The smaller UCBs are playing important role as they enter into unchartered areas and make the goal of financial inclusion a reality. Their success is the success of cooperative movement as such. One such case is Maharashtra based Jijau Commercial Cooperative Bank.
Having grown year after year it eyes a business target of Rs 500 crore by 2020. Talking to Indian Cooperative the UCB’s Chairman Er Avinash Kothale said, “We have crossed the business mix of over Rs 380 crore during the year 2018-19 and are aiming to achieve a business target of Rs 500 crore till the end of the current fiscal. It’s achievable, claimed the Chairman.
The deposits of the bank rose from Rs 200 crore to Rs 240 crore and loans and advances increased from Rs 127 crore to Rs 139 crore. This year also the Net NPA of the bank remains at “Zero”, said Kathale.
The bank is having 11 branches across Maharashtra and planning to expand the area of operation in different areas. “We have applied for six branches and are awaiting the green light from Reserve Bank of India”, he informed.
The net profit of the bank has increased from Rs 2.25 crore to Rs 2.50 crore in FY 2018-19.
However, we are facing a challenge in entertaining the new customers and disbursing new loans to them due to adverse market conditions. We are paying 9 percent rate of interest on deposits for two years. Although we are disbursing loans at 10 percent to the women’ up to Rs 2 lakh”, he noted.
Er Avinash Kothale is unhappy on account of the government securities. Recalling the past, Kothale said earlier UCBs were free to deposits fund with district central banks but now the money gets locked up for 20 years in the govt securities. RBI should at least allow us to sell the securities in 2-3 years, he said toning down his demand.
The bank was established in the year 2000 and from more than 8 years the net NPA of the bank has been zero.
