State Cooperative Banking in Northeast India: Financial and Operational Viability Analysis

State Cooperative Banks provide the necessary financial resources to District Cooperative Banks and Primary Agricultural Cooperative Societies and are responsible for their recovery. They have played significant role in the development of rural economy of India. The present paper explores and evaluates the growth and progress of State Cooperative Banks in the North Eastern Region of India. Further, efforts are also given to make a comparative analysis of SCBs in NER & India through some selected financial indicators. It is found that all the financial variables (capital, reserves, deposits, advances, demand, collection and over dues) increased with higher growth rate during 2002-2009 on the basic of Compound Annual Growth Rate. The paper highlights the reasons for slow progress of State Cooperative Banking in the North Eastern Region of India which is considered as the most backward region of the country. Further, this paper focuses on several pitfalls and shortcomings faced by State Cooperative Banks in region. Finally, it is observed that the SCBs in NER are not at par with all India level which is evidenced from the study of some selected financial indicators.