The Hindu Business Line : Goa co-op bank ties up with Aviva

Loan recovery
With much of its advances to builders and real estate developers turning sticky, the bank wascurrently going slow on this sector, but it saw a good opportunity to recover some of its loans as the real estate sector had been showing signs of recovery recently.

Panaji , April 21

The Goa State Co-operative Bank Ltd (GSCBL), the State's apex co-operative bank, has entered into a strategic tie-up with Aviva Life Insurance, a joint venture between Dabur and Aviva, to offer customised financial solutions for the bank's customers under one roof.

Mr Ramachandra Mule, Chairman of GSCBL, made the announcement of this bancassurance tie-up with Aviva on Friday in the presence of members of the Board of Directors of the bank.

Under this initiative, the bank would increase its customer services portfolio to include popular insurance products from Aviva.

Under a revenue-sharing agreement between the bank and Aviva, which became operational on Friday, the bank would get 30 per cent of the commission on policies sold by the bank, Mr Mule said.

The bank had a customer base of 4 lakh, he said. In the present circumstances, Mr Mule said, co-operative banks had no option other than exploring opportunities for increasing their incremental incomes as the money advancing business was facing acute competition.

Looking for ATM tie-up

The bank, he said, had terminated its earlier tie-up with ICICI Prudential to sell the latter's insurance products.

It had also terminated an agreement with the Pune-based Sarvatra Group entered into for "Sarvatra cards," as the bank suffered a loss of Rs 16 lakh. Now the bank was looking for a partner for tie-up for ATM card.

Mr Anant Shinde, Managing Director of the bank, said its net profit for the year ended March 31, 2006, was Rs 63 lakh while it managed to bring down its non-performing assets (NPAs) from around 28 per cent to 16 per cent by the end of the last financial year. The on-going drive against defaulters would continue with stringent action.

Mr Mule complained of slow recovery of advances to government bodies such as the State-owned Kadamba Transport Corporation. Its deposits and advances by March 31, 2006, stood at Rs 645.90 crore and Rs 377.97 crore, respectively.

With much of its advances to builders and real estate developers turning sticky, the bank wascurrently going slow on this sector, but it saw a good opportunity to recover some of its loans from this sector as the real estate sector had been showing signs of recovery recently, said Mr Mule.

Aviva insurance products would be sold in 25 of its 65 branches spread across the State to begin with. The bank is closely associated with the agricultural and rural development of the State through a network of affiliated co-operative societies.

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