Page 35 - Banking Finance May 2021

ARTICLE

.. BUT CO-

OPERATIVES

MUST

SUCCEED

B asic challenge to the present century-old co- societies despite so many odds in their credit and other

operative financial institutions in our country, as
spheres of their activities. It has been time and again
rightly indicated in one of the study reports, is to
emphasized in many a forum as also in many study reports
strike a balance between attaining profitability by
agricultural scenario and should be part of rural
running their business on commercial lines on one that co-operatives should play a pivotal role in rural
hand and carrying out their service-oriented activities under development process.
the well-conceived principles of coveted 'co-operative
movement', on the other. Probably, this inherent conflict in Contrary to this fond hope, most of these ground-level
their functions puts pressure on their efficiency and Societies are casting shadows about their financial viability
profitability. in the long run. Major weaknesses and financial debilities
are still persisting, which need to be addressed particularly,
There lies the prudence on the part of the management to in the backdrop of present scenario where the entire
draw a line of equilibrium and take up such activities which banking industry is running through hard times, in the
are beneficial to members and profitable to the Societies backdrop heavy overdue.
at the same time. There are good number of good working
Key summary statistics on PACS

About the author (for three years as on 31 March 2019)
(Amount in Rs. crores)
S Satyanaryana 2016-17 2017-18 2018-19
Faculty Member
TSCAB-CTI 1 Number of PACS 95595 95238 95995
Hyderabad. 2 Paid-up capital 142156 14142 22817

BANKING FINANCE | MAY | 2021 | 35