CHAPTER 4

RESEARCH METHODOLOGY

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 CHAPTER - 4

RESEARCH METHODOLOGY
4.1 Introduction

The present study is related to the functioning of "Saraswat Co-operative

Bank Ltd, Maharashtra Zone.

"Service to the Common Man" has been the motto of Saraswat Co-

operative Bank for the last 91 years. Bank inspite of its growth in size has

been able to offer to the customers the dual advantage of "Ability of Big

Banks and Agility of Small Banks"

As is well known, a bank is an economic organization as well as a social

institution. Therefore, it must work successfully as an economic

organization and at the same time serve the society in the best possible

manner. Bank is an organ of society, which establishes itself on the

support and trust of society. It must therefore, discharge obligations

towards the various sections of the community. These obligations come

under the social responsibilities of a business social responsibility implies

intelligent and objective concern for the welfare of society that leads in

the direction of positive contribution to human betterment.

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The Saraswat Co-operative Bank Ltd, Maharashtra has carved a niche in

the co-operative banking sector with its rich heritage, integrity adherence

to prudent banking practices rapid modernization professional

management and excellence in all the areas of working financial prudence

is the Bank's hallmark. At the same time, "service to the common man"

is the Bank's motto. The Bank has been contributing significantly

towards empowerment of women and promotion of the priority sector and

weaker sections of the population. Thus, the Bank strives sincerely, not

only for the accomplishment of economic objectives (survival, stability

and financial soundness) but also the social objectives (service to the

society).At a time when a large number of co-operative banks in

Maharashtra have come under the Reserve Bank of India's scanner for

financial Irregularities, the Saraswat Co-operative Bank has managed a

performance that has attracted bankers from across the country and

abroad to the banking model it has developed.

The Saraswat co-operative Bank is the largest co-operative bank in

Maharashtra.The present study aims at analysing the objectives, functions

and performance of the Saraswat co-operative banks.

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In view of these functions and responsibilities, the study also aims at

analysing the challenges and opportunities before the banks, and offering

Suggestions for the bank to reach and sustain a higher level of

performance in the near future.

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4.2 Scope of Study

The Saraswat Co-operative Bank Ltd operates through a head office and a

network of 194 branches, all of which are located within the Maharashtra

Zone. Thus the area of operation of the Bank is confined to Maharashtra

The present study focuses on the functioning of saraswat co-operative

Bank Ltd., Maharashtra during the period of 10 years ranging from 2001-

02 to 2009-10.

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4.3 Oblectives of Study
The present study related to the functioning of Saraswat Co-operative

Bank Ltd, Maharashtra has the following objectives.

1) To briefly study the historical background of the Bank, including the

aims and objectives for which it came into existence.

2) To study the overall functioning of the bank with special emphasis on

primary functions viz, deposit mobilization and advancing of loans.

3) To gain familiarity with a phenomenon or to achieve new insights into

it (studies with this object in view are termed as exploratory or

formularize research studies).

4) To portray accurately the characteristics of a particular individual,

situation or a group (studies with this object in view are known as

descriptive research studies).

5) To determine the frequency with which something occurs or with

which it is associated with something else (studies with this object in

view are known as diagnostic research studies)

6) To analyses the financial performance of the bank.

7) "To emerge as one of the premier and most preferred banks in the

country by adopting highest standards of professionalism and excellence

in all the areas of working!!!"

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8) To analyze the overall performance of the bank evaluated on the basis

of other vital parameters (Operational Parameters, Productivity

Parameters and Social Responsibility Parameters).

9) To suggest measures for increasing the efficiency of the bank.

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4.4 Hypothesis

Hypothesis is usually considered as the principle instrument in research.

Its main function is to suggest new experiments and observations. In fact,

many experiments are carried out with the deliberate object of testing

hypothesis.

The Saraswat Co-operative Bank Ltd, Maharashtra, is a well-managed

financially sound, operationally efficient and functionally effective Urban

Co-operative Bank to test a hypothesis of a casual relationship between

variables (such studies are known as hypothesis- testing research studies).

According to the data the overall business of bank (i.e. deposit plus

advances) has been successfully increased, i.e hypothesis.

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4.5 Significance of Study

The significance of present study lies in the analysis of performance

challenges and prospects of the Saraswat Co-operative Bank, a bank that

is living example of men and women empowerment through co- operative

and has been striving sincerely towards the promotion of the priority

sector and weaker sections of the population. The purpose of study is to

another is to discover answer to questions through the applications of

scientific procedures. The main aim of research is to find out the truth

which is hidden and which has not been discovered yet. Though each

study has its own purpose.

