SAVING AND LOAN MOBILIZATION IN

COOPERATIVE
(With Reference to Samuhik Saving and Credit Co operative Ltd. Bhojpur)

A Thesis Submitted to
The Central Department of Rural Development,
Tribhuwan University in Partial Fulfillment of the Requirements
for the Degree of Master of Arts (MA)
in
Rural Development

Submitted By
Sanuma Rai
T.U. Reg. No. 6-1-011-0163-96
Roll No: 313
Exam Roll No. 280570

Central Department of Rural Development

Faculty of Humanities and Social Sciences
Tribhuvan University, Kathmandu Nepal
Central Department of TU, Kirtipur Kathmandu
December 2016
 DECLARATION

I hereby declare that the thesis entitled Saving And Loan Mobilization in Co
operative : With Reference to Samuhik Saving and Credit Cooperative Ltd.
Bhojpur submitted to the Central Department of Rural Development , Tribhuvan
University , is entirely my original work prepared under the guidance and supervision
of my supervisor. I have made due acknowledgements to all ideas and information
borrowed from different sources in the course of preparing this thesis. The results of
this thesis have not been presented or submitted anywhere else for the award of any
degree or for any other purposes. I assure that no part of the content of this thesis has
been published in any form before.

Sanuma Rai
T.U. Reg. No. 6-1-011-0163-96
Date: 23rd December 2016
(8th Poush, 2073)

i
 LETTER OF RECOMMENDATION

This is to certify that this thesis entitled Saving and Loan Mobilization in

Cooperative: With Reference to Samuhik Saving and Credit Co operative Ltd.

Bhojpur has been prepared by Ms Sanuma Rai under my guidance supervision in a
partial fulfillment of the requirements for the degree of Master of Arts in Rural
Development.

I, hereby, recommend it for evaluation to the thesis committee.

..........……………………………
Ratna Mani Nepal
Lecturer
Central Department of Rural Development

Date: 23rd December, 2016

(8th Poush, 2073)

ii
 APPROVAL LETTER

We certify that this thesis entitled Saving and Loan Mobilization in Cooperative:
With Reference to Samuhik Saving and Credit Cooperative Ltd. Bhojpur
submitted by Ms Sanuma Rai to the Central Department of Rural Development,
Faculty of Humanities and Social Sciences, Tribhuvan University, in partial
fulfillment of the requirements for the Degree of Master of Arts in Rural
Development has been found satisfactory in scope and quality. Therefore, we accept
this thesis as a part of the said degree.

Thesis Committee

………………………………
Prof. Dr. Prem Sharma
Head
Central Department of Rural Development

…………………………
Ramesh Neupane
External Examiner

…………………………………
Ratna Mani Nepal
Thesis Supervisor

Date: 28th December, 2016

(2073-09-13)

iii
 ACKNOWLEDGEMENT

I am heartily grateful to my supervisor, Mr. Ratna Mani Nepal Lecturer of the Central
Department of Rural Development, Tribhuvan University and, who thoroughly
provided valuable guidance, suggestions and comments by motivating me every time
to shape the present document in this readable form. I am equally indebted to Pro. Dr
Prem Sharma Head of Department, Central Department of Rural Department.

I'm heartily grateful to the Ms. Samjhana Pradhan, Chairperson of this cooperative
whose help and suggestion support me to complete this research. Mr. Purna Pradhan
Manager, staffs and whole share member of Samuhik Saving and Credit Cooperative
Society Ltd. Bhojpur are also thankful for helping me by providing financial reports
and information of the cooperative. And I should also extend thanks to my
respondents who helped me by giving necessary information about them.

It will be an injustice if I fail to mention indebtedness to my respected sister Ms.

Saraswati Rai and all my family members and relatives by whose moral support and
care, I was able to complete this work. I am grateful to my friend Ms.Yashoda
Pradhan, Ms. Raju Pradhan, Mr.Hari Prasad Dahal and numerous friends for regular
inspiration and cooperation to complete the research work.

SANUMA RAI

23rd December, 2016

(2073-09-08)

iv
 ABSTRACT

A cooperative is a community based business organization which is owned funded

and controlled by its members . The present study has focused on "Saving and Loan
Mobilization in Cooperative: with reference to Samuhik Saving and Credit Coopertive
Ltd. Bhojpur Municipality Bhojpur. Samuhik Saving and Credit Cooperative society
is established in 2063 B.S. for economic and social development of the members.

This study is based on primary and secondary data which is qualitative and
quantitative in nature. The total members of this cooperative are 339 in the time of
field research and 75 members have been taken loan . Out of 75 members 50
members are taken as sample purposively.

In this study, there are three main objectives, first is to analyze the financial status of
cooperative, second is to study the socio-economic background of the members and
third is to analyze the role of the Samuhik Saving and Credit Cooperative in the
study area.

Share capital and saving are the main sources of capital of this cooperative. Total
share capital is Rs.22,58,600 up to this fiscal year 2014/15. It is in increasing trend.
There are seven types of saving collected by this cooperative. These are also in
increasing trend, up to this fiscal year, Rs. 2,89,54,023 amount is collected as deposit.
Credit mobilization is another scheme of the cooperative. There are main seven
purposes of loan disbursement which is also in increasing trend. Rs.23,156,508
amount has been mobilized as loan in different purpose.

Almost of the members have been taken loan in income generating activities so their
socio economic status have been changing positively. After using loan in income
generating activity, their house structure have been improved, occupation composition
also changed which was before joining in this cooperative. Almost of the members
have been getting the facilities of drinking water, improved toilet, modern cooking
stoves ( bio and Lp gas). Members children are sifted to private school from
government school due to their payable capacity has been increased.

v
Finally, S&SSC Cooperative is the main instrument for small business, agricultural
production and as well as income generating activities. The role of cooperative in
income and employment generation and overall living standards is positive. It changes
occupation, education of the family members, and whole living standard of the
members. It generates awareness on the people. Thus in short the members are
towards satisfactory trend to reduce poverty and empowering their social status but
there are still many things to be done.

And considering the solution of the existing problems in this cooperative there is need
to come up with better planning and policies for the future. The cooperative should
organize some kinds of trainings, such as cooperative education, entrepreneurship
development, business plan preparation, crop diversification, sustainable agricultural
program etc.

vi
 TABLE OF CONTENTS

DECLARATION i
LETTER OF RECOMMENDATION ii
ACKNOWLEDGEMENT iv
ABSTRACT v
TABLE OF CONTENTS vii
LIST OF TABLES x
LIST OF FIGURES xi
ABBREVIATIONS/ACRONYMS xii

CHAPTER-ONE: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 5
1.4 Significance of the Study 5
1.5 Limitations of the Study 5
1.6 Organization of the Study 6

CHAPTER-TWO: REVIEW OF LITERATURE 7

2.1 Conceptual Review 7
2.2 World History of Cooperative 9
2.3 History of Cooperative in Nepal 11
2.4 Review of Empirical Study 13

CHAPTER-THREE: RESEARCH METHODOLOGY 18

3.1 Research Design 18
3.2 Universe, Population, Sample and Sampling of the S.S&C. 18
3.3 Nature and Source of Data 19
3.4 Data collection techniques and tools 20
3.4.1 Household survey 20
3.4.2 Field Observation 20
3.4.3 Key Informants Interview 20

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 3.5 Method of Data Analysis 20

CHAPTER-FOUR: Data Presentation and Analysis 21

4.1 General Introduction of Samuhik S&C Cooperative Society Ltd. Bhojpur 21
4.2 Financial Analysis Samuhik S&C Cooperative Society Ltd. Bhojpur 21
4.2.1 Share Capital, Deposit Collection and Loan Disbursement of the
Cooperative 22
4.2.2 Annual Percentage Change of Deposit Collection and Loan Disbursement
24
4.2.3 Saving (deposit) Collection Fiscal Year 2010/011 to 2014/015 25
4.2.4 Net Saving (deposit) Collection 27
4.2.5 Net Loan Disbursement 28
4.2.6 Interest Earning 29
4.2.7 Loan Disbursement in Fiscal Year 2010/011 to 2014/015 30
4.2.8 Interest Expenses 31
4.2.9 Provisional Funds of the Cooperative 33
4.2.9 Growth Ratio of Total Deposit Collection and Total loan Disbursement 36
4.2.11 Coefficient of Correlation between Total Deposit and Credit Mobilization
37
4.3 Basic Profile of the Members 38
4.3.1 Caste and Ethnic Composition of Respondents 39
4.3.2 Age Composition of Respondents 40
4.3.3 Educational Status of Respondents 41
4.3.4 Change in House Structure of the Respondents 42
4.3.5 Occupation Composition of Respondents 43
4.4 Role of S.S&C in the Development of the Study Area 44
4.4.1 Change in Drinking Water Supplyof the Respondents 44
4.4.2 Change in the Toilet Structure of the Respondents 45
4.4.3 Change in Fuel Consumption of Respondents 46
4.4.4 Change in the Schooling of the Respondents' Family 47
4.4.6 Impact of Loan Disbursement to Respondents 48
4.4.7 Sources of Loan before the Joining the Cooperative 49
4.4.8 Impact of Saving (deposit) Collection to the Members 51

viii
 4.4.9 Utilization of Saving of the Members 52
4.4.10 Utilization of Income Earning of the Members 53

CHAPTER-FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

54
5.1 Summary 54
5.2 Conclusion 55
5.3 Recommendations 55

REFERENCES 57

ANNEX-I: Questionnaire Form 59

ANNEX-II: Checklist for Key Informants 64
ANNEX III: Primary Cooperative Societies of Bhojpur District 65
ANNEX IV: Primary Co-operative Societies of Nepal 66
ANNEX-V: Growth Ratio of Total Loan Disbursement 67
ANNEX-VI: Calculation of Correlation Coefficient and Coefficient Of
determination (R2) of Total Deposit and Loan and Advances of the
Cooperative 68

ix
 LIST OF TABLES

Page No.
Table 3.1: Sampling Structure of the Study Area 19
Table 4.1: Share Capital, Deposit Collection and Loan Disbursement of the
Cooperative 22
Table 4.2: Annual percentage Change of Deposit Collection and Loan
Disbursement 24
Table 4.3: Saving (deposit) Collection Fiscal Year 2010/011 to 2014/015 26
Table 4.4: Net Saving (deposit) Collection of SS & C Cooperative Bhojpur Ltd. 27
Table 4.5: Net Loan Disbursement of SS& C Ltd. 28
Table 4.6: Table of Interest Earning 29
Table 4.7 Loan Disbursement in Fiscal Year 2010/011 to 2014/015 30
Table 4.8: Annual Interest Expenses in Different Schemes 32
Table 4.9: Provisional Funds of the Cooperative 33
Table 4.10: Position of Growth Rate 37
Table 4.12: Caste and Ethnic Composition of Respondents 39
Table 4.13: Age Composition of Respondents 40
Table 4.14 Educational Status of Respondents 41
Table 4.15: Change in house structure of the respondents 42
Table 4.16: Occupation Composition of Respondents 43
Table 4.17: Change in Drinking Water supply of the Respondents 44
Table 4.18: Change in Toilet Structure of the Respondents 45
Table 4.19: Change in Fuel Consumption of the Respondent 46
Table 4.20: Change in Schooling of the Respondent's Family 47
Table 4.21: Loan Disbursement of the Cooperative in Different Purposes 48
Table 4.22: Sources of Loan before Joining the Cooperative 50
Table 4.23: Deposit Condition of Respondents 51
Table 4.24: Utilization of Saving of the Members 52
Table 4.25 Utilization of Income of the Members 53

x
 LIST OF FIGURES

Page No.
Figure 4.1 Position of Fund SS& C of Bhojpur 36
Figure 4.2: Loan Disbursement in Different Purposes 49
Figure 4.3: Sources Condition of Loan before the Joining of Cooperative 50
Figure 4.4: Deposit Condition of Respondents 52

xi
 ABBREVIATIONS/ACRONYMS

BSS = Bakhan Sahakari Sanstha

C.V = Cofficient of Varience
DOC = Department of Cooperative
FY = Fiscal Year
GDP = Gross Domestic Product
ICA = International Cooperative Alliance
ICCA = International Cooperative
MFDBs = Micro Finance Development Banks
MoF = Ministry of Finance
NBCSL = Naba Kshitij Cooperative Societies Ltd.
NGOs = Non Govermantal Organizations
NPC = National Planning Commision
NRB = Nepal Rastra Banks
S.D = Standard Deviation
SMCSL = Smajhana Multipurpose Cooperative Societies Ltd.
SS&C = Samuhik Saving &Credit
UN = United Nation

xii
 CHAPTER-ONE
INTRODUCTION

1.1 Background of the Study

Nepal is an economically least developed country in between two big economic

powers of Asia, China in the north and India in the east, and south with the open
boarder. The common characteristics faces by the developing countries like Nepal are
increasing unemployment, absence of resources mobilization, low income level, lack
of saving, lack of capital, absence of financial institutions, and lack of financial
knowledge and so on. Despite, Nepal aims for self reliant economic growth to
accelerate the living standard of people as well as society. Various institutions are
established to promote the economic mobilization and provide financial fund like
commercial bank, development bank and finance company .Till now they are not able
to reach in rural and real areas. In this scenario co-operative has significant role to
grow the socio-economic status. It is because co-operatives included the common
voice as well as needs (MoF, 2014).

