Jhark­hand SCB

The growth jour­ney of Jhark­hand State Co­op­er­a­tive Bank has just be­gun after amal­ga­mat­ing 7 DCCBs:

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The Jhark­hand State Co­op­er­a­tive Bank (JSCB) was es­tab­lished in 2002 after the for­ma­tion of Jhark­hand state. Bi­har SCB trans­ferred as­sets and li­a­bil­i­ties of 5 of its branches si­t­u­ated in Jhark­hand to JSCB in 2012. JSCB was formed with 5 branches si­t­u­ated at Ha­tia, Bis­tupur, Gol­muri, Jamshed­pur and Bokaro, in­her­ited from its Bi­har coun­ter­part.

The gov­ern­ment of Jhark­hand took a de­ci­sion to have a 2-tier co­op­er­a­tive credit struc­ture. Un­der this, all dis­trict co­op­er­a­tive banks and their branches merged and be­came branches of JSCB.


JSCB re­ceived its bank­ing li­cence from RBI in Au­gust 2012 to start op­er­a­tion as an apex co­op­er­a­tive in­sti­tu­tion in Jhark­hand. Sub­se­quently, it ap­plied to RBI for amal­ga­ma­tion of the ex­ist­ing 7 dis­trict cen­tral co­op­er­a­tive banks (bar­ring Dhan­bad CCB) into a sin­gle en­tity which was ap­proved by RBI. A 2-tier co­op­er­a­tive credit struc­ture for the state with an apex bank was then cre­ated.

Says Bra­jesh Nath, CEO of JSCB: “201718 is the first fi­nan­cial year of the com­bined en­tity. It’s a unique struc­ture, a first in the coun­try. We started func­tion­ing with the ex­ist­ing net­work of 105 branches of the erst­while DCCBs and 2808 PACS/LAMPS (Large-Sized Multi-Pur­pose So­ci­eties) and other type of so­ci­eties, at the grass root level af­fil­i­ated to it.”

The bank now has about 400 em­ploy­ees. New re­cruits are all CBS trained and it has been send­ing se­lect em­ploy­ees to the Bankers In­sti­tute of Ru­ral De­vel­op­ment (BIRD), Luc­know for train­ing. Nath says 80% of the staffers are com­puter lit­er­ate and the bank had sent some 200 em­ploy­ees to BIRD. Mean­while, it also or­ga­nizes re­fresher cour­ses con­tin­u­ously. “We up­grade peo­ple, the same way we up­grade our IT sys­tems, as on­go­ing ex­er­cise,” says he.


Nath, who started his ca­reer in Nabard, says the bank wants to ex­pand its cus­tomer base. It has more than 5 lakh live ac­counts and more than 1 lakh dor­mant ac­counts. It is mak­ing ef­forts to covert the dor­mant ac­counts op­er­a­tional. It has been ar­rang­ing camps and tak­ing part in trade fairs to in­crease the cus­tomer base. Be­sides, it has also been or­ga­niz­ing special credit drives through­out the year. More re­cently, it has par­tic­i­pated in an expo or­ga­nized by Khadi Gramodyog in Ranchi. The bank pro­vides a num­ber of ser­vices which are at par with those of­fered by com­mer­cial banks, like CBS plat­form, locker fa­cil­ity, net bank­ing (view op­tion only), mi­cro pay­ment sys­tem, E-Ku­ber, etc. Nabard has sanc­tioned a mo­bile van for tak­ing up pro­mo­tional work


Since amal­ga­ma­tion of the 7 DCCBs, the per­for­mance of the bank has im­proved. “Our to­tal de­posits have risen to `2367 crore as on 30 Novem­ber 2017 from `1847 crore as on 1 April 2017. Dur­ing this pe­riod, CASA de­posits have shot up to `1127 crore from `831 crore and CRAR to 14% from 12.17%,” says Nath.

The bank is ap­proach­ing gov­ern­ment de­part­ments/so­ci­eties for de­posit mo­bi­liza­tion and re­tail funds are be­ing mo­bi­lized through its 1500-strong BC net­work in the state. The bank of­fers loans to SHGs and JLGs in a big way. Nath says fresh loans and ad­vances in the first 8 months of the cur­rent fi­nan­cial year thereby touch­ing the `50 crore mark. Mostly, the bank has pro­vided agri loans to farm­ers, per­sonal loans to salaried class and project loans to agri­cul­ture and al­lied ac­tiv­i­ties.


JSCB im­ple­mented CBS in 2012. It made ef­fec­tive use of tech­nol­ogy for a seam­less merger of branches of the 7 DCCBs into a uni­fied struc­ture even as it strove to pro­vide all tech­nol­ogy-en­abled ser­vices. It is also con­duct­ing ‘Go­ing - Dig­i­tal’ pro­grams and camps at its ru­ral branches and FLCs. It has re­ceived MICR code for all its 105 branches.

Says Nath: “To­day, we are of­fer­ing RTGS/NEFT/ATM/ RuPay Debit card/RuPay KCC etc to our cor­po­rate, in­sti­tu­tional and re­tail cus­tomers, farm­ers and small traders and busi­ness­men. Our BCs make use of mi­cro ATM de­vices. Our CBS ven­dor Nelito of­fers special train­ing to staffers. We have sub­mit­ted our ap­pli­ca­tion to start mo­bile bank­ing to RBI so that we can ex­tend this fa­cil­ity to our cus­tomers.”

The bank’s of­fi­cial web­site was launched by Jhark­hand chief min­is­ter Raghubar Das. On that oc­ca­sion, he also re­leased RuPay cards. The bank had en­gaged 180 IT-pro­fi­cient per­son­nel to man its tech­nol­ogy in­fra­struc­ture it needs some 550 per­son­nel more.


The bank could re­duce the to­tal NPA from 42.97% in the be­gin­ning of 201718 to 35.26% as on 30 Novem­ber 2017. It launched a one-time set­tle­ment scheme this year and had set up a re­cov­ery cell, con­ducts pe­ri­odic vis­its to/di­rect con­tact with cus­tomers and takes le­gal ac­tion in or­der to fur­ther bring down the NPAs.


4th AGM of the bank was in­au­gu­rated by the bank’s ad­min­is­tra­tor Vi­jay Ku­mar Singh, IAS, un­der whose guid­ance JSCB is presently be­ing run. He is cred­ited with many new ini­tia­tives. The bank is plan­ning to ex­pand the use of mi­cro pay­ment sys­tem through bank mi­tras, un­der­take com­put­er­i­za­tion of LAMPS and PACS. Nath gives specifics: “We have ap­plied to RBI for 138 new branches across the state. Nabard has sanc­tioned 15 ATMs and 6 fi­nan­cial lit­er­acy cen­ters. Our fo­cus will be on the use of tech­nol­ogy to reach larger num­ber of cus­tomers. Some of the new branches and ATMs may start from this FY it­self.”

Bra­jesh Nath

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