AN EVALUATORY STUDY PERFORMANCE OF PACS IN FINANCIAL INCLUSION

The banking sector in general, and the commercial banks and co-operative banks in particular, have achieved tremendous progress over years in terms of various parameters, such as growth of branches, deposits, asset creation and credit deployment. Their performance was highly admirable. Co-operative banks have been in existence for many decades. They play a crucial role in mobilising the savings of the rural households and also support the agricultural sector by meeting the credit needs of the farmers. The growth of rural-based activities is very much linked with the operations of these prestigious institutions of our country. Co-operative banks also extended their field of operation from rural to urban and semi-urban areas, marking a remarkable development in the field. The main intent of this study is to evaluate the role of primary agriculture credit societies in financial inclusion. In between are those who use the banking services only for deposits and withdrawals of money. But these persons may have only restricted access to the financial system, and may not enjoy the flexibility of access offered to more affluent customers. The profitability and productivity analysis revealed that staff productivity exercised direct influence in determining the level of branch profitability. The study pointed out that the loss making branches employed staff disproportionate to their volume of business. The study suggested two important measures for improving staff productivity.