Cost of credit analysis in primary co-operative agriculture and rural development bank (PCARDBS)in Karnataka (India)

摘要

The modernization and improvement of agriculture needs considerable capital for investment. Thus, credit is a vital agricultural input. The adoption of modern technology demands more capital. This indicates the importance of cost management for sustainability of Agricultural credit institutions. With this the present study focuses on cost of credit, profit and loss of primary co-operative agriculture and rural development banks (PCARDBs). Present study on cost of credit in PCARDBs undertaken in the year 2004-05 in five Taluks of Tumkur district (Karnataka). The 15 years time series data on various indicators were collected to study the cost of credit. The Findings inferred that the cost of management of PCARDBs has recordedjsteep increase over the years. Further the loss making PCARDBs also increased Thus need to reduce cost of management on one hand and earn profit on the other. Further, emphasizes the need to delegate power to PCARDBs for sanctioning loans to avoid delay in sanctioning of loans by PCARDBs. It's also felt that efforts have to be made for better coverage of marginal and small farmers by publicity and not by lower interest rates.