Chapter -IV

Profile of Maharashtra and Co-operative credit Societies

under Study

• Introduction

• Co-operation

• International Year of Co-operative

• Main Features of PCSs, CCBs.

• Characteristics of Co-operation

• The working of Employees Co-operative Credit societies

• Co-operative Credit System in Maharashtra

• Divisions of Maharashtra

• Details of Co-operative societies in Maharashtra State

• Region wise & District wise Employees co-operative credit

societies in Maharashtra

• Salary Earners societies in Maharashtra State

• Summary

• Conclusion

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 105
Introduction:

Maharashtra occupies the western and central part of the country and has a
long coastline stretching nearly 720 kilometers along the Arabian Sea. The
Sahyadri mountain ranges provide a physical backbone to the State on the west,
while the Satpuda hills along the north and Bhamragdchiroli-Gaikhuri ranges on
the east serve as it’s natural borders. The state is surrounded by Gujarat to the
North West, Madhya Pradesh to the north, Chhattisgarh to the east, Andhra
Pradesh to the South east, Karnataka to the south and Goa to the south west.

The state enjoys a tropical monsoon climate, the hot scorching summer
from March onwards yields to the rainy monsoon in early June. The rich green
cover persists with mild winter during monsoon season that follows through an
unpleasant October transition. The seasonal rains from the western sea-clouds are
very heavy and the rainfall is over 400 cm on the Sahyadrian creasts. The
Konkan on the windward side is also endowed with heavy rainfall, declining
northwards. East of the Sahyadri, the rainfall diminishes to a meager 70 cm. In
the western plateau districts, with Solapur-Ahmednagar lying in the heart of the
dry zone. The rains increase slightly, later in the season, eastwards in the
Marathwada and Vidarbha regions.

Maharashtra is the second largest state in India both in terms of population

and geographical area (3.08 lakh sq.km.). The State has a population of11.24
crore (Census 2011) which in 9.3 per cent of the total population of India. The
State is highly urbanized with 45.2 per cent people residing in urban areas.

The State has 35 districts which are divided into six revenue divisions viz.
Konkan, Pune, Nashik, Aurangabad, Amravati and Nagpur for administrative
purposes. The State has a long tradition of having statutory bodies for planning at
the district level. For local self-government in rural areas, there are 33 Zilla
Parishads, 351 Panchayat Samitis and 27,906 Gram Panchayats. The urban areas
are governed through 26 Muncipal Corporations, 219 Muncipal Councils, 7 Nagar
Panchayats and 7 Cantonment Boards.

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 Mumbai, the capital of Maharashtra and the financial capital of India,
houses the headquarters of most of the major corporate & financial institutions.
India’s main stock exchanges & capital market and commodity exchanges are
located in Mumbai.

The gross State domestic product (GSDP) at current prices for 2011-12 is
estimated at Rs. 11, 99,548 crore and contributes about 14.4 per cent of the GDP.
The GSDP has been growing at a rapid pace over the last few years. Presently
industrial and services sector both together contribute about 87.1 per cent of the
State’s income. The agriculture & allied activities sector contributes 12.9 per cent
to the State’s income.

Maharashtra is the most industrialized State and has maintained leading

position in the industrial sector in India. The State is pioneer in small scale
industries. The State continues to attract industrial investments from both,
domestic as well as foreign institutions. It has become a leading automobile
production has and a major IT growth centre. It boasts of the largest number of
special export promotion zones.

The State has given importance to primary education, which has resulted
in consistent improvement in literacy rate. The literacy rate of the State is 82.9
per cent as against 74 per cent at national level as per census 2011. The State has
excellent higher educational institutions in the fields of engineering, medical and
management.

Progress on Human Development Index is often depicted as a benchmark

of a state’s progress of key development indicators. As per India Human
Development Report, 2011 Human development Index of India is 0.467 and State
ranks 5th in the country with Human development Index of 0.572.

The State is well known for its administrative acumen and innovative
ideas. The state is first to implement Women policy and engendering the budget
by establishing separate Woman & Child Development Department. It is pioneer
in implementing its ‘Employment Guarantee Scheme’ which is replicated by the
Government of India.

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 Maharashtra is not just a geographical expression but an entity built on
collective efforts of its people. Natural as well as cultural as well cultural
diversities have helped in the development of a unique Marathi culture. It has its
own spiritual dimensions and known as land of saints. Saints of that time helped
the cultural awakening of the region along with their spiritual contribution.
Maharashtra has played a significant role in the social and political life of India.
Maharashtra’s contribution to the freedom struggle against the British is notable
and after that it was engaged in the task of nation building. Monuments such as
Ajanta, Ellora and Elephanta caves, Gateway of India and architectural structures
like Viharas and Chaityas have attracted people from all over the world. Besides
the wonderful monuments, segment mix of population and its cultural aspects
makes it intra-national. It has produced many important personalities covering
almost every aspect of human development. The State has sizable contribution in
sports, arts literature and social services. The world famous film industry,
popularly called “Bollywood” is located in Mumbai, a capital city of the State.1

The Co-operative movement in Maharashtra has played a significant role

in the social & economic development of the state. Progress of Co-operative
movement in the last four decades showed increase more than four times. The Co-
operative movement in Maharashtra has historical, social, political & cultural
heritage. Mostly Co-operative spread in western Maharashtra for example Pune,
Baramati, Mumbai, Satara initiated for social reforms by the political leaders and
social orkers. Private credit market of Maharashtra which is dominated by money
lenders (E.g. Savkar, Mahajan) is quite more active in rural as well as in urban
areas. With the modernization of agro based activities & Urban small scale
business increases rural & Urban indebtedness by the end of the nineteenth
century, the agricultural & artisans, small scale businessman, small traders
became almost totally subjected to the control of vigorous money lenders. In the
state of Maharashtra, urban people face several problems like lack of finance,
indebtedness, low productivity expensive manufacturing cost, high cost of money
availability etc. During the early stage of Urban Co-operative Credit Societies
could not satisfy the needs of urban peoples. They did not have enough funds or

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facilities to offer to the urban middle class e.g. small traders or businessman, the
artisans of factory worker, the salaried people with a limited fixed income in the
Urban or semi urban areas. Thus, the urban middle class continued to rely on the
money lenders & suffer. In fact, money lenders proved to be the most common &
easy source of finance to urban middle class @ 22% to 29%. Therefore Co75
operatives played an important role to fulfill the needs of the urban middle class.

Co-operatives in fact supports to the poor & marginal urban peoples. However,
the size of Urban co-operative credit societies is small they could not provide
dequate service to the members. The government gave financial assistance to
these societies.

In Maharashtra, State Co-operative Societies Create an encouraging

environment, spirit of competition & support economic activities in the rural &
urban areas. The government hopes that the revival is successful co-operative
societies could well become the biggest employer in the country & will create
new employment opportunities for the people, especially in rural & Urban areas.
Therefore, the government has introduced various schemes to improve the
economic condition of these societies. The progress of urban co-operative credit
societies & banks can be accessed from the following observations of the Reserve
Bank made in purview of the co-operative movement in India, 1939-40.

The Maharashtra state was known as Mumbai (Bombay) state before 1st
may 1960. Many eminent persons of Maharashtra have contributed to the
development of co-operative movement in Maharashtra to a great extend. Shri.
Vaikunthlal Mehta, Shri R.G. Sarayaa and Shri Dhananjayrao Godgil had been
appointed by the central government and state government on co-operation, they
have made significant contribution to the development of co-operative movement
at national level as well as state level.2

The continuous strategic and planned efforts for the healthy growth of-co-
operative movement in Maharashtra have resulted in spectacular progress of the
movement. The political leaders and social workers from Maharashtra Viz.,
Padmshri Shamraoji Kadam, Shri N.M. Joshi, Shri Vikhe Patil, Shri D.G. Karve,

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 109
Shri G.k. Deodhar, Shri Ramchandra Patil etc. have made great contribution to
the development of co-operative movement in Maharashtra. The work done by
shri om Prakashji Deoda of Hingoli in Marathwada in co-operative credit and
Banking sector is also noteworthy.

