AN EVALUATION OF THE FINANCIAL AND ADMINISTRATIVE EFFICIENCY OF THE RAJASTHAN STATE COOPERATIVE BANK LTD.JAIPUR AND THE BIKANER CENTRAL COOPERATIVE BANK LTD.BIKANER-A COMPARATIVE STUDY
Dhanraj Pandia ,Dr. Archna Tanwar
assistant professor, tantia university
Both the banks viz. Rajasthan State Cooperative Bank Ltd. Jaipur and The Bikaner Central Cooperative Bank Ltd. Bikaner as financial intermediaries play a significant role in the economic development of a country, by facilitating the flow of funds from surplus economic units to deficit income units. The efficiency of the intermediation function carried out by these institutions aims at ensuring stability of the financial system, and guarantee economic development. The dependent variable of this study was financial performance, measured by the return on assets and return on Equity. The predictor variables were financial management efficiency, inferred from capital adequacy, liquidity, financial leverage and market capitalization.Bank specific, industry specific and macroeconomic factors influence banksâ€™ intermediation efficiency, thus affecting bank efficiency and performance. This study adopted the descriptive research design, which involved collection and analysis of both primary and secondary data to infer the relationship among the variables under investigation. Statistical analysis was done with the aid of Statistical Package for Social Sciences (SPSS) software. The results showed that there is a strong and positive relationship between financial and administrative performance of both banks proxied by return on assets (ROA) and return on equity (ROE). The study rejects the null hypothesis that there is no significant relationship between financial management efficiency and financial performance along with administrative efficiency of both these banks. We recommend that these banks in India should adopt efficient financial management mechanisms and administrative mechanisms to improve their performance. Specifically, banks should comply with capital requirements, maintain adequate and optimal liquidity, and leverage on the existing opportunities offered by technology to ensure efficiency. The results of this study are of great benefit to various stakeholders including but not limited to bankers, researchers, regulatory authorities and academicians.
Keywords: financial, administrative, efficiency, Rajasthan State Cooperative Bank Ltd. Jaipur, The Bikaner Central Cooperative Bank Ltd. Bikaner
Journal Name :
EPRA International Journal of Environmental Economics, Commerce and Educational Management
Published on : 2022-01-14