International Journal of scientific research and management (IJSRM) ||Volume||3||Issue||7||Pages|| 3316-3323||2015|| \ Website: www.ijsrm.in ISSN (e): 2321-3418 Navdeep Barwal, IJSRM volume 3 issue 7 July 2015 [www.ijsrm.in] Page 3316 Comparative Performance Evaluation Of Himachal Pradesh Co- Operative Bank And Kangra Central Co-Operative Bank Navdeep Barwal, Kuldeep Kumar Assistant Professor, School of Management Studies, Ansal University, Gurgaon, 122003. navdeepbarwal@gmail.com Associate Professor, School of Management, Vedatya Institute, Formerly IIMT, Gurgaon, 122102. chandelk2005@gmail.com ABSTRACT Co-operative structure is a very important part of our financial system especially in rural financing. On grass root level a lot of cooperative societies’ function, which help in solving the financial needs of the rural population. District co-operative banks help these societies to raise money by way of loans. Ultimately state co-operative banks are there to finance the needs of the District co-operative banks. This three tier system is working reasonably well in India. This is parallel channel available to rural population to help them in solving their financial issues. Co-operative institutions have their own merits and demerits. Recently we have observed the fall of so many co-operative banks due to their poor financial health. This paper is an attempt to study the performance of two major co-operative banks which are operating in Himachal Pradesh viz.Himachal Pradesh State Co-operative Bank Ltd. and Kangra Central Co-operative bank Ltd. This paper aims to compare the performance of these two banks on certain parameters which would be very helpful to judge the existence and potential of these banks in future. Key Words: District Central Co-operative bank, Himachal Pradesh State Co-operative Bank Limited, Kangra Central Co-operative Bank Limited. I INTRODUCTION Co-operative structure plays an important role in Indian financial system. In India three tier co- operative structure is followed. The basic principle of co-operation is followed in this structure. At the grass root level various Primary co-operative societies are formed. Members pool in their funds and needy members are given financial assistance from the pool. At district level District Central Co-operative banks are formed. These banks give financial assistance to the primary co-operative societies which fall under their area. These banks ultimately get financial assistance from State co-operative banks. A state co-operative bank is apex bank for rural credit in any state. At present Himachal Pradesh has presence of quite a good number of Commercial banks, Co-operative Banks and RRB. The state had a network of 1925 branches as on 31.03.2015. Out of which 1539 branches are in rural areas, 300 branches in Semi-urban areas and 86 branches in Urban Areas. As far as rural credit is concerned Himachal Pradesh State Co-operative bank (HPSCB) is the apex bank for rural financing in the state. There are three main co-operative banks operating in the state, One is the HPSCB which is operating in six districts namely, Shimla, Mandi, Bilaspur, Kinnaur, Sirmour as District Co- operative bank, Second bank is Kangra Central Co-operative Bank (KCCB) which is operating in