Insight Online News
Thiruvananthapuram, Sep 29 : Kerala Bank (Kerala State Cooperative Bank), after its formation, has posted an increase of 9.27 per cent in its deposits during the last financial year 2020-21.
Announcing this at a press conference here on Wednesday, Kerala Minister for Cooperation V N Vasan said the deposits of the Bank increased from Rs 61,027 crore to Rs 66,731 crore.
He said the Bank has a total business of Rs 1,06,396 crore as on March 31, 2021.
The Net profit of the Bank for the financial year 2020-21 is Rs 61.99 crore. The Bank has been able to bring down its NPA from over 25 per cent during the time of merger to 14.40 per cent now. The NPA stood at Rs 5,738 crore.
It is significant that the Kerala Bank achieved this feat at a time when the Covid Pandemic had adversely affected and devastated the economy of the state and its lion share of customers are from weaker sections struggling / facing its adversities.
Kerala Bank has posted remarkable improvement in the refinance loan facility through the NABARD. The refinance loan which stood at Rs 4,315 crore in 2019-20 rose to Rs 6,058 crore in 2020-21, posting an increase of 40.39 per cent.
The accumulated loss of the Bank stood at Rs 1.151 crore during the merger of 13 District Cooperative Banks with the Kerala State Cooperative Bank to form Kerala Bank. This has been brought down to Rs 714 crore, the Minister said.
Another highlight was the achieving of CRAR which was just 6.26 per cent at the time of formation of Kerala Bank, but touched 10.18 per cent now. The Reserve Bank of India (RBI) had stipulated only 9 per cent CRAR. The Rs 400 crore that the Kerala Government had pumped in is the main support that helped the Bank to push up the capital-to-risk weighted assets ratio (CRAR).
The Bank is focused on priority sector of agriculture, service, trade, MSME, Micro Finance and Rural Housing. Its main focus now is on disbursing retail loans. The Bank has disbursed a total of Rs 18,200 crore loans directly and through Primary Agriculture Cooperative Societies (PACS) during the year, Mr Vasan said.
He said the cooperative sector in the state has so far lended the lion’s share of the Kerala’s agriculture loans through PACS who are also the shareholders of the Bank and whose numbers more than 1500.
The cooperative sector is attempting to make a strong foray into Micro, Small and Medium (MSME), Rural Industries and Rural Housing.
Kerala Bank is aiming at arresting the fall in prices of agricultural produces through the scheme PACS as Multi Service Centre which will make possible procurement, processing, marketing and value-addition of those agricultural produces that are locally found in abundance.
More job opportunities are created through help to MSMEs. Those projects which meet the stipulated conditions can be given loans of up to Rs. 2 crore at 4 per cent interest through PACS. Those who have prompt repayment will get interest subsidy of up to three per cent in interest. Thus those who repay promptly can get loan up to Rs. 2 crore at one per cent under this scheme.
The Bank has decided to implement KB Micro Food Processing scheme which comes with NABARD subsidy and will benefit small entrepeneurs as well as women who are engaged in food processing and is coming up with a new scheme for PACS that will enable the latter to finance MSME units.
It has also chalked out a scheme for school children under the name KB Vidyanidhi that will be beneficial to their parents also and it will be rolled out soon, the Minister said, adding that the Bank
has been implementing One Time Settlement (OTS) scheme which was in force from time-to-time in the Cooperative sector.
Apart from this, the Kerala Bank has also implemented OTS as a permanent system in tune with the stipulations of Reserve Bank of India. This scheme is highly beneficial to those who have lesser repaying capacity and those belonging to weaker sections who are not wilful defaulters.
The Bank has given purchase order after completing tender procedures for IT integration. The aim is to complete state-of-the-art digital and mobile banking facilities in 3 months and is gearing up to unleash a slew of services to those people for whom banking services are still not available by tying up with government departments.
The Minister said the Kerala Bank will be the first among the best banks in Kerala once IT integration is completed. The dream of ‘State’s own bank’ to fulfill the financial needs of Kerala is going to become a reality, he added.