Evaluating the Financial Trajectory of PACS in Kerala: A Fifteen-Year Analysis (2008-2023)

Abstract

This article examines the financial and operational performance of Primary Agricultural Credit Societies (PACS) in Kerala over a 15-year period, focusing on key variables such as the number of societies, membership strength, paid-up share capital, reserves, deposits, working capital, loans issued, loan outstanding, and loan overdue. The analysis highlights significant growth in capital mobilization and deposit mobilization, reflecting the expanding role of PACS in rural financial inclusion. However, the rising trend in loan overdue amounts indicates challenges in loan recovery, necessitating improved credit risk management. The findings suggest that while PACS have shown robust financial growth and stability, strategic interventions are required to address loan recovery issues and sustain their pivotal role in supporting rural communities. The article concludes with recommendations for enhancing credit risk management, member education, financial product innovation, and leveraging technology to ensure the continued success and stability of PACS in Kerala.