The Hindu Business Line : `Credit co-ops should provide better service'

CREDIT co-operative societies should look at providing better services to customers to sustain themselves in the competitive environment , according to the President of the South Canara District Central Co-operative Bank, Mr M.N. Rajendra Kumar.

He was presiding over the inauguration of special training programme for the presidents and chief executive officers of credit co-operative societies of Dakshina Kannada, Udupi, Hassan, and Chikmagalur districts, in Mangalore on Wednesday.

Co-operative sector should adapt to the changes in the financial world, and workshops and trainings would help in this regard.

Urging the credit co-operative societies to bring down their NPA levels, he said that the RBI has already introduced 90-day norm for NPAs on gold loans and loans below Rs 1 lakh in urban co-operative banks. Even the credit co-operative societies should gear up to meet the 90-day NPA norm, he said.

Seeking encouragement from the Government for the growth of co-operative sector, he said that most of the Government agencies deposit their money in commercial banks than in the co-operative banks. This attitude should be changed, as it will affect the growth of the sector.

"Some Government agencies not even honour the demand drafts issued by the co-operative banks," he said, adding that this would affect the business of financial institutions in the co-operative sector.

Referring to the problems in mobilising deposits, he said people prefer to deposit their money in postal saving schemes than in co-operative institutions, as they get higher interest rate in post offices.

In such a situation, it is essential for the co-operative banks to improve their services to boost their business, he added.

More Stories on : Co-operatives | Karnataka

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`Credit co-ops should provide better service'