Being the least developed country, Nepal was full of natural resources. So, to utilize
these natural resources and accelerate the rapid economic growth, capital formation is
essential which is only possible through saving and credit activities of co-operatives.
Therefore, co-operatives are the means for uplifting socio-economic conditions of the
grass root people (NPC, 2013).

The word co-operative is derived from two different words „co‟ and „operate‟. The
word „co‟ means together and „operates‟ means to work so the meaning of co-
operatives is working together in the group with common objectives (Oxford, 2007).

A cooperative society is voluntary organization of person with limited means to safe

guard their needs and interest. Unity is diversity is main motto of cooperative
societies. The philosophy behind cooperative movement is "each for all and all for
each". A cooperative is defined by ICA as an autonomous association of persons
United voluntarily to meet their common economic, social and cultural needs and
aspirations through a jointly-owned and controlled the enterprise democratically. It is
a business organization owned and operated by a group of individuals for their mutual

1
benefit. A cooperative may also defined as a business owned and controlled equally
by the people who use its services or who work for it.

Robert Owen first propounded the concept of co-operative in 1843 in Great Britain.
The idea of co-operative was brought into light in the beginning of the 19th century.
The follower of Owen, Dr. William King' publicized the ideology of co-operative
latter on who initiated an education at movement for co-operative development. The
reformist Robert Owens ideas and principles have continued to inspire the co-
operative movement. These principles are i) Abolition of private profit. ii) voluntary
association iii) common ownership of the means of production iv) utilization of
wealth of the community for increasing the happiness of mankind etc. (Rai, 2010).

Moreover, there is long history of co-operative in Nepalese society on this time; they
were operating as 'Dhikuri, 'Parma' 'Guthi' etc. Department of co-operative is
established in 1953 under the ministry of agriculture and planning development
Nepal. It was formally started in 1956 with established "Bakhan Sahakari Sanstha"
(BSS) on Chitwan district.

The modern co-operative movement initialized from Rapti Valley (Chitwan district)
as a part of flood relief and resettlement program. At the first time 13 credit co-
operatives societies established in 1956 were provisionally registered under the
executive order of the government which got legal recognition after the enactment of
co-operative societies act 2016 B.S. The first cooperative society act was revised
several times which replaced by the Sajha Society act in 2041 B.S. After the
rstroation of multiparty democracy the Sajha society act was replaced again by the
Co-operative act 2048 B.S (Nepal 2068) . The first formed government after the
revolution of 1949/1950 emphasized the co-operative for the sustainable economic
development of the country on its annual budget. It has the slogan that "Gaun Gaun
ma Sahakari Ghar-Gharma Bhakari" it also shows the needs and importance of the co-
operatives in Nepalese economy (Nepal, 2068).

Without developing of industrial sector countries development is not possible. When

more enterprise was introduced in the country only the economic recovery will begin.
On the basis of Nepalese geographical and economic position there are three,
agriculture, hydropower and tourism sectors should emphasized for core
competencies. But Nepalese economic capacity is not so high for investing in such a

2
big hydropower and tourism projects. For this purpose cooperatives should
foundations for the collecting and investing such funds from grass root level.

The national planning commission (NPC, 2013) has also given top priority to co-
operative which played a significance role on creating self employment in local level
and support to promote the micro-enterprise which directly supported people to be
employed and improved their income level ultimately it support to the goal of poverty
reduction as well as economic growth and nations development.

Large number of banks and financial institutions providing their services in the
nation, they are mostly concentrated in urban and semi urban marked centers; and the
people lives in the far and remote areas are yet to reach these financial services.
Nepal's financial sectors has grown rapidly over the past two decades, the number of
financial institution has increased from 1980 to mid January 2014. The number of
banks and financial institutions under the central bank's supervisory regime includes
class. 'A' commercial bank's 30, Class 'B' development banks 87, class 'C' finance
companies 59 and class 'D' microfinance development banks (MFDBs) 35 .
Additionally, NRB supervises 31 financial intermediary NGOs (FINGOs) and 16 co-
operatives banks. NRB has granted permission to these institutions for limited
banking transactions. As of mid July 2013, there are 29,526 Co-operatives operated in
Nepal. Out of them 16, 854 are working as saving and credit co-operatives. The co-
operatives are registered with the co-operatives act of 1991 (Sickdle, 2014).

1.2 Statement of the Problem

Although, co-operative is one of the alternative best way to eradicate the poverty and
to empower the people, there are various institutional constraints and challenges of
co-operatives industry to achieve its objective and development goal. The main focus
of the co-operative is to improve the sustainable economic condition of the poor by
creating employment opportunities and empowerment on revenue mobilization.
Converting the labor mind into business mind is difficult task. So, utilization of loan
is not easy in the beginning period. If the loan is not utilized in targeted sector, it will
become burden for future. Eventually the poor becomes extremely poor or poorest
both economically and morally.

3
The co-operative contributes to national economy and also attracts further foreign
investment to these sectors. More than 15% GDP is covered by co-operatives in
financial sector and 3 % GDP is contributed in whole economy of Nepal. Now a days,
lower income group people are encouraging to involve in co-operatives. The small
group should be benefited because co-operative is one of the sources of saving and
credit. Through co-operative they can develop their skills, economic status, social
status, which improve the economic condition, poverty reduction, reducing
unemployment, employment generation and finally empower them economically as
well as, socially. So, co-operative is one of the social justice organizations where
equal service is provided. Economic development is possible through the co-
operative.

In Nepal, there are 32663 different kinds of co-operatives and 5100370 lacks member
have been engaged in the co-operative currently in Nepal( see annex IV). These all
types of cooperatives are performing different types of activities in society.

In Bhojpur district there are 167 different types of cooperatives(see annex III).
Among them this present study specially focused on only one co operative which is
Samuhik Saving & Credit co-operative. The following are the research questions
related to the study .

i. What types of saving are collected in the study area ?

ii. How capital is mobilizing?

iii. What are the purposes of loan disbursement?

iv. What kinds of activity are operating by the members?

v. What are the provisional funds managed by this cooperative?

vi. Is there a significant role of co-operative to improve the living standard of

the member?

vii. What types of recommendations should be given?

4
1.3 Objectives of the Study

The main objective of this study is to analyze the saving and Loan mobilization in
cooperative in the study area. The following are the specific objectives of this study

1. To analyze the financial status of Samuhik Saving and Credit Cooperative

Society.
2. To compare the socio-economic background of the members of Samuhik
Saving and Credit Cooperative Society.
3. To analyze the saving and loan mobilisation of Samuhik Saving and Credit
Cooperative Society in the study area.

1.4 Significance of the Study

The significance of the study is beneficial not only for the readers like students and
researchers but also for the future economic plans and policies in study area. The
study would be very useful for entrepreneurs, decision makers, researchers and the
managers working in the field of cooperative because it deals with the activities of
cooperative in rural remote area special reference of Samuhik Saving and Credit
cooperative Society Ltd. Bhojpur.

1. The study is helpful to examine its activities in the remote area to uplift the
living standard of shareholders.
2. This study is helpful to the management of respective cooperative to go deep
into the matters as why their performance is better than other competitors.
3. This is also helpful to find out the methods to solve the problems of related
cooperative.

1.5 Limitations of the Study

There are 167 registered cooperatives in Bhojpur District. Among these 95 (56.89%)
cooperatives are established Savings and Credit Cooperative Societies which provide
financial services to their members. In addition that there are large numbers of
Savings and Credit groups promoted by NGOs and INGOs in the villages which are

5
helping the poor to pool their savings and offer credit for the various needs of the
members. Following are the limitations of the study:

1. As the study is conducted to the fulfillment of the requirement of MA degree,

the researcher experienced time limitation.
2. Researcher conducted this study including field work with her own budget.
this study is not funded by any agencies.
3. As this study is based on one S.&C. cooperative, mainly Samuhik saving and
credit the findings of this study may not be applicable to other saving credit
cooperative in Bhojpur as well as throughout Nepal.
4. The financial data of S.S&C. cover FY 2010/011 to 2014/015 .

1.6 Organization of the Study

This research study is divided in to five chapters. These chapters are described below:

Chapter one is related to introduction of the study. It includes the background of the
study, statement of the problem, objectives of the study, significance of the study,
limitations of the study, organization of the study; Chapter two is related to review of
literature .It includes both theoretical and empirical review; chapter three is related to
methodology. It includes the topic like research design, source of data, population and
sample, method of data analysis, statistical tools; chapter four is related to data
presentation and analysis. It describes about the study area and financial status of
cooperative activities background of the members and role of S&C in the
development of the study area. These data are linked with the objectives and all data
are presented in the table form, chapter five is last chapter which includes summary,
conclusion and recommendations.

6
 CHAPTER-TWO
REVIEW OF LITERATURE

2.1 Conceptual Review

In general sense cooperation refers to mutual togetherness for mutual benefit

in other word cooperation is the act of helping each others.

A cooperative is defined by ICA as an autonomous association of persons

united voluntarily to meet their common economic, social and cultural needs and
aspirations through a jointly-owned and controlled the enterprise democratically. It is
a business organization owned and operated by a group of individuals for their mutual
benefit. A cooperative may also defined as a business owned and controlled equally
by the people who use its services or who work for it.

A saving and credit organization is a community based organization that is owned

and controlled by its members; cooperative primarily runs on funds generated through
member‟s saving and saving mobilization and credit supply as its main activists.
(Cooperative Darpan, 2007).

Cooperative is a business enterprise organized, funded and managed by and

for its member patrons, the main purpose the establishment of cooperative is to
protect the interest of the people from low and medium level income by providing
goods and services when required at fair prices. Similarly, the farmers and procedures
can get the equitable prices of their products from the Cooperative, farmers with small
plots of land can join joint farming cooperatives and so on. For this the international
labour organization has conceptualized the term cooperative as 'An association of
persons usually of limited means who voluntarily joined together to achieve a
common and through the formation of a democratically controlled business
organization, making equitable contribution to the capital required and accepting a
fair share of risks and the benefits of the under taking (G.S. Kamat, 1978).

Cooperatives have seven main principles. These principles of cooperatives refer to

the guideline to give the concrete form to the norms and values of cooperative
organization. In other words cooperative principles are the set of rules and regulation
to regulate and govern the activities of cooperative enterprise. In 1963 the

7
International Cooperative Alliance had reviewed the existing principles. In 1995,
Sep., the ICCA General meeting stated the followings as the principles of cooperative.

Voluntary and Open Membership: - Cooperative organization is a voluntary

organization. Its membership is open to all. It does not discriminate and show
disparity to any person on the basis of caste, sex, religion, beliefs and any other such
characteristics. Everybody is free to get in and out in this organization.

Democratic Management: - The control and management of cooperative

organization is performed by its members through democratic system. Every member
enjoys equal rights in policy making and decision making of the organization and
there is system of one-man one vote. Amount of capital does not determine the voting
power like in Joint Stock Company.

Economic Participation by Member: - There is legal and equal economic

participation of the members in this organization. They possess a common capital. A
cooperative organization makes provision for reserve fund, dividend fund, employees
bonus fund, cooperative education fund and loss compensation fund. The members of
cooperative have opportunities to participate in economic activities. In this way, we
find two kinds of economic participation of members in cooperative organization.
First is to provide capital to the organization and second to get economic gains from
the organization.

Autonomous and Freedom: - Cooperative organization is an autonomous,

independent and an organization controlled by its members. There is necessary to
make the members acquainted with the basic principle of cooperative education
training and information to the members based on cooperative values.

Education Training and Information: - Cooperative launches training to its

members, elected representatives and staff members. Cooperative education is
necessary to make the members acquainted with the basic principles of cooperative. It
should provide cooperative education, training and information to the members based
on cooperative values.

Cooperation among Cooperatives: - Cooperative Organizations maintain a sound

cooperation among themselves. Local, regional, national and international cooperative
organizations work together for the development of cooperative campaign.

8
Concern to Society: - Cooperative organization directs their plans and policies
towards the continuous and long-term development of the society.

2.2 World History of Cooperative

Robert Owen first propounded the concept of cooperative in 1843 in Great Britain.

The idea of Cooperative was brought into light in the beginning of the 19 th Century.
The follower of Owen, Dr. William King, publicized the ideology of cooperative later
on who initiated an education at movement for cooperative development. The
reformist Robert Owen‟s ideas and principles have continued to inspire the
cooperative movement. These principles are (i) Abolition of private profit. (ii)
Voluntary association (iii) Common ownership of the means of production (iv)
Utilization of wealth of the community for increasing the happiness of mankind (
Hajela, 1994) . Who also mentioned that, Rochdale pioneers‟ the real fonder of the
modern cooperative movement to develop cooperative rules and philosophy. The
cooperative society established by Rochdale pioneers has been known as „The
Consumer Cooperative Society‟. This was a successful cooperative society, which
spread all over Great Britain. This society sold goods only for its members in the
beginning but later is started to sell goods to non-members also. In 1844 Rochdale
pioneers‟ formulated the following rules of cooperative, which are still relevant and
used in modern cooperatives to some or more extent.

