A Study on Nοn-Perfοrming Assets of District Cοοperative Central Bank with Special Reference to Cοastal Districts in Andhra Pradesh

Abstract

The cooperative bank is an essential part of the Indian financial system. This bank's main objective is to assist rural areas, particularly those involved in agriculture The District Central Bank as well as all participating banks in particular, cooperative banks contribute significantly to the expansion of the economy. DCC Banks have direct connection to the rural and agricultural sectors. DCC Banks has a unique place in the cooperative banking industry. They function as an intermediary between state cooperative banks and primary credit cooperative societies. Under the New Economic Policy, DCC Banks' operations and governance undergo a significant change. Even though DCC Banks in Andhra Pradesh have tried to address the financial challenges, non-performing assets continue to be a significant problem for most of these banks. Understanding the current status of non-performing assets (NPAs) and the distinctions between NPAs and profits is the goal of this study. An investigation is carried out to ascertain the effects of the bank's advances and loans on the district's earnings and non-performing assets. Essential features including loans and advances, deposits, and profits are investigated, along with the link between the selected banks. It has been found that non-performing assets (NPAs) and the earnings of a select few banks are negatively correlated. Furthermore, it has been found that GDCCB has the highest number of non-performing assets of any bank, and as such, has advised safeguards.