Determinants of Managerial Effectiveness and Bank Performance – A Conceptual Study with Special Refrernce to Scheduled Urban Cooperative Banks in India

Abstract

Urban Cooperative Banks (UCBs) in India play a pivotal role in fostering financial inclusion, particularly in urban and semi-urban areas. However, recent events have highlighted significant challenges faced by these banks, including mounting Non-Performing Assets (NPAs), governance deficiencies, and technological lag. This research aims to investigate the intricate interplay between managerial effectiveness, governance structures, and bank performance within UCBs. Drawing upon a comprehensive literature review, the study proposes hypotheses exploring the influence of the board, external oversight, and professional management on managerial effectiveness and bank performance. The statistical design of this proposed research encompasses a multifaceted approach, incorporating a diverse range of statistical measures to meticulously analyze data and derive meaningful insights. Drawing upon primary data collected from a specified sample size, the study employs rigorous statistical analyses to ensure the reliability and validity of the variables under scrutiny. Key statistical tools such as Cronbach’s Alpha, Variance Inflation Factor (VIF), and Tolerance tests are utilized to assess reliability and interrelationships among variables. Furthermore, ANOVA and Structural Equation Modeling (SEM) are utilized to analyze variance and explore intricate relationships among variables. These methodological approaches are informed by insights gathered from prior research studies, with the overarching aim of providing comprehensive insights into the determinants of managerial effectiveness and performance. Ultimately, the study endeavors to offer valuable implications for managerial decision-making processes. Accordingly, the study anticipates findings that will contribute to understanding the governance dynamics of UCBs and their impact on bank performance, with implications for policymakers, regulators, and stakeholders. By shedding light on these complex dynamics, the research seeks to enhance the resilience and sustainability of cooperative banking in India, ultimately contributing to the broader goal of financial stability and inclusive growth.