Comparative analysis of the performance of Kerala based banks (Record no. 26685)
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| 000 -LEADER | |
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| fixed length control field | 06927nam a2200181Ia 4500 |
| 003 - CONTROL NUMBER IDENTIFIER | |
| control field | OSt |
| 005 - DATE AND TIME OF LATEST TRANSACTION | |
| control field | 20220829114709.0 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION | |
| fixed length control field | 140128s9999 xx 000 0 und d |
| 082 ## - DEWEY DECIMAL CLASSIFICATION NUMBER | |
| Classification number | 332 |
| Item number | DEV/CO |
| 100 ## - MAIN ENTRY--PERSONAL NAME | |
| Personal name | Devika Mangsatabam |
| 245 ## - TITLE STATEMENT | |
| Title | Comparative analysis of the performance of Kerala based banks |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. (IMPRINT) | |
| Place of publication, distribution, etc. | Vellanikkara |
| Name of publisher, distributor, etc. | Department of Rural Banking and Finance Management, College of Co-operation, Banking and Management |
| Date of publication, distribution, etc. | 2002 |
| 502 ## - DISSERTATION NOTE | |
| Degree type | MSc |
| 520 3# - SUMMARY, ETC. | |
| Summary, etc. | The study entitled "A COMPARATIVE ANALYSIS OF <br/>THE PERFORMANCE OF KERALA BASED BANKS" was conducted <br/>with the following objectives . <br/>. <br/>i) To analyse the performance of Kerala based public, private <br/>and co-operative sector banks. <br/>ii) To compare the relative efficiency of these banks and <br/>iii) To examine the role of these banks in agricultural lending. <br/>The study was conducted in six out of the 10 Kerala <br/>based banks comprising of the State Bank of Tranvancore (SBT) <br/>and South Malabar Gramin Bank (SMBG) in the public sector, <br/>South Indian Bank (SIB), Dhanalakshmi Bank (DB) and Catholic <br/>Syrian Bank (CSB) in the private sector, and Kerala State Co- <br/>operative Bank (KSCB) in the co-operative sector. <br/>The study was conducted for a period of six years from <br/>1994-95 to 1999-00 using mainly secondary data made available <br/>from the Annual Reports of the banks concerned. The first and <br/>second objectives of analysing the performance of Kerala based <br/>public private and co-operative sector banks and comparison of the <br/>relative efficiency of these banks have been done by using three <br/>models viz., Return On Equity (ROE) Decomposition Analysis, <br/>Weighted Productivity Index and Market Share Concept. For <br/> <br/><br/>-- <br/> <br/>assessing the efficiency of each bank using the Market Share <br/>Concept, data were collected from all the 10 banks. Data <br/>pertaining to agricultural lending were also collected from the <br/>concerned banks' head office for analysing the third objective. <br/>Based on the above indicators, individual performance of the banks <br/>were assessed and a Composite Index was developed to rank these <br/>banks. <br/>The study has revealed that CD ratio has been <br/>declining for all the Kerala based banks except SMGB. For all <br/>these banks, the rate of increase in advances has not been as high <br/>as that of deposits which might be due to diversion of deposits by <br/>banks like investment in government and other approved <br/>securities, shares and debentures. <br/>The analysis of the profitability and productivity of <br/>Kerala based banks on the basis of ROE Decomposition Analysis <br/>has revealed that KSCB'is the only bank which could not achieve <br/>the 16-20 per cent internationally accepted ROE and one per cent <br/>ROA. SMGB has performed well showing a continuous increase in <br/>ROE and ROA except in 1996-97 when these values were negative <br/>due to implementation of NPA norms. <br/>When compared to the national average, it was found <br/>that the performance of all the Kerala based banks except KSCB <br/> <br/>was better with respect to the three indicators viz., ROE, ROA and <br/>Equity Multiplier (EM). <br/>The Profit Margin (PM) of the Kerala based banks <br/>except for SMGB has been lower than the industry average which <br/>might be due to the fact that their income has been adversely <br/>affected by the high interest expended on deposits. <br/>The study has also revealed that interest expended on <br/>deposits for SMGB has been very low when compared to the other <br/>Kerala. based banks since the Bank had other