Co Operative Sector Bank and Financial Reforms

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A study on the Urban Cooperative Banks Success and growth – Statistical Analysis MR VIVEK KUMAR TIWARI
ASSISTANT PROFESSOR CAREER GIRLS DEGREE COLLEGE LUCKNOW UP; Abstract - Urban co-operative banks ranked a very significant position in the Indian banking sector. Competent management is prerequisite for the success of any organization. At present highly competitive and globalized business environment, there is an urgent need of professional management for the successful controlling and managing the affairs of the urban co-operative banks. Increasing political hindrance in co-operatives has also affected the strong growth of the cooperative organization. In order to make the management of these banks professional and managing the affairs of these banks on scientific lines, there are several institutions which are directly or indirectly connected involved in imparting education and training to all levels of management. It is hoped that the State Governments will not delay acceptance of the recommendations made by the RBI. In view of the financial sector reforms and de-regulation, Urban Co-operative Banking Sector should be right away freed from restrictive provisions of co-operative Acts so as to make them self- reliant and self- supporting. The purpose of this paper examines the growth and success of the urban cooperative banks through statistical analysis. Key words - significant, urgent, imparting, restriction.

I. INTRODUCTION The Urban Co-operative Banks (UCB’s) have to play an important role in meeting the requirements of small traders, weavers, agriculturists and other lower and middle income group of people. Recently, the UCB’s have been directed to concentrate their efforts towards the industrial development and other priority sectors of the economy. In order to achieve the above objectives, the UCB’s have to make proper credit planning and available financial resources must be allocated properly for such purpose. The progress of the Urban Co-operative Banks (UCB’s) consists a detailed and systematic assessment of its selective variables like share capital, deposits, loans and advances etc. In this chapter, the researcher wants to predict the role of the UCB’s in future through time series analysis, Correlation co-efficient, Chisquare test, Multiple regression and Analysis of variance. Such a growth analysis involves the collection, observation and analysis of data relating to the selective variables. Growth analysis helps in understanding not only the past achievements but also the future aspirations of the UCB’s. It leads to the comparison of the actual performance with that of the expected. The researcher has selected the following statistical tools to evaluate the growth analysis of UCB’s. II. CORRELATION COEFFICIENT The statistical tool with the help of which these relationships between two or more than two variables are studied is called correlation. The measure of correlation,

called the correlation coefficient, summarises in one figure the direction and degree of correlation. Thus correlation analysis refers to the techniques used in measuring the closeness of the relationship between variables. A very simple definition of correlation is that given by A.M. Tuttle,” An analysis of the co-variation of two or more variables is usually called correlation”. The problem of analysing the relation between different series can be broken down into three steps: 1. Determining whether a relation exists and, it if does, measuring it. 2. Testing whether it is significant. 3. Establishing the cause and effect relation, if any. Correlation analysis helps in determining the degree of relationship between two or more variables-it does not tell us anything about cause and effect relationship. Even a high degree of correlation does not necessarily mean that a relationship of cause and effort exists between the variables or, simply stated, correlation does not necessarily imply causation of functional relationship...
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