Co-operation plays an important role in safeguarding the weak and

unorganized sections of the people engaged in various economic activities. It has
helped in preventing exploitation from capitalists and in raising economic
standards of small farmers, artisans, landless laborer etc. It has also helped in
generating new employment opportunities and enhancing the competitive ability
of the poor section of the society.

Introduction the beginning of 20 the century the British government knew

the bankruptcy of farmers where there id scarcity of supply of the commodities
from government and private sector, the co-operation is the appropriate
alternatives, so the first co-operation was setting in 1904. But to out of co-
operation institutions have been coming existence. The government had the right
of formulating acts in the context of the management of co-operation institutions.
Due to the second co-operation law in 1912, the classification as farmers & non
farmers was abolished. During the post independence periods, for the maximum
utilization of resources in the country, five year planning was given prime
importance planning commission extended the hand of help to the co-operative
sector. The credit of starting co-operative movement goes to Dhananjay Gadgil,
vaikunthbhai mehata w.m. Dhandekar similarly in Maharashtra yeashwantrao
chavan, vasantdada patil, ratnappa kumbhar Rajarambapu patil, Tatysaheb kore
network of co-operative sugar institutions banks, sales & purchase institution of
+6farmer’s commodities, labour Institution, cotton mills. Poultry Institutions,
fruit market Institutions have been spread in Maharashtra.

Co-Operation :

The United Nations General Assembly had declared 2012 as the

International Year of Co-operatives (IYC) highlighting the contribution of co-
operatives in socio-economic development, particularly in poverty reduction,
employment generation and social integration. The theme of IYC 2012 was “Co-
operative Enterprises Build a Better World”. It reiterated the definition of

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 110
cooperative enterprises as autonomous associations of persons united voluntarily
to meet their common economic, social & cultural needs and aspirations, through
a jointly owned and democratically controlled enterprise. IYC 2012 and 100th
birth anniversary of late Shri. Y. B. Chavan were celebrated jointly by arranging
various programmes to encourage cooperative movement in the State. With a
view to encourage economic activities of co-operatives, GOI has made
constitutional amendment and “Constitution (Ninety Seventh Amendment) Act
2011” has came into force from February, 2012. Accordingly, the State has also
issued “Maharashtra Co-operative Societies (Amendment) Ordinance, 2013”.
Highlights of the ordinance, 2013 are as below.

• The term of the managing committee of the society fixed as five years.

• Due representation to be given to SC, ST and women on the managing

committee of the society.

• Managing committee of the society empowered to co-opt “expert directors”.

• Housing societies given powers to issue notices to defaulter members.

• Institutional arrangements strengthened to implement and monitor

provisions of the ordinance.

• Power of State Government to appoint administrator on the society is

withdrawn.

• State Co-operative Election Authority to be constituted by State

Government.5

Considerations for a UN International Year of Cooperatives

The United Nations supports cooperatives. There is a growing consensus

among international agencies about their importance. The World Bank recognises
the role of cooperatives in revitalising the agricultural sector and the rural
economy. In addition, an IMF survey in 2007 showed that “cooperative banks
have become important parts of many financial systems, with attendant potential
financial stability issues”.

Cooperatives may not be the solution to the world’s problems, but they are
certainly part of the solution. An International Year of Cooperatives can firm up

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 111
the international will to strengthen cooperatives and in so doing help achieve the
MDGs and alleviate world crises.

As part of the International Year of Cooperatives, governments could

consider what they can do to strengthen their own cooperative sectors. The
following issues could be considered during the International Year of
Cooperatives:

• There is a need for a public awareness campaign to make people more aware
of the potential of cooperatives and for their current contribution both in
social and economic terms, and for the embedding of cooperative studies in
the school and university curriculum.

• There is a need for information to be made available in the form of basic

statistics on the cooperative sector.

• There is a need to make sure that the legislation applicable to cooperatives

in each country recognizes their unique nature, and provides a level playing
field with other types of business.

• Governments in the developing countries have to develop a strategy for

helping cooperative sectors, as part of their wider poverty reduction
strategies, while making sure they do not imperil cooperative autonomy.

• Governments might ask whether they can work more through consumer
cooperatives to pursue public policy aims such as tackling unhealthy eating,
safeguarding rural services, and promoting local economies.

• Governments could explore the possibility of involving patients and medical

staff more in the governance of their health care systems, so as to maintain
the advantages of mutuality.

• Governments might take the opportunity to examine the role of housing

cooperatives in their urban policies.

• Governments might consider whether they are providing enough support to

cooperative forms of utility provision, and whether there are new
opportunities to involve customers as members, particularly in the move
towards sustainable energy.

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• Governments might consider whether they are providing enough
encouragement for worker-owned businesses in social care.

• Governments might consider whether they might provide more help to

farmers to market their produce in this way.

• Governments could consider measures to help cooperatives and mutual's

facing hostile bids to demutualise them, for example, by changing rules to
make the debate more equal and the decision more transparent.

• As part of the International Year of Cooperatives, governments engaged in

state building in post-conflict areas could be more aware of the potential of
cooperatives for bridging divides.

Table No. 4.1

Main Features of PCSs, CCBs &

ORGANISATION MAIN FEATURES

1. Assessment of credit needs.

Primary
2. Disbursement of credit to members.
Credit 3. Recovery of credit.
4. Promotion of economic interest of members.
Societies

Central Co- 1. Serve as balancing centre in the district central financing

agencies.
operative
2. Organise credit to primaries.
Banks 3. Carry out banking business.
4. Sanction, monitor and control implementation of policies.

State Co-
1. Serve as balancing center in the respective states.
operative
2. Organise provision of credit for creditworthy farmers.
Banks 3. Carry out banking business.
4. Leader of the Co-operative in the sates concerned.

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Types of co-operative credit societies in Maharashtra

The following are the mainly five types of co-operative credit societies in
Maharashtra.

I) Agricultural Co-operative credit societies

a) Maharashtra State Co-operative Bank (Apex Bank)

b) District Central Co-operative Banks.

c) Primary Agricultural Credit Societies (PACS)

d) Maharashtra State Co-operative Agricultural & Rural Development Bank

(MASCARD)

II) Non-Agricultural Co-operative Credit Societies

a) Urban Co-operative banks in Maharashtra

b) Salary Earners Societies in Maharashtra

c) Other Urban Credit Societies in Maharashtra

III) Marketing Co-operatives

a) Maharashtra State Co-operative Marketing Federations

b) District/ Central Co-operative Marketing Societies

c) Primary Co-operative Marketing Societies

d) Maharashtra State Co-operative Cotton Growers Marketing Federation Ltd.

IV) Production Co-operatives:-

a) Co-operative Sugar factories in Maharashtra

b) Co-operative Spinning Mills

c) Primary Handloom Co-operative Societies

d) Primary Power-loom Co-operative Societies

e) Cotton Ginning & Pressing Co-operative Societies

f) Co-operative Oil Mills

g) Co-operative Rice Mills

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 h) Other Processing Societies

i) Maharashtra Rajya Machhimar Sahkari Sangh Ltd.

j) Fisheries Co-operative Central & Primary Societies

k) Dairy Unions in Maharashtra State

l) Co-operative Dairy Societies in Maharashtra.

