Sev­eral tech­nol­ogy ini­tia­tives in the pipe­line:

Banking Frontiers - - News - Me­hul@bank­ingfron­tiers.com

The Goa State Co­op­er­a­tive Bank (GSCB) was founded as the apex fi­nanc­ing agency in the co­op­er­a­tive sec­tor in the then union ter­ri­tory of Goa, Da­man and Diu in 1963, with S. Khushal­das as its first chair­man. To­day, the bank has 93 PACS af­fil­i­ated to it and a net­work of 70 branches and 23 ATMs. The bank does not in­tend to add any branches or ATMs this year. It has its own head of­fice premises at prime lo­ca­tion in EDC Com­plex at Panaji. The build­ing con­sists of base­ment, ground floor and 7 up­per floors with to­tal su­per built-up area of 3536 sq. mt.

Anant Cho­dankar, MD in charge, says the bank has 35 branches each in ru­ral and semi-ur­ban ar­eas, and 17 ATMs in semi­ur­ban and 6 in ru­ral ar­eas. It is in process of merg­ing 6 branches and of these, sanc­tion has been re­ceived for 2 and the merger will hap­pen soon.


The bank has set up a cus­tomer griev­ances re­dres­sal sys­tem. It also op­er­ates the North Goa Fi­nan­cial Lit­er­acy Cell un­der spon­sor­ship from Nabard and has con­ducted camps for ed­u­cat­ing cus­tomers on var­i­ous as­pects of bank­ing at dif­fer­ent lo­ca­tions in Goa in re­cent times. It has en­tered into an MOU with the state gov­ern­ment for im­ple­ment­ing the ‘Dayanand So­cial Se­cu­rity Scheme’ of the di­rec­torate of so­cial wel­fare for dis­tribut­ing monthly pen­sion to the vul­ner­a­ble sec­tions of the so­ci­ety in the state.

The bank of­fers ser­vices like remit­tances, trade fi­nance, non-res­i­dent or­di­nary ru­pee (NRO) ac­count and non-res­i­dent (ex­ter­nal) ru­pee ac­count (NRE). Cho­dankar says the bank has 347,648 cus­tomers at present. The bank has or­ga­nized at least 25 FLC camps for the cus­tomers this fi­nan­cial year and has al­ways ac­corded top pri­or­ity to cus­tomer ser­vice.

The bank has 600 em­ploy­ees. It or­ga­nizes train­ing pro­grams for the staff, es­pe­cially on fi­nanc­ing agri­cul­ture at the Na­tional In­sti­tute for Ru­ral Bank­ing, Bengaluru. Re­cently, it had un­der­taken a train­ers’ train­ing pro­gram on fi­nan­cial in­clu­sion and lit­er­acy in as­so­ci­a­tion with Bankers In­sti­tute of Ru­ral De­vel­op­ment (BIRD), Man­ga­lore.


The bank of­fers higher rates of in­ter­est on de­posits. The to­tal busi­ness of the bank in­creased to `3460 crore as on 31 March 2017 reg­is­ter­ing a yoy growth of 10.59%. Its de­posits have gone up to `2227.88 crore, reg­is­ter­ing a yoy growth of 18.02%. In­ter­est in­come too has in­creased to `198.85 crore, which is a yoy growth of 17.37%, in spite of non-re­cov­ery of in­ter­est from the min­ing sec­tor re­lated ad­vances with ef­fect from 1 Oc­to­ber 2012.

Says Cho­dankar: “Our de­posits for 201617 in­creased due to the de­mon­e­ti­za­tion and by ac­cept­ing de­posits from so­ci­eties, lo­cal bod­ies and in­di­vid­u­als. Low-cost de­posits formed 42.85% of to­tal de­posits. CD ra­tio stood at 55.31%. Out of de­posits of `1887.77 crore in 2015-16, cur­rent ac­count de­posits were `163.97 crore, sav­ing ac­count de­posits `605.86 crore and fixed de­posits `1117.91 crore, which grew by 20.90%, 24.85% and 13.89% re­spec­tively in the next FY.”


