A STUDY ON THE ROLE OF CO-OPERATIVE BANK FOR

PROMOTING FINANCIAL INCLUSION AND RURAL

DEVELOPMENT SPECIAL REFERENCE TO PURATHUR
SERVICE CO-OPERATIVE BANK
PROJECT REPORT
Submitted to University of Calicut in partial fulfilment of the
requirements for the award of the degree of
BACHELOR OF COMMERCE

SUBMITTED BY
SHAMNA SHERIN K
(Reg.No:AAAWBCM021)
Under the Guidance of
Mr. AFSAL ABDUL KHADER.M
(Head of the Department of Commerce) 2021-2024

ANSAR ARABIC COLLEGE, VALAVANNUR

MALAPPURAM, KERALA

DEPARTMENT OF COMMERCE
ANSAR ARABIC COLLEGE, VALAVANNUR

CERTIFICATE
This is to certified that the project entitled “A STUDY ON THE ROLE
OF CO-OPERATIVR BANK FOR PROMOTING FINANCIAL
INCLUSION AND RURAL DEVELOPMENT SPECIAL REFERENCE TO
PURATHUR SERVICE CO-OPERATIVE BANK” submitted to the
UNIVERSITY OF CALICUT in partial fulfilment of the requirement of the
award of the degree of the BACHELOR OF COMMERECE IS record of original
project work done by SHAMNA SHERIN K (Reg. No: AAAWBCM021)
during the period 2022-2025 of this study in the Department of commerce at
ANSAR ARABIC COLLEGE, VALAVANNUR under my super vision and
guidance and the project has not formed the basis for award of any degree or
diploma associate of fellowship or other similar title to any candidate for any
university.

Place: Mr. AFSAL ABDUL KHADER.M

Date: (Head of the Department of
Commerce)
DECLARATION

I am SHIFNA FEBIN CP hereby declare that the project report

entitled “A STUDY ON ROLE OF CO-OPERATIVE BANK FOR
PROMOTING FINANCIAL INCLUSION AND RURAL
DEVELOPMENT SPECIAL REFERENCE TO PURATHUR
SERVICE CO-OPERATIVE BANK” is a record of bona fide research
carried out by for the purpose of submitting to the University of Calicut in partial
fulfilment of the requirement for award of B.com Degree.

I also declare that this is an original work done by me and this same has not been
submitted earlier to the university or any other institution for the fulfilment of the
requirement of course of study or for any other purpose. The work is carried out
under supervision and guidance of Mr. AFSAL ABDUL KHADER.M faculty in
Department of Commerce, ANSAR ARABIC COLLEGE, VALAVANNUR.

Place: SHAMNA SHERIN K

Date: (Reg. No: AAAWBCM021)

ACKNOWLEDGEMENT

With great regards and the first word of gratitude to be recorded here to the
almighty god, who has showered me with bounties of blessing to facilities
smooth progress of the project work and making it a success.
I express my sincere thanks to our principle DR.A I ABDUL MAJEED for given
his consent to undertake project work.
I would like to express my sincere happiness and thankfulness to all people
whose help and support has guided me to carry out this work. At outset, my
humble appreciation and my deep sense of gratitude to Mr. AFSAL ABDUL
KHADER.M Head of Department of Commerce and Mr. RASEEM ABDUL
KHADER.P Assistant professor, Department of Commerce for the cooperation
and valuable advice and continue to assistance throughout the course of the work,
it would not have been possible without their words of encouragement,
instructions and supervision.
Last but not least, I would like to express my gratitude to my parents, friends and
respondents who helped me direct or indirect in the preparation of the project.

Place: SHAMNA SHERIN

K

Date: (Reg. No: AAAWBCM021)

LIST OF CONTENTS

CHAPTER CONTENT PAGE

NO. NO.
INTRODUCTION
Introduction
Statement of the problem
Significance of the study
Scope of the study 11-16
1
Objectives of the study
Research methodology
Period of the study
Limitations of the study

REVIEW OF LITRATURE
2 18-23
THEORETICAL
3 FRAMEWORK 25-27
DATA ANALYSIS AND
4 INTERPRETATION 29-62
FINDINGS,
5 SUGGESTIONS AND 64-67
CONCLUSION
BIBLIOGRAPHY
60-71
 LIST OF TABLES

TABLE NO TITLE PAGE NO

4.1 GENDER WISE CLASSIFICATION 29
4.2 CUSTOMER’S AGE WISE 30
CLASSIFICATION
4.3 CUSTOMER’S EDUCATION WISE 31
CLASSIFICATION
4.4 OCCUPATION WISE CLASSIFICATION 33
4.5 ACCOUNT HOLDERS IN THE BANK 34
4.6 MOTIVATION TO OPEN AN ACCOUNT IN 36
PURATHUR COOPERATIVE BANK

4.7 PERIOD OF MAKING TRANSACTIONS IN 37

ACCOUNTS
4.8 IMPACT OF BANK ON RURAL SAVINGS 39
4.9 LOAN AVAILMENT FROM THE BANK 40
4.10 TYPES OF LOANS AVAILED BY 42
RESPONDENTS
4.11 CUSTOMER SATISFACTION WITH THE LOAN 43
APPROVAL PROCESS
4.12 BANK’S ROLE IN SUPPORTING RURAL 44
ENTREPRENEURS
4.13 FINANCIAL LITERACY PROGRAMS 46
CONDUCTED BY THE BANK
4.14 PARTICIPATION IN BANK’S FINANCIAL 48
AWARENESS PROGRAMS
4.15 CONFIDENCE IN MANAGING THEIR 49
FINANCES AFTER THE PROGRAM
4.16 SIDNIFINANT ROLE IN IMPROVING THE 51
FINANCIAL CONDITION

4.17 IMPACT ON IMPROVING RURAL ECONOMIC 52

GROWTH
4.18 BANK’S ROLE IN POVERTY REDUCTION 53
4.19 IMPACT OF BANK FINANCIAL SUPPORT ON 54
BUSINESS AND INCOME GENERATION
 4.20 BANK’S ROLE IN JOB CREATION IN RURAL 55
ECONOMIES
4.21 BANK’S ROLE IN SUPPORTING 57
AGRICULTURAL FINANCING
4.22 EVALUATION OF THE BANK’S FINANCIAL 58
ASSISTANCE TO FARMERS
4.23 CHALLENGES FACED IN ACCESSING 59
FINANCIAL SERVICES FROM THE BANK
4.24 SUGGESTED IMPROVEMENTS FOR BETTER 61
FINANCIAL SERVICES

