OSCB gets banking licence from Reserve Bank

The Reserve Bank of India (RBI) has granted banking license to the Orissa State Co-operative Bank (OSCB).

This will enable the bank having 14 branches in the state to become a full fledged bank at par with other commercial banks. Kaja Sudhakar, the Regional Director, RBI, today handed over the license to Jagneswar Babu, the president of OSCB.

“After the grant of license, the Orissa State Co-operative Bank (OSCB) would get wider recognition in the country as a scheduled and licensed bank. It will continue its endeavour to cater to the credit requirement of the farmers in the state”, Jagneswar said.

He said, the bank earned a net profit of 9.69 crore during the last fiscal. About Rs 2260 crore deposits were mobilised with the investment being pegged at Rs 2305 crore. The per employee business increased to Rs 21.57 crore in 2008-09 , compared to 18.32 crore in the previous fiscal.

The bank has issued 35 lakh Kisan Credit Cards (KCCs) to farmers for providing hassle free and timely loan to the agriculturist.Against the target of financing Rs 1500 crore crop loan during Khariff 2009, the bank achieved Rs 1407 crore disbursements. Similarly, a plan to disburse Rs 1152 crore during the current rabi season has been drawn up. While the bank provided relief to 4.88 lakh farmers through conversion and re-scheduling, they are being issued fresh loans.

As a measure to strengthen the self help groups (SHGs), the bank has organised 65,102 SHGs through Central Co-operative Banks (CCBs) and Primary Agricultural Co-operative Societies. It has provided credit amounting to Rs 131.79 crore to 42,406 SHGs.

Sources said, the state government had provided Rs 33 crore interest subvention in 2006-07, but it is yet to sanction any money to this effect for the year 2007-08 and 2008-09. In this backdrop, the bank has put a demand of Rs 72 crore before the state government towards interest subvention. OSCB is providing crop loan to the farmers at 5 percent interest.