V) Social Service:-

Co-operative provides several services called social service these societies

known as multipurpose societies. Co-operative works on voluntary basis fulfills
the requirements of rural economy. Social services are concern to store,
processing, supply, marketing, distribution of inputs, technical guidance, supplies
consumer goods etc.

a) Maharashtra State Co-operative Consumers Federation Ltd.

b) Co-operative Consumer Societies (Whole Sale)

c) Primary Co-operative Consumer Societies

d) Women Co-operative Societies

e) Primary Co-operative Housing Societies

f) Co-operative Lift irrigation Societies

g) Co-operative Industrial Estates

h) Primary Industrial Co-operative Societies (Other than Weavers)

i) Forest Labors Co-operative Societies

j) Labor Contract Co-operative Societies

The legal framework essentially covers the following aspects covered under The
Maharashtra Co-operative societies Act, 1960.

A. Registration of Co-operative Societies

B. Rights of the members

C. Privileges of the society

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 D. Property and Funds of the society

E. Management of the society

F. Audit, Inquiry and Inspection

G. Disputes

H. Liquidation of Societies.

I. Offenses and Penalties.

J. Appeals, Reviews and Revision

Characteristics of Co-operative –

The constitution lays down the establishment of ‘Co-operative Common

wealth’ in the country as the ultimate goal of all the activities of the State.
Consequently our economic policy has to be directed in this direction. In out
country Co-operatives are not only in the hands of private enterprises not with
States but are associates with ‘Communism’ or ‘Socialism’. Role ot the State is
planner and essentially be a directing authority and regulation & controlling
economic activities of the Co-operatives. According to first ‘Planning
Commission,’ it is the need of time to plan or economy in democratic state… in
the social process in which, in some development. Cooperation is an instrument,
which, while remaining some of the advantages of decentralization and local
initiative will yet serve uniformly and readily the overall propose and directives of
plan… the Co-operative form of organization can no longer be treated only a
specie within the private sector. It is an indispensable instrument of planned
economic action in a democracy.’ The first five year plan also assigned the role to
Co-operative defining following points:

1. Co-operative \was recognized as an instrument of democratic planning,

combining initiatives, mutual benefits and social purpose.

2. Each village should have a Co-operative society which will cater to the
multiple needs of the members.

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 3. By 1955-56 cooperation should cover 50% of India’s villages and 30% of
the rural population.

4. The Government should take steps to encourage Co-operative farming.

5. Stress was laid on the training of the staff of Co-operative societies.

6. The importance of Co-operative marketing was also emphasized.

Advantages of Co-operative Society

A Co-operative form of business organization has the following

advantages:

i. Easy Formation: Formation of a co-operative society is very easy compared to

a joint stock company. Any ten adults can voluntarily form an association
and get it registered with the Registrar of Co-operative Societies.

ii. Open Membership: Persons having common interest can form a co-operative
society. Any competent person can become a member at any time he/she
likes and can leave the society at will.

iii. Democratic Control: A co-operative society is controlled in a democratic

manner. The members cast their vote to elect their representatives to form a
committee that looks after the day-to-day administration. This committee is
accountable to all the members of the society.

iv. Limited Liability: The liability of members of a co-operative society is

limited to the extent of capital contributed by them. Unlike sole proprietors
and partners the personal properties of members of the co-operative
societies are free from any kind of risk because of business liabilities.

v. Elimination of Middlemen’s Profit: Through co-operatives the members or

consumers control their own supplies and thus, middlemen’s profit is
eliminated.

vi. State Assistance: Both Central and State governments provide all kinds of
help to the societies. Such help may be provided in the form of capital
contribution, loans at low rates of interest, exemption in tax, subsidies in
repayment of loans, etc.

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vii. Stable Life: A co-operative society has a fairly stable life and it continues to
exist for a long period of time. Its existence is not affected by the death,
insolvency, lunacy or resignation of any of its members.

The Working of Employees co-operative credit Societies :

Among diversified activities of co-operative societies, the urban co-

operatives especially, the salary earners co-operative credit societies, in recent
times have made a significant headway and progress and have almost become
integral part of the livelihood of employee’s of any organization for their mutual
help and benefit. Under the present scenario of economy and capital market,
there are glaring instances of number of salary earner’s credit societies in the
country, which are operating with much power and potentialities challenging the
capacity and capabilities of a number of organization operating with banking
business. The salary earners, at their time of need get the facilities of from these
credit societies with parallel development of their thrift habits through a number
of voluntary or compulsory deposit schemes of the co-operative societies.

Membership:

Membership of such societies should be open to all categories of employees

of the particular organization from the highest rank of executives to the workers at
bottom level irrespective of their service and status in the organization. The
management of any society should not indulge in any discrimination in extending
the services and benefits of such society to the members.

1. Management: The Members of salary earner’s co-operative credit societies

are the employee’s of an organization, and therefore, it is quite desirable for
the employers of the particular organization to accept and appreciate the
moral responsibilities for association themselves with the activities of such
societies for extending organization guidance, managerial advice and
operational suggestions to the members of the society as and when
necessary. Such kind of involvement of higher official of the mother
organization in the management of its salary earners co-operative credit
societies may be encouraged for its salary earners co-operative credit society

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 118
 may be encouraged for extending purposeful direction to the co-operative
society to maintain efficiency of the particular co-operative in terms of
profit generation and sustainable viability. There should be regularity in the
election of members of board of directors. On retirement of members of
board of directors after serving for a specified period, new members may be
inducted in the board of directions through the process of election

2. Administration of Accounts: For maintenance of proper accounts in

systematic order and to have absolute transparency in the financial
transactions of a society, audit of the accounts much regularly be ensured.
In every annual general meeting of the society; the audit report on the
accounts of the proceeding year should be placed for discussion among the
members general body for the benefit of the members of the society. The
procedure of internal audit system should also be implemented to bring
perfection and discipline in the accounts.

3. Activities of the Society in Extending Loan of Members: The principal

activity of a salary earners co-operative credit society is to sanction loan to
its members at the time of their requirement but such loan should always be
assessed in relation to the repaying capacity of the member, as more
quantum of loan always invites more indebtedness. The loan should always
be purposeful for a member. The payment of loan to any member in such
societies should be regulated in such a way that there should not be much
delay in processing a case from the day of its receipt. Further, there should
not be any discretion of any person/group of persons in the society to allow
any concession or special consideration to any of the cases.

4. Participation in Shares : To increase the paid up share capital, being a part

of working capital, for utilization as loan able fund in the society a system
should be evolved for transferring a fixed percentage of the amount of every
loan to the share account of the particular member taking loan. The
management must resolve to offer a return to the members of the society by
way of dividend each year against such accumulation of shares.

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 5. Special Deposit Scheme: Deposits constitute the most important source of
the working capital of employee’s co-operative credit society.
Contributions for deposits are deducted compulsorily from monthly salary
of the members. After the survey of various ECC societies in Maharashtra
State, it is observed that such deposit are not so sufficient; to make the
society economically independent therefore it is necessary to every society
to accept maximum special deposits from interested members by giving
attractive and charming rate of interest on such deposits. The working
capital of the society would be increase by adopting about special deposits
scheme. In this way if the credit society become economically sound, then
there is no need of loan from DCC bank, deposits are always better than the
loan, because- 1) Rate of interest on deposits is generally lower than on
loan. 2) If deposits are made by members, it would show that the society is
fulfilling one of its most important duties of encouraging saving. 3) More
deposits are a sign of good credit of the society in the public.

6. Recovery Mechanism and Involvement of Employers : Of late, mounting

over dues has created serious problem as experienced in banks and other
financial institutions and therefore, action oriented strategy for regular; and
timely recovery of loan needs to be formulated by the credit societies and
the employer must recognize such actions for the interest of the employees.

7. Members of the society: Recovery of the dues of the society in every

month should be effected from the salary of the members and prompt
remittance of such recoveries by the employer to the society must be
ensured if outstanding dues are found to be left on account of un-recovered
loan from the member, being retired from service/expired; the employer
should recover the same from gratuity receivable by such members and
remit the proceeds of the same to the society. To reduce liabilities on
account of un-recovered loan for such cases, the society should have a close
and continuous relation and co-ordination with the employer for ensuring a
control over such situation. The above procedure, in recent times, for
recovery of outstanding dues of members living or expired has been adopted

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 in a number of such societies through mutual understanding between the
society and the employer

8. Education: There is much need for giving proper education about co-
operative principle, ideas and rules to its members, delegates and directors.
Extension of such education programmed in regular manner will look after
them to become effective part of the co-operative society should also be
enlightened on co-operative Act and accounts through training courses so
that they may actively associate themselves in the working of the co-
operative.

