Published Online:April 2025
Product Name:The IUP Journal of Corporate Governance
Product Type:Article
Product Code:IJCG120425
DOI:10.71329/IUPJCG/2025.24.2.201-215
Author Name:Ruchi Shukla, Vedururu Gangothri and Swarnima Tiwari
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:201-215
The study examines the non-performing assets (NPAs) of District Central Cooperative Banks (DCCBs) in Andhra Pradesh from a corporate governance viewpoint. It also analyzes the impact of NPAs on the financial performance of DCCBs. For the purpose, five years’ data of DCCBs have been used across three regions of the state. The study analyzes the differences in NPA levels and variations in financial performance, highlighting the major trends and challenges related to governance. The statistical techniques used to analyze the changes over time and to compare the regional performances were: trend analysis, simple linear regression analysis, correlation analysis and one-way ANOVA. The findings of the study show significant level of differences in gross NPA, while the overall financial performance of DCCBs remains stable. This could be because very less percentage of standard assets convert into loss assets, which shows the efficiency of corporate governance. However, when it comes to NPA management, loan recovery strategies, proper training of staff for loan assessment and recovery procedures have to be taken into consideration to improve efficiency.
A robust financial system is critical for the growth of an economy (Adam et al., 2020). Cooperative banks play a significant role in financial inclusion by offering banking services to low-, medium-, and small-income population in semi-urban, urban, and rural areas.