LIST OF FIGURES

FIGURE NO TITLE PAGE NO

4.1 GENDER WISE CLASSIFICATION 29
4.2 CUSTOMER’S AGE WISE 30
CLASSIFICATION
4.3 CUSTOMER’S EDUCATION WISE 32
CLASSIFICATION
4.4 OCCUPATION WISE CLASSIFICATION 33
4.5 ACCOUNT HOLDERS IN THE BANK 35
4.6 MOTIVATION TO OPEN AN ACCOUNT IN 36
PURATHUR COOPERATIVE BANK

4.7 PERIOD OF MAKING TRANSACTIONS IN 38

ACCOUNTS
4.8 IMPACT OF BANK ON RURAL SAVINGS 39
4.9 LOAN AVAILMENT FROM THE BANK 41
4.10 TYPES OF LOANS AVAILED BY 42
RESPONDENTS
4.11 CUSTOMER SATISFACTION WITH THE LOAN 44
APPROVAL PROCESS
4.12 BANK’S ROLE IN SUPPORTING RURAL 45
ENTREPRENEURS
4.13 FINANCIAL LITERACY PROGRAMS 47
CONDUCTED BY THE BANK
4.14 PARTICIPATION IN BANK’S FINANCIAL 48
AWARENESS PROGRAMS
4.15 CONFIDENCE IN MANAGING THEIR 50
FINANCES AFTER THE PROGRAM
4.16 SIDNIFINANT ROLE IN IMPROVING THE 51
 FINANCIAL CONDITION

4.17 IMPACT ON IMPROVING RURAL ECONOMIC 52

GROWTH
4.18 BANK’S ROLE IN POVERTY REDUCTION 53
4.19 IMPACT OF BANK FINANCIAL SUPPORT ON 55
BUSINESS AND INCOME GENERATION
4.20 BANK’S ROLE IN JOB CREATION IN RURAL 56
ECONOMIES
4.21 BANK’S ROLE IN SUPPORTING 57
AGRICULTURAL FINANCING
4.22 EVALUATION OF THE BANK’S FINANCIAL 58
ASSISTANCE TO FARMERS
4.23 CHALLENGES FACED IN ACCESSING 60
FINANCIAL SERVICES FROM THE BANK
4.24 SUGGESTED IMPROVEMENTS FOR BETTER 61
FINANCIAL SERVICES

CHAPTER-1
INTRODUCTION

1.1 INTRODUCTION

Financial inclusion is a key driver of economic development, ensuring that

individuals, especially in rural areas, have access to essential financial services
such as savings, credit, insurance, and financial literacy programs. Cooperative
banks play a vital role in this process by catering to the financial needs of
underserved communities, fostering economic stability, and promoting rural
development. Unlike commercial banks, cooperative banks operate with a
community-oriented approach, emphasizing mutual benefit and financial
empowerment at the grassroots level.

This study aims to examine the role of PURATHUR Service Cooperative Bank in
promoting financial inclusion and rural development. The bank serves as a crucial
financial institution for farmers, small businesses, and rural entrepreneurs by
offering accessible credit fac ilities, encouraging savings habits, and supporting
agricultural and business activities. Additionally, the study will explore the bank’s
efforts in financial education, poverty alleviation, and employment generation, all
of which contribute to the overall economic growth of rural communities.

By analyzing the impact, challenges, and effectiveness of PURATHUR Service

Cooperative Bank, this research seeks to provide insights into how cooperative
banking can further strengthen financial inclusion and rural economic progress.
The findings will be valuable for policymakers, banking institutions, and rural
communities in improving banking accessibility and fostering sustainable
development.

1.2 STATEMENT OF THE PROBLEM

Financial inclusion is essential for rural economic development, yet many rural
communities face challenges in accessing banking services, credit, and financial
literacy. Cooperative banks, like PURATHUR Service Cooperative Bank, play a
vital role in bridging this gap by providing savings opportunities, financial support
for farmers and small businesses, and promoting rural employment.

However, the effectiveness of the bank in encouraging savings, supporting

agriculture, fostering entrepreneurship, reducing poverty, and improving financial
awareness needs further evaluation. This study aims to analyze the impact,
challenges, and role of PURATHUR Service Cooperative Bank in promoting
financial inclusion and rural development, while identifying areas for
improvement.

1.3 OBJECTIVES OF THE STUDY

❖ To evaluate the bank's role in encouraging savings habit.
❖ To analyze its support for farmers, entrepreneurs and small businesses.
❖ To examine efforts to educate rural populations about financial matters.
❖ To measure the banks contribution to poverty alleviation and rural economic
growth
❖ To assess it's role in boosting agricultural productivity through financial support.
❖ To explore the bank's role in fostering rural businesses and employment.

1.4 SIGNIFICANCE OF THE STUDY

This study is significant as it highlights the role of cooperative banks in promoting
financial inclusion and rural development, with a special focus on PURATHUR
Service Cooperative Bank. Cooperative banks serve as a financial backbone for
rural communities by providing accessible credit, encouraging savings habits,
supporting farmers and small businesses, and enhancing financial literacy .
By examining the bank’s contributions, this study will help understand how
cooperative banking aids in poverty alleviation, agricultural productivity, and rural
employment generation. Additionally, it will identify the challenges faced by the
bank in reaching its full potential and suggest solutions for improvement. The
findings will be beneficial for policymakers, financial institutions, and rural
stakeholders in formulating strategies to enhance the efficiency of cooperative
banks in fostering rural economic growth. Ultimately, this study aims to contribute
to the development of more inclusive financial systems, ensuring sustainable
economic progress in rural areas.

1.5 SCOPE OF THE STUDY

This study focuses on the role of cooperative banks in promoting financial

inclusion and rural development, with a special reference to PURATHUR Service
Cooperative Bank. The study aims to evaluate how the bank contributes to
encouraging savings habits, providing financial support to farmers, entrepreneurs,
and small businesses, and enhancing financial literacy among rural populations.
Additionally, it examines the bank’s impact on poverty alleviation, agricultural
productivity, and employment generation in rural areas. The scope of this research
extends to understanding the challenges faced by the bank in delivering financial
services, as well as identifying opportunities to improve its effectiveness. The
findings of this study will be useful for banking institutions, policymakers, rural
development agencies, and stakeholders in formulating strategies to strengthen
cooperative banking and enhance financial accessibility in rural areas. Through
this analysis, the study seeks to highlight the significance of cooperative banks in
fostering economic growth and sustainable rural development.

