Sar­vo­daya Coop Bank .....................

Fo­cus­ing on in­dus­trial loans, project fi­nance loans, per­sonal loans and gold loans:

Banking Frontiers - - Highlights - Me­hul@bank­ingfron­

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.”


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

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