9. Role of trade unions or employee’s associations : If the employees of any

undertaking constitute any part under any banner of a trade union or
employees’ association, the leaders of the workers union of the same
institution have the capacity and scope to convince or monitor their
employee-members to be associated with the co-operative as its member the
persons in leadership of workers union can play the role to advice their
members to follow and understand the ideals and ideas of co-operative so
that such members may take active part in the affairs of the co-operative
societies and shoulder responsibilities of success of the credit societies
under co-operative principle.

10. Role of employers : The employers should treat employee’s co-operative

credit society as an essential part of the welfare for the employee’s of the
organization and must formulate ideas to extend sympathetic attitude and
helpful privilege towards such societies. The co-operative credit societies
may be provided with free accommodation, electricity and water supply
within the premises and boundaries of the area of the on the consideration
that such societies are working directly for the economic benefit and
betterment of the employees under them. Without active part of the
employer, no salary earners co-operative credit society can work and the
success of such co-operatives depend on substantial support and adequate
assistance from the employers and wholehearted participation of the
members.

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Co-operative credit System in Maharashtra

Maharashtra has all along been a leader in cooperative movement.

Cooperative has become a way of life for people in the State. Almost 50% of the
State’s population is connected to 1.78 lakh cooperative societies, covering
different aspects of people’s day to day life. We have about 20,000 primary
agriculture credit cooperative societies and 31 district central cooperative banks.
As against six villages covered by the society in the country, we in Maharashtra
have one society for two villages. More than 10 million farmers are members of
the primary societies. The cooperative credit system in the State accounts for 65%
of the credit disbursements for agriculture as compared to 35% at national level.
That is why, the State needs to ensure that the cooperative credit institutions
remain vibrant and work in a professional and competitive environment.

Over the time, there has been some slackness in the working of some of
these societies, but I must say that these societies have contributed immensely in
the growth of rural areas in the State. The slackness in the working of many of
these societies can be attributed to many factors, but lack of appropriate incentive
system is one of the key reasons for it. The recommendations of Task Force will
help in creating environment for such incentive system to operate. The
cooperative credit structure in Maharashtra will grow at much faster rate once
faced with competitive forces and will help serve our population better.

The suggestions made by the Task Force relating to financial,

administrative, legal and technical aspects seem to be well throughout. When we
talk of competition, the independence of the concerned institution also needs to be
re-visited and they are required to be given environment for operating freely and
in democratic manner, as demanded by the competitive atmosphere.
Recommendation to provide wider choice on borrowings and investing to
cooperatives and in turn to borrowers is going to galvanize the rural credit system.
Small borrowers will now operate in buyers’ market, thus providing them with
more bargaining power.

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 122
 Map of Maharashtra:

Source: Map of Maharashtraimages.com

Maharashtra state is made up of 35 districts, which are grouped into six divisions
as follows:-

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 123
 Table No. 4.2
Division wise Districts of Maharashtra:-
Sr. Name of the Total
Name of the Districts in the various Division.
No. Division Districts

1. Aurangabad Aurangabad, Beed, Hingoli, Jalna, Latur,

08
Division Nanded, Osmanabad and Parbhani,

2. Amravati Akola, Amravati, Buldhana, Washim and

05
Division Yavatmal

3. Konkan Mumbai City, Mumbai Suburban, Raigad,

06
Division Ratnagiri, Sindhudurg and Thane

4. Nashik Division Ahmednagar, Dhule, Jalgaon, Nandurbar and

05
Nashik

5. Nagpur Bhandara, Chandrapur, Gadchiroli, Gondiya,

06
Division Nagpur and Wardha,

6. Pune Division Kolhapur, Pune, Sangli, Satara and Solapur 05

Details of Districts wise analysis of population, growth of rare, sex ratio,

literacy and Density.

The details analysis of population Census 2011 Published by Govt. of

India of Maharashtra state reveal that population of Maharashtra has increased by
15.99% in this decade compared (2001-2011) to past decade (1991-2001). The
density of Maharashtra state in the current decade is 946 is per sq mile.

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 124
 Details of Districts wise analysis of population, growth of rare, sex ratio,
literacy and Density.

Table No. 4.3

Sr. Growth Sex

District Population Literacy Density
No. of Rate Ration
1 Thane 11,060,148 36.01 % 886 84.53 % 242
2 Pune 9,429,408 30.37 % 915 86.15 % 343
3 Mumbai 9,356,962 8.29 % 860 89.91 % 193
4 Nashik 6,107,187 22.30 % 934 82.31 % 285
5 Nagpur 4,653,570 14.40 % 951 88.39 % 254
6 Ahmadnagar 4,543,159 12.44 % 939 79.05 % 295
7 Solapur 4,317,756 12.16 % 938 77.02 % 320
8 Jalgaon 4,229,917 14.86 % 925 78.20 % 219
9 Kolhapur 3,876,001 10.01 % 957 81.51 % 277
10 Aurangabad 3,701,282 27.76 % 923 79.02 % 197
11 Nanded 3,361,292 16.86 % 943 75.45 % 253
12 Mumbai City 3,085,411 -7.57 % 832 89.21 % 206
13 Satara 3,003,741 6.93 % 988 82.87 % 294
14 Amravati 2,888,445 10.79 % 951 87.38 % 244
15 Sangli 2,822,143 9.24 % 966 81.48 % 244
16 Yavatmal 2,772,348 12.78 % 952 82.82 % 74
17 Raigarh 2,634,200 19.31 % 959 83.14 % 163
18 Buldana 2,586,258 15.85 % 934 83.40 % 242
19 Bid 2,585,049 19.61 % 916 76.99 % 343
20 Latur 2,454,196 17.97 % 928 77.26 % 193
21 Chandrapur 2,204,307 6.43 % 961 80.01 % 285
22 Dhule 2,050,862 20.08 % 946 72.80 % 254
23 Jalna 1,959,046 21.46 % 937 71.52 % 295
24 Parbhani 1,836,086 20.19 % 947 73.34 % 320
25 Akola 1,813,906 11.27 % 946 88.05 % 219
26 Osmanabad 1,657,576 11.50 % 924 78.44 % 277
27 Nandurbar 1,648,295 25.66 % 978 64.38 % 197
28 Ratnagiri 1,615,069 -4.82 % 1122 82.18 % 253
29 Gondiya 1,322,507 10.14 % 999 84.95 % 206
30 Wardha 1,300,774 5.18 % 946 86.99 % 294
31 Bhandara 1,200,334 5.65 % 982 83.76 % 244
32 Washim 1,197,160 17.34 % 930 83.25 % 244
33 Hingoli 1,177,345 19.27 % 942 78.17 % 74
34 Gadchiroli 1,072,942 10.58 % 982 74.36 % 163
35 Sindhudurg 849,651 -2.21 % 1036 85.56 % 242

(Source: population Census 2011 Published by Govt. of India)

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 125
Population:-

Maharashtra is the second largest State in India in respect of population

after Uttar Pradesh. The population of Maharashtra as per census,
2011(Provisional), was 11.23 crore which contributes to 9.29 percent of the total
population (121.01 crore) of India.

The density of population in the State is 365 which is slightly lower than
that of India’s 382. As per 2011 population census, 45.23 percent of the State’s
population was living in urban areas. This percentage was much higher than that
of all India percentage (31.16). The rural population of the State living in 41,095
villages was 54.77 percent of the total population. During the decade 2001-2011,
the rural population of the State increased by 10.34 percent.