1.6 REASEARCH METHODOLOGY

Research methodology is a way of explaining how research intends to carry out
their research. It is logical, systematic plan to resolve a research problem. A
methodology details a researchers approach to the research to ensure reliable,
valid result that addresses their aim and objectives
SOURCES OF DATA

The study based on both primary and secondary data

PRIMARY DATA
The primary data were gathered through questionnaire. Questionnaire given to 50
respondents.

SECONDARY DATA
The secondary data of the study collected from websites, books, journals etc.

RESEARCH DESIGN
The proposed study is descriptive in nature. Which is based on primary and
secondary data. Primary data collected from customers through questionnaire and
a secondary data collected from internet and some other online journals. The basic
design of the study is based on questionnaire.
SAMPLE DESIGN

SAMPLE SIZE

The size of the sample was collected from 50 respondents with the help of
questionnaire.

SAMPLING AREA
Data collected from PURATHUR area.

TOOLS OF DATA COLLECTION

A well structured questionnaire is used for collecting primary data.

TOOLS FOR DATA ANALYSIS

Percentage analysis.
PRESENTATIONS
And the data are presented using tables, graphs.

1.8 PERIOD OF THE STUDY

The study is conducted for a period of 21 days.

1.9 LIMITATIONS

o The data was collected only from people of PURATHUR locality.

o Some of the respondents feel it has interruption to answer the
questionnaire in their busy schedule.
o The study is conducted in a limited period of time.
o Number of the respondents is limited to 50 samples only.

CHAPTER SCHEME
The study contains five chapters.
1) The first chapter deals with the design of study which include
introduction, significance of the study, objectives of the study,
source of data, methodology, tools of the study.
2) The second chapter deals with review of literature
3) The third chapter include Theoretical framework.
4) The fourth chapter is analysis and interpretation.
 5) The data collected are presented with the help of graphs and diagrams.
6) The fifth chapter shows findings ,suggestions and conclusion.

CHAPTER-2
REVIEW OF LITERATURE
REVIEW OF LITERATURE
A literature review is an overview of the previously published works on a topic. It
is a part of the research report where the researcher analyses and discusses
published/ scholarly information relating to the subject area under research.
Following are some of the research studies on role of cooperative banks for
promoting financial inclusion and rural development

➢ 1..Tejani Rachana (2011),her study entitled "Financial Inclusion and

Performance of Rural Cooperative Banks Gujarat" in in the Research
Journal of Finance and Accounting, examines financial inclusion in rural
Gujarat by assessing the performance of cooperative and regional rural
banks (RRBs). The study highlights that India ranks 50th out of 100
countries in an index of financial inclusion, with only 34% of the
population having access to basic banking services. The study suggests that
commercial banks should take financial inclusion as a business opportunity
rather than just a social responsibility.

➢ 2.Nishanth Stephen and TINSY Rose Tom (2015),their study entitled "
The Role of Cooperative Banks in Financial Inclusion" in the IUP Journal
of Bank Management, explore the contribution of cooperative banks in
promoting financial inclusion. The paper underscores the importance of
access to institutional financial products and services for economic
development and social stability. Despite financial sector reforms in India,
nearly 50% of rural households lack access to any financial institution, and
only 25% receive assistance from banks. The study highlights the urgent
need to bring the remaining 75% under the banking fold by improving
financial literacy and providing financial counseling.

➢ 3.HN Archana (2013),her study entitled “Financial Inclusion – Role of

Institutions ”in the Innovative Journal of Business and Management,
explores the role of institutions in promoting financial inclusion,
 particularly for poor, underprivileged, and vulnerable groups. The study
emphasizes that financial empowerment is a fundamental necessity, and
institutions must work towards ensuring universal financial access .

➢ 4.Olufemi ABIFARIN and SA Bello (2015), their study entitled “

Cooperative Bank as an Effective Financial Inclusion Strategy in Nigeria
”,in the Journal of Law, Policy & Globalization, examine the potential role
of cooperative banks in financial inclusion in Nigeria. The study highlights
that while cooperative banking is a global phenomenon, Nigeria has never
had a true cooperative bank.

➢ 5.P. Lakshmi and S. VISALAKSHMI,\ (2013), their study entitled “

Impact of Cooperatives in Financial Inclusion & Comprehensive
development ”,in the Journal of Finance and Economics, discuss the role of
cooperatives in financial inclusion and their impact on comprehensive
development in India. The study highlights that financial inclusion is
crucial for improving the living conditions of small farmers, rural non-farm
enterprises, and other vulnerable groups. However, despite recognizing its
importance, there is a lack of assessment regarding credit flow to small
borrowers in India.

➢ 6.VG SiDDARAJU (2012), his study entitled “ Cooperatives and Financial

Inclusion in India: Issues and Challenges ”,in the International NGO
Journal, explores the challenges and opportunities of cooperatives in
promoting financial inclusion in India. The paper defines a cooperative as
an autonomous, voluntary association designed to meet economic, social,
and cultural needs through a jointly owned and democratically controlled
enterprise.

➢ 7.Shiv Swaroop Jha (2018),his study entitled “ Regional Rural Bank: An

Important Mechanism for Financial Inclusion ”,in the International Journal
of Advance and Innovative Research, examines the role of Regional Rural
Banks (RRBs) in financial inclusion in India. The paper discusses the
strategic geographical location of RRBs, making them well-positioned to
bridge financial gaps in remote rural areas. Recognizing their importance
for inclusive growth, the Reserve Bank of India (RBI) has allowed RRBs to
collaborate with NGOs, Self-Help Groups (SHGs), and Microfinance
Institutions through Business Correspondent (BC) models.

➢ 8.Georgios C. ALEXOPOULOS (2004),his study entitled “ Financial Co-

operatives and Rural Development in Greece ”,in his research at the
University of Leicester, explores the performance and role of Greek co-
operative banks in rural development. The study examines the evolution of
Greek financial co-operatives, which began emerging in the 1990s, with
three credit cooperatives transforming into co-operative banks in 1992
following a legal framework change. By the early 2000s, Greece had 15
cooperative banks, primarily located in provincial towns, with an apex
institution and a national association supporting them.
➢ 9.Ranjan Kumar Nayak (2012),his study entitled “ Financial Inclusion
through Cooperative Banks: A Feasible Option for Inclusive Growth ”,in
the Indore Management Journal, examines the role of cooperative banks in
promoting financial inclusion and fostering inclusive growth in India .The
findings highlight that India’s economic growth has not been inclusive, as
 evidenced by rising GDP growth rates accompanied by increasing income
inequality, particularly after 2004-05.

