This research investigates the determinants of financial performance in Primary Cooperative Agriculture Development Banks operating in Punjab, India. By analysing the impact of Capital Adequacy, Asset Quality, Management Efficiency, Earnings, and Liquidity on Return on Assets (ROA), the study aims to offer insights into enhancing financial health and regional economic growth. Using a panel regression model, financial data from multiple periods and banks are analysed. Key findings indicate that maintaining adequate capital positively influences ROA, while prudent lending practices are crucial for asset quality maintenance. Efficient management enhances ROA, and higher earnings and effective asset use contribute to profitability. While liquidity management’s impact is limited, its role in meeting short-term obligations remains significant. This study provides actionable insights for banks and policymakers, emphasising capital reserves, prudent lending, operational efficiency, and asset utilisation. Effective liquidity management remains important. This research contributes uniquely to understanding financial determinants in cooperative banks, guiding decision-making, policy formulation, and promoting agricultural development and economic growth.

DOI: https://doi.org/10.21863/ijbri/2024.12.2.006