As we all know - the cooperative banks in India arepassing through a difficult phase and their performanceis NOT as glamorous as that of the commercial bankstoday. What went wrong with cooperative banks?(1) The cooperative banks disbursed credit on the loanson demand mostly without proper guarantees anddocuments. Hence repayments were always at the mercyof the borrowers and up to some extent on good crops.(2) The cooperative banks are mostly under thesupervisory control of the Panchayats - which are notprofessionally qualified to control such institutions.(3) Cooperative Banks do not get any relief package fromthe Govt. Hence they have to manage their affairs ontheir own resources only.