Sex Ratio of Population:-

The sex ratio has marginally improved i.e. from 922 in 2001 to 925 in
2011. The sex ratio is higher in rural area which is 948 as compared to urban area
where it is 899. Though the sex ratio is higher in rural area yet it is decreasing
steadily since 1991. Opposite trend is seen in urban area where it is increased
from 873 in 2001 to 899 in 2011.

Literacy:-

As per the census 2011(Provisional), literacy rate in the State is 82.91 per
cent. It is 89.82 percent and 75.48percent for males and females respectively. At
national level, it is 82.14 percent for males and 65.46 percent for females.

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 126
 Table No. 4.4
District wise Population Characteristics Census 2011
Total Population
No. of
Sr. Male Female
Districts households
No. (In (In Total
(In ‘000)
thousands) thousands)
1 Mumbai City 674 1685 1401 3085
2 Mumbai 2106 5031 4326 9357
3 Thane 2529 5865 5195 11060
4 Raigad 612 1344 129 2634
5 Ratnagiri 397 761 854 1615
6 Sindhudurga 210 417 432 850
7 Nashik 1223 3157 295 6107
8 Dhule 409 1054 997 2051
9 Nandurbar 324 833 815 1648
10 Jalgaon 904 2197 203 4230
11 Ahmednagar 930 2343 220 4543
12 Pune 2152 4924 450 9429
13 Satara 654 1511 149 3004
14 Sangli 598 1436 138 2822
15 Solapur 873 2228 209 4318
16 Kolhapur 840 1981 189 3876
17 Aurangabad 752 1924 1777 3701
18 Jalna 392 1011 948 1959
19 Parbhani 361 943 893 1836
20 Hingoli 229 606 571 1177
21 Beed 536 1349 123 2585
22 Nanded 665 1730 1631 3361
23 Osmanabad 351 862 796 1658
24 Latur 482 1273 1181 2454
25 Buldhana 562 1338 124 2586
26 Akola 396 932 882 1814
27 Washim 259 620 577 1197
28 Amaravati 647 1481 140 2888
29 Yavatmal 647 1420 1352 2772
30 Wardha 310 668 632 1301
31 Nagpur 1042 2385 226 4654
32 Bhandara 278 606 595 1200
33 Gondia 292 662 661 1323
34 Chandrapur 537 1124 108 2204
35 Gadchiroli 250 541 532 1073
Total 24423 58242 54132 112372
Source: Economic Survey of Maharashtra 2014-15

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 127
 Table No. 4.5
DETAILS OF CO-OPERATIVE SOCIETES IN MAHARASHTRA STATE
Sr.
Item 1980-81 1990-91 2000-01 2010-11 2011-12
No.
I Number of Co-operative Societies
(1) Apex and central-agricultural and
31 34 34 34 34
non-agricultural credit society.
(2) Primary Agricultural credit
18,577 19,565 20,551 21,451 21,443
societies.
(3) Non-Agricultural credit societies. 5,474 11,291 22,014 23,434 22,847
(4) Marketing societies. 423 931 1,115 1,779 1,768
(5) Agro-processing enterprises. 14,327 28,954 39,070 48,848 48,529
(6) Social Services & other co-op.
21,915 43,845 75,232 1,28,760 1,33,317
societies.
Total :- 60,747 1,04,620 1,58,016 2,24,306 2,27,938
II Number of Members (In 000’)
(1) Apex and central-agricultural and
1,014 1,485 1,371 247 160
non-agricultural credit society.
(2) Primary Agricultural credit
5,416 7,942 1,0125 1,5001 1,5352
societies.

(3) Non-Agricultural credit societies. 3,759 9,302 18,467 21,618 19,997

(4) Marketing societies. 471 745 840 1,337 1,410

(5) Agro-processing enterprises. 2,124 3,974 6,339 8,010 8,530
(6) Social Services & other co-op.
1,999 3,455 5,880 6,809 6,946
societies.
Total :- 14,783 26,903 43,022 53,022 52,495
III Working Capital (Rs. Crore)
(1) Apex and central-agricultural and
1,831 8,806 39,267 89,719 93,645
non-agricultural credit society.
(2) Primary Agricultural credit
527 1,851 6,988 18,987 17,640
societies.
(3) Non-Agricultural credit societies. 1,209 7,,508 66,887 1,04,814 1,08,385
(4) Marketing societies. 188 340 1,518 1,300 1,496
(5) Agro-processing enterprises. 1,029 4,588 13,288 28,717 22,690
(6) Social Services & other co-op.
426 1,191 6,492 4,897 4,969
societies.
Total :- 5,210 24,284 1,34,440 2,48,434 2,48,825

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 128
IV Gross Loan (Rs. Crore)

(1) Apex and central-agricultural and

1,528 9,085 28,709 40,436 46,414
non-agricultural credit society.
(2) Primary Agricultural credit
250 800 3,734 8,060 7,650
societies.
(3) Non-Agricultural credit societies. 1,129 5,178 39,268 49,907 59,723
(4) Marketing societies. 3 8 18 11 12
(5) Agro-processing enterprises. 12 17 103 2,052 3,347
(6) Social Services & other co-op.
12 60 235 215 60
societies.
Total :- 2,934 1,51,48 72,067 1,00,681 1,17,406
V Outstanding Loans (Rs. Crore)

(1) Apex and central-agricultural and

1,337 2,889 23,120 42,385 47,503
non-agricultural credit society.

(2) Primary Agricultural credit

384 1,310 5,308 12,024 12,723
societies.
(3) Non-Agricultural credit societies. 731 4,594 35,908 47,863 50,757
(4) Marketing societies. 4 9 182 5,032 5,266
(5) Agro-processing enterprises. 30 69 236 3,724 10,023
(6) Social Services & other co-op.
25 191 2,899 834 857
societies.
Total :- 2,311 12,062 67,653 1,11,862 1,27,129
Turnover-Value of produced goods
VI
sold (Rs. Crore)
(1) Apex and central-agricultural and
N.A. N.A. N.A. N.A. N.A.
non-agricultural credit society.
(2) Primary Agricultural credit
146 239 1,012 539 790
societies.
(3) Non-Agricultural credit societies. 10 .. 38 76 77
(4) Marketing societies. 979 2,602 3,205 1,368 1,431
(5) Agro-processing enterprises. 1,031 3,467 7,496 46,112 31,910
(6) Social Services & other co-op.
187 330 1,588 4,076 4,854
societies.
Total :- 2,353 6,638 13,339 52,225 39,062

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 129
 Table No 4.6
SOCIITY WISE CO-OPERATIVE CREDIT SOCIETIES IN
MAHARASHTRA STATE (2011-12)
Sr. Type of Society No. of No. of Working Gross Outstanding Turnover
No. Society members Capital loan loan Value of
(Th.) (Crore) (Crore) (Crore) produced
goods
sold(Crore)
1 Appex &
Central
34 260 93,645 46,414 47,503 --
Agricultural
Credit Societies
2 Agricultural
21,443 15,352 17,640 7,650 12,723 790
Credit Societies
3 Non
Agricultural 22,847 19,997 108,385 59,723 50,757 77
Credit Societies
4 Marketing
1,768 1,410 1,496 ,12 5,266 1,431
Societies
5 Agro-processing
48,529 8,530 22,690 3,347 10,023 31,910
enterprices
6 Social services
& other Co-op. 1,33,317 6,946 4,969 260 857 4,854
Societies
Total 2,27,938 52,495 2,48,825 1,17,406 1,27,129 39,062
Ref; - Commissioner for Co-operation and Registrar of co-operative Societies, Government of
Maharashtra, Pune.

