The banking industry has such a dramatic impact on the economy. It helps people start new businesses, fund new lines of equipment, and provide working capital management, allowing companies to hire new employees and introduce new products. Commercial banks play an important role in the financial system and the economy. They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities. These financial services help to make

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... he overall economy more efficient. The cooperative banking sector is one of the main partners of Indian banking structure, the cooperative banks have more reach to the rural India, through their huge network of credit societies in the institutional credit structure. The government of India passed the first cooperative credit societies act in 1904.The cooperative sector has played a key role in the economy of the country and always recognized as an integral part of our national economy. Cooperatives have ideological base, economic objects with social outlook and approach. The cooperative banks have to act as a friend, philosopher and guide to the entire cooperative structure. The study is based on the two main co-operative banks in the state of Himachal Pradesh (India).The study of the bank"s performance along with the lending practices provided to the customers is herewith undertaken. The customer has taken more than one type of loan from the banks. Moreover they suggested that the bank should adopt the latest technology of the banking like ATMs, internet / online banking, credit cards etc. so as to bring the bank at par with the private sector banks.