sources of funds like <br/>refinance from sponsoring bank and other institutions. The <br/>percentage share of Provisions and Contingencies (P&C) to the <br/>total revenue has been found to be very low in the case of KSCB <br/>and S.rvlGB pointing to the lower NPAs in these two banks. <br/>Among the Kerala based banks, only SMGB could <br/>achieve the internationally accepted criteria of having a Net <br/>Interest Margin (NIM) of three per cent and above. However, the <br/>burden of this particular bank has been observed to be very high <br/>since its non-interest income is negligible. <br/>Analysis based on the Weighted Productivity Index <br/>(WPi) has revealed that KSCB achieved the highest performance in <br/>Employee Productivity (EPi), while SMGB had the lowest <br/> <br/><br/>I <br/> <br/>Employee Productivity (EPi). The low staff productivity of SMGB <br/>might be due to drastic increase in wage bill as the implementation <br/>of the Award of the National Industrial Tribunal (NIT) gave pay <br/>parity in RRBs. <br/>The high Capital Productivity (CPi) of SMGB may be <br/>attributed to an increase in interest income and reduction in <br/>NPAs. The~e has been a general decline in CPi of the private sector <br/>banks - DB, SIB and CSB due to the higher provisioning for NP As. <br/>The market share of the branches, staff, non-deposit <br/>working funds and advances of the six Kerala based banks to the <br/>total of 10 banks has declined during the period of study. This may <br/>be attributed to the increase in the share of other Kerala based <br/>banks not included in the study like Federal Bank, Lord Krishna <br/>Bank and N edungadi Bank. <br/>The market share of SBT in branches, deposits, non- <br/>wage operating expenses and interest spread has declined <br/>consistently during the study period reflecting its declining <br/>prominence as the premier bank in the State. <br/>In the estimation of the efficiency level of Kerala based <br/>banks on Market Share Concept, it has been found that KSCB <br/>obtained the highest score followed by SBT and DB. SMGB, which <br/> <br/> <br/>had performed well in the other two models, performed the lowest <br/>as per this model. This may be attributed to the high share of <br/>branches and staff among its inputs factors. Besides fluctuation in <br/>output factors like non-interest income and the negative net <br/>profits in the 1996-97 have adversely affected its performance. <br/>Although the introduction of financial sector reforms <br/>has led to decline in priority sector lending in general, the <br/>liberalisation of the term 'priority sector' since 1997 has enabled <br/>banks to achieve the target of 40 per cent. The actual <br/>disbursement of credit to priority by Kerala based banks has never <br/>crossed the target of 40 per cent except in the case of SMGB. <br/>SMGB is the only bank, which has been increasing its <br/>percentage share of lending to the priority sector and agriculture <br/>in spite of its increased lending to the Non-Target Group over the <br/>years. <br/>The computation of the Composite Index to assess the <br/>overall performance of Kerala based banks has revealed that <br/>SMGB obtained the highest score followed by KSCB. The lower <br/>performance of SBT and private sector banks may be attributed to <br/>lower ROE, EPi, CPi, and ultimately WPi, lower efficiency based <br/>on market share and low share of agricultural advances to total <br/> advances. ~ <br/><br/> |
| 700 ## - ADDED ENTRY--PERSONAL NAME | |
| Personal name | Molly Joseph (Guide) |
| 856 ## - ELECTRONIC LOCATION AND ACCESS | |
| Uniform Resource Identifier | <a href="http://krishikosh.egranth.ac.in/handle/1/5810104442">http://krishikosh.egranth.ac.in/handle/1/5810104442</a> |
| 942 ## - ADDED ENTRY ELEMENTS (KOHA) | |
| Source of classification or shelving scheme | Dewey Decimal Classification |
| Koha item type | Theses |
| Withdrawn status | Lost status | Source of classification or shelving scheme | Damaged status | Not for loan | Home library | Current library | Shelving location | Date acquired | Total Checkouts | Full call number | Barcode | Date last seen | Price effective from | Koha item type |
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| Dewey Decimal Classification | KAU Central Library, Thrissur | KAU Central Library, Thrissur | Theses | 18/03/2014 | 332 DEV/CO | 171744 | 18/03/2014 | 18/03/2014 | Theses |