Journal of Management Research
Volume 16, Number 1 (January–March 2016)
ISSN: 0972-5814 Online ISSN: 0974-455X
Managerial Interventions in Redesigning Resource Flows A Study on the State Cooperative Banks in the NE Region
Chinmoy Roy and Sujit Das
| Abstract |
The latest capital adequacy standard necessitate the banks to maintain minimum percentage of capital with respect to total assets for enhancing efficiency and confidence with a view to assess and manage risks, set financial requirements, when utilizing resources. The accepted convention is that the resource utilized by the banks in different time periods in various components and in a particular location or in a state must be proportionate to the resource collected from various sources and from specific place or state so that the inhabitants or state must get benefit out of activated resources. This study provides a test of resource classification by examining the prevailing practices of SCBs towards risk-return choices within overall guideline which have resource regeneration effect in their structural position. The paper argues that banks with a planned resource utilization approach will respond and manage risk-return through a greater reliance on systematic procedures of interdependence among SCBs, resulting in a greater tolerance of profitability performance. The study conclude that although no significant relationship exists between resource utilization and profitability performance between the SCBs in North Eastern states, but all the banking units have succeeded in minimizing the disparities and in improving profitability performance as compared to the national benchmarks.
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