By 1850s, the Rochdale equitable pioneers „cooperative organization has been

enlarged. In 1863, they established first wholesale society. In ten years its volume was
so great that it began making its own products. Many new kinds of similar
cooperative business emerged. Educational projects were undertaken by, and
contributed to the growth of the movement. On this subject Faibraim claims
effectiveness of Rochdale‟s philosophy and principles were proved by both
organizational and commercial successes of Rochdale‟s philosophy and principles
were proved by both Organizational and commercial successes of Rochdale and
Rochdale inspired British cooperative movement. Their success involves many
aspects such as social aims, membership growth, education, and commercial success.
As the Rochdale Movement Spared over Britain it became more focused on retail
(Fairbairn. 1994).

9
The concept of cooperative is so versatile and universal. There is wide range in size
and operating practice. However cooperative in different countries have gained a
remarkable achievement to show. Agriculture cooperative in Japan are largely
responsible for modern rural development. There total output is recorded as 90 billion
US Dollar with 91% membership of all the Japanese farmers. Cooperatives of
America are famous for rural electrification. The cooperative movement in Rumania
has the best travel and holiday resorts in the country. Cooperative accounts half of the
sugar production of India. Iceland is referred to as a cooperative-island due to well
develop cooperative system in the branches of economy. The agriculture cooperatives
of France have the second largest credit and banking system in the world. (Ghimire &
Sharma. 2011)

Cooperatives of Spain are largest manufacture of refrigerators and household

appliances. Cooperative of Poland are famous for housing construction and their more
than 75% of construction work of a country The UK cooperatives system in Sweden
has the largest oil refinery in the country The dairy marketing cooperative of Gujarat
(India) operate some of the largest and most modern milk processing plant in the
world. In Malaysia the largest insurances system in cooperative. In Italy Workers
cooperative are recognized most effective. In Scandinavian countries agriculture
cooperatives have by far the largest share of the market. In Canada one third of the
population is the members of credit cooperatives. The Canadian cooperatives produce
35% of world maple sugar in the food retailing market of the Europe consumers
cooperatives lead the market of several countries headed by Finland and Switzerland.
All over the world cooperatives provides 100 million jobs more than 20% of the
multinational company. Cooperatives are the best tools of social integration, good
sources of self-Employment and generate employment activities. Charles Fourier
(1772-1837) in France, Robert Owen in England and Hermann Schulze-Delitzsch in
Germany were concentrating on socio economic problems. They can be regarded
early important personalities contributing to the cooperative movement in the world
(Roy, 1964) After their conceptualizations, attention started to be paid on the
voluntary sector, which is neither state based nor market oriented. As a result, it can
be argued that cooperatives mostly appear to work within capitalist system, accepting
capitalism‟s most unavoidable features like market mechanism and private property

10
ownership. Cooperative movement has brought about a new ownership type that is
collective or joint ownership. (Badal, 2062)

Rebert Owen was in opposition of his period„s facts that workers were denied
the full value of their about, hardworking in poverty for the profit of others. Robert
Owen was a man having the utopia of creating a society in which everyone behaves in
favor of the common interest. His observations on a daily life cooperative were that
most of the people were behaving according to community interests. Owen aimed
establishment of communities settled on land, consisting of producers of different
commodities, owning the means of production in common, and working together to
satisfy the collective needs. (Birchall, 1988)

Certainly cooperative of today is not the same with the thought of Robert Owen.
However, in the literature there is common sense that the cooperative philosophy was
built and began to be institutionalized by Owen and then diffused to countries under
influence of the „Rochdale Equitable Pioneers‟ cooperative movement (Ozkan, 2009)

2.3 History of Cooperative in Nepal

The concept of working together for mutual benefit was in practice in Nepal from the
very beginnings. At that times, the concept of co-operative emerged in the form of
PARMA in hilly region, DHIKUR in western part and MANKAKHALA and GUTHI
in Kathmandu valley and in some places DHARMA BHAKARI. Dharm Bhakari
means a religious store a kind of grain bank in which each family in the village puts
aside certain quantities of grain after the end of the harvest season. At the time of
scarcity the quantity of grains is distributed on advance to the farmer. Department of
Co-operative is established in 2010 B.S. under the Ministry of Agriculture and
planning Development Nepal. After Establishment of the Department of cooperative
(DOC), the first cooperative is Bakhan credit cooperative society in Chitwan district
was established at 2013 B.S.

The modern cooperative movement initiated from Rapti Valley (Chitwan District) as
a part of flood relief and resettlement program. At the first time 13 credit cooperative
Societies established in 2013 B.S. were legislative provisionally under the executive
order of the then government which got legal recognition after the enactment of

11
cooperative Societies Act 2016 B.S. (1959 AD). The first cooperative Societies Act
was revised several times and it was replaced by the Sajha Societies Act in 2041 B.S.
(1984 AD). After the restoration of multiparty democracy the Sajha Societies Act was
replaced again by the cooperative Act 2048 B.S. (1092 AD) (Nepal, 2068)

In 1956, the first five-year plan (1956-61) was formulated which identified that co-
operative movement is developed in healthy and efficient manner, it would
progressively abolish excessive indebtedness and contributes significantly in rising
the living standard of the member of co-operative societies.

In 1976 the cooperatives were redesigned as Sajha. The cooperative Societies were
also subjected to various agencies regarding management and control. In the early
seventies they were handed over back to the cooperatives Development that has
remained under different ministries.

After the restoration of democracy in the country, in 1990, it traced a new way for
new changes in the cooperative movement. Consequently, new cooperative Act was
promulgated in 1992 recognizing cooperatives as peoples‟ organization with an
autonomous body. On the basis of this Act a long waited National Cooperative
Federation came into existence.

In 2007, Celebration of cooperative golden jubilee 2007/07 throughout the country

for whole year. In 2009, Government of Nepal announced the policy "Gaun gaunma
sahakari, ghar gharma bhakari." In 2010 United Nation (UN) proclaimed 2012
International Cooperative Year.

The above activities during last 48 years in the history of cooperative movement in
Nepal are enough to say that cooperative development passed through many
managerial ups and downs causing a high inconsistency. The cooperative movement
remained affected by the political changes in the nation that brought the situations
among the people not to believe readily the philosophy of cooperative in practice.
Moral objectives, social objectives, service to the members, good quality, cheep
pricing, reasonable profit, cooperative principle have been the major challenges for
cooperative organization in the present context of competitive market.

12
Without developing of industrial sector, development of the country is not possible.
While more enterprises introduced in the country only then the economic recovery
was began. On the basis of Nepalese geographical and economic position there are
three Agricultural, Hydropower and tourism sectors should emphasized for core
competencies? But Nepalese economic capacity is not so high for investment in big
hydropower projects. For this purpose co-operatives should foundations for the
collecting & investing such funds from grass root level.

2.4 Review of Empirical Study

Before this study, many studies are found that have been carried out by different
persons in different times regarding the cooperative societies and their activities some
of the significant studies have been reviewed in this study also. This study mainly
concerns to the activities of cooperative with special reference to Samuhik Saving and
Credit Cooperative Society Ltd. In Bhojpur, nobody has been performed in this topic
before. However, some earlier studies related to some extent to this subject are
mentioned here under with their findings or conclusions.

Karmacharya (1978) in his thesis word “A Study on Deposit Mobilization of

Cooperative” has concluded that cooperative societies play a crucial role in uplifting
poor financial condition of rural people. The cooperatives mobilize small saving of
the poor people and mobilize that in productive sectors. Cooperatives develop feeling
of saving and provide reasonable return to them. Both, who don't have money, get
money to perform returnable work and who have money but don't get proper place for
deposition get a secured institute.

Pokhrel (1988) in his article "Cooperative movement in Nepal" analyzed the

cooperative movement. The study seemed at reviewed the overall situation of
cooperative movement in Nepal according to his study the performance of rural
population covered by the cooperative societies was nominal in 1956-61AD which
went up to almost one forth of the population by the end of 1988 AD. Practically
almost all the villages of 30 Terai districts in the country are covered by the Sajha
Society. The membership has increased from 8.02 lakhs in 1976-77 AD to about 16
lakhs in 1988 AD. According to that researched study 43% cooperative societies have
suffered in loss in 1983/84. Out of total societies in loss 41.2% societies were of Terai

13
region and 58.8% of Hill areas. The similar position has been noticed in the preceding
years. It shows that comparatively Sajhas of hilly region are poorest then that of Terai.
The study found some problems faced by the cooperative movement such as; (1) Lack
of education training and fund (2) Lack of spontaneity towards cooperation (3) Lack
of loyalty (4) absence of loan services (5) Lack of efficient management (6) Political
interference (7) Public apathy (8) Lack of goods publicity and good process of loan
disbursement in Nepal the financial resources utilization of funds marketing activities
reveals that there is a great need for revitalization in order to make the movement
strong and stable

Subedi (1991) A study on the accounting information the use and procedure of
keeping accounts, its defects and difficulties in Nepalese cooperatives and the study
has given some suggestions against such problems.

Subedi has concluded that a huge amount of economic resources has been mobilized
through 881 cooperatives. Sources of find in these cooperatives have remained loan
from Agriculture Development Bank, Savings and deposits of the member and grants
and subsidies from the government. But most of them were not in a position to
provide goods and services to the people. Most of them were under the unbearable
and almost incapable loans of bank and were looking for the grants from the
government. But the government did not come forward for assistance.

Instead of being an effective measure to solving economic problems of the poor in

different ways according to themselves are being the burden to the country. Mr.
Subedi has concluded that about seventy percent of the societies are running on loss.
The factors were misleading directions, mismanagement, lack of support from the
government, unnecessary pressure from politician, lack of relevant, accurate, timely
and understandable accounting information system of the cooperative in Nepal. The
study has suggested to remove the various problems of the cooperative movement of
the country and for paying due attention to development activities and existing
irregularities and weakness by establishing a sound accounting information system.

A study conducted by Koirala (1997) on “Development of Nepal through cooperative

“ has concluded that Nepal would be self sufficient and not need to depend on foreign
loan and if cooperative is developed well . The study has pointed out the problems

14
being faced by the cooperatives as such (i) Poor management (ii) Incomplete records
(iii) Lack of trained personnel (iv) Failure to interact with cooperatives (v)Wrong
utilization and wastage of inventories (vi) Lack of technical guidance, He has
suggested that due attention should be given by all concerning authorities and a close
supervision and constant guidance should be done by the concerned authorities. He
has also suggested for diversifying the pattern of cooperative development as well as
strengthens the base of structure. He is very hopeful that there will be all- round
development of Nepal through cooperatives in near future.

Sharma (1999), has undertaken a study on “A comparative study on the Financial

Performance of Cooperatives with reference to Samjhana Multipurpose Cooperative
and Naba Kshitij Cooperative Societies Ltd, Kathmandu. He aimed to examine
comparative financial position SMCSL and NBCSL by analyzing the financial
statements. He has concluded that both the cooperatives‟ deposit utilization rate is
satisfactory. However, SMCSL utilization rate is increasing over all the years of study
period .So it implies that SMCSL is more active in creating investment opportunities
and enhancing business activities than NBCSL. The analysis of profitability ratio has
clearly shown the profitability of SMCSL is better than that of NBCSL. Due to
unstable higher fluctuating trend, occurrences of losses during the initial periods,
lower banking transactions, lower deposit collection are the causes of lower financial
position of NBCSL .The liquidity position of both the cooperatives seems which they
should maintain. The weak aspects of both the cooperatives are higher leverage
rations, lower profitability ratios and high liquidity ratios. Based on findings and
conclusions, some suggestions and recommendations have been put by Sharma as (i)
saving and credit cooperatives should utilize the deposit effectively (ii) cooperatives
should operate their new branches in rural area as rather than urban areas, (iii) the
cooperatives should consider more seriously about strengthening their liquidity
position, (iv) the cooperatives should make their strategies to compete with banks in
the new context of economic liberalization policy adopted by the government, (v)
there should be good management information system in the cooperatives,(vi)the
management in cooperatives should try to maintain a good relationship
between the managerial staff-workers, members of the board and general
public and among cooperatives. Finally he has come to a very conclusion that
cooperative is only viable means to uplift the socio-economic conditions of majority

15
people in Nepal. After the restoration of democracy, national cooperative federation
consultative committee has been formed and the committee has conducted different
studies to have information about an exact situation of the cooperatives in Nepal.

Koirala (2000), in his Thesis titled "Cooperative development In Nepal". He presented

the two period of cooperative movement comprising the cooperative movement
before 1992 AD & the cooperative movement after new cooperative Act 1992AD.

The cooperative movement as stated above 1992. During this period of nearly 4
decade (1953-1992) people could not understand about cooperation, they perceived
the cooperative societies & unions as the government organization. Cooperative
society & unions could not render their services to their member's effectively. During
this period cooperative societies & union were run as per the direction of the
government no of their member. The societies & unions remained as a burden to the
country.

The main reason of this was that the cooperative movement in Nepal was emphasized
not from the cognitive realization of the country & people but it was imposed by the
Government, so the people could not perceive it in true sense of cooperation and
cooperatives. Ultimately the enforcement of the government towards the cooperative
movement before 1992 could be considered half hearted, and remain dormant an
unsuccessful. The new cooperative Act 1992 & regular 1993 replaced the past
cooperative Acts & regulations. This Act gave priority to the principles of
cooperatives achieved in the number of cooperative society & Union as compared to
before 1992 situation. Cooperative now have been generated by peoples initiation as
their own organization in different sectors, Multipurpose, Dairy, Saving & Credit,
Transportation, Housing, Woman Empowerment, Tourism, Insurance, auditing,
Training & research, community Development etc.

