Though on a growth path on its own, the second largest credit cooperative of Maharashtra- Shivkrupa Credit Cooperative Society is being bogged down by challenges including provisioning for the losses suffered in the PMC Bank episode.
When this correspondent visited the head office of Shivkrupa Credit Co-op located in Mumbai, its CEO Rajesh Shete revealed that for the last three years, the credit co-op has been making 10 percent provisions from profits against Rs Rs 80 crore they had invested in the debt-ridden PMC Bank. The state government should give relaxation to the Patpedhis who had invested in the Bank”, the society CEO demanded.
Shete further added, the state cooperative department’s move to revise the ‘Income Recognition and Provisioning norms’ will adversely affect the credit cooperatives of Maharashtra. There are many credit cooperatives in Maharashtra, which are growing slowly, but if the NPA norms are revised then their future will be in trouble. So, my suggestion will be ‘Wait n Watch’ for some time, he added.
“Besides, credit co-ops are not allowed to open savings and current accounts of customers who don’t want to become members and neither can they issue cheque books. The state should help Patpedhis in this connection. The opening of CASA accounts will positively help credit co-ops to enhance their deposit base as well as exposure limits”, said Shete.
Shivkrupa Credit Cooperative Society has continuously been achieving new milestones under the leadership of Gorakh Chavan as its Chairman and Chandrakant Vanjari as its Vice-Chairman. The role of staff in taking the society to newer heights is also commendable. With everybody’s efforts, the society’s newly built six storey office started to run from Rabale, Navi Mumbai.
Shivkrupa Credit Cooperative Society, which has jurisdiction in Maharashtra is mostly located in Western Maharashtra. Now they are planning to expand their wings in other parts of the state as well.
“There are ample opportunities in Maharashtra for us to work and help the people to uplift themselves. The society is very active in western Maharashtra but there are other parts where we can expand our foot-prints”, said Shete.
“Our objective is not only to earn profit but also how we are focusing on helping the downtrodden people of society with our resources”, said Shete who is Ex-CEO of Dombivali Nagarik Sahakari Bank.
He further added, the credit co-op does not see much competition with other credit co-operative but making the society internally strong and safeguarding the interest of members is a challenge we are constantly working on.
Shivkrupa Credit Cooperative Society was established in 1982 with 520 members with 25,000 share capital but as on 31st March 2023, there were 4.02 lakh members with 148 crores. The society set a target to achieve a business mix of Rs 5,000 crore at the end of the current financial year and in the next five years our target is to achieve Rs 10,000 crore. The society has a network of 102 branches but will apply for 8 more branches in a couple of months”, Shete informed.
