Pune’s (Maharashtra) Rajarshi Shahu Sahakari Bank, with a business mix exceeding Rs 1,600 crore, has outlined ambitious plans for its future.
The bank aims to expand its area of operations to cover the entire state of Maharashtra, beyond its current presence in just a few districts. As part of its growth strategy, it is also exploring the possibility of merging weaker cooperative banks into its operations.
The bank’s CEO, Balasaheb Doiphode, along with Chairman Sudhakar Haribhau Panhale, discussed the future plans to elevate the bank to new heights, highlighted a few challenges in managing its activities, and shared the strategies being adopted in its operations.
Doiphode spoke in detail with this correspondent at the bank’s headquarters in the heart of Pune city, which is no different from a corporate office building.
“The bank’s primary objective is to cater to the financial needs of the lower middle class, a demographic often overlooked by larger commercial banks. We are actively fulfilling this mission by providing loans at very reasonable rates of interest, ensuring that those in need, particularly in semi-urban and rural areas, have access to financial support,” said Doiphode.
He further added, “Our lending practices focus on helping individuals and families who may not meet the stringent requirements of bigger banks, enabling them to pursue their personal and business goals. By working primarily in semi-urban and rural regions, we aim to uplift underserved communities and drive their economic growth.”
Discussing the future goals of taking the bank to newer heights, Doiphode said, “At present, our area of operation is limited to a few districts in Maharashtra, but we are planning to expand our area to cover the whole state. Currently, we have a branch network of 15, but we have ambitious plans to open more branches. Additionally, we are considering merging weaker banks with ours and would appreciate receiving any such proposals.”
“Our plan is to gain Scheduled Bank status in the near future, and work is already underway in this regard. Additionally, while our internet banking facility is currently limited to ‘View Only,’ we have applied for a license to allow customers transaction facilities,” said Doiphode, who joined the bank six months ago.
The bank’s CEO is not overly disappointed by the challenges faced by many urban cooperative banks, which include achieving PSL targets, managing small-ticket loans, and other such issues. “We are not facing significant obstacles in these areas, but the main challenge we are dealing with is adopting upgraded technology due to the high costs involved. In some areas, it’s very difficult to adopt technology from large IT companies.”
The bank is also planning to move a resolution for contributing to the share capital of the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), an umbrella organization for UCBs, and this matter will be placed before the board in the next board meeting.
The bank is also offering services similar to other sectors banks to its customers. It has debit cards, UPI, WhatsApp banking, mobile banking, and more, and is planning to introduce Tablet Banking services for opening savings accounts.