Bastola (2008), has written in his article, "Purbaki Sahakari Netri" cooperatives not
only generate income to its member but also taken overall responsibility of them. In
Nepal multipurpose cooperative are in practice, they inspire the villagers for modern
agriculture system to grow off seasonal vegetable and professional animal husbandry.
They promote the product in market and arrange the sales it reasonable rate.

16
Besides this, cooperative is working for social welfare also. It is acting for the
development of leadership skills of the women informal education providing health
service through health campaign and other skill-oriented training is also given to rural
women. Thus cooperative organizations are bringing revolutionary change to the life
of rural woman.

Achyara (2007) has mentioned in his article, "Transparency in cooperatives: Essential

for good governance." Cooperatives are crucial to the economically poor and
exploited people. In our country more than 80% people live in rural area, which do
not have proper and reliable source of income. In such country cooperative is the
means to motivate the people to work together for their common benefit. It
encourages the people for compulsory saving and takes the responsibility of
mobilizing that small saving in productive field. It develops feeling of coordination
mutual help for self-help and aids to increase national GDP, per capita income and
ultimately support for national development.

17
 CHAPTER-THREE
RESEARCH METHODOLOGY

Research is a systematic method of finding out solution to a problem whereas

research methodology refers to the various sequential steps to adopt by researcher in
studying a problem with certain objective in view. This chapter presents the short
outline of the methods applied in the process of analyzing the data.

3.1 Research Design

This study is based on primary and secondary data of the S.S&C cooperative society
ltd. and the approach of this study is analytical and descriptive. This study analyzed
the financial status of cooperative and its role in development of the study area. The
financial and statistical tools are used to analyze the data. The descriptive design is
applied in order to explain the obtained qualitative data as well as findings of the
analysis.

3.2 Universe, Population, Sample and Sampling of the S.S&C.

The universe of the study is 339 share holders in the time of the fieldwork (Samuhik,
2015) . It was found that only 75 members had been taken loan from this S.S&C
therefore 75 members are taken as population and out of them only 50 (66.67%)
members are taken as sample. Purposive sampling technique is applied to take the
respondents in this study to collect data. All 50 members have taken loan in different
purposes so according to their loan purpose the sampling has taken which is shown in
the following table.

18
Table 3.1: Sampling Structure of the Study Area

Purpose of Loan No. Shareholders

Business 18
Domestic 2
Educational/Health 3
Property purchase 7
Fruit/Vegetable farming 8
Tailoring 5
Hotel 7
Total 50
Source: Field Survey , 2015

According to above table 3.1, among 50 respondents, 18 members are selected

who had taken loan for business motive, 2 persons are selected who had taken
loan for domestic purpose and similarly, 3 are chosen from educational/health,
7 are chosen from property purchase, 8 members are taken from fruits and
vegetables farming purpose, 5 members from tailoring and 7 members are
chosen from hotel purpose.

3.3 Nature and Source of Data

The nature of the data is both qualitative and quantitative. This study based on the
Primary and secondary data . Primary data are collected from the visit of the
concerned cooperative and shareholder, conversation with the manager, and the
observation of concerned the shareholders, telephonic inquirers, personal visit,
inquires by e-mail etc. The major sources of secondary data are collected from
brochure of concerned cooperative, published reports from department of the
cooperative, economic surveys, and websites of concerned cooperative.

19
3.4 Data collection techniques and tools

3.4.1 Household survey

A questionnaire is prepared with close and open structure for the information
collection of study area. Socio-economic information with different variables is
included in questions. The respondents were interviewed directly and personally
according to questionnaire. The format of the questionnaire is given in the annex I.

3.4.2 Field Observation

Direct observation was applied in order to get additional information of the activities
of co-operative members for the study. Physical aspect as like drinking water, toilet,
house structure, business of the members etc. are observed in the field area of S.S&C.

3.4.3 Key Informants Interview

The data were also collected from key informants interview. The interviews have
been taken from chair person, vice-chair person and manager of this cooperative. The
key informants‟ were interviewed by making open questions which are mentioned in
check list shown annex II.

3.5 Method of Data Analysis

The collected data were reviewed at first. After than, these data were classified
according to their nature as like qualitative and quantitative. And then put these in
table by using computer. Finally, put under statistical analysis of the various statistical
measures, growth ratio analysis, correlation, percentage, frequencies are applied.

20
 CHAPTER-FOUR
DATA PRESENTATION AND ANALYSIS

This chapter includes the analysis and result of gathered data in order to
analysis financial status of SS&C, to study the socio-economic background of
the SS&C members and to analysis the role of SS&C in the development of the
study area.

4.1 General Introduction of Samuhik S&C Cooperative Society

Ltd. Bhojpur

Samuhik Saving and Credit Cooperative Society (SS&C) is established in 2063

B.S. according to cooperative Act 2048 B.S (1992 A.D). SS&C cooperative
established for the economic development of small farmer. Cooperative helps
to those people who have no enough money to invest. There are 339
shareholders are involved in cooperative. The cooperative is working in
economic activities. So the total transaction amount of cooperative is 2.50
corers. There are 7 board members are in board and five staffs are working in
the cooperative. The cooperative accepting to depositors monthly, weekly,
daily, fixed , current savings and providing loan to the members for business,
health and education, agriculture, industry and others purposes.

4.2 Financial Analysis Samuhik S&C Cooperative Society Ltd.

Bhojpur

In this section, analyzed the financial position of the cooperative based on the
secondary data. Which is collected from annual audit reports and others
financial published and unpublished reports of concern cooperative.

21
4.2.1 Share Capital, Deposit Collection and Loan Disbursement of the
Cooperative

Most important functions of the cooperative are deposit collection and loan
disbursement. Small money of the members is collected as deposit and provide
loan to members. The deposit collector and loan borrower can get benefit from
joining the cooperative. Members can utilize the larger amount of deposit
which they had saved small amount. As well members can invest in income
generating activities by taking loan from the cooperative. The following table
shows the Share Capital, Deposit Collection and Loan Disbursement of the
Cooperative

Table 4.1: Share Capital, Deposit Collection and Loan Disbursement of the
Cooperative

Fiscal Year Share (Rs.) saving (Rs.) Loan (Rs.)

2010/011 207,600 1,862,525 3184827

2011/012 350,000 3,281,187 5217359

2012/013 473,800 5,942,960 4608885

2013/014 567,600 8,027,309 5363613

2014/015 659,600 9,840,042 4781824

Total 2258600 28954024 23156508

Source: Annual Financial Report of SS & C,2010 - 2015 AD

The table 4.1 represents share capital, saving and loan column for the fiscal year
2010/011, 2011/012, 2012/013, 2013/014 and 2014/015.

Share Capital: share capital is in increasing trend in each study period i.e 2010/011
to 2014/015. The cooperative has total capital Rs. 2258600, it means the cooperative
has satisfactory growth rate share of capital. It consist that, SS&C society is meeting
target to increase new share holders. New shareholders are empowered to joint with
cooperatives. The share capital of cooperative in 2010/011, 2011/012, 2012/013,

22
2013/014 and 2014/015 fiscal year are Rs. 207600, Rs. 350000, Rs. 473800, Rs.
567600 and Rs. 659600 respectively. New share holders can join by paying minimum
10 number of share at the Rs.100 each.

Saving (deposit) Collection: Saving (deposit) collection of each fiscal year is

increasing. The average deposit collection is Rs. 5,790,805, standard deviation (S.D)
is Rs. 3284470 and coefficient of variance (C.V) is 0.57 of the study period. The
saving (Deposit) are in 5 fiscal year 2010/011, 2011/012, 2012/013, 2013/014 and
2014/015 are Rs. 1862525, Rs. 3281187, Rs 5942960, Rs 8027309 and Rs. 9840042
respectively. The deposit collection has been increased around five times which
indicates the satisfactory growth of cooperatives. Total saving of 5 years is Rs.
28954023. Share holders can save their money monthly, daily basis in current and
fixed deposit. In saving account the non-member are also allowed to deposit by
opening their account in the cooperative. This type of saving is strength of the
cooperative should be encouraged to achieve the objective.

Loan: Important schemes of cooperative are credit mobilization. Credit mobilization

of cooperatives is less than deposit collection as initial year. The average of credit
mobilization is Rs. 4631308. The credit mobilization of cooperative in 5 fiscal year
i.e 2010/011, 2011/012, 2012/013, 2013/014 and 2014/015 are Rs. 3184827, Rs
5217389, Rs. 4608885, Rs. 5363613 and Rs. 4781824 respectively. The standard
deviation of credit mobilization is Rs. 4,631,308 and coefficient variance of credit
mobilization is 0.19 of the study period. Total credit mobilization till now is Rs.
23,156,538. Member can take credit in different purposes. Difference purposes have
difference scheme of loan installment and interest rate too.

The Samuhik Saving and Credit Cooperative Society Ltd, Bhojpur has strong
financial status in aggregate. The share capital is in increasing trend and Economic
empowerment also increasing C.V. of deposit collection is 0.57 and C.V of loan
disbursement is 0.19. The C.V. of deposit collection is higher than loan disbursement
(.57>.19). Lower C.V is more preferable for the cooperative. So the loan
disbursement is less risky than deposit collection. Loan disbursement is favorable
according to C.V analysis or indicates that the result is satisfactory.

23
4.2.2 Annual Percentage Change of Deposit Collection and Loan
Disbursement

Annual percentage change of deposit and credit mobilization shows that how the
cooperatives are mobilizing it's saving or the lending status of cooperatives. Five FY
annual percentage change of cooperative is presented be

Table 4.2: Annual percentage Change of Deposit Collection and Loan

Disbursement

Percentage Percentage
Deposit Loan
Fiscal Year Changed in Changed in
Collection Disbursement
Deposit Loan

2010/011 1,862,525 3,184,827 0.00 0.00

2011/012 3,281,187 5,217,359 76.17 63.82

2012/013 5,942,960 4,608,885 81.12 -11.66

2013/014 8,027,309 5,363,613 35.07 16.38

2014/015 9,840,042 4,781,824 22.58 -10.85

Total 28,954,023 23,156,508

Source: Annual Financial Report of SS & C, 2010-2015 AD

Table 4.2 shows that the deposit collection of SS & C society Ltd. is in
increasing trend. The total deposits collection is Rs. 28,954,023 and total loan
disbursement is Rs. 23,156,508. The total deposits collection is Rs. 28,954,023.
The total deposits collection in fiscal year 2010/011, 2011/012,2 012/013,
2013/014 and 2014/015 is Rs. 1862525, Rs. 3,281,187, Rs. 5942960, Rs.
8027309 and 9840042 respectively. The maximum amount of the deposit
collection is Rs. 9,840,042 in the last year. Whereas the minimum amount is
Rs.1,862,525 in the initial year. The annual percentage change shows the
percentage increase or decrease in every successive year the minimum
increment in deposit collection is 22.58% in the fiscal year 2010/011 and

24
maximum increment in deposit collection is 81.12% in the fiscal year
2012/013.

The total loan disbursement in the fiscal year 2010/011, 2011/012, 2012/013,
2013/014 and 2014/015 were Rs. 3184827, Rs. 5217359, Rs. 4608885,Rs.
5363613 and 4781824 respectively. The maximum amount of the loan
disbursement is Rs. 5,363,613 of the FY 2013/014 whereas the minimum
amount of loan disbursement is Rs. 3,184,827 in the initial year. The maximum
annual percentage change in loan disbursement is 63.82%% in FY 2010/011.
The total loan disbursement of cooperative is in decreasing order in third and
fifth fiscal year of study period i.e. in 2012/013 and 2014/015 the percentage
change is (11.66%) and (10.85%) respectively. but second and fourth year the
loans disbursement is increased in the fiscal year 2011/012 and 2013/014 that
are 63.82% and 16.38% respectively. Comparatively, total deposit collection is
a head in collecting high amount. The deposits collection in every successive
year is in decreasing trend and loan disbursement is also diminishing in the
third and fifth years. The maximum annual percentage change of Total deposit
collection and total loan disbursement is 81.12% and 63.82% respectively.

4.2.3 Saving (deposit) Collection Fiscal Year 2010/011 to 2014/015

The main objectives of a cooperative is to safe guard the small saving of people
and mobilizing it in productive sectors. The following table shows the situation
of cooperatives in relation with deposit collection.

25
 Table 4.3: Saving (deposit) Collection Fiscal Year 2010/011 to 2014/015

Saving (Deposit)
Year
Monthly Daily Salary Current Fixed Hatiya Khutruke Total

2010/011 73,700 224,975 1,238,776 325,074 NA NA NA 1,862,525

2011/012 97,500 525,892 1,554,200 745,000 358,595 NA NA 3,281,187

2012/013 205,000 1,576,870 1,645,230 1,050,000 545,000 350,000 570,860 5,942,960

2013/014 360,000 2,245,213 1,789,540 1,554,365 945,000 435,000 698,191 8,027,309

2014/015 540,100 3,054,200 2,015,000 1,954,465 1,110,927 450,000 715,350 9,840,042

Total 1,276,300 7,627,150 8,242,746 5,628,904 2,959,522 1,235,000 1,984,401

Mean 255,260 1,525,430 1,648,549 1,125,781 591,904 247,000 396,880

S.D 195245 1177724 287659 644645 447506 228681 366575

C.V 0.76 0.77 0.17 0.57 0.76 0.93 0.92

Source: Annual Financial Report of SS & C,2010- 2015 AD.