➢ 10.Nav Raj SIMKHADA (2013), his study entitled " Problems and
Prospects of the Cooperative Sector in Nepal for Promoting Financial
Inclusion ",in Enterprise Development & Microfinance, examines the role
of cooperatives in promoting financial inclusion in Nepal. The paper
highlights that cooperatives are community-based, member-owned, and
democratically controlled organizations that provide savings, credit,
insurance, and non-financial services to rural populations.

➢ 11.Nishanth Stephen & TINSY Rose Tom (2015),their study entitled "
The Role of Cooperative Banks in Financial Inclusion ",in the IUP Journal
of Bank Management, explore the role of cooperative banks in financial
inclusion in India. The paper underscores the significance of financial
services in economic development, emphasizing their role in creating social
safety nets and protecting individuals from economic shocks. Financial
inclusion, which ensures access to affordable financial products and
services, is essential for empowering marginalized communities.

➢ 12.Tarsem Lal (2019), his study entitled " Measuring Impact of Financial
Inclusion on Rural Development Through Cooperatives ",in the
International Journal of Social Economics, examines the impact of financial
inclusion on rural development through the role of cooperative banks in
three northern states of India—Jammu & Kashmir, Himachal Pradesh, and
Punjab. The study employs exploratory and confirmatory factor analysis,
ANOVA, t-tests, and structural equation modelling (SEM) to analyze
primary data collected from 540 beneficiaries of cooperative banks.

➢ 13.Ajai Kumar Tiwari & Neha Agnihotri (2023),their study entitled “

Evaluating the Role of Cooperative Banks in Promoting Financial Inclusion
in India ”,in the Bayan College International Journal of Multidisciplinary
Research, analyze the role
➢ of cooperative banks in enhancing financial inclusion in India, particularly
by providing credit to small and marginal farmers. The study is based on
secondary data from regulatory bodies like the National Bank for
Agriculture and Rural Development (NABARD) and the Reserve Bank of
India (RBI).

➢ 14.Patrick MURUIKI K Country (2019)Published by the World Council

of Credit Unions (WOCCU), his study entitled “ Promoting Financial
Inclusion: How Credit Unions Are Bringing Financial Inclusion to
Marginalized Communities ”,this study highlights the global impact of
credit unions in promoting financial inclusion, particularly in marginalized
communities.

➢ 15.Ms. JISHA Joseph & TITTO Varghese (2014), their study entitled
"Role of Financial Inclusion in the Development of the Indian Economy
".This paper explores the impact of financial inclusion on India’s economic
development, particularly in the context of banking sector reforms.

➢
➢ 16.Tarsem Lal (2018), International Journal of Social Economics ,his study
entitled " Impact of Financial Inclusion on Poverty Alleviation through
Cooperative Banks ".This study examines how financial inclusion through
 cooperative banks plays a crucial role in poverty alleviation in India,
particularly in the northern states of Jammu & Kashmir, Himachal Pradesh,
and Punjab.

➢ 17.Tarsem Lal (2017), Indian Journal of Commerce ,his study entitled “

Exploring the Role of Cooperatives in Enhancing Social Empowerment of
Rural Households through Financial Inclusion ”.This study investigates
how cooperatives contribute to the social empowerment of rural households
by increasing access to financial services.

CHAPTER-3
THEORETICAL FRAMEWORK

THEORETICAL FRAMEWORK
The theoretical framework is the structure that can hold or support a theory of a
research study. The theoretical framework introduces and describes the theory
which explains why the research problem under study exists. It is a foundational
review of existing theories that serves as a roadmap for developing the arguments
you will use in your own work. Theories are developed by researchers to explain
phenomena, draw connections, and make predictions.

3.1 INTRODUCTION TO CO-OPERATIVR BANKING

Co-operative banks are financial institutions owned and operated by their
members, primarily serving rural and semi-urban areas. These banks play a
significant role in promoting financial inclusion, providing affordable credit, and
supporting economic activities in underdeveloped regions. The PURATHUR
Service Co-operative Bank is one such institution dedicated to fostering financial
literacy, improving agricultural productivity, and enhancing rural development.
3.2 Theoretical Foundations of Financial Inclusion and
Rural Development
The study is based on the following key economic and financial theories:
a. Financial Inclusion Theory
This theory emphasizes the importance of providing financial services, such as
savings accounts, credit, and insurance, to underserved populations. It suggests
that financial access enhances economic participation, reduces income inequality,
and improves living standards. Co-operative banks play a pivotal role in achieving
financial inclusion by
providing accessible and affordable financial services to rural communities.
b. Rural Development Theory
Rural development theory focuses on improving the economic, social, and
environmental conditions of rural populations. It highlights the significance of
financial institutions in providing capital for agriculture, small businesses, and
infrastructure development, leading to overall economic progress.
c. Theory of Microfinance
Microfinance theory suggests that small loans, savings programs, and financial
education can empower low-income individuals, particularly farmers and
entrepreneurs, to build sustainable livelihoods. Co-operative banks act as key
providers of microfinance services in rural areas.
3.3 Role of Co-operative Banks in Financial Inclusion and
Rural Development
a. Encouraging Savings Habit
Co-operative banks promote financial stability by encouraging people to deposit
their earnings in savings accounts. They offer attractive interest rates and flexible
schemes that cater to low-income groups .By fostering a habit of savings, these
banks help rural communities manage financial risks and emergencies.
b. Supporting Farmers, Entrepreneurs, and Small Businesses
Co-operative banks provide agriculture loans at low-interest rates to help farmers
purchase seeds, fertilizers, and equipment. They support rural entrepreneurs and
small businesses with working capital and credit facilities, boosting local
economic activities .Special loan schemes
are designed to promote self-employment and reduce migration to urban areas.
c. Financial Literacy and Awareness
Financial education programs help rural populations understand banking services,
credit management, and investment opportunities .Awareness campaigns on
digital banking and government financial schemes contribute to better financial
decision-making.
d. Poverty Alleviation and Economic Growth
By providing easy access to credit, co-operative banks enable small-scale
investments that generate income and employment. The financial services offered
help reduce dependence on moneylenders, leading to fairer financial practices in
rural economies.
e. Boosting Agricultural Productivity
Co-operative banks fund modern farming techniques, irrigation projects, and
agro- processing businesses, improving agricultural efficiency .Loan schemes for
livestock, fisheries, and allied activities contribute to diversified rural income
sources.
f. Rural Business Growth and Employment Generation
Investment in rural industries, handicrafts, and small-scale enterprises fosters
local business growth. By financing self-help groups (SHGs) and women
entrepreneurs, co-operative banks contribute to inclusive rural development.
3.4 Conceptual Model of the Study
The study can be represented using a conceptual framework where PURATHUR
Service Co-operative Bank serves as a financial intermediary that influences:
Savings & Financial Literacy → Increased financial stability
Credit to Farmers & Entrepreneurs → Improved agricultural productivity & rural
businesses
Financial Support for Small Enterprises → Higher employment & rural economic
growth
Microfinance & Loan Accessibility → Poverty Reduction & Economic
Empowerment
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

