One of Karnataka’s top 10 credit co-operative societies under the Souharda movement, Pavagada Souharda Multipurpose Co-operative Society, is all set to spread its wings beyond state boundaries by applying for multi-state cooperative status.
The society aims to expand operations into neighboring Andhra Pradesh, in a bid to scale up its outreach and business potential.
With a business mix of Rs 477 crore and a net profit of Rs 6.49 crore as on 31st March 2025, the society has shown consistent growth since its inception. The society is led by the well-known cooperative leader Krishna Reddy, who has been instrumental in steering its success.
During a visit to the society’s head office in Bangalore, Indian Cooperative interacted with B.H. Dayakara Reddy, Professional Director of the society, who shared insights into its journey and future roadmap.
“We are continuously striving to grow and meet the financial needs of the people,” said Reddy. “Our society began in 2002 in the backward taluk of Pavagada in Tumkur district, with a modest share capital of Rs 25 lakh and 250 members. Today, we have grown to a share capital of Rs 3.5 crore and 19,000 members.”
Currently operating through 33 branches across various districts of Karnataka, the society plans to open five more branches within the current financial year. “We are actively working towards acquiring multi-state status, which will allow us to expand our footprint into Andhra Pradesh,” he said.
The society has ambitious targets for the year ahead, aiming to increase its business turnover to Rs 550 crore and achieve a net profit of Rs 10 crore by the end of this financial year.
While the society continues to grow, it also faces challenges in identifying genuine and reliable borrowers in the market. “We believe that income tax exemptions should be considered for societies like ours that operate exclusively for their members, many of whom belong to economically weaker sections,” added Reddy.
The society has also scaled down unsecured loan offerings from Rs 2 lakh to Rs 1 lakh, while secured loans of up to Rs 4 crore are being sanctioned to eligible members.
As part of its CSR initiatives, Pavagada Souharda Society actively contributes to the welfare of society. It provides food to over 1 lakh people during annual devotional events, organizes health camps, and supports orphanages in the region.
Looking forward, the society is set to adopt Core Banking Solutions (CBS) in the next financial year and plans to roll out other digital services to modernize its operations and enhance customer experience.
The society is also a strong advocate of women empowerment in the cooperative sector. Out of its 330 employees, 72 are women, accounting for an impressive 33% of the total workforce.
With a solid foundation, a visionary leadership team, and a strong commitment to community service, Pavagada Souharda Multipurpose Co-operative Society is fast emerging as a model cooperative, blending tradition with modern banking practices.
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