The table 4.3 presents the total deposits collection in different purposes. The members
can save their money by opening saving account in the cooperative. Maximum
amount of deposit collection is in salary account i.e, Rs. 8242746. Second and third
larger amount is Rs. 7627150 and 5628704 in daily saving and current account
respectively. After that the deposit is in fixed, Hatiya and khutruke have also Rs.
2959522, Rs. 1235000 and Rs. 1984401 respectively. The deposits are in increasing
trend of all deposits.

Define by the statistical tools, that the larger average amount of salary is Rs. 1648549.
Minimum average amount of the deposit is Hatiya saving i.e Rs. 247000and Rs.
396880 respectively. Hatiya and Khutruke saving are established only from FY
2012/013. So these accounts have small amount of saving. These accounts are also
growing rapidly in increasing order. According to C.V. analysis maximum C.V. ratio
is 0.93 and minimum C.V. ratio is 0.17 of salary Hatiya saving account and salary
saving account respectively. Lower value of C.V. is more preferable for the
cooperative so that the salary saving account have more satisfactory than others
saving.

26
4.2.4 Net Saving (deposit) Collection

Deposit collection is major function of the cooperative. Annual deposit collection

would be refunded to the depositors. Remaining deposit is called net deposit
collection. Net deposit collection is the investable fund for the cooperative. The net
deposit collection and annual refunded percentage of the cooperative in five FY is
given below.

Table 4.4: Net Saving (deposit) Collection of SS & C Cooperative Bhojpur Ltd.

Percentage of
Saving Saving
Fiscal Year Net Saving Refund of
Collection Refund
Deposit
2010/011 1,862,525 244139 1,618386 13.11
2011/012 3,281,187 1517439 1763748 46.25
2012/013 5,942,960 5043255 899705 84.86
2013/014 8,027,309 7358480 668829 91.67
2014/015 9,840,042 9115314 724728 92.63
Source: Annual Financial Report of SS & C,2010- 2015 AD.

The table 4.4 shows that, the refunding percentage is in increasing trend. Net
saving of first fiscal year is 1618386 that percentage of refund is 13.11%.
Similarly, net saving of second year (FY 2011/012) is Rs. 1763751 respective.
Refunding ratio is 46.25%, we can analyze that least change of net saving
becomes more than three times changed in ratio i.e. 46.25%. That means net
saving is increased and refunding ratio is also increased. The refunding ratio is
great high. In two FY (2012/013 and 2013/014) decreased the in net saving by
Rs. 899705 and Rs. 668829 respective but refunding ratio increased by ratio are
84.86% and 91.67%. It means the depositors won't keep saving long time in the
cooperative. The maximum ratio is 92.63% in last year i.e 2014/015 its net
saving is Rs. 724728. In this fiscal year net saving is increased also increased
in refunding ratio is 92.63%. That means the depositors withdrew their saving
nearly 100% that is not favorable for the cooperative. Society has to increase

27
the net saving and should be invested in income generation sectors. The socio
economic status has improved the policies in through co-operative. So, the
economic empowerment will be increased and can invest in productive sectors.

4.2.5 Net Loan Disbursement

Loan disbursement is another major function of the cooperative. Annual loan

disbursement would be recovered by the borrowers. Remaining loan
disbursement is called net loan disbursement. Net loan disbursement should be
the appropriate for the cooperative. The net loan disbursement and percentage
of loan recovery of the cooperative in five FY is presented below.

Table 4.5: Net Loan Disbursement of SS& C Ltd.

Loan Refund Net Loan to Percentage

Fiscal Year
disbursement Loan Recover Recover
2010/011 3,184,827 1,206,807 1,978,020 37.89

2011/012 5,217,359 3,193,680 2,023,679 61.21

2012/013 4,608,885 3,649,698 959,187 79.19

2013/014 5,363,613 4,289,045 1,074,568 79.97

2010/015 4,781,824 3,883,086 898,738 81.21

Source: Annual Financial Report of SS & C,2010- 2015 AD

The table 4.5. shows the net loan disbursement of the cooperative. The loan is
recovered in their maturity period. The loan recovery ratios are in fiscal year
2010/011, 2011/012, 2012/013, 2013/014 and 2014/015, 37.89%, 61.21%,
79.19%, 79.97% and 81.21% respectively. Total loan disbursement in fiscal
year 2010/011 is Rs. 3184827 which is recovered in same FY Rs. 1206807 (net
Rs. 1978020) that is 37.89%. This ratio is little less than other years. It also
affects the installment term and maturity period of loan. Most of the loans are
provided short term loan, but some loan are provided loan term loan too. So,
37.89% recovery ratio is not mostly bad. Maximum loan recovery ratio is

28
81.21% in last fiscal year that means loan recovery system of cooperative is
satisfactory. The loan recovery ratios in last three year are 79.19%, 79.97% and
81.21% and respective FY 2012/013, 2013/014 and 2014/015 respectively. The
cooperative have not bad in FY 2011/012 also recovery ratio is 61.21%.

The cooperative have been improved to loan recovery system, rules and
regulation as well policies. Society's level of loan disbursement amount is
increasing but in decreasing rate. Internal activities should be reviewed by the
society. So level of bad debt is can be minimized. Following graph shows the
clear status of loan disbursement ratio of SS&C society ltd. Bhojpur.

4.2.6 Interest Earning

Major source of cooperative is interest earning. The cooperative is collect

deposits from depositors and disburse loan to members. Interest is earned from
loan disbursement. On the other hand, interest is paid to depositors. Net interest
earning should be positive. Interest earning ratio should be high. Annual
interest earning ratio is calculated be

Table 4.6: Table of Interest Earning

Fiscal Interest From Loan Interest paid in Net Interest Earnings

Year disbursement (RS) Deposit (RS) Income (RS) Ratio (%)
2010/011 54,242 19,114 35,128 3.86
2011/012 196,109 159,318 36,792 4.04
2012/013 382,921 287,529 95,392 10.48
2013/014 646,724 348,712 298,012 32.75
2014/015 858,015 413,430 444,585 48.86
Total 2,138,011 1,228,103 909,909 100.00

Source: Annual Financial Report of SS & C,2010- 2015

Table 4.6 reveals the interest earning ratio of the cooperative. The net interest
incomes are Rs. 35128, Rs. 36792, Rs. 95392, Rs. 295012 and Rs. 444585 in
next five year. And interest earning ratios are 3.86%, 4.04% 10.48%, 32.75%

29
 and 48.86% respectively. Interest earning ratio is rapidly growing in each FY.
It means that the interest earning ratio of the cooperative is got stronger. The
combination of paying interest in deposit and earning interest in loan is better.
The highest ratio is 48.86% in the FY 2010/011 and lowest ratio is 3.68% in
the FY 2014/015. It can be concluded that the interest earning ratio is
satisfactory consistent during the study period.

4.2.7 Loan Disbursement in Fiscal Year 2010/011 to 2014/015

Cooperatives are not only mobilizing the deposits but are also supporting the
members by providing loans for different purposes. Loan disbursement is
another major function of the cooperative. The members are take loan by
joining the cooperative. Annual loan disbursement would be recovered by the
borrowers. Installation period and interest rate is separate in different purposes.
Net loan disbursement should be the appropriate for the cooperative. The total
loan disbursement, mean, standard deviation and C.V. of the cooperative in
five YF are presented below.

Table 4.7 Loan Disbursement in Fiscal Year 2010/011 to 2014/015

Loan Fiscal Year

Total Mean Stand. Dev.C.V
Topics 2010/011 2011/012 2012/013 2013/014 2014/015
Business 2,456,827 4,249,259 2,600,000 2,788,613 2,206,824 14,301,523 2,860,305 804973 0.28
Agriculture 265,000 358,600 545,000 750,000 650,000 2,568,600 513,720 200813 0.39
Property - - 500,000 600,000 650,000 1,750,000 350,000 324037 0.93
Livestock 158,000 204,500 350,000 350,000 400,000 1,462,500 292,500 104884 0.36
Fruit/veg. 200,000 250,000 313,885 300,000 300,000 1,363,885 272,777 47401 0.17
Domestic
55,000 105,000 200,000 360,000 360,000 1,080,000 216,000 141395 0.65
Purpose
Education &
50,000 50,000 100,000 215,000 215,000 630,000 126,000 83771 0.66
Health
Accidental &
NA NA NA NA NA NA NA 0 -
dissertation
Industry NA NA NA NA NA NA NA 0 -
Total 3,184,827 5,217,359 4,608,885 5,363,613 4,781,824

Source: Annual Financial Report of SS & C,2010- 2015

30
The table 4.7 reveals that the loan disbursement in different purposes of
cooperative. Maximum average loan disbursement of cooperative is Rs.
2060305 in business sector. Then minimum average amount of loan
disbursement is Rs. 126000 in education/health sector there is zero
disbursement of loan in accident/dissertation and industrial sector. Same way
maximum amount of standard deviation is Rs. 804973 in business and
minimum amount is Rs. 47401 in Fruit/vegetable farming. Higher C.V. is 0.93
in property purchase and lower C.V. is 0.17 in fruit/vegetable farming.
Minimum amount of standard deviation is more preferable for the cooperative
which is Rs. 47401 in Fruit/vegetable farming. Which means the cooperative is
smoothly operating the loan department. Similarly least coefficient variance
(C.V) is more preferable for cooperative is 0.17 in property purchase. The
cooperative is providing loan in different purposes to shareholders. Most of the
loan is providing by cooperative is in business sector which is Rs. 14301523.

4.2.8 Interest Expenses

Interest is paid to the depositors. The depositors can save their money in
different schemes i.e. monthly, daily, salary, current, fixed, hatiya, khutruke.
The cooperative provides interest in daily basis in. 6% to 10% interest rate is
provides by the cooperative in different saving schemes. Annual interest
expenses in different schemes and mean, standard deviation C.V of five FY are
calculated below.

31
Table 4.8: Annual Interest Expenses in Different Schemes

Saving (Deposit)
Year
Monthly Daily Salary Current Fixed Hatiya Khutruke Total

2010/011 1,589 5,640 8,321 3,564 NA NA NA 19,114

2011/012 5,962 48,636 60,604 8,256 35,860 NA NA 159,318

2012/013 16,118 91,943 62,444 15,754 45,150 20,520 35,600 287,529

2013/014 21,500 105,400 78,542 23,150 48,210 25,400 46,510 348,712

2014/015 31,200 115,400 94,850 29,840 57,450 29,840 54,850 413,430

Total 76,369 367,019 304,761 80,564 186,670 75,760 136,960

Mean 15,274 73,404 60,952 16,113 37,334 15,152 27,392

S.D 11907 45652 32522 10692 22249 14219 25920

C.V 0.78 0.62 0.53 0.66 0.60 0.94 0.95

Source: Annual Financial Report of SS & C,2010-,2015

The table 4.8 shows that the interest expenses paid on deposit. The cooperative is
collected the deposit in different schemes. Interest rates are also separately in different
type of saving as well refunding system too. Interest paid by the cooperative in these
saving accounts are Monthly, Daily, Salary, Current, Fixed, Hatiya and Khutruke
average amount is Rs. 15,274,Rs. Rs.73,404, Rs. 60,952, Rs. 16,113, Rs. 37,334, Rs.
15,152 and Rs. 27,392 in next five year. The standard deviations are Rs. 11907, Rs.
45652, Rs. 32522, Rs. 10692, Rs. 22249, Rs. 14219 and 25920 and C.Vs of interest
expenses are 0.78, 0.62, 0.53, 0.66, 0.60, 0.94 and 0.95 in next five year respectively.
The maximum coefficient of variance (CV) interest expenses is 0.95 of Khutreke
saving and minimum C.V of interest expenses is 0.53 of salary saving account. The
maximum average interest expenses is Rs. 73404 of daily saving and minimum
average interest expenses is Rs. 15152 of hatiya saving. Maximum standard deviation
is Rs. 45652 of daily saving and minimum standard deviation is Rs. 11907 monthly
saving. Minimum standard deviation is more preferable. Similarly lower C.V is
preferable that is 0.52 because of less risk in per unit.

32
 4.2.9 Provisional Funds of the Cooperative

Financial position of the cooperatives included Share Capital, Reserve Funds,

Share Dividend, Patronage Fund, Staff Bonus Fund, Cooperative Education
Fund, Cooperative Development Fund, Loss Recovery Fund and Other Funds.
They are separately presented and analyzed under different headings.