Table No. 4.7

Regionwise and Yearwise Employees Co-operative societies in Maharashtra

Sr. Region 2009-10 2010-11 2011-12

No.
Kokan Region 1367 1361 1371
I

II Nashik Region 1021 1033 1030

Pune Region 1476 1791 1762

III
Aurangabad Region 1252 1365 1375
IV

V Amravati Region 852 858 860

VI Nagpur Region 811 909 916

Maharashtra State 6779 7317 7314

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 130
 Table No. 4.8
Region wise & District wise ECC societies in Maharashtra State

Sr.
Region/District 2010 2011 2012
No.
1 Mumbai 785 777 776
2 Thane 274 275 285
3 Raigad 176 176 178
4 Sindhudurgh 47 47 47
5 Ratnagiri 85 86 85
I Kokan Region 1367 1361 1371
6 Nashik 419 433 440
7 Dhule 142 142 142
8 Nandurbar 59 58 49
9 Jalgaon 184 182 180
10 Ahemednagar 217 218 219
II Nashik Region 1021 1033 1030
11 Pune 690 683 657
12 Solapur 332 338 339
13 Satara 226 227 227
14 Sangli 194 194 189
15 Kolhapur 341 349 350
III Pune Region 1476 1791 1762
16 Beed 193 191 184
17 Nanded 199 199 199
18 Usmanabad 154 156 157
19 Aurangabad 345 369 375
20 Jalana 60 60 59
21 Parbhani 103 92 99
22 Hingoli 42 44 45
23 Latur 246 254 257
IV Aurangabad Region 1252 1365 1375
24 Buldhana 201 206 208
25 Akola 178 178 178
26 Vashim 69 65 66
27 Amravati 251 254 256
28 Yavatmal 263 155 152
V Amravati Region 852 858 860
29 Vardha 99 100 100
30 Nagpur 296 394 403
31 Bhandara 110 110 110
32 Gondia 63 63 63
33 Chandrapur 181 181 179
34 Gadhchiroli 62 61 61
VI Nagpur Region 811 909 916
Maharashtra State 6779 7317 7314

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 131
 Table No. 4.9

Year wise Employees Credit Co-operative Societies in Maharashtra State

Sr
Item 2005 -06 2006- 07 2007 -08 2008 - 09 2009 - 10 2010 - 11 2011 -12
No.

7,170 7,211 7,222 7,235 7,276 7,318 7,317

01 Societies

3,260 3,032 3,078 3,158 3,203 3,508 3,443

02 Membership
Share
20,7,958 19,7,533 20,1,097 23,5,784 20,4,851 21,7,77 22,5,702
03 Capital
Owned
30,2,050 30,9,829 30,0,093 35,7,606 32,3,021 34,0,482 33,6128
04 Funds

22,4,688 24,5,376 26,8,505 27,3,113 24,4,505 26,9,027 27,5,538

05 Deposits
Borrowing
12,1,597 11,6,479 10,8,182 12,4,631 11,0,876 12,1,507 11,1,965
06 Outstanding
Working
89,3,676 80,6,465 88,6,443 11,08,336 97,6,638 98,6,101 10,4,444
07 Capital
Loans
47,6,602 44,6,263 41,8,781 47,2,640 48,3,002 60,2,527 53,5,756
08 Advanced
Loans
56,7,588 56,9,788 56,2,730 63,2,452 61,6,222 65,4,777 69,2,884
09 Outstanding
Loans Over
3,7,339 26,881 36,984 42,449 37,895 40,167 41,181
10 dues
Societies in
5,721 6,339 6,373 6,446 6,411 6,414 6,579
11 Profit
Amount of
33,749 36,756 31,314 29,592 30,464 39,949 41,030
12 Profit
Societies in
7,20 6,79 7,86 7,51 7,48 7,82 7,25
13 Loss
Amount of
7,95 8,25 2,827 8,76 9,56 8,15 6,84
14 Loss

Ref: - Co-operative movement at a glance in Maharashtra 2012.

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 132
 Table No. 4.10
Number of Employees Co-operative Credit Societies in
n Maharashtra
M

Year No. Of Societies Increase

se /Decrease
Duringg the Year

2005 - 2006 7170 --

2006 - 2007 7211 41

4

2007 - 2008 7222 51

5

2008 -2009 7235 13

1

2009 -2010 7276 41

4

2010 - 2011 7318 42

4

2011 -2012 7317 -1

Source: co-operativ
ive movement at a Glance in Maharashtra 2006-07
07 to 2011-12.
Annual Publication & Registrar of co-operative societies in Maharas
ashtra, Pune.

Graph No. 4.1

Number
ber of Employees Co-operative Credit Societiess in
Maharashtra
No. Off Societies
So

7350 7318 7317

17
7276
7300
7222 7235
7250 7211
7200 7170
70
7150
7100
7050
2005-06
06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
12

Table .No.4.1
.10 shows number of Employees Credit co-opera
erative societies
increasing from thee yyear 2005-06 i.e. 41 societies to 2005-06. i.e.. 7211
7 societies.
In 2007-8, 51 Societ
ieties in registered 13 Societies are expanding slowly
slo in 2008-
09 expanding get red
educed i.e. in the year of 2009-10 i.e. 2009-10 42,
2, societies and
2011-12, 42 societies
ies.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 133
Therefore it has sho
hown uneven membership of every its Employ
loyees scope of
working. Soundness
ss of society depends upon its register off admission of
members.

Table No. 4.11

Number of Mem
embership of Employees Co-operative Credit Societies
S in
Maharashtra
Year No. Of Members Increase /Decrease
/D
During the
he Year
2005 - 2006 3260 --
2006 - 2007 3032 -228
28
2007 - 2008 3078 46
2008 -2009 3158 80
2009 -2010 3203 45
2010 - 2011 3508 305
2011 -2012 3443 -65

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No.4.2
Number
er o
of Membership of Employees Co-operative
Credit Societies in Maharashtra
4000
3508 3443
3500 3260
260 3158 3203
3032 3078 No. Of
3000 Members

2500

Table - No.
o. 4.11 shows increasing number of memberss every
e year. It
indicates expa
panding network of Employees credit co-operativ
tive societies in
Maharashtraa State. In the year 2005 -2006, number of members
m was
326000, whic
ich increased up to 3443000 in the year 2011 -201
012. Formation
& scope off working of every Employees credit co-opera
rative societies
depend up on raising of share capital from its members.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 134
 Table No. 4.12
Share Capital off E
Employees Co-operative Credit Societies in Maharashtra
M

Year No. Share Capital Growth Rat

ate In %
(Rs. in lakh)

2005 - 2006
06 207958 --

2006 - 2007
07 197533 -5.01
01

2007 - 2008
08 201097 1.80
0

2008 -2009
09 235784 17.24
24

2009 -2010
10 204851 -13.12
.12

2010 - 2011
11 21777 89.37
37

2011 -2012
12 225702 936.42
.42

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No. 4.3

Share Cap
Capital of Employees Co-operative Credit Societie
eties
in Maharashtra
250000
No. Share Capital (Rs. in lakh)

200000
150000
100000
50000
No. Share
Sha Capital
0

Year

Table 4.12 sh
shows the total share capital of Employees credi
dit co-operative
societies in Maharas
ashtra during the year 2005 -2006 to 2011 - 201
012. Table No.
4.12 shows that in th
the year 2006 the total capital of Employees credi
dit co-operative
societies were Rs. 20
207958 lakh which increased up to Rs. 225702 lakh
la in the year
2011 -2012. The grow
rowth rate was uneven in the study period & nega
gative in 2010 -
2011 .

