Co-operative banking sector clocks double digit growth

The co-operative banking scenario in the country stands improved as the sector has clocked a double digit growth 13 per cent in its deposits, a top official said.     

"The deposits of co-operative banks in the country stood at 1.17 lakh crore up to March 2007, and reached Rs 1.38 lakh crores up to March 2008, a hike of 12-13 per cent," National Federation of Urban Co-operative Banks and Credit Societies (NAFCUB) CEO D Krishna told reporters.     

"We expect the growth in co-operative banking sector to be better this fiscal, especially after RBI's nod to the co-operative banks to open new branches," Krishna said.     

Also, the working of co-operative banks in the country is satisfactory now. The 1,770 odd co-operative banks in India today deploy total working capital (deposits and share capital plus reserves) of Rs 1.50 lakh crores in service and have deposits of Rs 1.38 lakh crores up to March 2008," NAFCUB Chairman H K Patil told reporters.     

"We are looking at setting new targets for deposits in the next proposed General Body Meeting of the Federation on September 22," Patil said.     

If we want financial inclusion to happen in India, then co-operative sector should be encouraged by the regulators, he said.

"In the last one decade, co-operatives have been neglected and discouraged by the regulators or government. Almost a prohibition was imposed on the sector's growth," Patil said.     

"Consequently, money lenders' share in the finance market grew from 17 per cent in 2001 to 29 per cent in 2008. The figures on money lenders market share are as per data of Sen Gupta Committee report," he said.     

On co-operative banking scenario in Gujarat, Chairman Gujarat Urban Co-operative Banks Federation Jyotindra Mehta said, "The state co-operatives registered deposits of Rs 16,700 crore in 2008, and we expect to cross Rs 17,800 crore mark this fiscal."     

The growth in deposits here has been around 9-10 per cent, he added.