PunjabCooperation Minister Sukhjinder Singh Randhawa said that to encourage theCooperative Banks to compete with private banks, their government is going torevamp the Cooperative Banks by introducing new schemes including gold loan andinsurance schemes. The minister said that new recruitment will be done to dealwith shortages of staff and for starting net banking and other online bankingservices will also be introduced to include the Cooperative Banks in top banksof the state.
CooperationMinister Randhawa was here to inaugurate the workshop on ‘Micro Finance, NewBuisness Opportunities for Cooperative Banks’ organised by Punjab StateCooperative Bank in association with NABARD.
Theminister said that there are as many as 802 branches of cooperative banks inthe state and due to the lack of professional approach of cooperative bankingsector, these banks are lagging behind private banks besides having reach inthe remote areas. He added that to compete with private banks, the cooperativebanks will have to change its working for the welfare of the rural people byintroducing marketing strategies. He said that strict action will be takenagainst the culprits of corruption and indiscipline. He also directed the bankofficials to act tough against major defaulters.
S.Randhawa thanked NABARD for providing financial assistance of Rs. 750 crore toPunjab State Agriculture Development Bank and also appealed the NABARD to boundthe state government to utilise these funds through cooperative banks whichwould strengthen them. He added that after getting approval from Reserve Bankof India, the District Central Cooperative Banks (DCCBs) will be merged soon inPunjab State Cooperative Banks (PSCBs) which would add strength to these banksand new challenges as well.
Earlier,Chief General Manager of NABARD Rajiv Siwach said that around 100 year oldbanking institution cooperative banks were dealing with the segment of smalland marginal farmers which were neglected by all bankers. He added that thesefarmers lend from cooperative banks for crops and fertilisers and NABARD willbe always there to assist cooperative banks.
RegistrarCooperative Societies Vikas Garg said that the bank has diversified its loansportfolio with micro finance thus enabling the bank to develop new customerbase and earn good profit margins. Further, the bank has started earning morefee based income due to tie ups with insurance and stock holding corporations.He also pointed out that another new initiative is the tie up with StockHolding Corporation of India Ltd for issuance of e-stamp papers through thebranches of bank throughout Chandigarh and Punjab.
TheMD Punjab State Cooperative Bank Hargunjit Kaur said that the PSCB has beenadvancing loans to farmers in general for various purposes and retail loansalso to urban customers since long. "Besides, bank was also providingmicro finance loans to the poorest strata of the society in Punjab by advancingloans to Self Help Groups (SHGs) as per guidelines issued by NABARD which hasalways supported this model with its generous grants", said the MD addingpresently Rs. 4000 is being given to MPCASS/MPCS/Ex-FLC Counselor by NABARDsubject to availability of funds and other eligibility conditions in a phasedmanner as an incentive amount for the formation of Joint Liability Groups asper parameters fixed by NABARD. Recently, the bank has become corporate agentof reputed insurance companies for life insurance, general insurance and healthinsurance, added the MD.
Meanwhile,the AMD (Banking) JS Sidhu said that in 2018-19 Bank had introduced a new loanscheme i.e. direct Loan to JLGs by DCCBs through MPCASS/MPCS as BusinessCorrespondents. Under the scheme, the financing facility is provided to groupsof 4 individuals who come together for the purpose of availing bank loan eithersingly or through the group mechanism against mutual guarantee. "Everymember shall be allowed a loan upto Rs.50000/- on the basis of personal andcollective liability of the group, thereby meaning that a group of four membersshall get a maximum loan of Rs.2 lakh as per his/her needs and nothing exceptpersonal or collective guarantee of the group shall be taken", said theAMD adding till January 31, 2021 the DCCBs in Punjab have advanced approx 2600JLGs to an amount of Rs.53.24 Crores.
Prominentamong others who were present on the occasion included MD PSADB Charandev SinghMann, GM NABARD Partho Saha, Prof Satish Verma from CRID, AGM Pragati Jagga,Principal SS Brar, all MDs and District Managers of District Cooperative Banksof the state.