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 135
 Table No. 4.13

Own Funds of Em
Employees Co-operative Credit Societies in Ma
aharashtra

Year Owned Funds Growth Rate

R
(Rs. in lakh) In %

2005 - 200
006 302050 -

2006 - 200
007 309829 7779

2007 - 200
008 300093 -9736
36

2008 -200
009 357606 57513
13

2009 -201
010 323021 -34585
85

2010 - 201
011 340482 17461
61

2011 -201
012 336128 -4354
54

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No.4.4

Own
wn Funds of Employees Co-operative Credit
Societies in Maharashtra

360000
350000
340000
330000
320000 Owned
310000 Funds…
300000
290000
280000
270000

Table1 4.13 showss the owned funds of employee’s credit co-opera

erative societies
during 2006 to 2012
12. It shows that in the year 2005 -06 the total
al own funds of
employees credit co--operative societies were Rs. 30,2,050 lakh which
wh increased

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 136
up to Rs. 3361288 lakh in the year 2011-12. The growth rate was
w uneven &
negative in the year 22007 -2008.

Table No.4.14
Deposits of Emp
mployees Co-operative Credit Societies in Mah
aharashtra
Year Deposits Growth Rate
R In
(Rs. in lakh) %
2005 - 2006
06 224688 -
2006 - 2007
07 245376 2068
688
2007 - 2008
08 268505 2312
129
2008 -2009
09 273113 460
608
2009 -2010
10 244505 -2860
608
2010 - 2011
11 269027 2452
522
2011 -2012
12 275538 651
511
Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No.4.5

Deposi
osits of Employees Co-operative Credit Societies in
Maharashtra
300000
Deposits
250000 (Rs. in…
200000
150000
100000
50000
0
2005
005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

The data reg

egarding the total deposits of employee’s credit
dit co-operative
societies in Maharas
ashtra State is shown in table No. 4.14 for the
he period of ten
years. Deposits incre
reased from Rs. 224688 lakh to Rs. 275528 lakh
kh from 2005 -
2006 to2011 - 20122 & its growth rate was uneven. The growth rate was
w positive in
each year. Employee
ee’s credit co-operative society's issue of loan dep
epends upon its
deposities from depo
positors. Therefore to get maximum deposits from
fr depositor
requires attrative rate
ate of interest on it.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 137
 Table No.4.15
Borrowing Outs
tstanding of Employees Co-operative Credit Societies
So in
Maharashtra
Year Borrowing Growth Ra
ate In %
Outstanding
(Rs. in lakh)
2005 - 2006 121597 -
2006 - 2007 116479 -511
118
2007 - 2008 108182 -829
297
2008 -2009 124631 1644
449
2009 -2010 110876 -1375
755
2010 - 2011 121507 1063
631
2011 -2012 111965 -954
542

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No. 4.6

Borrowi
rowing Outstanding of Employees Co-operative Credit Socie
ocieties
in Maharashtra
124631
125000 1215
21597 121507
Borrowing
120000 116479 Outstanding
115000 110876 111965 (Rs. in lakh)
108182
110000
105000
100000
95000

The amount
nt of borrowing outstanding of the employee
ees credit co-
operative socities inn Maharashtra State. In presented in table 4.15 . It is evident
from the table that in the year 2005-06 the borrwing outstanding was
wa Rs. 121597
lakhs which dearease
sed up to Rs. 111965 lakhs whaich increased up
p to
t Rs. 124631
lakh in the year of 20
2008 - 2009. The growth rate was uneven & nega
gative in 2011 -
2012.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 138
 Table No. 4.16
Working Cap
apital of Employees Co-operative Credit Socie
cieties in
Maharashtra

Year Working Capital Growth Rate

te In %
(Rs. in lakh)

2005 - 2006
06 893676 -

2006 - 2007
07 806465 -87211
11

2007 - 2008
08 886443 79978

2008 -2009
09 1108336 221893
93

2009 -2010
10 976638 -131698
98

2010 - 2011
11 986101 9463

2011 -2012
12 104444 -881657
57

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No. 4.7

Workin
rking Capital of Employees Co-operative Credit
Societies in Maharashtra
1108336
1200000
976638 986101
1000000 893676
676 886443
806465
800000
Working
Wo
600000 Cap
Capital (Rs.…
400000
200000 104444

0
2006 2007 2008 2009 2010 2011 2012

Table No. 4.16 sh

shows the working capital of employee’s credit
dit co-operative
societies in Maharas
ashtra State during the year 2005-06 to 2011- 2012.
20 Working
capital increased from
rom Rs. 893676 lakh to Rs. 104444 lakh during 2005
2 - 2006 to
2011 - 2012.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 139
 Table No. 4.17

Loan Advanced of Employees Co-operative Credit Societies in

n Maharashtra
M

Year Loan Advanced Growth Rat

ate In %
(Rs. in lakh)
2005 - 2006
06 476602 -

2006 - 2007
07 446263 -3033
339

2007 - 2008
08 418781 -2748
482

2008 -2009
09 472640 53859
59

2009 -2010
10 483002 10362
62

2010 - 2011
11 602527 11952
525

2011 -2012
12 535756 -6677
771

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No.4. 8

Loan A
Advanced of Employees Co-operative Credit
it
Societies in Maharashtra

700000 602527
535756
600000 47660
6602 446263 472640 483002
418781 Loan
Loa
500000
400000 Advanced
Adv
300000 (Rs.
(Rs in lakh)
200000
100000
0

Data about th
the loan advanced employees credit co-operativ
tive societies in
Maharashtra is tabul
ulated in table 4.17. The table shows the prog
ogress in loans
advanced of Co-oper
erative Credit Societies during the seven period,
d, expect in the
year 2011 -2012. Lo
Loan advanced increase from Rs. 476602 lakh in 2006 to Rs.
535756 lakh in 2011
011 -2012. The growth rate trends were uneven
en in nature &
negative in 2007 -200
008. The cash which is raised from depositors must
mu be utilized
for loan purpose fo
for proper utilization of depositor’s amountt is
i harmful to
society’s stability.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 140
 Table No. 4.18

Loan Outstanding of Employees Co-operative Credit Societies in Maharashtra

Year Loan Outstanding (Rs. in Increase/Decrease %

lakh)

2005 - 2006 567588 --

2006 - 2007 569788 7058

2007 - 2008 562730 69722

2008 -2009 632452 69722

2009 -2010 616222 -16230

2010 - 2011 654777 38555

2011 -2012 692884 38107

Source: co-operative movement at a Glance in Maharashtra 2012.

Graph No. 4.9

Loan Outstanding of Employees Co-operative Credit

Societies in Maharashtra
800000
692884
700000 632452 654777
616222
600000 567588 569788 562730
Loan
500000 Outstanding
(Rs. in lakh)
400000
300000
200000
100000
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Table No. 4.18 shows the total outstanding of the credit societies during
the year 2005 - 2006 to 2011 - 2012. It is evident from the table that in the year
2005 -2006 he loan outstanding was Rs. 567588 lakh is incresed up to Rs. 692884
lakh in the year 20011 -2012. The growth rate was increasing from 2006 to 2012
& after that in the year each year increasing loans.

