Unpaid Lendings and Credit Co-Operative Societies-An Empirical Study
Author : Dr. Umesh H Arahunasi
Abstract :
The financial institutions in India have been facing an acute competition and struggling to control the quantum of unpaid lending. The increasing amount of unpaid lending in any financial institution affects adversely on the financial position. Therefore, every financial institution follows some practices to control unpaid lending. The present study is intended to focus on the practices adopted by the co-operative societies to manage the unpaid lending with special reference to the Jyoti Cooperative Credit Society, Bagalkot, Karnataka State. The deposit of the society in the latest year of the study was Rs. 6.46 Cr. and loan amount was Rs. 7.30 Cr. The recorded profit of the society was Rs. 23.04 Lakhs. The present study is based on the annual reports published by the society. The study reveals that the number of accounts involved in unpaid lending has been increased from 788 to 1035 where the amount of unpaid lending has also been increased by 2.5 times during the study period. The percentage of unpaid lending over the total loan amount was 24.30 percent at the beginning and increased to 45.72 percent at the end of the period. The co-operative credit society under study has witnessed to disclose the higher amount of unpaid lending which is not a good sign for the development of society. Therefore, the society is suggested to take serious action to recover the unpaid lending.
Keywords :
Unpaid lending, NPA, jyoti co-operative society, financial institutions
