The main function of District Central Co-operative Bank is to provide loans to Women Self Help Entrepreneurs and other beneficiaries. The amount of loan outstanding of District Central Co-operative Bank in India was Rs.21, 30,109 lakhs in 2001. It has been increased to Rs. 65, 66,638 lakhs in 2010 with 11.92% ACGR. The working capital of District Central Co-operative Bank has been increased with 10.74% average compound growth rate.

 

NATURE OF ENTREPRENEURS

 

            The DCCBs have selected a few medium and some small scale business units in the respective districts. With these sources of information the nature of the business unit in the study area has been segregated on basis of mineral chemical and polymer, forest, engineering and non-conventional, agro and textile and Khadi.

 

            In the nature of unit, the forest based industrial units of the enterprises. Most of the industrial unit have been started and in urban and rural areas of the study. Due to the availability of the industrial units have registered as forest based. Mineral based enterprises were the next dominant group. The least number of respondents stated to be involved in textile and Khadi based. This could be of because of low demand for those products.

 

PURPOSE OF LOAN

 

            The existing entrepreneurs have been availing the loan from the DCCBs regularly in the select area of the study.

 

AGRICULTURAL CREDIT

 

            The District Central Co-operative Bank, there are important institutional sources of agricultural credits. The agricultural credit system is dominated by DCC Bank in Erode. It is evident from Table 3 that total amount of agriculture credits has increased from Rs.438.39 lakhs from the period of 2010 – 2011. Every farmer needs four types of credit, viz., development credit, production credit, (crop loan), marketing credit and consumption credit. Production credit or crop loan is required by the farmer for crop production. This type of credit is needed by the farmers to purchase of seeds, fertilizers, manure, pesticides, etc.

 

CONCLUSION

 

  1. It is found that the performance of District Central Co-operative Bank is better than the previous years most of the societies are faced continuous loss in out of 5 years period. Hence, it is suggested that government of Tamil Nadu may take necessary arrangements to wave the bad debts.

 

  1. In the present study, it is observed that performance of District Central         Co-operative Bank is better than the previous years most of the Banks faced continuous losses in 4 years out of the 5 years period. Hence, it is suggested that the District Central Co-operative Bank has to increase the deposits.

 

            This study explains the significant role of the District Central Co-operative Bank in the development of Women Entrepreneurs. By conducting various tests and study, it is obvious that the development of District Central Co-operative Bank is highly expected one. This study’s portray the recent growth and the development of the District Central Co-operative Bank in Erode. After facing continuous losses till 2008-2009, majority of the District Central Co-operative Bank considered for the study found progress in the year 2010-2011. Several suggestions have been given based on the findings of the study. If these are properly carried out and implemented, definitely desirable results could be achieved.

 

REFERENCES

 

1. Shyam Charan Acharya and Ashok Kumar Mohanthy “Operational Analysis of Reginal Rural Banks” Kalpaz Publication Delhi, 2006.

2.www.rbi.org.com

3. Various issues of Annual Reports, NABARD