Himachal Pradesh State Cooperative Bank (HPSCB) Chairman Devender Singh Shyam and Managing Director Vinay Singh met Reserve Bank of India Governor Sanjay Malhotra in Mumbai on Monday and held extensive discussions on key issues related to the bank’s future growth, including institutional lending, technology upgradation and the proposal to open a branch in Chandigarh.
Speaking to Indian Cooperative after the meeting, Shyam said the delegation first thanked the RBI Governor for participating in the National Cooperative Conference held in Shimla last year and then apprised him of several issues affecting cooperative banking in Himachal Pradesh.
“We discussed a number of matters related to the growth of the bank and the challenges faced by cooperative banks. One of the key issues was strengthening our digital banking infrastructure. We sought RBI’s continued support in further enhancing customer services through the Finacle 10.2.25 platform,” he said.
A major focus of the discussion was institutional lending, particularly to government-linked entities and infrastructure projects. Shyam said the bank requested the RBI to consider the special circumstances of HPSCB, which has traditionally financed various state government institutions and infrastructure-related activities.
“Our bank has historically financed institutional and infrastructure projects in Himachal Pradesh. We requested the RBI to permit genuine institutional lending proposals, as such lending supports the state’s development while carrying relatively low credit risk. A large portion of our lending is to government and government-backed entities,” he said.
The HPSCB delegation also urged the RBI to permit the bank to open a branch in Chandigarh, citing the large number of Himachal Pradesh residents who frequently visit the city for medical treatment, education, business activities and agricultural marketing.
“A significant number of people from Himachal Pradesh travel to Chandigarh regularly, particularly for healthcare, education and business purposes. At present, they do not have access to our banking services there. We requested permission to establish a branch in Chandigarh, and the Governor gave a positive assurance on the proposal,” Shyam said.
He added that the proposed Chandigarh branch would be established strictly within the regulatory framework and is intended to improve customer convenience and service delivery. Shyam also recalled that the bank had earlier maintained a branch in Delhi, which was subsequently closed due to operational losses.
Describing the interaction as highly constructive, Shyam said the delegation spent more than half an hour discussing state-specific banking issues with the RBI Governor.
“The meeting was extremely positive. We received a patient hearing and encouraging assurances on all the issues raised by us. We are hopeful that these initiatives will further strengthen cooperative banking in Himachal Pradesh and enhance services for our customers,” he added.