4.1GENDER WISE CLASSIFICATION

FACTORS FREQUENCY PERCENTAGE

MALE 23 46%
FEMALE 27 54%
TOTAL 50 100%
FIGURE 4.1 GENDER WISE CLASSIFICATION
INTERPRETATION
The pie chart represents the gender distribution of 50 responses. It shows that 54%
of respondents identify as female, while 46% identify as male. This means that out
of the 50 participants, 27 are female and 23 are male. Although the chart includes
a category for "Other," no responses were recorded in this category. The data
indicates that there is a slightly higher number of female respondents compared to
male respondents

TABLE 4.2 CUSTOMER’S AGE WISE CLASSIFICATION

FACTORS FREQUENCY PERCENTAGE

Below 25 8 16%
25-35 13 26%
36-45 9 18%
46-55 12 24%
Above 55 8 16%
Total 50 100%

FIGURE 4.2 CUSTOMER’S AGE WISE CLASSIFICATION

 INTERPRETATION
The pie chart represents the age distribution of 50 respondents, divided into five
age groups. The largest group, making up 26% of the respondents, falls within the
25-35 age range, accounting for 13 individuals. The second-largest group is the
46-55 age range, comprising 24% of the respondents, or 12 individuals. The 36-45
age group follows with 18%, representing 9 individuals. Both the Below 25 and
Above 55 age groups each account for 16% of the total responses, meaning 8
individuals belong to each of these categories. This distribution indicates a
relatively balanced spread of age groups, with the highest concentration in the 25-
35 range, suggesting that the survey primarily reached a younger
adult demographic.

TABLE 4.3 CUSTOMER’S EDUCATION WISE

CLASSIFICATION
FACTORS FREQUENCY PERCENTAGE
No formal education 13 26%
Primary education 12 24%
Secondary education 12 24%
Graduate 5 10%
Post graduate 8 16%
Total 50 100%

FIGURE 4.3 EDUCATION WISE CLASSIFICATION

INTERPRETATION
The pie chart illustrates the education levels of 50 respondents, categorized into six
groups. The largest segment, accounting for 26% (13 respondents), consists of
individuals with no formal education. Both the primary and secondary education
categories each make up 24% of the total, representing 12 respondents in each
group. The post-graduate category comprises 16% of the respondents, amounting
to 8 individuals, while the graduate category is the smallest, with only 10% (5
respondents). This distribution suggests that a significant portion of the
respondents have received basic education, while fewer individuals have pursued
higher education.
4.4 OCCUPATION WISE CLASSIFICATION
FACTORS FREQUENCY PERCENTAGE
Farmers 4 8%
Small business owner 9 18%
Entrepreneur 6 12%
Salaried employee 14 28%
Daily wage laborer 2 4%
Other 15 30%
Total 50 100%

FIGURE 4.4 OCCUPATION WISE CLASSIFICATION

INTERPRETATION
The histogram chart represents the occupational distribution of 50
respondents across six categories. The largest group, making up 30% (15
respondents), falls into the "Other" category, indicating a significant
number of individuals engaged in occupations not explicitly listed. The
second-largest category is salaried employees, comprising 28% (14
respondents), suggesting a stable workforce. Small business owners
represent 18% (9 respondents), while entrepreneurs account for 12% (6
respondents), highlighting a notable presence of self-employed individuals.
Farmers make up only 8% (4 respondents), indicating a relatively lower
participation in agriculture. The smallest category, daily wage laborers, is
not assigned a percentage in the legend, implying either a negligible
number or no responses in this category. This distribution suggests a
workforce that is largely diversified, with a strong presence in salaried
employment and self-employment.

4.5 ACCOUNT HOLDERS IN PURATHUR SERVICE

COOPERATIVE BANK

FACTORS FREQUENCY PERCENTAGE

YES 50 100%

NO 0 0%

TOTAL 50 100%

FIGURE 4.5 ACCOUNT HOLDERS IN PURATHUR SERVICE

COOPERATIVE BANK

INTERPRETATION
The pie chart illustrates the responses to the question of whether individuals have a
savings account in the Purathur Service Co-operative Bank. Out of 50 respondents,
100% answered "Yes," indicating that every participant holds a savings account in
the bank. There were no "No" responses, meaning that all surveyed individuals are
associated with the bank in some capacity. This suggests a strong level of trust and
engagement with the cooperative bank within the surveyed group, potentially due
to factors such as accessibility, community ties, or financial benefits provided by
the institution.

4.6 MOTIVATION TO OPEN AN ACCOUNT IN PURATHUR

COOPERATIVE BANK

FIGURES FREQUENCY PERCENTAGE

NEARBY LOCATION 24 48%

EASY PROCESS 16 32%

GOOD INTEREST 3 6%
RATES

GOVERNMENT 7 14%
SCHEMES

OTHERS 0 0%

TOTAL 50 100%

FIGURE 4.6 MOTIVATION TO OPEN AN ACCOUNT IN

PURATHUR SERVICE COOPERATIVE BANK

INTERPRETATION
The pie chart presents the factors that motivated individuals to open an account at
the Purathur Service Co-operative Bank, based on 50 responses. The most
significant factor, cited by 48% of respondents, is the bank’s nearby location,
suggesting convenience plays a crucial role in banking decisions. The second
most common reason, selected by 32%, is the ease of the account-opening
process, indicating that user-friendly procedures attract customers. Government
schemes influenced 14% of respondents, reflecting the impact of state-supported
financial initiatives. Only 6% of individuals were motivated by good interest
rates, suggesting that competitive returns were not a major deciding factor. The
absence of responses in the "Other" category implies that the provided options
adequately captured the primary reasons for choosing the bank. These insights
highlight the importance of accessibility and streamlined services in driving
customer engagement with the bank.

