The institutional credit has been one of the key inputs for employment generation and poverty alleviation. There has been an impressive increase in the institutional credit for agriculture and rural non-farm sector in India. This has largely been possible due to the fast expansion of bank network and role of financing banks under rural credit and other supportive policy initiatives such as compulsory stipulation to lend to the priority sector, weaker sections and the coordination of activities of financial institutions with development agencies and availability of refinance. Lending is one of the most important functions of co-operative banks since it constitutes the primary source of income. As a matter of fact, co-operative banks came into being with the avowed objective of providing credit in rural areas. It provides credit to both agricultural and non-agricultural sectors. Most of the credit extended by the co-operative banks come under priority sector. The current article analyzes the loans & advances and recovery of loans of Hyderabad district co-operative central bank.