Table 4.9: Provisional Funds of the Cooperative

Fiscal Year
Funds Total
2010/011 2011/012 2012/013 2013/014 2010/011
Reserve fund 6173 3461 13695 22570 34707 80606
share dividend 6173 3461 13695 22570 34707 80606
Patronage Fund 6173 3461 13695 22570 34707 80606
Cooperative
education fund 3086 1731 6848 11285 17353 40303
Cooperative
development
fund 3086 1731 6848 11285 17353 40303
Loss recovery
fund 3086 1731 6848 11285 17353 40303
Staff Bonus
Fund 1543 866 3424 5642 8677 20152
Bad debt fund 1543 866 3424 5642 8677 20152
Total 30863 17308 68477 112849 173534 403031

Source: Annual Financial Report of SS & C, 2010-2015

Reserve Fund

Reserve fund is most important to the cooperative. The cooperative have to

maintain 20% percent of net profit as reserve fund. Out of the total reserve
funds allocated by the cooperative in Likewise, the total fund is Rs. 80606.
Maximum amount of fund in FY Rs. 2014/015 is Rs. 34707. Reserve fund is

33
decreased Rs. 6173 to Rs. 3461 in YF 2011/012 after that rapidly in increasing
trend.

Share Dividend Fund

Table shows that out of total share dividend fund allocated by the cooperatives,
share dividend fund is most important to the cooperative. Organizations have to
distribute the share dividend in proportion to the shareholders. The cooperative
have to maintain 20% percent of net profit as share dividend fund. Out of the
total reserve funds allocated by the cooperative in Likewise, the total fund is
Rs. 80606. Maximum amount of fund in FY Rs. 2014/015 is Rs. 34707.
Reserve fund is decreased Rs. 6173 to Rs. 3461 in FY 2011/012 after that
rapidly in increasing trend.

Patronage Fund

The table indicates that the cooperative is allocated 20% of net profit i.e Rs.
80606 in total. Likewise in the FY 2011/012, the amount of patronage fund is
decreased i.e Rs.6173. Maximum amount of fund is Rs. 34707 in last year.
After the second FY the fund is in increasing trend.

Cooperative Education Fund

Cooperatives have to provide education about the cooperative. So that the new
members are encourage to join the cooperative. Ratio of new entrance will be
high. There would not chance to leave cooperative by exist shareholders.
Education for the members is of utmost importance in the cooperatives.
Therefore, an attempt had been made during the study to find out the funds
allocated by the cooperatives under cooperative education fund. A sufficient
proportion of funds were allocated by the cooperative. Total amount of
education fund is Rs. 40303; that is 10% of net profit.

34
Cooperative Development Fund

Very few cooperatives had allocated funds for the cooperative development.
Table indicates that the cooperative had allocated 10% of net profit that amount
is Rs. 40303 in total up to last FY. This allocated amount should be utilized in
respective FY. Maximum allocation of cooperative development fund is Rs.
17353 in FY 2014/015. Cooperative development fund also increasing trend in
every FY.

Loss Recovery Fund

Though loss recovery funds is one of the most necessary funds for the
cooperative, the cooperative have to suffer from the loss at that time this fund
helps to maintain losses. The total amount of lass recovery fund is Rs. 40303
till now. 10% of net profit is allocated to the loss recovery fund in the
cooperative. Maximum allocation of cooperative development fund is Rs.
17353 in FY 2014/015. Loss recovery fund also increasing trend in every FY.

Staff Bonus Fund

The data shows the cooperative is allocated the staff bonus fund 5% of net
profit i.e. Rs. 20152 in total. Staff is performs their daily work in office. An
organization has motivation to staff by monitory incentive. Motivated staffs
will be responsible to their work. Likewise in the FY 2011/012, the amount
decreased by Rs. 866. After that the amount is in increasing trend up to last FY.

Bad Debt Fund

The cooperative sometimes face to bad debt in transaction. The bad debt fund
helps to fulfill bad debt loan. 5% of net profit is allocated to bad debt fund by
the cooperative. The total amount of bad debt fund is Rs. 20152 up to last FY.
Bad debt is totally loss for the cooperative so the fund would be keep in
provision. Maximum amount of bad debt fund is Rs. 8677 in last FY.

35
The funds are the provision for the organizations. This type funds helps
maintain the position of the organizations. The cooperatives have to face
different type of problems in this situation funds will help. Certain percent of
net profit would be kept in provision for the funds.

Figure 4.1 Position of Fund SS& C of Bhojpur

90
80.606 80.606 80.606
80
Total amount in thousand

70
60
50
40.303 40.303 40.303 Total…
40
30 20.152 20.152
20
10
0

Provisional Funds

Source: Annual Financial Report of SS & C, 2010-2015 AD

The figure is helpful to justify what was explained with the help of the above
table.

4.2.9 Growth Ratio of Total Deposit Collection and Total loan

Disbursement

Growth ratio is the growth rate of deposit collection and Loan

disbursement. It indicates how well the cooperative collecting the deposits and
disbursing the loans. The growth ratio is calculated as follows.

Dn = Do (l + g) n-1

Where, Dn = Deposit amount for n period.

Do = Current deposit amount

36
 n = number of years observed

g = growth rate during the period

Table 4.10: Position of Growth Rate

Fiscal Year 2010/011 2011/012 2012/013 2013/014 2014/015 Growth Rate

Saving
(Deposit 1862525 3281187 5942960 8027309 9840042 51.61%
Collection)
Loan
3184827 5217359 4608885 5363613 4781824 10.69%
Disbursement

Source: Annex-III

The table 4.10 shows that the growth ratio of total deposit and total laon
disbursement of SS&C society ltd. are 51.61% and 10.69% respectively which
shows that total deposit is higher than growth ratio it indicates that the
performance of deposit collection is better than loan disbursement. Deposit
collection is helping to achieve cooperative goals and objectives. On the other
hand loan disbursement isn't satisfactory. It is also increasing every fiscal year
but in decreasing trend and it is not meeting target point. Internal and external
factors are responsible for not meeting the target point. External factors are
uncontrollable but the cooperative can change the rules and regulation to attract
more borrowers. Internal factor may be rules and regulation of cooperatives,
liquidity crisis, etc. and external factor may be, environment, shareholders have
enough money to invest, shareholders don't want to take risk etc.

4.2.11 Coefficient of Correlation between Total Deposit and Credit

Mobilization

Under this heading, Karl Pearson‟s coefficient of correlation is used to find out
the relationship between total deposit and loan and advances (Credit
mobilization)

37
 Total deposit and credit mobilization are very important liabilities and
assets of the cooperative. Deposit is mobilized as the loan and advances. Proper
mobilization of deposits is very crucial function of the cooperatives. The
relationship between deposit and its mobilization must be optimum to gain
profit. In this analysis total deposit is independent variables (x) and loan is
dependent variable (y)

Table 4.11: Relationship Between Total Deposit and Loan

Correlation
coefficient of determination (r2) Probable error (P.E.)
(r)

0.5678 0.3223 0.2044

Source: Annex-IV

The table 4.11 shows the correlation coefficient(r) between deposits and loan of
the cooperative that is 0.5678. This shows the positive relationship between
these two variable i.e. deposit and loan of the cooperatives. By considering
coefficient of determination (r2), the value of r2 is 0.3223 in case of the
cooperative. The value of r2 is 0.3223, which means 32.23% of loan
disbursement decision is determined by deposit and 66.77% loan and advances
depend upon other variables.

In this chapter 4.1 analyzed the secondary data is found satisfactory for the
cooperative. The study is consisting to evaluation, analyzes, compare to each
other and interpreted according to results. Data are collected from annual
reports, financial report (published and unpublished) asking to committee
member, staffs and board member.

4.3 Basic Profile of the Members

The shareholder members can be judged by various ways. However in the

cooperatives, it is highly given priority that how much the socio-economic

38
conditions of the members have been improved by being member of the
cooperative. Cooperative as a business and a social organization has to give
one and only priority to benefit the members socially and economically. Only
by doing business focusing on the members' skills and economic activities a
cooperative can be sustained and developed. Similarly, cooperatives have to
benefit members by employment generation, formal and non-formal education,
vocational training, medical and health care services, environment protection
activities, drinking water supply, etc.

Based on the above features, an opinion survey (Questionnaire) had been

conducted from the members of the Samuhik Saving & Credit Cooperative
(SS&C) for this study.

4.3.1 Caste and Ethnic Composition of Respondents

The cooperative is providing facilities for the people of Bhojpur district. The
involvement in the cooperative are Brahman, Cheetri, Janajati and Dalit.
Cooperative shares its profit to the shareholder every year. There in not any
discrimination towards Dalit, Janajati and other ethnic caste. In the cooperative
the majority is Janajati. Caste/ethnic composition of respondents is given
below.

Table 4.12: Caste and Ethnic Composition of Respondents

Total Number of
Caste and ethnic Percentage (%)
Respondent
Janajati 31 62
Brahmin/Chhetri 13 26
Dalit 6 12
Total 50 100

Source: Field Survey, 2015.

39
The table 4.12 indicates that the caste wise diversify of the member. Different
ethnic groups are joined in the cooperative. Janajati, Brahamin/Chhetri Dalit
and others are ethnic group of the study. Majority i.e. 62% of the members are
Janajati and 26% of the members are Brahamin/Chhetri and 12% of the
members are Dalit are taken as sample.

4.3.2 Age Composition of Respondents

The cooperative is providing facilities to different age groups. The involvement

in the cooperative are 15-25, 25-35, 35-45 45-55 and 55+ age groups. There in
not any restriction to join the cooperative. In the cooperative the majority age
group is 25-35 year. Age group composition of respondents is given below.

Table 4.13: Age Composition of Respondents

Total Numberf of
Age Group Percentage (%)
Respondent
15-25 2 4
25-35 20 40
35-45 19 38
45-55 8 16
55-65 1 2
65+ 0 0
Total 50 100

Source: Field Survey, 2015.

The table 4.13 indicates that the age composition of the members. Different age
groups are joined in the cooperative. The age groups 15-25, 25-35, 35-45, 45-
55, 55-65 and 65+ the percentage of these are 4%, 40% 38% 16% 2% and 0%
respectively. Majority i.e. 40% of the members' age group is 25-35. It means
age groups of 25-35 members are more energetic and entrepreneur to do self

40
business. Then age group of 35-45 i.e. 38% also shows that the members are
more involved in the income generation.

4.3.3 Educational Status of Respondents

Education is the backbone of any society. The population of the educated

people can make a society prosperous. Cooperative is an organization created
by the people of the society and the cooperative has also a lead role to educate
the members on their rights and duties as a member of the society. Education
helps boost morale, self-esteem, confidence, social recognition and the status to
the person. Illiteracy is a curse from which a person may be misguided, cheated
and creates situation of dependency to others hindering her/him from the
empowerment. Keeping in mind the education status of the members, a survey
had been made to find out the situation of the members in this regard.

Table 4.14 Educational Status of Respondents

Percentage
Education Categories Total Number of Respondents
(%)
Illiterate 0 0
Literate (can write Name) 15 30
Under S.L.C 13 26
SLC Pass 10 20
Intermediate Level &
12 24
Above
Total 50 100

Source: Field Survey, 2015.

As presented in the table 4.14 majority 30% of the members are literate (can
write name). That means the members are literate in the cooperative. The main
purpose of the cooperative would be involvement to the uneducated members.
Uneducated people have no enough investable fund to start business and
entrepreneurship. The members are self encouraging to involvement in the

41
cooperative. The cooperative have major purpose is literacy in society by
campaigning, giving loan in education etc. Intermediate level and above passed
members will be asset for the cooperative. Larger numbers of members have
been found to be taking loan by literate i.e 30% and lesser number of member
have been found to be taking loan by SLC pass i.e 20%. But illiterate member
is zero percent.

4.3.4 Change in House Structure of the Respondents

The study consist on three types of house structure like thatch hut, tyle/Jasta
pata and concrete. The structure of house are presenting at following table at
the time of study period.

Table 4.15: Change in house structure of the respondents

House structure
Total Number of Respondent Percentage (%)

Before After Before After

Thatch Hut 31 17 62 34
Tile/Jasta pata 19 30 38 60
Concrete 0 3 0 6
Total 50 50 100 100

Source: Field Survey, 2015.

Out of the surveyed 50 share members, about 62 percent lived in thatch hut
(Khar ko chhana) type of house before credit. But after receiving cooperative
credit only 34 percent member's houses remaining in thatch hut. Only 38
percent of the surveyed members were used Tile/Jasta pata types of the houses
before credit but after the receiving the credit this has significantly changed and
60 percent of members have started living in such type of house. There were
nothing any concrete house before but after receiving cooperative credit 6
percent of members have started living in concrete house.

42
4.3.5 Occupation Composition of Respondents

The cooperative is providing facilities for the people for different occupations.
Farmers, wage earners, businessman, hotel businessman and others can join the
cooperative. There in not any separate rule and regulations for separate
occupation. In the cooperative the majority is businessman. The occupational
composition of the respondents is given in the table below.

