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Balwinder Singh
Agriculture Cooperative Staff Training Institute
Jalandhar, Punjab, India

In Indian banking, particularly the cooperative banking system, which is not categorized specifically as a profit earning system, the social role played by them is the key in deciding the quantum of business of these banks. An attempt has been made in this paper to estimate the impact of the identified social factors on the business magnitude of cooperative banks. In an attempt to compare the role of social factors in dictating the business of cooperative banks in the state of Punjab ( India ) in pre-reform (1991-92 to 1993-94) versus post-reform period (2000-01 to 2002-03), a sample of six rural cooperative banks is taken. Correlation and stepwise multiple regression methods of statistics are used to analyze and arrive at conclusions. The social factors identified for the purpose of this paper are per capita loans, per capita deposits, per capita agricultural loans, number of square Kms of area per branch office, credit to deposit (CD) ratio and number of members. Four variables: per capita deposits, number of sq. kms of area per branch office, number of members and CD ratio have significant bearing on business volume of cooperative banks in the pre-reform period. However only per capita deposits and CD ratio continued to play significant roles in the post-reform period too. In the post-reform scenario, the social facet is playing a lesser role in defining the business volume of the cooperative banks in Punjab , that too in a negative sense.