INTRODUCTION

Agriculture plays a vital role in the Indian economy. It contributes approximately more than half of the national income more than 70 percent of our people depends on Agriculture and 80 percent live within villages, but the economic position of these people Is still not satisfactory and they are unable to meet their financial requirements for farming operations therefore they depend upon money lenders immensely for necessary financial requirements. In India the co-operative has started officially in the year 1904 when the Government of India passed the first co-operative act. The co-operative movement was introduced in India with the main objective of making a breakthrough in the provision of credit to the Poor classes. Especially for the vast majority of agriculturists who were suffering under the heavy weight of indebtedness. With the overwhelming importance assigned to food Production in our successive five-year plans the planners and pioneers of our country came to the firm conviction that cooperation is the most effective instrument for the economic growth and prosperity of our Nation. Co-operation has been defined "as a firm of organization however in persons voluntarily associates together as human beings on the basis of equality for the promotion of the economic interest them". LOANS AND ADVANCES Banks are known to accept deposits for the purpose of keeping over the year. The process of lending have been stream lined in to purpose oriented lending in India by means of various direction guidelines issued by R.B.I, lending are recorded in, bank books under "loans and advances" of various types the approved purposes for which loans and advances can be usually granted are Working capital needs of trade, commerce, industry and agriculture introducing priority sectors. Consumption requirements of individuals.

LOANS In to select the objectives of the bank in lending and also to meet the requirements of the people of district co-operative bank. Has been lending money for various purposes which include as follows: 1. Short term loans 2. Medium term loans 3. Long term loans SHORT TERM LOANS A short-term loan is given for a period of not exceeding one year and it is given mainly for the working capital requirement of the industries. MEDIUM TERM LOANS Medium term loans are granted for a period of month exceeding five years. Loans given for a period of five years and above came under the category long-term loans. LONG TERM LOANS Long-term loans are granted for meeting capital expenditure like purchase of machinery construction of factory building etc. Term loans are generally granted for a period of more than three years and less than ten years by banks. Term loans up to seven years are called medium term loans and beyond that are long-term loans. CLASSIFICATION OF LOANS AND ADVANCES The loans and advances granted by bank are broadly classified as fallows Secured Unsecured

SECURED According to section 5(a) of the banking regulation on act 1949, secured loans. "A secured loans or advance" means a loan or advance made on the security of assets. The market value of which is not at any time less than the amount of such loan or advance. The distinguishing features of a secured loans or advances as follows: The loan must be made on the security of tangible assets. The market value of such security must not be less than the amount of the loan at any time till the loan is repaid. UNSECURED Unsecured loan or advance means a loan are advance not to secure. These advances are otherwise called "clean advances" clean advances are obviously granted to parties enjoying high reputation and sound financial position. Unsecured advances are sanctioned loan by seeing the credit worthiness of a barrower. It depends on his/her honesty and integrity. NEED & IMPORTANCE OF THE STUDY Since the banks are playing a vital role in modern days, it is important to understand the Recovery performance of loans in the Banks. In general sense the term "Recovery" is referred as repayment or reimbursement of loans issued to the customers for their respective needs according to the predetermined terms and conditions. Recovery plays a vital role in functioning of the bank as it acts as a source for earning interest through the loans already issued which are then recovered to continue the cycle of mobilization of loans.

OBJECTIVE OF THE STUDY The main objective of the present study is to evaluate or appraise the recovery performance of "THE KARIMNAGAR DISTRICT CO-OPERATIVE CENTRAL BANK" in respect of loans for the time period of five years. 1. To study the recovery performance of the bank in relation to loans and advances. 2. To analyze the effectiveness of the bank performance in analyzing funds in the form of different types of loans for different purposes. 3. To assess the performance of the bank with regard to recovery of loans and advances and analyze the problems relating to the recovery of loans. 4. To know what measures are followed by the bank to recover the different types of loans. 5. Finally to make suitable suggestions for improving the recovery performance of the bank. SCOPE OF THE STUDY The DCCBs have come into existence due to the failure of primary societies to attract required resources in the form of deposits from well to do sections of the village community on one hand and to inspire the habit of thrift and savings among their members to provide strong capital base on the other. The present study covers exclusively the recovery performance of DCCB, Karimnagar District, in terms of loans and advances. For the purpose of study five years financial data has been taken into account.

RESEARCH METHODOLOGY Methodology is systematic procedure of collecting information in order to analyze and verifying a phenomenon. The collection of date is done through two principle source viz. 1. Primary Data 2. Secondary Data Primary Data It is the information collected directly without any reference. In the study, it was mainly interviews with concerned officer and staffs either individually or collectively. This study does not include any primary data. Secondary Data The Secondary data was collected from already published sources such as pamphlets annual, reports and internal records. The data includes: 1. Collection of required data from annual reports of "THE KARIMNAGAR DISTRICT CO-OPERATIVE CENTRAL BANK". 2. Reference form text books and journals relating to financial management and articles published in business dairies like the Economics times, Business line etc., LIMITATIONS OF THE STUDY The study is based mainly on secondary data. Since the study is confined to only few aspects like loans and advances, so the overall performance of the bank cannot be measured accurately. Here, the calculations are approximated. Here, the accuracy of the results is subjected to the accuracy of the data furnished by the annual reports.