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 141
 Table No. 4.19
Loan Over dues of Employees Co-operative Credit Societies in
n Maharashtra
M

Year Loan Overdues Growth

h Rate
R in %
(Rs. in lakh)

2005 - 2006 37339 --

2006 - 2007 26881 -10

10458

2007 - 2008 36984 10103

10

2008 -2009 42449 5465

54

2009 -2010 37895 -4

4554

2010 - 2011 40167 2272

22

2011 -2012 41181 1014

10

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No. 4.10

Loan Ove
Over dues of Employees Co-operative Credit
Societies in Maharashtra
50000 42449
40167 41181
37339 36984 37895
40000
26
26881
30000 Loan Overdues
(Rs. in lakh)
20000

10000

0
2005-06 2006
006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Table No. 4.1

4.19 shows the loan overdues of Employees credi
dit co-operative
societies in the year
ar 2005 - 2006 to 2011 - 2012. In the year 2012,
20 total loan
overdue of employee
yee’s co-operative Credit societies was Rs. 3733
339 lakh which
increased up to Rs.. 441181 lakh in the year 2012. The table showss rise
r in growth
rate of overdue in la
last seven year except 2006. Increase in overdo
does affects the
profitability of the so
societies & increases the number of loss societies.
es.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 142
 Table No.4.20
Number of Emp
ployees Co-operative Credit Societies in Profit
fit & Loss in
Maharashtra State.
Increase/
Nuumber of Increase/ Number of
Decrease
Year Soc
ocieties in Decrease during Societies in
during the
Pro
rofit (000) the Year Loss (000)
Year
2005 - 2006 5721 -65 720 --
2006 - 2007 6339 618 679 -41
2007 - 2008 6373 34 786 107
2008 -2009 6446 73 751 -35
2009 -2010 6411 -35 748 -3
2010 - 2011 6414 3 782 34
2011- 2012 6579 165 725 -57
Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No.4.11

Number
ber of Employees Co-operative Credit Societiess in
Profit & Loss in Maharashtra
633
6339 6373 6446 6411 6414 6579
7000
5721
6000 Numbe
mber of Societies
in Prof
Profit (000)
5000
4000 Numbe
mber of Societies
in Loss (000)
3000
2000
720 679 786 751 748 782 725
1000
0
2005-06 200
006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Table No. 4.
4.20 shows the number of employee’s credit
dit co-operative
societies in profit & in loss in Maharashtra during the year 2005 - 2006
2 to 2011 -
2012. In 2006 numbe
ber of credit co-operative credit societies in profit
fit were 5721 &
in loss 720 . It increa
eased in the year 2012 in profit i.e. 6579 lakh & in
i loss i.e. 725
societies. Therefore ggrowth rate of societies in loss are quite high as compared to
societies in profit.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 143
 Table No. 4.21
Amount Profit & L
Loss of Employees Co-operative Credit Socie
ieties in Profit
& Loss in Maharashtra
Year Am
mount of Growth Amount of Growth
P
Profit Rate in % Loss Rate in %
(Rs.
s. In lakh) (Rs. In Laks)
2005 - 2006 333749 -- 795 --

2006 - 2007 336756 3007 825 30

2007 - 2008 331314 -5442 2827 2002

2008 -2009 229592 -1722 876 -1952

2009 -2010 330464 872 956 80

2010 - 2011 339949 9485 815 -141

2011 -2012 441030 1081 984 169

Source: co-ooperative movement at a Glance in Maharashtraa 2012.

Graph No. 4.12

Amount
nt Profit & Loss of Employees Co-operative Cred
edit
Societies in Maharashtra State

45000 39949 41030

36
36756
40000 33749 31314 29592 30464
35000
30000
25000
20000 Amount
unt of Profit
15000
10000 2827 Amount
unt of Loss
5000 795 825 876 956 815 984
0

Table No. 4.2

.21 shows the amount of profit & loss of Employ
oyees credit co-
operative societies in Maharashtra State during the year 2005 - 2006
20 to 2011 -
2012. In 2006 credit
it co-operative societies were in profit of RS. 337
3749 lakh & in
loss with Rs. 795 lak
lakh which increased further in the year 2012 hav
aving profit Rs.
41030 lakh & loss R
Rs. 984 Lakh . Growth rate in amount of loss is quite high as
compared in profit.

Chapter –IV Profile of M

Maharashtra and Co-operative credit Societies under Study Page 144
Summary:

Co-operative movement basically an activities with a common goal, co-

operation refers to the formation of non-profit economic enterprises for the
benefit of their members. Indian government launched the movement with the
enactment of the cooperative societies Act 1904.

The supreme authority was vested in the general meeting, which consisted
of all the members. All decisions as to liabilities, loans, investments, interests, etc.
were to be adopted at the general meeting. During the early years of the
movement, the societies were financed either by loans from government or from
private persons and deposits made by members. The government loan up to a
certain sum was normally interest free. The village-based agricultural credit
societies started giving loans to deserving members. Co-operatives in State of
Maharashtra have made a tremendous development during the last four and half
decade, several types of co-operative societies stated in Maharashtra with mission
to provide overall services to their members and after all to serve for the nation. In
order to development the socio-economic conditions of the rural society’s co-
operatives have no challenge. It is government sponsored co-operative movement
which is opposite to the European movement where people themselves got
mobilized and organizationally defend and promote their specific interests.
However, co-operatives have spread over all in each and every type of services
which are necessary for a common man especially contributed a lot in the uplift of
the rural people. Yet, it is observed that there are some weakness and some
obstacles in co-operative movement, therefore, the movement is working only on
the spirit of the people and this will give strength to people to overcome on any
challenge

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 145
Conclusion:

Indian Government launched the movement with the enactment of the

cooperative societies Act 1904. According to the Act of 1904, the co-operative
societies were to be established in every district and were required to be managed
by members on democratic lines. The supreme authority was vested in the general
meeting, which consisted of all the members. All decisions as to liabilities, loans,
investments, interests, etc. were to be adopted at the general meeting. During the
early years of the movement, the societies were financed either by loans from
government or from private person and deposits made by members. The
government loan up to a certain sum was normally interest free. The village-based
agricultural credit societies started giving loans to deserving members.

Co-operative movement in Maharashtra is based on the remarkable

developments in co-operative societies and co-operative banks. Various
institutions in the above fields are playing vital role in the process of economical,
political and social development of Maharashtra. Maharashtra state is one of the
leading states in the co-operative movement in India. Co-operative in State of
Maharashtra have made a tremendous development during the last four and half
decade, several types of co-operative societies and banks stated in Maharashtra
with mission to provide overall services to their members and after all to serve for
the nation. In order to development the socio-economic conditions of the rural
society’s co-operatives have no challenge. Co-operatives have spread over all in
each and every type of services which are necessary for a common man especially
contributed a lot in the uplift of the rural people. Yet, it is observed that there are
some weakness and some obstacles in co-operative movement, therefore, the
movement is working only on the spirit of the people and this will give strength to
people to overcome on any challenge.

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 146
Reference:-

1. Co-operative movement at a Glance in Maharashtra 2005-06 to 2011-2012 ,

annual Publications, published by office of the commissioner for co-
operation & Registrar of co-cooperative societies Maharashtra State, pune.
2. Economic Survey of Maharashtra 2012-13. Page no. 01-02.
3. Government of India (1985) Draft Seventh Five Year Plan, Publication
Division, New, Dilh9. S.R. Kulkarni (1996) : Urban co-operative Bank an
appraisal New Delhi, anmol Publication Pvt. Ltd. P.No. 6.
4. Chouby B.N. (1968) Principles and practice of Co-operation Banking in
India, Asia Publishing House, Bombay P.4.
5. Srinivas M. (1986) Organisation and management of co-operative Banks,
Print well publishers, jaipur. P.18.
6. Co-operation, Standard XI, & XII , Maharashtra State Board of Secondary
and Higher Secondary Education, Pune - 411 004.Page No. 84
7. Dr. N. Arundhati, Dr. Shriprabhu Chapke, Perspectives of Co-operative
Management, Sai Jyoti Publication Nagpur.-440 002.

8. Government of India (1985) Draft Seventh Five Year Plan, Publication

Division, New, Delhi, Page No. 84

9. Maharashtra Economic Association Oct 2013 to Sep 2014.

10. Review of the co-operative movement in India 1939-40, RBI, pp.57-58.

11. R. D. Bedi (1977): The History & practice of Co-operative, Loyal Book
Depot, Meerut, pp.81, 82.

12. Growth and Progress of Co-Operative Movement in Maharashtra, B. D. Patil,

Online International Interdisciplinary Research Journal, {Bi-Monthly},
ISSN2249-9598, Volume-III, Issue-VI, Nov-Dec2013 P.No-386.

13. Maharashtra State Co-op. union Ltd. Pune.

14. Co-operative movement at a Glance in Maharashtra 2012.

Chapter –IV Profile of Maharashtra and Co-operative credit Societies under Study Page 147