The Hindu Business Line : New deposit schemes from Kerala State Co-operative Bank

Thiruvananthapuarm March 23 The Kerala State Co-operative Bank Ltd (KSCB) will launch a slew of new deposit schemes in 2007-08 in order to raise the bank's deposit base and give a new turn to its operational profile.

The bank is targeting total deposits of Rs 3,132 crore in 2007-08 compared with Rs 2,677 crore now. It is also eyeing a net profit of Rs 1.42 crore during the year.

Tax Relief

Mr Kadakampilli Surendran, President of the bank, said here on Friday that one of the new schemes in the pipeline was styled `Cobank Super Tax Saver Deposit', which envisaged annual deposit of Rs 1 lakh over a period of five years. The depositors under the scheme will be eligible for tax relief under Section 80 © of the Income Tax Act.

Another scheme is `Cobank Flexi Deposit', which offers fixed deposit interest rates for savings deposits. A scheme called `Cobank Student Deposit', aimed at encouraging savings habit among the students, is also on the anvil. The bank is planning to give advances to the tune of Rs 2,534 crore in the coming year, out of which Rs 600 crore will be in the form of refinance to district co-operative banks for extending agricultural loans.

Deposit Mobilisation

The bank will introduce a new loan scheme designed to promote rural tourism as also to help entrepreneurs in the information technology field. A `reverse mortgage loan scheme' for aged people is also in the offing in the coming year.

Mr Surendran said that the bank would launch an intensive drive for settlement of loan arrears. The objective was to bring the level of bad debt below 10 per cent, he added.

He noted that the bank's cost of funds was high as the lion's share of the deposit base constituted fixed deposits carrying high interest rates. To overcome the situation, a special deposit mobilisation drive would be launched with the emphasis on low-cost savings and current accounts.

The bank will start a pilot project to establish an ATM network comprising district co-operative banks and select primary cooperative banks. Besides, Rs 1 crore will be spent to modernise the bank's branches to ensure better facilities and service to the customers.

More Stories on : Fixed Deposits | Co-operatives | Kerala

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