📄 Abstract
This paper examines the financial risk and return dynamics of Madanapalle Co-operative Town Bank Ltd. over the five-year window from 2020–21 to 2024–25. Drawing on the bank's audited annual reports, the study applies a comprehensive suite of instruments — including Return on Assets (ROA), Return on Equity (ROE), Return on Investment (ROI), Net Profit Margin, Capital Adequacy Ratio (CAR), Rate of Return, Standard Deviation, Beta coefficient, Sharpe Ratio, Treynor Ratio, Pearson Correlation, and Regression Analysis — to construct a rigorous picture of institutional performance. Findings confirm a robust capital position and continuous ROE improvement, indicative of sound stewardship of member funds. However, declining ROA and ROI in the later years point to profitability compression. A standard deviation of 0.2235 and a beta of 0.0731 confirm low return volatility and minimal systematic risk. Negative Sharpe and Treynor ratios reveal that the average return of 6.356% falls short of the 7.0% risk-free benchmark, flagging room for meaningful improvement in risk-adjusted performance. A perfect Pearson correlation (r = +1.000) and regression fit (R² = 1.000) validate the classical risk–return trade-off. The study concludes that the bank is financially sound but requires deliberate strategic effort to strengthen profitability, investment efficiency, and risk-adjusted returns.
🏷️ Keywords
📚 How to Cite:
K. Kusuma , RISK AND RETURN ANALYSIS OF A COOPERATIVE TOWN BANK: EVIDENCE FROM MADANAPALLE CO-OPERATIVE TOWN BANK LTD , Volume 12 , Issue 6, June 2026, EPRA International Journal of Multidisciplinary Research (IJMR) , Pages: 389 - 393 ,