4.7 PERIOD OF MAKING TRANSACTIONS IN ACCOUNTS

FIGURES FREQUENCY PERCENTAGE
MONTHLY 20 40%
OCCASSIONALY 24 48%
RARELY 6 12%
TOTAL 50 100%

FIGURE 4.7 PERIOD OF MAKING TRANSACTIONS IN

ACCOUNTS

INTERPRETATION
The bar chart illustrates the frequency of transactions made by account holders at
the Purathur Service Co-operative Bank based on 50 responses. The largest
proportion, 48%, indicated that they conduct transactions only occasionally,
suggesting that while they maintain accounts, they do not engage in frequent
banking activities. A significant 40% of respondents reported making transactions
on a monthly basis, implying a more active use of their accounts, possibly for
regular financial management or salary deposits. Meanwhile, only 12% of
respondents stated that they rarely make transactions, indicating minimal
engagement with their accounts. This data highlights that while a fair number of
customers actively use the bank for monthly transactions, a considerable portion
engages only sporadically, which could be an area for the bank to explore in terms
of encouraging more regular usage.
4.8 IMPACT OF BANK ON RURAL SAVINGS

FACTORS FREQUENCY PERCENTAGE

 STRONGLY AGREE 20 40%
AGREE 18 36%
NEUTRAL 11 22%
DISAGREE 1 2%
STRONGLY DISAGREE 0 0%
TOTAL 50 100%

FIGURE 4.8 IMPACT OF BANK ON RURAL SAVINGS

INTERPRETATION
The pie chart illustrates respondents' opinions on whether the PURATHUR Service
Co-operative Bank has contributed to promoting a savings habit among the rural
population. Among the 50 responses, a significant 40% strongly agreed,
highlighting a strong belief in the bank’s positive role in encouraging savings.
Additionally, 36% agreed, further supporting the notion that the bank has been
instrumental in fostering financial discipline. Meanwhile, 22% remained neutral,
indicating that they neither fully support nor oppose the statement, possibly due to
a lack of personal experience or visible impact. A very small percentage of
respondents disagreed or strongly disagreed, suggesting minimal dissatisfaction
with the bank’s influence on savings behavior. Overall, the majority opinion leans
towards recognizing the bank’s effectiveness in promoting financial savings among
rural residents.

4.9 LOAN AVAILMENT FROM THE BANK

FACTORS FREQUENCY PERCENTAGE

YES 47 94%

NO 3 6%

TOTAL 50 100%

FIGURE 4.9 LOAN AVAILMENT FROM THE BANK

INTERPRETATION
The pie chart reveals that a vast majority of respondents, 94%, have availed a loan
from the PURATHUR Service Co-operative Bank, while only 6% have not. This
suggests that the bank plays a crucial role in providing financial assistance to its
customers, likely supporting various needs such as agriculture, business, or
personal expenses. The high percentage of loan availing also indicates the trust and
accessibility of the bank's loan services. Meanwhile, the small fraction of
individuals who haven't taken a loan may either not require financial assistance or
prefer alternative lending sources. Overall, the data highlights the bank’s
significant impact on the community’s financial well-being.

4.10 TYPES OF LOANS AVAILED BY RESPONDENTS

FACTORS FREQUENCY PERCENTAGE

AGRICULTURAL LOAN 8 16%
BUSINESS LOAN 14 28%
PERSONAL LOAN 19 38%
EDUCATIONAL LOAN 7 14%
OTHER 2 4%
TOTAL 50 100%

FIGURE 4.10 TYPES OF LOANS AVAILED BY RESPONDENTS

INTERPRETATION
The pie chart provides insights into the types of loans availed by customers of the
PURATHUR Service Co-operative Bank. Among the respondents, the highest
proportion (38%) have taken personal loans, indicating a strong need for financial
support in meeting individual expenses. Business loans account for 28%,
suggesting that the bank plays a significant role in supporting entrepreneurial
activities and small businesses. Agricultural loans make up 16%, highlighting the
bank’s contribution to the farming sector, which is crucial in rural communities.
Educational loans stand at 14%, signifying the bank’s role in supporting higher
education and skill development. A small percentage of respondents (other
category) have taken loans for purposes not listed explicitly. This distribution
reflects the bank’s diverse lending portfolio and its impact on various aspects of
the local economy.
4.11 CUSTOMER SATISFACTION WITH THE LOAN
APPROVAL PROCESS
FACTORS FREQUENCY

HIGHLY SATISFIED 18 36%

SATISFIED 27 54%

NEUTRAL 5 10%

DISSATISFIED 0 0%

TOTAL 50 100%

FIGURE 4.11 CUSTOMER SATISFACTION WITH THE

LOAN APPROVAL PROCESS

INTERPRETATION

The column chart illustrates customer satisfaction with the loan approval process at
the PURATHUR Service Co-operative Bank. A majority of respondents (54%)
reported being satisfied, indicating that the bank's loan processing system meets
the expectations of most customers. Additionally, 36% of respondents expressed
high satisfaction, suggesting that a significant portion of customers find the
approval process efficient and smooth. However, 10% of respondents remained
neutral, possibly indicating that they did not find the process particularly good or
bad. Notably, no respondents reported dissatisfaction, which implies that the bank's
loan approval process is generally well-received. Overall, the data suggests that the
bank is successful in providing a satisfactory and efficient loan approval
experience for its customers

4.12 BANK’S ROLE IN SUPPORTING RURAL

ENTREPRENEURS
FIGURES FREQUENCY PERCENTAGE
STRONGLY AGREE 19 38%
AGREE 19 38%
NEUTRAL 12 24%
DISAGREE 0 0%
STRONGLY DISAGREE 0 0%
TOTAL 50 100%
FIGURE 4.12 BANK’S ROLE IN SUPPORTING RURAL
ENTREPRENEURS

INTERPRETATION
The column chart illustrates how respondents rate the bank's role in supporting
rural entrepreneurs. A combined 76% of respondents either strongly agree (38%)
or agree (38%) that the bank plays a significant role in fostering entrepreneurship
in rural areas. This suggests that the bank is actively contributing to business
growth and economic development in the region. Meanwhile, 24% of respondents
remain neutral, indicating that they neither perceive a strong positive nor negative
impact from the bank’s efforts. Notably, there are no responses in the disagree or
strongly disagree categories, implying that no respondents believe the bank has
failed in this role. Overall, the data highlights a positive perception of the bank’s
support for rural entrepreneurs.

4.13 FINANCIAL LITERACY PROGRAMS CONDUCTED BY

THE BANK

FACTORS FREQUENCY PERCENTAGE

YES 46 92%

NO 4 8%

TOTAL 50 100%

FIGURE 4.13 FINANCIAL LITERACY PROGRAMS

CONDUCTED BY THE BANK

INTERPRETATION
The pie chart indicates that a significant majority (92%) of respondents
acknowledge that the bank has conducted financial literacy programs in their area,
while only 8% report that no such programs have taken place. This suggests that
the bank is actively engaged in promoting financial awareness and education
among the local population. The high percentage of positive responses highlights
the bank's commitment to improving financial knowledge, which can contribute to
better financial management and decision-making among residents. The small
percentage of negative responses may reflect either a lack of awareness about
these programs or areas where such initiatives have not yet reached. Overall, the
data suggests a strong and effective effort by the bank in enhancing financial
literacy in the community.

