Several technology initiatives in the pipeline:
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.
INCREASING CUSTOMER BASE
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.
LOW COST DEPOSITS UP
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.
MINING BAN IMPACT
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.
IT IMPLEMENTATION, PLANS
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.
NPA, ASSET QUALITY
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.”
TARGETS OF GROWTH
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