Growth and Challenges of Share Capital in the Odisha State Cooperative Bank
An Analytical Study
Keywords:
Odisha State Cooperative Bank, Share capital, Cooperative banking, Rural developmentAbstract
This study presents a comprehensive, data-driven analysis of the growth and challenges of share capital in the Odisha State Cooperative Bank (OSCB) over the period 1950-2023, mapping its evolution from a modest rural cooperative lender into a major financial institution at the core of Odisha’s cooperative credit framework. The primary objective is to examine the growth patterns, structural transitions, and sustainability of OSCB’s share capital, emphasizing the collective influence of institutional support, government policy, and member participation. Grounded in Cooperative Theory and Financial Intermediation Theory, the study draws on secondary data from NABARD, RBI, NAFSCOB, and OSCB sources. Employing trend analysis, descriptive statistics, ANOVA, and the Chow Test, it identifies key determinants and structural shifts in OSCB’s capital trajectory across seven decades. The findings reveal four distinct phases – formative (1950-1970), consolidation (1970-1990), reform-led acceleration (1990-2010), and exponential post-reform growth (2012-2023), when share capital rose sharply from 17067.22 crore Rupees to 81678.27 crore Rupees. The ANOVA (F = 219.47, p < 0.01) confirms a strong temporal relationship, while the Chow Test (F = 3242.08, p < 0.001) indicates a structural break after 2011, reflecting the impact of financial reforms, digital modernization, and increased institutional support. Despite this progress, the study identifies vulnerabilities, notably dependence on government infusions and limited member equity participation. Conclusively, it underscores the need for diversified capital mobilization, governance reforms, and stronger grassroots engagement to sustain OSCB’s cooperative integrity and long-term financial resilience, ensuring its continued contribution to inclusive rural development and good governance in Odisha.
References
Birchall, J. (2014). The governance of large co-operative businesses. Co-operatives UK. https://www.uk.coop/resources/governance-large-co-operative-businesses
Diamond, D. W. (1984). Financial intermediation and delegated monitoring. The Review of Economic Studies, 51(3), 393–414.
Egarius, M. (2016). Ownership structure, governance, and performance in cooperative banks. Journal of Cooperative Organization and Management, 4(2), 67–76.
Government of Odisha. (2023). Odisha economic survey 2022–23. Planning & Convergence Department, Government of Odisha.
Gurley, J. G., & Shaw, E. S. (1960). Money in a theory of finance. The Brookings Institution.
Hansmann, H. (1996). The ownership of enterprise. Harvard University Press.
Johnson, R., & Vijayan, S. (2024). Performance assessment of state cooperative banks in India: Trends, challenges, and prospects (2012–2023). Indian Journal of Finance and Banking, 12(1), 55–72.
Levine, R. (2005). Finance and growth: Theory and evidence. In P. Aghion & S. N. Durlauf (Eds.), Handbook of economic growth (Vol. 1A, pp. 865–934). Elsevier.
McKillop, D. G., & Wilson, J. O. S. (2020). Credit unions and the moral economy: Co-operative finance in the digital age. Oxford University Press.
Münkner, H.-H. (2012). Co-operative principles and co-operative law (Euricse Working Paper Series No. 23/12). European Research Institute on Co-operative and Social Enterprises.
Naoaj, M., & Hosen, M. (2023). Capital structure dynamics and institutional performance in emerging market banks. Asian Journal of Economics and Banking, 7(2), 130–145.
National Bank for Agriculture and Rural Development. (2023). Annual report 2022–23. NABARD.
National Federation of State Co-operative Banks. (2023). Performance of state co-operative banks 2022–23: Basic data. NAFSCOB.
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press.
Odisha State Cooperative Bank. (2023). Annual report 2022–23. Odisha State Cooperative Bank.
Odisha State Cooperative Bank. (2024). Annual report 2023–24. Odisha State Cooperative Bank.
Poli, M. (2022). Governance, ownership dispersion, and performance in Italian cooperative banks. International Journal of Cooperative Studies, 11(2), 45–59.
Reserve Bank of India. (2023). Report on trend and progress of banking in India 2022–23. Reserve Bank of India.
Scott, W. R. (2014). Institutions and organizations: Ideas, interests, and identities (4th ed.). Sage Publications.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Journal of Studies in Dynamics and Change (JSDC)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Readers and users of the Journal of Studies in Dynamics and Change (JSDC) are free to Share — copy and redistribute the papers published in the journal in any medium or format. However, the user (1) must give appropriate credit, provide a link to the license, and indicate if changes were made. (2) May not use the material for commercial purposes (3) Must distribute your contributions under the same license as the original if any remix, transform, or build upon the material is done.
