Maharashtra’s Pune based Sharad Sahakari Bank is on a robust growth trajectory, striving to achieve its three-year vision of surpassing a business mix of over Rs 5,000 crore and expanding its network to 50 branches.
Despite its growth ambitions, the bank, led by Devendra Shah—a successful entrepreneur and owner of the Gowardhan Dairy brand—has no plans to convert into a Small Finance Bank.
Shah emphasized, “Cooperation is in our DNA. We remain committed to the principles, objectives, and mission of the bank—to support farmers and address their needs within the cooperative framework.”
Speaking at the bank’s headquarters in Manchar, located in Ambegaon Taluka of Pune district, Shah reflected on the bank’s origins. “The bank was established in 1974 by the late Dattatray Govindrao Wale Patil, father of former Maharashtra Cooperation Minister Dilip Walse Patil. My father, Prakash Shah, was also one of the founders. Their vision was to support local farmers, underprivileged communities, and others in need.”
Highlighting the bank’s journey, Shah remarked, “When I joined the bank in 2004, its business mix stood at around Rs 77 crore with only five branches. Through tireless efforts, we are on track to surpass Rs 3,000 crore in business by the end of the current financial year, with a network of 27 branches.”
Shah acknowledged that the bank is currently under the Supervisory Action Framework (SAF) framework but expressed optimism about overcoming the challenges.
“We are confident that the restrictions will be lifted in the coming months. We have been addressing the issues highlighted by regulatory authorities and taking proactive steps to strengthen the bank’s financial health and operational stability”, he added.
Discussing operational hurdles, Shah pointed out the difficulties in adopting advanced technology due to high costs. “We aspire to implement Infosys technology, but the cost is prohibitive. Similarly, other high-tech IT solutions remain out of reach. The RBI should address this issue and provide support to urban cooperative banks (UCBs).”
He also urged authorities to create a level playing field for UCBs, comparable to nationalized and commercial banks. “The recovery mechanisms for nationalized and commercial banks are relatively straightforward, whereas for UCBs, recovering bad NPAs is a cumbersome process. The Union Ministry of Cooperation and the RBI should think on this to streamline these processes for us as well.”
Shah expressed optimism about the establishment of the National Urban Cooperative Finance and Development Corporation Limited (NUCFDC), an umbrella organization for UCBs, and mentioned plans to contribute to its share capital.
He also thanked Union Home and Cooperation Minister Amit Shah for strengthening the cooperative sector and resolving longstanding issues faced by UCBs.
