Indraprasta Coop Bank ....................
Proposes to add branches:
Indraprastha Sehkari Bank is a Delhibased cooperative bank with 5 branches and head office. It started its business with just one office but today at least one of its branches operate from its own premises. The bank proposes to add 2 more branches in the middle class areas in 2019-2020.
The bank is effectively controlled and managed by an efficient and qualified board of directors under the chairmanship of D.K. Aggarwal.
According to Rajeev Gupta, MD of the bank, the bank has 100 employees at present. Business per employee increased to `35.3 million in 2017-18 from `33.4 million in 2016-17. He feels the bank needs to have banking correspondents for business development in the branches.
The bank, which has been in existence for 29 years, has 32,403 customers as on 31 March 2018. It is an ‘A’ graded bank with 10,329 shareholders and own funds of over `292.9 million. Gupta says the bank is targeting to increase its customer base to 34,000 by March 2019. The 5 branches offer some 1231 lockers to cater to requirements of its customers and the head office and main branch are equipped with latest infrastructure facilities and customers’ lounge.
The bank serves the low and mediumincome level groups, who form its core clientele. These sectors include trading community, workers and labourers to whom the bank has been offering credit at a lower interest rate. It also extends advances to needy persons including small scale industries, other industries, businessmen, retail traders, general traders and selfemployed persons for various purposes. It has reduced interest rates on housing loans from 10-11% to 8.3-8.4%, mortgage loans from 13-14% to 10.50-11.50% over a period of time so as to attract new customers. It has also been offering new deposit schemes with interest rate of 8%.
The bank has granted loans to the priority/weaker sections as per the limit prescribed by the RBI. The loans increased to `1.22 billion as on 30 March 2018 from `1.09 billion a year ago, registering a growth rate of 12.05%. Deposits stood at `2.1 billion, down from `2.14 billion. Says Gupta: “This was mainly due to withdrawal of deposits during the demonetization period. We have increased repayment periods for mortgage loans. We are also strengthening our business loans and housing finance for the next 12 months. Our loan processing and sanctioning time is only 4 to 6 working days. After pre-sanctioning visits, all eligible loan holders are offered loans.”
The bank has implemented CBS. It is offering its own RuPay debit card, NEFT / RTGS remittances, mobile banking etc. The RuPay debit cards were introduced in 2015. The ATM technology vendor is Sarvatra Technologies. It has a tie-up with Axis Bank for offering ATM, RTGS, NEFT services. The bank has also introduced SMS alerts and email banking facilities. Gupta says implementations of mobile banking and introduction of IMPS are planned for 201819. At present the bank has a 4-member IT team.
The gross NPAs and net NPAs of the bank are `55.83 million (4.56%) and `27.23 million (2.28%) respectively as on 31 March 2018. The yearly reduction in gross NPA is `18.67 million in 2017-18. The bank has already initiated action under the SARFASI Act against NPA accounts.
Says Gupta: “NPA recovery is a top priority for us. Staff members concerned with the resspective NPA accounts are personally in touch with the borrowers to recover overdue instalments and make the accounts regular. We hope in this financial year we would be able to reduce the NPA amount notably.”
THIRD PARTY PRODUCTS
The bank has tie-ups with Baroda Pioneer, L&T MF and Axis MF for offering investment propositions for its customers. Unfortunately, the non-interest income of the bank decreased substantially from `21.2 million in 2016-17 to `19.4 million in 2017-18.
The bank is targeting to achieve a total business of around `3.69 billion by the end of March 2019. Says Gupta: “We are targeting to achieve deposits of `2.34 billion and loans of `1.35 billion by the end of the current financial year.”
Rajiv Gupta is planning to add mobile banking and IMPS services to its offerings for its customers this year