The Mumbai District Cooperative Bank is encouraging the housing cooperative societies of Mumbai to open their bank accounts with their bank. The aim is to help the members of housing cooperative societies to avail various facilities of the bank.
Talking to Indian Cooperative, the bank MD and CEO D S Kadam said, “We are encouraging the housing cooperative societies of Mumbai as well as their members to open their bank accounts with Mumbai DCCB for availing various loan facilities and others. Our bank staff members are also creating awareness about the bank schemes offering services at the doorstep of housing co-ops societies”.
“At present, we are having a deposit base of Rs 7000 crore out of which Rs 3,000 crore is of housing cooperative societies. About 10,000 housing cooperative societies are associated with us and we are making efforts to add more societies with Mumbai DCCB”, said Kadam to this correspondent on the phone.
He further added, “We will help them with various facilities like, self-redevelopment construction, repairs, solar plant installation, waste management plant and many more. The bank has 50 branches across Mumbai and the housing societies can approach their nearest branch”, Kadam asserted.
“We had financed seven re-development projects in Mumbai out of which four projects had been completed on time and loans were repaid by parties. Besides, we are also looking forward to consortium lending for meeting big loan demands to finance big redevelopment projects. We are in communication with Raigad DCCB, Pune DCCB and Thane DCCB and hope it will be finalized sooner than later”, said Mumbai DCCB CEO.
It bears recalling that the state government has appointed Mumbai DCCB as the nodal agency for housing co-operative societies. There are around 1.25 lakh housing co-op societies in Maharashtra out of which 90 percent are in Mumbai, Thane and Pune.
The Mumbai DCCB has a business mix of more than Rs 11,184 crore and earned a profit of Rs 28 crore as on 31st March 2023. The bank’s net NPA stood at 4.26 percent.
RBI master circular does not mention financing of Re Development by Banks, though it permits financing CHS.
Clarification should be obtained by CoOp Banks. State Govt must also take up this issue specifically with the RBI.