Kuttikkad Farmers Service Cooperative Bank
Kuttikad Farmers Service Cooperative Bank was established just before independence on 14 January 1947, when 146 members joined together, collected `1122 and registered as a cooperative society. The society was active in the public distribution of ration items and household articles. In 1961, the society was converted into a service cooperative society and banking operations were started. on 9 March 1983, it was upgraded as a farmers’ service cooperative bank.
The bank faced an unprecedented situation in 2004 when its CEO and some other employees left and the losses mounted to an extent that it was in excess of the capital of the bank. One of the reasons was the interest outgo for the recurring deposits the bank has been collecting. The deposits attracted almost 15% compound interest. It was at this point the current chief executive, Shri T.J. Poulose, came on board. The board of the bank, evaluating the situation, took a decision to stop accepting recurring deposits and pay back the collected deposits on maturity. Also after a period of 6 months, it was decided to convert the cumulative deposits into ordinary deposits. While the depositors filed cases against the bank in the consumer court, cooperative courts and the high court, the final court verdict came in favor of the bank. The bank also faced situation where the loan overdues were also high.
However, the bank took various steps to cut down the overdues and introduced new deposit schemes. Soon, the situation improved and the bank’s accounts were back in the black. The volume of business increased and new schemes were introduced. Some of the key offerings of the bank today are: • 25% reduction in interest for prompt repayment of loans
• Agricultural loan @ 4% to everybody based on crops
• New monthly deposit scheme with least bank commission Social security scheme from which help upto
`1 lakh is given for medical treatment of diseases like cancer, kidney malfunctioning, paralysis etc. • Financial help for poor students and for housing for poor. The funds are obtained from the profits of the bank and donations.
• Pension to members of the bank, who have completed 30 years membership and above 75 years • Loans of up to `50 lakh repayable over 15 years
• Core banking, Mobile banking, ATM, locker facility, foreign money transfer, RTGS
• PAN card facilitation
• Service of ambulance & mobile freezer
• Distribution of cattle feed manures, fertilizers and pesticides
• First Financial literacy centre in primary cooperative sector
• Coconut processing unit having a capacity to process 25,000 coconut per day.
The bank has also introduced ‘Nattunanma’, a comprehensive project for the development of the rural areas. The project aims at income generation and beautification of the area. ‘Nattunanma’ means welfare of the region. This is ensured by activities such as paddy cultivation, banana cultivation, planting of fruit-bearing trees and root vegetable, creation of backyard gardens, promotion of floriculture and rearing of livestock.
The bank has created a Financial Literacy Center with the assistance of NABARD, to help people understand the complexities of finance. It is the bank is the first in the cooperative banking sector to do so. The bank today has branches at Kuttichira, Mothirakkanny, Velookkara and Maramcode. The head office functions from 8 am to 7 pm.
COCONUT PROCESSING CENTRE:
The main crop of the area is coconut. The bank, therefore started a coconut processing unit with the help of the state government and the Coconut Development Board. It has a capacity to process 25,000 coconut per day. As part of this project, the bank distributes coconut oil, cattle feed from the processing unit as well as manure and pesticides for farmers at reasonable rates.
The bank has also introduced a 24-hour ambulance service and mobile freezer.
KUTTIKAD FARMERS SERVICE CO-OPERATIVE BANK
“LEADER AND LADDER OF PROSPERITY”