Belgaum (Karnataka) based Sahyadri Multi-Purpose Cooperative Credit Society is on the verge of crossing a business mix of Rs 400 crore. The society is making concerted efforts to reduce its Non-Performing Assets (NPAs), a challenge largely attributed to legacy loans disbursed during the 1990s, when the society was in its formative years.
Despite persistent recovery efforts, the society continues to face difficulties in loan recovery, mainly due to the restrictive recovery policies currently governing multi-state cooperative credit institutions.
Speaking exclusively to Indian Cooperative at the society’s headquarters in Belgaum, Chairman and Founder N. B. Khandekar discussed various aspects of the society’s performance and challenges.
He emphasized that although multi-state cooperative credit societies are regulated by the Central Registrar of Cooperative Societies (CRCS), they still do not receive adequate support from the government.
“We work for the upliftment of farmers by catering to their financial needs, just like Primary Agricultural Credit Societies (PACS). Yet, we don’t receive the same level of recognition or policy support from the Union Ministry of Cooperation,” Khandekar said.
On the financial front, Khandekar revealed that as per unaudited figures for the year ended 31st March 2025, the society’s deposits stood at Rs 227 crore and loans at Rs 157 crore, with a net profit of Rs 1.35 crore.
“We follow strict due diligence before sanctioning loans. Many depositors are keen to invest with us due to our reputation, but we refrain from accepting indiscriminate deposits,” added Vice Chairman M. B. Nirmalka, who was also present.
Acknowledging concerns about asset quality, Khandekar admitted, “Yes, our NPA levels are a bit high, but we are targeting to bring them down to 10%, which will be a significant achievement. Currently, the net NPA stands at 13%, while gross NPA is around 23%.”
A unique feature of Sahyadri, according to the Chairman, is that unlike many multi-state credit cooperatives, they do not allow premature withdrawal of deposits in FD and RD, Sahyadri permits such withdrawals only under genuine emergency conditions, thereby maintaining financial discipline and liquidity.
The society currently offers loans up to Rs 1.30 crore as per its existing bye-laws. However, it has already proposed an amendment to raise the loan limit to Rs 3 crore, and is currently awaiting approval from the Central Registrar. Additionally, the society offers unsecured loans ranging from Rs 25,000 to Rs 1 lakh.
Khandekar also urged the government to ease regulatory norms for multi-state credit cooperatives, especially those related to branch expansion and loan ceilings. At present, the society operates 13 branches and plans to open four more in the near future.
On the capital front, the society has a paid-up share capital of Rs 2.21 crore, reserves and other funds totaling Rs 18 crore, and a working capital base of Rs 243 crore.
With ambitious expansion plans and a focused recovery strategy, Sahyadri Multi-State Cooperative Society continues to strengthen its footprint in Karnataka’s cooperative landscape.