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4.6 Research Methodology and Sources of Data

Research Methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is

done. In it we study the research methods concerned with the collection

of data, adopted by a researcher During the course of studying the

research problem, along with social significance touching an important

aspect of advanced or developing society. Research in the common

parlance refers to a search for knowledge. Once can also define research

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as a scientific and systematic search for pertinent information on a

specific topic. In fact, research is an art of scientific

investigation.Research is an academic activity and as such the term

should be used in a technical sense. Research is, thus, an original

contribution to the existing stock of knowledge making for its

advancement. It is the pursuit of truth with the help of study, observation,

comparison and experiment. In short, the search for knowledge through

objective and systematic method of finding solutions to a problem is a

search. The systematic approach concerning generalization and the

formulation of a theory is also research.

A broad definition of research is given by Martin Shuttle worth - "In the

broadest sense of the word, the definition of research includes any

gathering of data, information and facts for the advancement of

knowledge."

Another definition of research is given by Creswell who states -

"Research is a process of steps used to collect and analyze information to

increase our understanding of a topic or issue". It consists of three steps:

Pose a question, collect data to answer the question, and present an

answer to the question.

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The Merriam-Webster Online Dictionary defines research in more detail

as "a studious inquiry or examination; especially : investigation or

experimentation aimed at the discovery and interpretation of facts,

revision of accepted theories or laws in the light of new facts, or practical

application of such new or revised theories or laws".

A part of the study is an overview of literature related to the topic and the

rest is an analysis of data collected from various sources. The two main

sources of data (information relevant to the research problem) in social

science research come from the inner world of library and the outside

world of living people. We may broadly designate these two main sources

simply the 'Paper' and 'People'. 'Paper sources may provide a wealth of

usable information. It is often unnecessary and uneconomical to expand

time and energy mounting field - surveys to collect information readily

obtainable from authentic 'Paper' sources.

In the context of present study, under the rubric of 'Paper' or

'documentary' or 'secondary' sources, we may subsume various

publications on Co-operation by the central and state governments.Books

on co-operation, banking and research methodology. Magazines and

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periodicals related to bankers, newspapers, reports and publications of

various institutions and associations connected with banks and

intemet.When we turn to consider 'People' as the potential sources of

social science data, we identify various forms of observations but more

collection of data from this source. While undertaking a survey, if the

'Universe' or 'Population' is large; the study of all the items in the

population would be impracticable, if not impossible. In such a case, a

sample is a small proportion of population selected for observation and

analysis.

The characteristics of the sample make it possible to draw valid inference

or generalizations about the characteristic of the population from which it

is drawn.The needed information is collected properly planned and

organization questionnaires. The available data is tabulated and analyses

to arrive certain conclusions.The task choosing sample size is hard when

an individual researcher undertakes the research project.There is usually a

trade - off between the desirability of a large Sample and the feasibility

of a small one.The ideal sample is large enough to serve as an adequate

representation of the population about which the researcher wishes to

generalize and small enough to be selected economically - in terms of

subject availability and expense in both time and money.

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There is no fixed number or percentage of subjects that determines the

size of an adequate sample.It may depend on the nature of the population

of interest or the data to gathered and analyzed.A national opinion poll

randomly selects a sample of about 1,500 subjects as a reflection of the

opinion of a population of more than 150 millions United States citizen of

voting age Best and Khan in their book Research in Education have

justified that "Samples of 30 or more are usually considered large

samples and those with fewer than 30, small samples.

"Further, they have also stated that, samples that are larger than necessary

can produce problems. Too large a sample results in higher than required

costs and can result in an ethical concern because the science of the

research will not be improved by having more than the necessary number

of subjects, some persons may be taking the time to participate and

possibly placing themselves at some risk (e.g. embarrassment) with no

benefit the research. Large sample also create administrative and logistic

problems."

Therefore, the size of sample should neither be excessively large nor too

small. .<:n;r^ "T^- ^h 03^

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It should be optimum. An optimum sample is one, which fulfill the

requirements of efficiency representative ness, reliability and flexibility.