4.14 PARTICIPATION IN BANK’S FINANCIAL AWARENESS

PROGRAMS
FACTORS FREQUENCY PERCENTAGE
YES 40 80%
NO 10 20%
TOTAL 50 100%

FIGURE 4.14 PARTICIPATION IN BANK’S FINANCIAL

AWARENESS PROGRAMES

INTERPRETATION
The pie chart reveals that 80% of respondents have attended financial awareness
programs conducted by the bank, while 20% have not. This suggests that the
bank's efforts in promoting financial literacy have been largely successful, with a
majority of people engaging in these programs. However, the 20% who have not
attended could indicate either a lack of awareness about these programs, limited
accessibility, or personal disinterest. To enhance participation, the bank may need
to increase its outreach efforts, ensure broader accessibility, and promote the
benefits of financial awareness more effectively. Overall, the data reflects a
positive impact of the bank's financial literacy initiatives, with room for
further improvement.

4.15CONFIDENCE IN MANAGING THEIR FINANCES AFTER

ATTENDING THE PROGRAM
FIGURES FREQUENCY PERCENTAGE
HIGHLY CONFIDENT 16 32%
CONFIDENT 21 42%
NEUTRAL 12 24%
NOT CONFIDENT 1 2%
HIGHLY NOT 0 0%
CONFIDENT
TOTAL 50 100%

FIGURE 4.15 CONFIDENCE IN MANAGING THEIR FINANCES

AFTER ATTENDING THE PROGRAM
INTERPRETATION
The column chart illustrates respondents' confidence in managing their finances
after attending the bank's financial literacy programs. A significant portion, 42%,
feel "Confident," while 32% are "Highly confident," indicating that the majority
(74%) found the programs beneficial in enhancing their financial management
skills. Meanwhile, 24% remain "Neutral," suggesting that the program had a
limited impact on their confidence levels. A very small fraction of respondents,
represented by the green and purple segments, feel "Not confident" or "Highly not
confident." This suggests that while the programs have been effective for most,
there is still room for improvement in engaging and educating participants who
may need further support or tailored financial guidance
4.16 SIGNIFICANT ROLE IN IMPROVING THE FINANCIAL
CONDITION
FACTORS FREQUENCY PERCENTAGE
YES 47 94%
NO 3 6%
TOTAL 50 100%

FIGURE 4.16 SIGNIFICANT ROLE IN IMPROVING THE

FINANCIAL CONDITION

INTERPRETATION
The pie chart shows that an overwhelming majority (94%) of respondents believe
that the bank has played a significant role in improving the financial condition of
people in their area. This indicates that the bank's initiatives, such as financial
literacy programs, loan approvals, and support for rural entrepreneurs, have
positively impacted the community. However, 6% of respondents feel that the bank
has not contributed to financial improvement, suggesting that there may still be
gaps in accessibility, effectiveness, or reach of banking services. Overall, the chart
reflects a strong positive perception of the bank's role in economic development

4.17 IMPACT ON IMPROVING RURAL ECONOMIC GROWTH

Factors Frequency Percentage
Excellent 20 40%
Good 21 42%
Fair 8 16%
Poor 1 2%
Very poor 0 0%
Total 50 100%

FIGURE 4.17IMPACT ON IMPROVING RURAL ECONOMIC

GROWTH

INTERPRETATION
The pie chart shows that 40% of respondents rated the bank's impact on
improving rural economic growth as "Excellent," while 42% rated it as "Good."
This indicates that a majority (82%) perceive the bank as playing a positive role in
rural development. Additionally, 16% rated the impact as "Fair," suggesting there
is room for improvement. A small percentage (around 2%) rated it as "Poor,"
while no respondents marked it as "Very Poor." Overall, the data reflects a strong
but not perfect perception of the bank's efforts in fostering rural economic growth.
4.18 BANK’S ROLE IN POVERTY REDUCTION
FACTORS FREQUENCY PERCENTAGE
STRONGLY AGREE 15 30%
AGREE 26 52%
NEUTRAL 9 18%
DISAGREE 0 0%
STRONGLY DISAGREE 0 0%
TOTAL 50 100%

FIGURE 4.18 BANK’S ROLE IN POVERTY REDUCTION

INTERPRETATION
The pie chart illustrates perceptions of the bank’s role in poverty reduction. A
combined 82% of respondents either strongly agree (30%) or agree (52%) that the
bank has significantly contributed to reducing poverty in their area. Meanwhile,
18% remain neutral, and there is no disagreement reflected in the chart. This
suggests that the bank's initiatives, such as financial support and economic
empowerment programs, have been widely recognized as impactful in improving
financial conditions and alleviating poverty. The overwhelmingly positive
response underscores the bank’s influence in fostering economic stability and
community development.

4.19 IMPACT OF BANK FINANCIAL SUPPORT ON BUSINESS

AND INCOME GENERATION

FACTORS FREQUENCY PERCENTAGE

YES 41 82%
NO 9 18%

TOTAL 50 100%

FIGURE 4.19 IMPACT OF BANK FINANCIAL SUPPORT ON

BUSINESS AND INCOME GENERATION
INTERPRETATION
The pie chart indicates that a significant majority (82%) of respondents have
started businesses or income-generating activities with the financial support of the
bank, while only 18% have not. This suggests that the bank has played a crucial
role in fostering entrepreneurship and economic activity in the community. The
high percentage of individuals benefiting from financial support highlights the
bank's effectiveness in promoting self-sufficiency and economic growth.

4.20 BANK’S ROLE IN JOB CREATION IN RURAL

ECONOMIES
FACTORS FREQUENCY PERCENTAGE
YES 45 90%
NO 5 10%
TOTAL 50 100%

FIGURE 4.20 BANK’S ROLE IN JOB CREATION IN RURAL

ECONOMIES

INTERPRETATION
The pie chart results indicate a strong positive perception of the bank’s role in
supporting rural economic development. In the first chart, 90% of respondents
agree that the bank has contributed to job creation in rural areas, while only 10%
disagree. This suggests that the bank has played a significant role in generating
employment opportunities, likely through financial support for businesses and
agricultural activities.

