Co-op bank set for expansion

After achieving profit of Rs 3.10 crore in the fiscal ending March 2009, the Mysore-headquartered Mysore and Chamarajanagar District Co-operative Central Bank Ltd has secured Reserve Bank of India license for banking business across the country.

During the first two quarters ending September 2009, it has earned a tentative profit of Rs 1.28 crore, Bank president C Basave Gowda said.

Out of the profits, Rs 1.5 crore is provided for infrastructure development, including computerisation of all the 1,176 primary co-operative societies coming under the Bank’s jurisdiction in the two districts, managing director K C Yathishkumar added.

Its primary agricultural co-operative societies catered to 3,54,216 members comprising 2,23,080 small farmers, 66,276 big farmers, 29,650 SC/ST farmers, 24,650 agricultural labourers and 10,560 artisans.

While advances made last financial year amounted to Rs 133.05 crore, in the last two quarters it has made advances of Rs 119.72 crore. The total outstanding as on September-end accounted for Rs 233.12 crore. Its recovery from agricultural loans was 77.87 per cent last financial, while it was 33.79 per cent till September end of the present financial year. Recovery from non-agricultural loans was 50.92 per cent and 38.24 per cent, respectively.

The 6,526 self-help groups had made a total savings of Rs 13.78 crore and advanced loans of Rs 30.63 crore, while outstandings stood at Rs 10.38 crore.

Under the government of India package for revival of the 251 primary agricultural co-operative societies, the Government of India share was Rs 33.96 crore, State share Rs 3.66 crore, societies’ share Rs 5.22 crore, accounting for Rs 31.84 crore.

The special audit of the member-societies had been completed and under the revival package according to which the Centre was yet to release Rs 22.96 crore and the state government Rs 3.66 crore, totalling Rs 26.62 crore to them.

Under Kisan Credit Card scheme, the District Bank has released Rs 94.91 crore loans to 23,931 members, of which Rs 65.23 crore has been distributed to 21,247 small farmers and Rs 11.55 crore to 3,987 SCT farmers as on November 30, 2009.

With a network of 15 branches, it had built up share capital of Rs 13.88 crore, reserves of Rs 39.90 crore and deposits of Rs 156.53 crore as on September 30, 2009. Borrowing from the Apex Bank accounted for Rs 78.26 crore.

Core banking was introduced in the Bank and computerisation of all the accounts of branches were proposed by March 31, 2010, Basave Gowda said.

The bank organised a one-day seminar on the Vaidhyanathan Committee report implementation here for presidents, secretaries, officials of the Co-operative Department and auditors.