Asian Journal of Research in Banking and Finance
Year : 2015, Volume : 5, Issue : 1
First page : ( 175) Last page : ( 185)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2015.00016.4

Financial Viability of the P.A.C.S: D.S.K.U.S Ltd.

Maiti Moinak*, Dr. Muthu S. S. Sudalai**

*MBA Banking Technology, Pondicherry Central University

**Associate Professor, MBA Banking Technology, Pondicherry Central University

Online published on 7 January, 2015.

Abstract

P.A.C.S is the back bone of the cooperative societies. More than 97% of the cooperative societies operating in India are P.A.C.S and also more than 90% of the total agricultural loans are disbursed through this P.A.C.S. Their viability and performance are always in question; even the recent report published by RBI on P.A.C.S says that 44% of them are in loss whereas rests 66% are making profit. So, supervision is needed to this P.A.C.S those are in loss but what about the P.A.C.S that are in profit? The present study analysis was done on selected P.A.C.S using Altman bankruptcy model and CAMEL model to analysis the financial viability and performance of the selected P.A.C.S. The result of the analysis says that in spite of having the one of the best performing P.A.C.S it is operating in the grey zone and worst in many parameters as per the CAMEL model. So, both the loss and profit making P.A.C.S need a strong supervision to improve their overall performance or efficiency. By increasing their efficiency overall efficiency of the cooperative system will increase.

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Keywords

Primary agricultural credit society, financial viability, performance, Altman bankruptcy model, CAMEL model.

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