4.21 BANK’S ROLE IN SUPPORTING AGRICULTURAL

FINANCING
FACTORS FREQUENCY PERCENTAGE
YES 47 94%
NO 3 6%
TOTAL 50 100%
FIGURE 4.21 BANK’S ROLE IN SUPPORTING
AGRICULTURAL FINANCING

INTERPRETATION

The column chart, an overwhelming 94% of respondents acknowledge that the

bank has provided financial assistance for purchasing seeds, fertilizers, and
agricultural equipment, with only 6% stating otherwise. This highlights the bank’s
crucial role in enabling farmers to access necessary resources, which can lead to
increased productivity and economic stability in rural areas. The high approval
ratings in both aspects indicate that the bank’s financial interventions have had a
meaningful impact on the rural economy, supporting both job creation and
agricultural development.
4.22 BANK’S CONTRIBUTION TO PROVIDING FINANCIAL
ASSISTANCE TO FARMERS
FACTORS FREQUENCY PERCENTAGE
EXCELLENT 21 42%
GOOD 26 52%
POOR 3 6%
VERY BAD 0 0%
TOTAL 50 100%

FIGURE 4.22 EVALUATION OF THE BANK’S FINANCIAL

ASSISTANCE TO FARMERS

INTERPRETATION
The bar chart evaluates the bank’s contribution to providing financial assistance to
farmers. A majority of respondents (52%) rated the bank’s efforts as “Good,”
followed by 42% who rated it as “Excellent.” However, 6% of respondents found
the support to be “Poor.” The overall positive feedback suggests that the bank is
playing a crucial role in assisting farmers financially, though there are still areas
for improvement, especially regarding accessibility and affordability.

4.23 CHALLENGES FACED IN ACCESSING FINANCIAL

SERVICES FROM THE BANK
FACTORS FREQUENCY PERCENTAGE
LENGTHY PROCESS 11 22%
HIGH INTEREST RATES 19 38%
LACK OF 9 18%
INFORMATION
OTHER 11 22%
TOTAL 50 100%

FIGURE 4.23 CHALLENGES FACED IN ACCESSING

FINANCIAL SERVICES FROM THE BANK
INTERPRETATION
The bar chart indicates the challenges faced by respondents when accessing
financial services from the bank. The most significant issue, reported by 38% of
respondents, is high-interest rates. Additionally, 22% each cited a lengthy process
and lack of information as barriers, while 18% mentioned other unspecified
challenges. This suggests that while the bank provides financial assistance, the
terms and conditions may not be favorable or accessible to all.

4.24 SUGGESTED IMPROVEMENTS FOR BETTER

FINANCIAL SERVICES
FACTORS FREQUENCY PERCENTAGE
FASTER LOAN 12 24%
PROCESSING
LOWER INTEREST 19 38%
RATES
MORE FINANCIAL 6 12%
AWARENESS
PROGRAMS
OTHER 13 26%
TOTAL 50 100%

FIGURE 4.24 SUGGESTED IMPROVEMENTS FOR BETTER

FINANCIAL SERVICES

INTERPRETATION
The column chart presents suggestions for improving financial services, based on
50 responses. The most common recommendation, with 38% of responses, is to
lower interest rates, indicating that many customers find current rates too high.
Another 26% suggested other unspecified improvements, while 24% emphasized
the need for faster loan processing. Additionally, 12% of respondents believe
more financial awareness programs would be beneficial. These findings suggest
that while the bank is providing financial support, there is a demand for more
affordable and efficient services, along with increased education on
financial matters
 CHAPTER-5
FINDINGS, SUGGESTIONS AND CONCLUSIONS

FINDINGS OF THE STUDY

• The survey had a nearly balanced gender representation, with 54% female
and 46% male respondents. No respondents identified as "Other."

• The largest age group (26%) was 25-35 years, followed by 46-55 years
(24%). The responses were well-distributed across different age categories.

• The highest proportion (26%) of respondents had no formal education,

followed by primary (24%) and secondary (24%) education. Only 10%
were graduates, indicating limited higher education attainment.

• The largest occupational category (30%) fell under "Other," while 28% were
salaried employees and 18% were small business owners. Entrepreneurs
(12%) and farmers (8%) were less represented.

• All respondents (100%) had a savings account at the PURATHUR Service

Co-operative Bank, indicating high financial inclusion.

• The bank’s proximity (48%) was the most significant factor, followed by an
easy account-opening process (32%).

• Nearly half (48%) transacted occasionally, while 40% made monthly

transactions. Only 12% rarely used their accounts, suggesting scope for
enhancing banking engagement.

• A high percentage (94%) of respondents had taken loans from the bank,
showing its importance in financial support.

• The majority had taken personal loans (38%), followed by business loans
(28%) and agricultural loans (16%).

• Most respondents (54%) were satisfied and 36% were highly satisfied with
the loan approval process. No respondents were dissatisfied

• A majority (76%) believed the bank encouraged savings habits in rural

areas.

• 92% acknowledged that the bank had conducted financial literacy initiatives,
with 74% feeling confident about managing finances after attending these
programs.

• 76% agreed that the bank supports rural entrepreneurs, reinforcing its role in
economic development.
 • 94% believed that the bank had improved financial well-being in their area.

• 82% rated the bank’s role in rural economic development as either "Good"
or "Excellent."
• 90% agreed that the bank had contributed to employment in rural areas.

• 82% agreed that the bank had helped reduce poverty.

• 94% reported receiving financial aid for purchasing agricultural resources,

confirming the bank’s role in farming assistance.

• The biggest challenge (38%) was high-interest rates, followed by lengthy

processes (22%) and lack of information (22%).

• 38% suggested lowering interest rates,24% wanted faster loan processing,

and 12% advocated for more financial awareness programs.

• 80% had attended financial literacy programs, but 20% had not, indicating
room for improved outreach.

SUGGESTIONS

• Reduce interest rates and streamline the loan approval process for faster
disbursement.
• .Expand outreach to the 20% who have not attended and provide more
targeted financial education.
• Address the 22% who struggle with a lack of information by improving
communication and customer support
• Introduce incentives or financial benefits for customers who engage in
frequent banking activities.
• Offer tailored financial products and advisory services to further boost rural
entrepreneurship.
• Improve accessibility to farming loans and provide better guidance on loan
utilization.
• Gather feedback regularly and implement customer-centric policies to
improve banking experiences.

CONCLUSION

The study highlights the significant role of the PURATHUR Service Co-operative
Bank in fostering financial inclusion, rural entrepreneurship, and economic
development. With a strong customer base, high loan accessibility, and effective
financial literacy programs, the bank has positively impacted savings habits,
business growth, and poverty reduction. However, challenges such as high-interest
rates, lengthy loan processes, and the need for better financial awareness remain.
Addressing these issues by improving service accessibility and affordability can
further enhance the bank’s contribution to rural economic stability and
community empowerment
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