Table 4.16: Occupation Composition of Respondents

Before After
Percentage
Total
Occupations Percentage Total Number Percentage change
Number of
(%) of Respondent (%) (%)
Respondent
Agriculture 29 58 12 24 -34
Wage
6 12 4 8 -4
earner
Business 13 26 26 52 26
Hotel 2 4 8 16 12
Total 50 100 50 100 0

Source: Field Survey, 2015

The table 4.16 indicates that there is remarkable switch on in the

occupation/profession of the members before and after joining the
cooperatives. According to the above table there is remarkable shift of
profession among the members. Before joining the cooperative as members,
58%, 12%, 26% and 4% of the members were engaged in agricultural
activities, wage earner, business and hotel respectively. After joining the
cooperative as members, 24%, 8%, 52% and 16% of the members are engaged
in agriculture activities, wage earner, business and hotel respectively. The
percentage change of the cooperative as members, (43%), (4%), 26% and 12%
of the members are changed their occupations. Involvement of members in

43
agriculture are decreasing from 58 per cent to 24 per cent, in wage earner
decreasing from 12 percent to 8 percent, in business sector increasing from 26
percent to 52 percent and in hotel increasing from 4 percent to 16 percent.
Maximum no. of members are changed their occupations in agriculture. After
joining the cooperative the members are switched to business and hotel from
agriculture and wage earner.

4.4 Role of S.S&C in the Development of the Study Area

Samuhik saving & credit cooperative has some main role in the development of study
area. The following are the main activities .

4.4.1 Change in Drinking Water Supplyof the Respondents

The respondents are changed source of drinking water after joining the
cooperative. They invest in small farming and income is generated, after that
they have to spend in their business/farm. Use of different sources of drinking
water composition of the respondents is given below.

Table 4.17: Change in Drinking Water supply of the Respondents

Total Number of Respondent Percentage (%)

Sources
Before After Before After
Local Source 30 18 60 36
Piped water own 15 30 30 60
Piped water Public 5 2 10 4
Total 50 50 100 100

Source: Field Survey, 2015

Out of the surveyed 50 share members, about 60 percent used to local source of
house before and 36 percent member only used after joining the cooperative.
30 percent of members were used to own piped water but increased by 60
percent of members has used to after joining the cooperative. 10 percent of

44
respondent were used public piped that is decreased to 4 percent after joining
the cooperative. Own water piped has been increased in such type of survey
that means the members can save their time and they will be able to increase
other income in same time.

4.4.2 Change in the Toilet Structure of the Respondents

The respondents are changed their toilet structure after joining the cooperative.
They are empowered by economically and socially as well health so most of
the members has built hygienic toilet. They are aware to improve in toilet. The
structure of toilet composition of the respondents is given.

Table 4.18: Change in Toilet Structure of the Respondents

Before After Change

Structure N0. of Percentage N0. of Percentage
Respondents Respondents
No Toilet 5 10 0 0 -5

Local Toilet 45 90 21 42 -24

Hygienic 0 0 29 58 29

Toilet
Total 50 100 50 100 0

Source: Field Survey, 2015

Out of the surveyed 50 share members, 5 members have no toilet but all
members have toilet after joining the cooperative. Such as local toilet is
decreased 45 to 21 means by 24 members. And there were no hygienic toilet
before joining the cooperative but increased by 29 members has such type of
toilet after joining the cooperative.

45
4.4.3 Change in Fuel Consumption of Respondents

The respondents are switched to electric and LP gas from fire wood after
joining the cooperative. They invest in small farming and income is generated,
after that they have to spend time in their business/farm. They have no enough
time to spend in kitchen. The female members are aware to health effected
from bad smoke out comes from fire wood. Use of different sources of fire
composition of the respondents is given below.

Table 4.19: Change in Fuel Consumption of the Respondent

Before After
N0. of Percentage No. of Percentage
Source
Responde Respondents
nts
Fire Wood 36 72 18 36

Biogas 6 12 10 20

Electric/LP gas 8 16 22 44

Total 50 100 50 100

Source: Field Survey, 2015

It can be seen from the table 4.19 that the major respondents had used fire
wood (72 percent) before joining the cooperative. This number after joining the
has fallen to 36 percent. 12 percent of the total surveyed respondents were
found used biogas before but after joining the cooperative about 20 percent of
respondent have used biogas. In such case electric/ LP gas had used before by
16 percent but after joining the cooperative about 44 percent of respondent
have started to use electric/ LP gas.

So, it is clear that after joining the cooperative share holders are interested to
invest in modern technology.

46
4.4.4 Change in the Schooling of the Respondents' Family

The respondents are switched to private school from government school after
joining the cooperative. They are able to pay fees of private school. The
children of share members are gating quality education from private school.
Going to different school composition of the respondents' children is given
below.

Table 4.20: Change in Schooling of the Respondent's Family

Before After
No. of Percentage No. of Percentage
School
Responde Respondents
nts
Government 29 58 17 34

Private 21 42 33 66

Total 50 100 50 100

Source: Field Survey, 2015

It can be seen from the table 4.20 that the major respondents' children had used
to go Government school about 58 percent before joining the cooperative. This
number after joining the cooperative has fallen to 34 percent. 42 percent of the
total surveyed respondents were found used to go private school before but
after joining the cooperative about 66 percent of respondent have gone to
private school.

So, it is clear that after joining the cooperative share holders are interested to
go private school. They are able to pay in private school by maintaining their
economic power.

47
4.4.6 Impact of Loan Disbursement to Respondents

The cooperative is providing loan in different purposes. Different types of

purposes have different types of schemes like that business purpose, domestic
purpose, hotel business, education/health and business. Cooperative shares its
profit to the shareholder every year. There in separate rule in separate loan
purposes. In the cooperative the majority is taking loan in business sector.
Loan disbursement in different purposes to respondents is given below.

Table 4.21: Loan Disbursement of the Cooperative in Different Purposes

Percentage
Purpose Total Number of Respondent
(%)
Domestic purpose 2 4
Business 18 36
Education/Health 3 6
Property purchase 7 14
Fruit/Vegetable farming 8 16
Tailoring 5 10
Hotel 7 14
Total 50 100

Source: Field Survey, 2015.

The table 4.21 and figure 4.2 show the loan disbursement for different
purposes. The percentages of domestic purpose, business, education/health,
property, fruit/vegetable, tailoring and hotel are 4%, 36%, 6%, 14%, 16%, 10%
and 14% respectively. Borrowing of members in business purpose is more i.e
16% and borrowing of members in domestic purpose is less i.e 4%. The
members are taking loan more for the business then the fruit/vegetable farming
i.e. 16% after that property purchase and hotel business ie 14% respectively.
The members are also taking loan for tailoring; education/health and domestic

48
purpose are 10%, 6% and 4% respectively. Hence, the loan is taken by the
member for economic activities.

Figure 4.2: Loan Disbursement in Different Purposes

Hotel Domestic purpose

14% 4%

Tailoring
10%

Business
36%

Fruit/Vegetable
16%

Education
property 6%
14%

Source: Field Survey, 2015

4.4.7 Sources of Loan before the Joining the Cooperative

In the rural financial market, informal agencies including individual and groups
have played a dominant role as traditional moneylenders. Formal
groups/institutions include bank/financial institutions, cooperatives and other
registered financial institutions. To find out the credit borrowed by the
members before from different sources, the borrower‟s opinion was collected.

49
Table 4.22: Sources of Loan before Joining the Cooperative

Total Number of
Source of Loan Percentage (%)
Respondent
Bank/financial institutions 7 14
Relative/ Friend 41 82
Local money lender 1 2
Other 1 2
Total 50 100
Source: Field Survey, 2015.

The table and figure show the before credit source of respondents. The
percentage of the credit borrowed by the members from relative/friend is
higher than other sources. Before joining the cooperative, 82% (percent)
respondents had borrowed loan from relative/friend. 14% (percent) respondents
had borrowed loan from bank/financial institution and 2% (percent)
respondents had taken loan from local money lender and others. Before joining
the cooperative the respondents had to pay high interest rate. The respondents
had to pay around 18%-36% interest rate before they joined the cooperative
whereas they have to pay only 14% (percent) interest rate to the cooperative.
The dependency of credit borrowed for the cooperative is increasing.

Figure 4.3: Sources Condition of Loan before the Joining of Cooperative

Local money Other

lender 2%
Bank
2%
14%

Relative/ Friend
82%

Source: Field Survey, 2015.

50
4.4.8 Impact of Saving (deposit) Collection to the Members

The saving usually saves their income if they find their own financial
institution at their place if such institutions are not available they hardly go to
other places to deposit their saving.

Table 4.23: Deposit Condition of Respondents

Total Number of
Purposes Percentage (%)
Respondent
Additional Expenses 31 62
Bank Balance 12 24
Go to other Cooperative 7 14
Total 50 100

Source: Field Survey, 2015.

The table 4.23 and figure 4.4 show that the no. of members they would utilize
their deposit, if there was no the cooperative. Total no. of respondents is 31, 12
and 7 they utilized their deposit in additional expenses, bank and go to other
cooperative to deposit respectively. 62% of respondents don't go to save their
money if there was no the cooperative or they expend their saving for
additional expenses. Similarly, 24% of respondents used to go to banks/
financial institutions for saving their money. And 7% of respondents would go
to other cooperatives for saving.

The cooperative helps to 62% members in deposit, it indicates that the

members are getting help by joining the cooperative, otherwise their money
will expense without saving.

51
Figure 4.4: Deposit Condition of Respondents

Go to other
Cooperative
14%

Additional
Bank Balance Expenses
24% 62%

4.4.9 Utilization of Saving of the Members

After saving the members have withdrawn their deposit to invest in domestic
expenditure, income generation activities, to improve their living standard and health
and education. The following table shows the utilization of saving.

Table 4.24: Utilization of Saving of the Members

Items No. of Members Percentage

Domestic Expenditure 13 26
Income generation 22 44
Expenditure in education and health 15 30
Total 50 100

Source: Field Survey, 2015.

Table 4.24 majority i.e. 44% of the members opinioned that the utilization of
deposit in income generation, 30% member expend their deposit on education
and health, 26% members expend on domestic expenditure.

52
4.4.10 Utilization of Income Earning of the Members

The cooperative is providing more facilities to the members. The members are
getting facilities in saving and credit. From these facilities they are generating
income. The income is utilizing in other purpose by them. They are utilizing
their earning in domestic purpose, business expansion, children
education/health, purchasing luxury goods etc. Majority utilization of income is
reinvesting in income generation. The respondent's opinion is given bellow

Table 4.25 Utilization of Income of the Members

Items No. of Members Percentage

Domestic Expenditure 11 22
Income generation 29 58
Expenditure in education and 10 20
health
Total 50 100

According to table 4.25, majority i.e. 58% of the members opinioned that the
utilization of income earned from business in income generation. It indicates
that the members are encouraged to invest their income in income generating
sector. After then 22% members utilized their income in domestic expenditure,
20% members utilized their income in health/education sector. The
cooperatives have helped them to increase in self-confidence and increase in
savings of the members in financial transactions.

53
 CHAPTER-FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary

This study consists of the case study of Samuhik Saving and Credit Cooperative
Society Ltd., Bhojpur. It also focuses the trends of saving and loan mobilization and
compared the correlation values of deposit, loan and advance for next five years.

The study is based on primary as well as secondary sources. All the data are taken
from concerned cooperative's annual reports, literature publications, balance sheet,
profit and loss account, previous thesis reports, different websites, related booklets,
journals and articles for the secondary data and primary data are taken from asking
questionnaire to respondents. 50 respondents are taken as sample out of 75 share
holders its covers 66.67%. After collecting the data from the different sources, it is
analyzed by using financial tools and statistical tools. Deposit collection and loan
disbursement function of the cooperatives is very important variables. Saving and
credit of the cooperative are mobilized to shareholders. The members are benefited
from both deposit and loan. Loan is taken for investing to the business and certain
percent of income is saved in the cooperative. The cooperative provides the interest in
saving and takes interest to borrower. According to the study, the contribution of the
deposit is higher than the loan in the cooperatives. The collection of the deposit must
be taken as a crucial factor by the cooperatives so that adequate funds can be available
to mobilize it.

The cooperative has important role for the development of study area. It changed the
drinking water supply, toilet structure, fuel consumption and schooling to the
members' family in this study. Most of the members have got the facilities of piped
water of their own, hygienic toilet, LP gas stoves , school at private after joining in
the cooperative. Members have taken loan for different types of income generating
activities like business, vegetables farming, tailoring etc from the cooperative. From
these activities, they generate self employment opportunity and help to reduce poverty
in the study area.

54
5.2 Conclusion

Samuhik Saving & Credit cooperative accumulates the scattered money from the
members. Share capital and savings are main sources of capital in this cooperative.
Share capital is in increasing trend. Different types of savings are collected in
increasing trend and mobilization of the saving by members as loan in different types
of income generating activities in the study area.

The socio-economic condition of the members has been changed after joining in the
cooperative. The home structure of the members has been changed, almost of the
members have tile roofed houses after joining in the cooperative. The occupation of
the members has been changing into business and little modern farming system. This
has helped to increase income of the participants. It made them economically and
socially active member in their family with the positive changes in consumption,
production, education, clothing pattern, health and decision making power. Due to
this their living standard has changed in positive direction after membership.

Finally, the role of cooperative in income and employment generation and overall
living standards is positive. It changes occupation, education of the family members,
and whole living standard of the members. It aware to the people. Thus in short the
grouped are towards satisfactory trend to reduce poverty and empowering their social
status but there are still many things to be done. And considering the solution of the
existing problems there is need to come up with better planning for the future.

