Employee and Branch Productivity of State Co-Operative Banks in India: Region-Wise Analysis

Financial inclusion will enable banks to provide credit to vulnerable groups such as weaker sections and low-income group at a reasonable cost. It will also help banks to provide financial products to such sections and enable them to understand the importance of saving and investing money. The importance of cooperative banks has soared in recent years with the emergence of financial inclusion as a key thrust of public policy in India. Financial inclusion is generally defined as the availability of banking services at an affordable cost to disadvantaged and low-income groups. The short-term co-operative credit structure operates with a three-tier system -Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (StCBs) at the State level. It is already well recognized that co-operative credit institutions are integral part of Indian Financial System. So, it is essential to dwell on productivity indicators of these banks. Hence, this attempt is made to analyze the Employee and Branch productivity performance of all StCBs by classifying them into six regions through ratio analysis.