Sarvodaya Coop Bank .....................
Focusing on industrial loans, project finance loans, personal loans and gold loans:
The Sarvodaya Sahakari Bank, one of the leading urban cooperative banks in Surat, was founded in 1982 by Prabhubhai Makanjibhai Bhakta. The bank actually began its operations from Bhakta’s house on Varachha Road in the city, but today it has its own air-conditioned and well-equipped head office. It has also added new branches and in Surat city alone it has 9 branches and 8 ATMs. Today, Bharatbhai Shah is the MD and Ashok Patel is the CEO.
According to Madhusudan Katargamwala, chairman of the bank, the staff strength has increased from 112 in 2016-17 to 120 today.
The bank has 101,948 customers as on 31 March 2018. It is an A-graded bank with own funds of over `698.5 million and 19,061 shareholders. It had started with an authorized share capital of `2.5 million and the paid-up share capital of `400,000. It has CBS, covering all its branches and offers RuPay debit card, ATM facility, coin vending machine, NEFT & RTGS remittances, franking facilities, mobile banking, net banking (view facility), etc.
Says Katargamwala: “We have 6636 lockers to cater to the ever-demanding customers’ requirements. The head office and main branch have customers’ lounge and eLobby facilities.”
HIGHER CREDIT, LOWER RATES
The bank serves the low and mediumincome level people, who are its core clientele. These include trading community and MSME units, salaried persons, workers and laborers for whom it is offering credit at a lower interest rate. It has gradually reduced interest rates on housing loans, gold loans, mortgage loans, machinery loans and cash credit facility to attract new customers. “The interest rate for personal loans was 14% till 17 November 2017,” says Katargamwala, adding: “It has been reduced to 13% today. Home loans rate was reduced from 11% as on 20 May 2016 to 10% as on 8 February 2017 and since then it has remained unchanged. Hypothecation loan rate for machinery was higher earlier but since 8 February 2017, it is reduced to 10.5%. Similarly, interest on loans for doctors was brought down from 11.5% to 10.5%. The new deposit schemes offer 9% interest.”
Loans for purchase of machinery by SMEs have been erratic during the last 3 financial years. It nose-dived from `765.3 million in 2015-16 to `547.9 million in the next year but recovered to `621.8 million in 2017-18. The number of borrowers came down from 128 in 2015-16 to 94 in the next year but increased to 109 in 2017-18. There was only one NPA account of `7 lakh, last observed in 2015-16.
The bank’s deposits stood at `5.94 billion and loans of `3.54 billion as on 31 March 2018. It has achieved a growth rate of 10.71% for loans during 2017-18. Katargamwala says: “We gave machinery loans of `544.4 million (53.65% of total loans), gold loans of `47.2 million (4.65% of total) and CC/OD loans of `193.5 million (19.07% of total) in 2017-18. We have given finance of `126.8 million in Q1,201819 and the bank is focusing on”industrial loans,project finance loans, personal loans, solar loans and gold loans in the next 12 months. The gross NPA of the bank is 70.7 million (2%) as on 31 March 2018.
The bank completed its computerization program way back in 1993 and has been earning appreciation from the satisfied customers on this account. It started implementing CBS in February 2008 at the head office and in a short span of time covered all the branches. The bank has also introduced mobile (SMS) banking services. “We have also installed kiosks at all branches to enable customers to get account related information,” says Katargamwala, adding: “Beyond that, are providing internet banking, RTGS, NEFT and ePayment of taxes facility. We have also launched mobile app for Android, IOS and Windows users. In addition, eCommerce facility has also been started on RuPay Card.”
Virmati Software & Telecommunications is the CBS vendor for the bank. There are 4 members in IT team and some 60 transactions have been taking place on an average per ATM per day.
TARGETS FOR 2018-19
The bank is targeting a total business of around `11.75 billion and a customer base of 120,000 by the end of March 2019. “We are targeting to achieve deposits of `7.15 billion and loans of `4.6 billion in the current financial year and we have applied to RBI for 4 more branches with on-site ATMs in Surat,” says Katargamwala.
Madhusudan Katargamwala proposes to increase the total business of the bank to `11.5 billion by March 2019