LITERATURE REVIEW

Magazine name capital market

The article taken for reference from this magazine and the article is named Short term pains,
long-term gain on Pg.-4. It discusses about the rising NPAs, increase in provision coverage,
sluggish credit offtake and dwindling treasury income. It states that these measures are going
to set ways for better valuations. It tells about how the BSE Banker has outperformed the
BSE Sensex by recording robust returns of 174%. It discusses about various banks namely
Bank of India, Union Bank of India, State Bank of India, Bank of Baroda, Punjab National
Bank and IndusInd Bank have reached their all time high during Oct. Nov. 2009 period. It
discusses about the preparedness of various banks for reducing NPAs i.e. by improving
capital adequacy ratio, increasing the minimum provision coverage ratio, introducing new
policies for broader interest rate regime, creating more transparent system and extending
banking reach. It also discusses about the benchmark prime lending rate (BPLR) concept of
RBI which helps to ensure appropriate pricing of loans.
Magazine name business today
The magazine gives us the data about the various commercial banks operating in India and
Ranks them according to four groups namely large banks, Midsize banks, Small banks and
Very Small banks. From the data given in the magazine done by BT-KPMG study is clear
that despite the global credit crisis continues to take its toll- last month the 100th US bank
collapsed since Lehman Brothers the Indian Banks continue to do business as usual and the
result is given in numbers through this survey.
The Maclegan Committee (1914), which is the historical document in the annals of
cooperative movement, has examined the performance of credit cooperatives. It stated
that when the funds are kept rotating, any loaning function of the bank can gear up
successfully and serve very useful purpose.

Unless the loans are repaid punctually,

cooperation is both financially and educationally an illusion.

Kalyani (1970) emphasized on a longer period for the repayment of long term loans in
India. He added that the total burden of interest would be relatively higher in the long
period than in the shorter period, but then this burden would be spread over quite a long

period, making it easier for the borrower to repay his loan in easy installments, thereby
resulting in lesser overdue.
The All India Rural Credit Review Committee (1972) strongly stated that there is an utter
lack of administrative supervision, staff of right type and the requisite scale of and,
therefore, a full check on the utilization of loans is rather difficult. Further it pointed out
that the cooperative system had remained stagnant both in respect of coverage of credit as
well as borrowing members as proportion to the total number of members. Cooperative
credit was short of standards of timeliness, adequacy and dependability. Generally the
over dues were heavy and were rising from year to year.
Datey, the Chairman of the Report of the study team on over dues in cooperative credit
institutions (1974) studied the problem of over dues in cooperative banks and remarked.
About three fourths of over dues arose due to willful default besides internal reasons.
And he suggested that stern action on recalcitrant borrowers should be taken up.