5.3 Recommendations

Based on the findings and conclusion presented in the previous sections, the following
recommendation has been made for the implementation of program more effectively
and efficient

i) There should be regular monitoring mechanism to check whether the disbursed

loan is used as pre the objectives of the loan scheme.
ii) The cooperative has not enough capital to provide loan to the all members
according to their demand, so by raising its capital it must provide loan facility
to all members. For this, it must coordinate with its networking federation.

55
iii) Computerization is essential for the accounting system.
iv) Every meeting should be held in time and all the members should actively
participate in all meetings. The plans and policies should be followed strictly in
behavior.
v) Training and exposure visit are essential for the members.
vi) Cooperative education must be given to the all members and non members in it
coverage area.
vii) It must go forward by making other more new additional plan and policies.
viii) The cooperative should organize some kinds of trainings, such as cooperative
education, entrepreneurship development, business plan preparation, crop
diversification, sustainable agricultural program, agro forestry programs etc.

ix) Regular field visit and dealing with members should make more advances for
the effective collection of loan interest and other deposit collection.

56
 REFERENCES

Acharya, B.M. (2007). "Rural Agricultural Cooperative Societies in Nepal:

Performance and Member Participation", Unpublished Master's Thesis. T.U.,
Kathmandu.
Annual Financial Report of Samuhik Saving&Credit 2015.

Bajracharya, B.C. (2057 BS). Business Statistics and Mathematics. Kathmandu: M.

K. Publisher and Distributor (248 page no),
Bastola, S. (2008). Purbaki Sahakari Netir. Annapurna Post , 8.
Cooperative Darpan, (2007), Department of cooperative
DOC (2011). Annual Progress Report. Kathmandu: Ministry of Agriculture and
Cooperative.

Hajela, T.N. (1994). Cooperative History, Principle, Problem and Practice. Delhi:
Konark Publisher, Pvt. Ltd.

ICA (1995). Present Situation Problem and Future Tasks. Agricultural Cooperative
Study Report from Bangladesh, India, Malaysia, Philippines and Sri-Lanka,
New Delhi, Britain.

Kamat, G. (1978). New Dimensions of Co-operatives Management. New Delhi, India:

Himalayan Publishing House.

Karmacharya, M. N. (978 AD). "A Study on Deposit Mobilization of Cooperatives."

Unpublished Master's Thesis. T.U., Kathmandu

Koiral, G. P. (2000 AD). "Cooperative Development In Nepal", Unpublished Master's

Thesis. T.U., Kathmandu.

Koirala, T. P. (1997 AD). "Development of Nepal through Cooperative." Master

Diss., Kathmandu: Tribhuvan University.
MoF (2014). Economic survey, Kathmandu: Ministry of Finance (MoF).
NPC (2013). Interim Plan. Kathmandu: National planning commition (NPC).
Nepal, Pashupati Dr.(2068), Cooperatives :Theory&practice ,Pairabi pub.Kathmandu.
NEPSCUN, (2010 AD), Annual Report. Kathmandu: NEPSCUN.
Oxford. (2007). Oxford Dictionary.

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Panta, P.R (2009 AD). Social Science Research and Thesis writing. Kathmandu:
Buddha Academy Publishers and Distributors Pvt. Ltd.

Pokharel, B. B. (1988 AD). "A Study of the Cooperative Movement in Nepal." Ph.D.
Diss., Bihar: Bihar University.

Pokhrel, G (2009 AD). "A comparative study on saving and credit mobilization and
financial performance of Royal Cooperative Society Ltd. and Chandikalika
Saving and Credit Cooperative Society Ltd." Unpublished Master thesis, T.U.,
Kathmandu.
Pokhrel, S. R. (2011). "A Quantitative Analysis of living standard of people before
and after credit of microfinance institutions (MFLS) in Nepal: A case study of
Mid-Western Region". The Journal of Economic Concern. Kathmandu :
CEDECON.

Rai, R.D. (2010). Women empowerment through cooperative (Unpublished master‟s

thesis). CEDECON, Tribhuvan University, Kathmandu.

Sharma, G. R. (1999 AD). "A Comparative Study on the Financial Performance of

Cooperatives with Special Reference to AMCSL and NBCSL." Master Diss.,
Tribhuvan University,

Sharma, R (2009 AD). "Socio- economic Impact of Milk Cooperative (A Case Study
of Kubinde Milk Production Cooperative Limited, Kubinde Sindhupalchowk
District)." Unpublished Master's Thesis, T.U. Kathmandu.
Shrestha, A. (2000 AD). "Role of Cooperative in Rural Economy: A Case Study of
Cooperative Saving and Service Center." Master Diss., Tribhuvan University,
Kirtipur.

Shrestha, D. (2007 AD) . " A Comparative Study on Deposit Mobilization of EBL and
HBL." Master Diss., Tribhuvan University, Kirtipur.

Sickdle, B. (2014). Financial access and difficulties: NRB 59th University special
issues. Kathmandu: Nepal Rastra Bank (NRB).
Statistics report of Department of Co-operatives, 2015 AD
Subedi, B. P. (1991 AD). "A Study on the Accounting System of Nepal." Master
Diss., Tribhuvan University, Kirtipur.

58
 ANNEX-I
QUESTIONNAIRE FORM

1. Personal Profile:

1.1 Name of respondent: ………………………………Address: ……………

1.2. Age (In Year): ……………. 1.3.

Caste/Ethnicity:……………………….

1. 4. Marital Status: (a) Married (b) Unmarried (c) Widow (d) Separated

1. 5. Education:

(a) Illiterate (b) literate (can write name) (c) Level of study:
Primary/Secondary/Higher Secondary

2. Household Information:

2.1 Family size: ……………

2.2 Structure of house:

House Before After

Structure

Thatch hut

Tyle/slate

Concrete

2.3 Land

Land Before (in ropani) After (in ropani)

Bari

Khet

Others

2.4 Occupation:

Occupation Before After

59
Agriculture/Self
employed

Daily wage

Business/self
employed

Hotel/Restaurant

3. Living Standard:

3.1 Luxury goods:

Goods Before After

Radio

Television

Vehicle

Refrigerator

Others

3.2 Drinking Water:

Sources Before After

local source

Piped water
own

Piped water
public

3.3 Toilet:

Structure Before After

No toilet

60
 local toilet

Hygienic toilet

3.4 Fuel consumption:

Sources Before After

Fire wood

Biogas

Electricity / LP gas

3.5 Schooling:

School Before After

Government
school

Boarding
school/Private

4. Impact of Credit

4.1. Amount of loan (In Thousands):

(a) below 20 (b) 21-50 (c) 51-100 (d) 101-200 (e) 201-500 (f) 501-
1000 (g)1001+
4.2. What is the purpose for taking loan?

(a) Domestic Purpose (b) Business

(c) Health/Education (d) To purchase Property

(e) Other, specify

4.3. What was your loan source before?

(a) Banks (b) Relatives/ Friends (c) Local money leader (d) Other If
any

4.4. How do you utilize the income earned from cooperative farming/business?
(a) Domestic Expenses (b) Business
(c) To purchase property (d) Education/Health

61
4.5. Interest Rate

(a) SS&C Cooperative…………(b) Other above source………

4.6. What is your monthly income before and after taking loan from SS&C
Cooperative?
Income Before After

1000-5000

5001-8000

80001-10000

10001-15000

15001-20000

20000-above

4.7. How is your business performance? [Tick () in the year.]

Indicators (I) Year (II) Year (III) (IV) Year (V) Year
Loss able Year
Not
Profitable
Profitable
4.8. Has your household expenditure increased after joining the Cooperative
credit programe.

(a) Yes (b) No

If yes, give the increased of expenditure on following items.(monthly)

Description Before After

 Consumption expenditure
 Health/Education
 Social expenditure
4.9. Do you think your poverty has been reduced by joining the Cooperative?

(a) Yes (b) No (c) Do not know

5. Impact of Saving

5.1. Do you have any saving in the cooperative?

Particular Monthly Weekly Daily Fixed Current Khutruke

Amount (Rs)
Interest
in total Rate
(%)
62
5.2. Have you withdrawn your saving? If Yes, Amount Rs………

5.3. For what purpose have you withdrawn?

(a) Domestic Purpose (b) Business

(c) Health\Education (d) To purchase Property

(e) Other, specify

5.4. Do you feel any help from these saving?

(a) Yes (b) No

If Yes, How its helps :

(a) Income generation

(b) Improve in living standard

(c) Helps to education/health

5.5. If there was no cooperative, where would you utilize the saving?

(a) Additional expenses

(b) Banks
(c) Go to other Cooperatives
5.6. Do you have any suggestions and comments from your side to make this
Cooperative more effective?
(a) ………………………………(b)………………………………

(c)…………………………………(d)……………………………..

63
 ANNEX-II
CHECKLIST FOR KEY INFORMANTS

1. Name of the respondent:

2. Position (S.S&C.):

3. For how long do you know about S.S&C.?

4. What are the sources of its capital?

5. How many shareholders are in this cooperative?

6. What types of savings are collected in this society?

7. What are the purposes of loan disbursement?

8. What are the provisional funds of this cooperative?

64
 ANNEX III
PRIMARY COOPERATIVE SOCIETIES OF BHOJPUR
DISTRICT

Types of Co- No. Of Female Male Total Percentage

S.N.
operative Society Members Members Members of Societies

Savings and
1. Credit Co- 95 3480 3567 7047 56.89
Operatives

Multipurpose
2. 37 680 6800 7480 22.16
Co-operative

Agricultural
3. 27 167 292 459 16.17
Co-operative

Electric Co-
4. 4 15 75 90 2.4
operative

Information &
5. 2 195 55 250 1.2
Communication

Tea Farming
6. 1 8 32 40 0.598
Co-operative

Consumers Co-
7. 1 10 41 51 0.598
operative

Total 167 4722 11154 15876 100.00

Source: Statistical report of Department of Co-operatives, 2015 A.D

65
 ANNEX IV
PRIMARY CO-OPERATIVE SOCIETIES OF NEPAL

Number of Female Male Total

S.N. Types of Co-operative
cooperative Members Members Members
Savings and Credit Co-
1 13460 1318825 1415513 2729485
Operatives
Multipurpose Co-
2 4031 428593 635397 1063990
operative
Agricultural & Small
3 9463 354243 399705 753948
Farmers Co-operative
4 Diary Co-operatives 1674 51981 81411 113392
Vegetables & Fruits
5 183 17341 14845 32186
Co-operative
Tea Producers Co-
6 111 1910 4592 6502
operative
7 Coffee Co-operative 170 2946 3798 5380
8 Herbal Co-operative 198 2516 4784 7307
Bee Keeping Co-
9 107 2055 3361 5141
operative
Consumers Co-
10 1444 19972 36933 56905
operative
11 Electricity Co-operative 437 13920 57720 71640
12 Health Co-operative 110 5188 6563 11686
13 Junar 45 516 899 1415
14 Sugarcane 49 691 1702 2393
Information &
15 128 3912 9732 13644
Communication
16 Others Co-operative 1053 7732 148030 225356
Total 32663 2281935 2824985 5100370
Source: Statistics report of Department of Co-operatives, 2015 AD

66
 ANNEX-V
GROWTH RATIO OF TOTAL LOAN DISBURSEMENT

Fiscal Year 2010/011 2011/012 2012/013 2013/014 2014/015 Growth Rate

Saving
(Deposit 1862525 3281187 5942960 8027309 9840042 51.61%
Collection)

Loan
3,184,827 5,217,359 4,608,885 5,363,613 4,781,824 10.69%
Disbursement

Growth of deposit

DN=D0(1+g)n-1

Where,

DN = Deposit & Loan of Current Year

D0 = Deposit & Loan of Last Year

g = Growth Rate

n = Number of year

9840042=1862525.36(1+g)5-1

5.283172091=(1+g)4

g = 51.61%

4781824=3184827(1+g)5-1

1.501439168

1.501439168=(1+g) 4

g =10.69%

67
 ANNEX-VI
Calculation of Correlation Coefficient and Coefficient Of
determination (R2) of Total Deposit and Loan and Advances of the
Cooperative

(NRs. In thousands)

Total Loan and

X2 Y2 XY
deposit(x) advance(y)

18.62525 31.84827 346.8999376 1014.312302 593.1819908

32.81187 52.17389 1076.618813 2722.114798 1711.922896

59.42960 46.08885 3531.877356 2124.182094 2739.04192

80.27309 53.63613 6443.768978 2876.834441 4305.537891

98.40042 47.81824 9682.642656 2286.584077 4705.3349

𝑥 =289.54 𝑦 =231.56 𝑥 2 =21081.80 𝑦 2 =11024.02 𝑥𝑦 =14055.0

023 538 774 771 1960

Correlation coefficient (r) = n xy   x y

n x 2  ( x) 2 n y 2  ( y) 2

5 14055.01960 289.54023 231.56538

=
5  21081.80774 (289.54023)2 5 11024.02771 (231.56538)2

257246595.3
=
105409.0387  83833.54479 55120.13855  53622.52521

3227.604601
=
21575.49391 1497.613335

3227.604601
=
146.885989 38.6999094

3227.604601
=
5684.474466
68
= 0.5678

Coefficient of determination = r 2 = (0.5678)2 = 0.3223

1 r 2
Problem error = 0.6745 
n

1  0.3223 0.6745 0.6776

0.6745 
5 2.236

0.4570
=
2.236

=0.2044

69