The Hindu Business Line : Kerala State Co-op bank plans to disburse Rs 1,780-cr loans this fiscal

The bank is expecting total deposits of Rs 2,400 crore during the year. With income and expenditure projected at Rs 267.62 crore and Rs 257.56 crore respectively, the year will end with a net profit of Rs 10.06 crore, according to Mr K.R. Aravindakshan, President.

Of the total advances planned, Rs 100 crore will be in the form of short-term agricultural loans.

Though the refinance facility from Nabard was yet to be fully restored, the bank would make loans available to the farmers at low interest rates from its own funds through district co-operative banks and primary co-operative societies, Mr Aravindakshan said.

The bank has also targeted disbursal of short-term loans of Rs 585 crore for non-agricultural purposes through the district banks.

The other major target areas for advances are: PSUs (Rs 250 crore), apex co-operative societies (Rs 100 crore), Food Corporation of India for procurement of foodgrains through national consortium (Rs 100 crore) and various other loans to individuals and institutions through the bank's branches (Rs 350 crore).

In the current year, deposits during the nine-month period up to December 31, 2003 stood at Rs 1,993.14 crore against the targeted Rs 2,650 crore.

The bank has set aside Rs 100 crore for giving housing loans at low interest rates of 7.5-8.5 per cent.

The gold loan interest rate has also been fixed lower at nine per cent. Besides, the bank will extend education loans up to Rs 25 lakh at an interest rate of 10.5 per cent.

Mr Aravindakshan said that the bank is planning to form a consortium in the co-operative sector to provide financial assistance to professional colleges in the State.

Also, steps have been initiated to start a treasury management section in the bank to ensure effective and profitable deployment of the funds of the co-operatives.

The outstanding short-term agricultural loans in districts where crops have been damaged will be converted into medium and long-term loans.

The question of offering interest relief will be taken up with the support of the district banks.

Another major proposal is to bring all the branches under a computer network to streamline the operations of the bank in tune with the times and to provide better service to customers.

The work on computerisation will begin in March and will be completed in six months.

Mr Aravindakshan said that the bank had submitted a proposal to the Reserve Bank of India for starting an NRI bank. Since no new bank licences are being issued now, the RBI has suggested the floating of a banking company with the support of district co-operative banks and co-operative societies. The proposal is under consideration, he added.

The co-operative bodies in the State will launch a month-long deposit mobilisation drive on March 1. The mobilisation target is Rs 400 crore.

More Stories on : Co-operatives | Credit Market | Kerala

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