The bank pro­vides loans to agri­cul­ture and al­lied ac­tiv­i­ties and has all types of loan schemes like ur­ban loans, con­sumer loans, loan against gold, loan against NSC, loan against pigmy de­posits, non-agri­cul­tural loan, loan for wed­dings of de­pen­dent mem­bers of the fam­ily, re­pay­ment of debt and to meet ex­penses of med­i­cal treat­ment, etc, to suit the needs of its cus­tomers.

“Dur­ing the re­cent Ganesh Chaturthi fes­ti­val, we had un­der­taken a ve­hi­cle loan cam­paign wherein loans were to be sanc­tioned within 24 hours. We could dis­burse 600 loans dur­ing the cam­paign. The progress in de­posits and lend­ing so far this FY has been in tune with the tar­gets set for the whole year,” says Cho­dankar.

The loans and ad­vances of the bank were `1232.17 crores as on 31March 2017, which is a neg­a­tive growth of 2.66%. Per­sonal loans, hous­ing loans and agri­cul­tural loans to the tune of `553.70 crore, `135.84 crore and `73.53 crore re­spec­tively had been given by the bank in 2016-17.

Apex co­op­er­a­tive in­sti­tu­tions have re­ceived no­table fund­ing from the bank. In the field of mi­cro fi­nance, the bank con­tin­ues to be one of the leading fi­nancers to SHGs and JLGs as well as very small en­trepreneurs - through Swaro­j­gar Credit Cards. It has 3680 af­fil­i­ated SHGs, out of which 651 have been credit linked with out­stand­ing loans of `917.23 lakh in 201617. The bank has also fi­nanced 362 JLGs out of 666 af­fil­i­ated JLGs and amount dis­bursed to them is `260.75 lakh.

Says Cho­dankar: “In the cat­e­gory of fed­er­a­tions, San­ji­vani Sa­hakari Sakhar Kharkhana (`26.98 crore), Kadamba Em­ploy­ees Co­op­er­a­tive Credit So­ci­ety (`25 crore), Goa State Co­op­er­a­tive Milk

pro­duc­ers Union (`4 crore), Agri­cul­tural Mar­ket­ing & Supply Fed­er­a­tion (`3 crore) and Sawaikar Cashew In­dus­tries (`2.20 crore) have been given loans by the bank. This year, 1500 new Kisan Credit Cards have been is­sued.”

The bank par­tic­i­pated in the Con­sor­tium for Fi­nanc­ing Food Pro­cure­ment by con­tribut­ing `75 crore to the pool. This has gen­er­ated size­able in­come of `7.89 crore for the bank by way of in­ter­est dur­ing 2016-17.


The to­tal bank de­posits (of all the banks in Goa) stood at `66,078 crore, reg­is­ter­ing a very small yoy growth of 4.32%, whereas ad­vances dropped by 2.66% to ag­gre­gate `18,869 crore. How­ever, over­all CD ra­tio in the state con­tin­ued to be at low 30%, stand­ing well be­low bench­mark level of 40%.

The Goan econ­omy, which thrived on growth in the min­ing sec­tor prior to 2012, has still not re­cov­ered from the ad­verse im­pact of ban on min­ing ac­tiv­i­ties. The state gov­ern­ment did take var­i­ous steps to re­vive and re­ju­ve­nate the econ­omy. How­ever, the re­cov­ery was painstak­ingly slow.

Out of 719 loan ac­counts fall­ing un­der Gov­ern­ment of Goa Debt Re­lief Scheme for min­ing ban af­fected bor­row­ers, 703 ap­pli­ca­tions were sub­mit­ted for claim­ing sub­sidy. Of these 692 cases had been pro­cessed by EDC of which 332 ac­counts stood liq­ui­dated on pay­ment of 65% by the bor­rower and re­lease of 35% sub­sidy by the state gov­ern­ment in 2016-17.


The bank has its own CBS, de­vel­oped in-house. The sys­tem has been im­ple­mented at all the branches of the bank in 2012. In the fol­low­ing year, the bank re­ceived its IIN num­ber. It started its own data cen­ter in 2013 so as to roll out new fa­cil­i­ties. Cho­dankar says the soft­ware is main­tained by Info Dy­namic Soft­ware Sys­tems. The ATM fa­cil­ity was in­tro­duced through Hi­tachi Pay­ments Ser­vices. Sub­se­quently, the bank de­cided to opt for white la­bel ATMs. Till to­day, it has 21 such ATMs. In 2017, it has en­tered into an agree­ment with Ox­i­gen un­der spon­sor­ship model from RBL for mi­croATMs. This prod­uct has bet­ter fea­tures than nor­mal POS such as Bharat Bill pay­ments, branch­less bank­ing such as cash in, cash out, bal­ance en­quiry, in­stant money trans­fer, wal­let TOP-ops, eKYC ser­vices, e-com­merce pay­ments, mer­chant & cor­po­rate pay­ments, etc. Cho­dankar says this ser­vice will be in­au­gu­rated in near fu­ture.

