Abstract
In India rural and semi-urban financial system, co-operative banks are vital, especially in regions such as Odisha where they provide low-income individuals, small enterprises, and farmers with vital loans. These banks, however, confront a number of difficulties, including unstable finances, ineffective governance, technology constraints, and disgruntled customers. This study uses factor analysis, a multivariate statistical technique, to assess the major factors influencing the performance of co-operative banks in Odisha. To find out how 200 respondents – including co-operative bank customers and staff – perceived banking services, governance, financial stability, and technology adoption, a primary survey was carried out. The appropriateness of factor analysis was validated by the Bartlett’s test of sphericity (p < 0.05) and the Kaiser-Meyer-Olkin (KMO) test (0.812). Five key elements were identified through Principal Component Analysis (PCA): (1) risk management and financial stability; (2) governance and regulatory compliance; (3) digital banking and technological adoption; (4) customer satisfaction and service quality; and (5) operational efficiency and human resource management. Together, these variables accounted for 77.7% of the variance, demonstrating their significant impact on the operation of co-operative banks. The results emphasise how urgently governance frameworks must be strengthened, financial risk management must be improved, and digital transformation must be accelerated to increase banking efficiency. To increase client trust and retention, the report also emphasises the significance of customer-centric strategies, such as expedited loan processing and grievance redressal procedures. These insights can be used by regulators, policymakers, and bank management to create focused actions that would increase the competitiveness and sustainability of Odisha’s co-operative banks.
Keywords: Co-Operative Banks, Odisha, Factor Analysis, Financial Stability, Governance, Digital Banking, Customer Satisfaction
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