A Critical Study of Non- Performing Assets of District Central Cooperative Banks in Haryana and Banking Laws

The book entitled “A Critical Study of Non- Performing Assets of District Central Cooperative banks in Haryana and Banking Laws is divided into seven chapters. Banks play an important role in the economic development of a country. As an important sector of the economy, banks act as the backbone of economic development. Banking means the accepting, lending, or investing, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or otherwise. In India, banks are playing a crucial role in the socioeconomic progress of the country after independence. The efficiency of the banking system thus determines the pace of development of the economy.

The main functions of cooperative banks are to provide financial assistance to the lower section of society. Indian Cooperative Societies Act was passed in 1904. Cooperative Societies Act, 1904 was passed on the proposal of Sir Frederick Nicholson (1899) and Sir Edward Law (1901). The object of this act was to set up cooperative credit societies “to encourage thrift, self-help, and cooperation among agriculturists, artisans, and persons of limited means.” The Indian Cooperative Banking system has been facing a very serious problem for a very long period because of non-performing assets. Non- performing assets are those assets that stop generating income for the banks. I have mainly focused in this book is to reduce the level of NPAs by ascertaining the root cause and evaluating the weaknesses and inadequacies in the present mechanism and examines the impact of non-performing assets on the financial performance of district central cooperative banks in Haryana. This book carries The study the concept of NPAs, the major causes for an account to become non-performing, and critically examines the legal provisions to protect banks and recovery from NPAs.

Here in this work in Chapter 1, discussed the introduction, evolution, history, and structure of the Indian banking system. Further, the chapter also explains a brief introduction to nonperforming assets and recovery of debts through legal mechanisms. In Chapter 2 discussed the work already done on the given topic and where the previous researcher lacked in their studies. Chapter 3 includes the introduction of the Indian Cooperative banking system and the structure of Cooperative banking in India. Then the objectives and functions of District Central Cooperative banks are described in detail. In Chapter 4 we have discussed the research methodology and it provides the objectives and hypotheses of the study. It also includes the method of data collection. Chapter 5 related to the impact of NPAs on the financial performance of DCCBs in Haryana. The primary object of the study is to find out the issues of NPAs in DCCBs in Haryana and the impact of NPAs on the financial performance of DCCBs in Haryana. For this purpose, secondary data has been collected among these banks. The secondary data examined the impact of NPA on the financial performance of DCCBs in Haryana whereas in Chapter 6 we have discussed the legal issues for recovery of NPAs. In the last Chapter 7 is related to the conclusion and suggestions.

The book carries all original citations from the publications, in certain cases the views of the experts and researcher are also given and researcher are also given and official websites have been referred. Although I have given sufficient credits to referred authors, but if anyhow it has been missed that is deeply regretted. I will be highly obliged if any error /omission/mistake has been noticed and brought forward by any reader.