A Five-Year Analysis of Krishna District Cooperative Central Bank

Abstract

Non-Performing Assets (NPAs) present a persistent threat to the operational stability and credit performance of cooperative banks in India. This study examines the NPA management strategies of Krishna District Cooperative Central Bank (KDCC), Machilipatnam, over a five-year period (2019–2024). Utilizing a mixed-method approach comprising financial ratio analysis and semi-structured interviews, the study investigates trends in gross and net NPAs, provisioning coverage, and asset classification. Findings reveal a consistent improvement in asset quality until 2022–23, followed by a marginal deterioration in 2023–24, attributed to rising credit volumes and external borrower stress. The analysis identifies employee competence, provisioning policies, and technological integration as critical factors influencing NPA outcomes. Based on the results, the study recommends strengthening digital recovery tools, enhancing training interventions, and adopting AI-driven risk monitoring frameworks. The insights contribute to a deeper understanding of sustainable asset quality management in cooperative banking, with implications for policy, practice, and future research.