The bank has also pro­cured Bunch Note Ac­cep­tor (BNA) machines. It has also com­pleted e-com­merce cer­ti­fi­ca­tion with NPCI, which is now live, through which cus­tomers can do on­line pur­chases us­ing their ATM cards.

The bank got its IFSC code in 2013 and started RTGS / NEFT fa­cil­i­ties to all its cus­tomers. “Right now, we are on var­i­ous plat­forms in­tro­duced by NPCI like NACH, ECS, AEPS, ABPS and MMS,” says Cho­dankar.

Re­gard­ing mo­bile based pay­ments, the bank has made avail­able ‘Sim-se-Pay’ ap­pli­ca­tion to its cus­tomers. “It is a small thin sleeve, which is pasted on the SIM of any mo­bile, whether An­droid or ba­sic, which en­ables the cus­tomers to un­der­take dig­i­tal trans­ac­tions through mo­bile wal­let. The de­lay in dis­tri­bu­tion of this KIT (Simse-Pay) was on ac­count of up­grad­ing the soft­ware with UPI and bill pay­ments. We also want to start fa­cil­i­tat­ing e-com­merce in near fu­ture,” says Cho­dankar.


The bank’s net NPA has been brought down to 4.53% in 2016-17 from 11.16% in 201213 and gross NPA is down to 8.06% from 13.14%. Per­cent­age of re­cov­ery to de­mand stood at 88.58% in 2016-17.


The bank has tied up with a num­ber of in­surance com­pa­nies for en­hanc­ing its fee in­come. There is a tie-up with Ko­tak Life In­surance Com­pany for ex­tend­ing life in­surance and ve­hi­cle in­surance for ex­tend­ing in­surance to those avail­ing ve­hi­cle loans. The bank has also tied up with the New In­dia As­sur­ance Com­pany for PACS’ farm­ers. Ar­range­ments have been made with SBI Gen­eral In­surance Com­pany and HDFC Ergo Gen­eral In­surance Com­pany for ex­tend­ing crop loan in­surance un­der Kharif & Rabi sea­son to PACS / KCC farm­ers, which is im­ple­mented since Kharif 2016. Un­der cor­po­rate so­cial re­spon­si­bil­ity, the bank con­trib­utes 50% of the pre­mium on be­half of the ben­e­fi­cia­ries. The bank has par­tic­i­pated in Pradhan Mantri Su­rak­sha Bima Yo­jana (PMSBY) and Pradhan Mantri Jee­van Jy­oti Bima Yo­jana (PMJJBY) ben­e­fit­ting 9497 and 5648 cus­tomers re­spec­tively.

Says Cho­dankar: “The bank has al­ready im­ple­mented Janashree Bima Yo­jana (JBY) Scheme of Life In­surance Cor­po­ra­tion of In­dia, a death-cum-dis­abil­ity in­surance scheme for the mem­bers of all Women SHGs credit linked to the bank and the bank cov­ered 750 ben­e­fi­cia­ries dur­ing 201-17.”


The bank has laid down de­posits and ad­vances tar­gets for each branch. “As part of the spe­cific tar­gets, we are aiming to achieve 15% growth in the busi­ness. We want to reach same 15% growth in de­posits mo­bi­liza­tion and loan dis­burse­ments in the cur­rent FY through bet­ter cus­tomer ser­vice. We ex­pect from the au­thor­i­ties that the bank should be given time to achieve the CRAR in a phased man­ner in­stead of achiev­ing 9% within this year,” says Cho­dankar.

Anant Cho­dankar claims sat­is­fac­tory per­for­mance of his bank de­spite stiff com­pe­ti­tion from pub­lic sec­tor and pri­vate com­mer­cial banks

Goa State Co­op­er­a­tive Bank branch

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