Finally, what is important is the care with which the sample is

selected.The ideal method is random selection, letting chance or the laws

of probability determine which members of the population are to be

selected. In 'random' sampling or 'chance' sampling, every item of the

universe has an equal chance of inclusion in the sample.

C.R.Kothari in his book Research Methodology (2008) has justified,

Random Sampling ensures the law of statistics regulatory which states

that if on us average the sample will have the same composition and

characteristics as the universe. This is the reason why random sampling is

considered as the best technique of selecting a representative sample.To

recapitulate thus, sample refers to that universe, which is selected for the

purpose of investigation on the basis of the sample, we attempt to draw

inference concerning the universe. As a general rule, the sample must be

of an optimum size i.e. it should neither be excessively large nor too

small. A large sample is one that includes 30 or more items, where as a

small sample is one in which the number of items is fewer than so

random sampling is the most ideal mattered of selecting a sample as each

item of the universe has an equal chance of being included in the sample.

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Ranjit Kumar in his book ResearcH Methodology has justified research is

a structured inquiry that utiHzes acceptance scientific methodology to

solve problems and create new knowledge that is generally applicable.

For the present study the researcher has restored to the sample survey

method. The sampling technique mainly used is "simple random

sampling." Primary data has been collected through properly planned and

organized questionnaires.

Questionnaires were separately constructed for respondents belonging to

each of the following three categories of people associated with Saraswat

Co-operative Bank Ltd., Maharashtra

1) Members :

2) Directors:

3) Employees:

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4.7 Limitations of Study

Some of the major limitations in respect of the present study are briefly

listed below:

1) One of the supposed limitations is with respect to sampling analysis;

Natural bias of respondents in the reporting of data is often the cause of a

systematic bias in many inquires.

Generally in surveys, people tend to give what they think is the "Correct"

answer rather than revealing their true feelings.

This may lead to incorrect inferences.

2) An important limitation is answered questions - omission of replies

altogether to certain open ended questions by a few respondents, who

were given sufficient time to fill - in the questionnaires leisurely at their

convenience and return the same to the researcher by post.

Partial response affects the analysis, as interoperation of omission is

difficult However, it should be noted that in the present study this

limitation affects the analysis of responses of only a few Directors of "the

bank under study."

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4.8 Review of Literature
Review of literature implies a retrospective survey of literature

concerning the problem at hand.

A review of 'research' already undertaken on related problems is mainly

done to find out what data and other materials, if any, are available for

operational purposes. Knowing what data is available of ten serves to

narrow the problem itself as well as the technique that might be used.

Review of literature also enables a researcher to take new strides in the

field for furtherance of knowledge.

Studies on related problems are useful for indicating the type of

difficulties that be encountered in the present study. At times such studies

may also suggest useful and even new lines of approach to the present

problem.

The researcher, in the course of survey of literature, carefully observed a

number of studies related to banks. However, only a few that are closely

related to the present study are listed below:

1) Contribution of the Co-operative Bank in the development of Nagar

District, special reference to Nagar Urban Co- operative Bank Ltd.,

Ahmednagar (1987 - 88 to 1996 - 97) a dissertation submitted to the

University of Pune for M.phill.Degree in Economics, by Parag Pramod

Kadam, under the guidance of Dr.S.R.Dastane, in 1999.

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The study mainly focuses on the financial position of other Urban Co-

operative Banks in Ahmednagar District, Finally, the researcher offers

suggestions for the bank to increase deposits, ensure uniformity in

lending policies, supply credit to the priority sector and adopt various

other measures to increase the efficiency and productivity.

2) A study of Co-operative credit with special reference to the

Beed District central Co-operative Bank Ltd., Beed by Rajendra.A.Rasal

1991.The study mainly focuses on the significance role played by the

central Co-operative bank in the Co-operative structure for rural finance

and development of rural economy; economic upliftment of the weaker

and neglected economic, the study identifies various constraints faced by

the Bank. The researcher then often suggestions to overcome these

constraints and increase the efficiency of the bank by further mobilizing

deposits, following specific policy for investment, supplying credit to the

priority sector, training of the staff, etc.

References:
1. Ahuja, Ram Research Methods Jaipur, Rawat Pubhcatiions.. P.203,209
2. Kothari, C.R, Research Methodology New Delhi, New Age International (p) limited
publishers. 2004. P 35,68,70,73,74.117,118,138
3. Madan Pankaj, Research Methodology, Global Vision Publishing house. New Delhi - 110002
(INDIA) P.6,7,8