Pocham­pally Coop Bank .................

Banking Frontiers - - Highlights - Me­hul@bank­ingfron­tiers.com

The late Sri Kon­gari Bhaskar set up Pocham­pally Co­op­er­a­tive Ur­ban Bank on 22 Oc­to­ber 1997. As of 31 March 2018, it has 55,403 de­pos­i­tors and 4515 bor­row­ers. It has re­duced in­ter­est rates 0.5% on all loans in or­der to at­tract new clients and has in­tro­duced new de­posit schemes with at­trac­tive in­ter­ests of 9% for 12-24 months pe­riod.

IN­CREAS­ING CUS­TOMER BASE

The bank started with 1026 mem­bers and `625,000 as share cap­i­tal. Since then, it has be­come an ‘A’ grade bank with own funds over `1.3 bil­lion and 6402 share­hold­ers. Seetha Srini­vas, CEO of the bank, says the bank is tar­get­ing to in­crease its cus­tomer base to 70,000 by March 2019. It has in­creased re­pay­ment pe­ri­ods for some of the loans.

BET­TER CASA, HIGHER CREdIT

The bank serves those from the trad­ing com­mu­nity, farm­ers, weavers, work­ers and la­bor­ers. Its de­posits as on 31 March 2018 are `793 mil­lion, an in­crease from `738.3 mil­lion a year ago. Loans are at Rs507.5 mil­lion up from `432.8 mil­lion in a year ago. Says Srini­vas: “We are con­cen­trat­ing more on CASA de­posits and our CASA po­si­tion as on 31 March 2018 is 41.65%.”

In all it has 22 types of loans and ad­vances and it is con­cen­trat­ing on giv­ing more loans to re­tail trade and SMEs. Dur­ing 2017-18, it has ex­tended hous­ing loans of `68.5 mil­lion (13.51% of to­tal loans), gold loans of `166.3 mil­lion (32.78%) and CC/ OD loans of `123.9 mil­lion (24.41%).

Says Srini­vas: “We have given to­tal loans of `524.8 mil­lion as on Q1, 2018-19. Of these, loans worth `236 mil­lion were to weaker and `428.4 mil­lion to pri­or­ity sec­tors. We are in­creas­ing our loans to agri­cul­ture and man­u­fac­tur­ing seg­ments in the next 12 months. Gold loans are dis­bursed within 15 min­utes and ve­hi­cle loans in 1-2 work­ing days. ”

TECH­NOL­OGY UP­GRAdES

The bank has CBS and to­day it of­fers a host of ser­vices like RuPay debit & plat­inum EMV cards, ATMs, NEFT / RTGS (with­out charges), host to host re­mit­tances, host to host CKYC, NACH, SMS bank­ing, eS­tate­ment, tab bank­ing, FD book­ing etc.

The bank’s tech­nol­ogy part­ner for CBS and mo­bile bank­ing is Mum­bai-based BSG IT Soft So­lu­tions, while Pune based Sar­va­tra Tech­nolo­gies pro­vides ATM switch on an ASP model. Srini­vas says dur­ing the cur­rent FY the bank has up­graded CBS and new in­no­va­tions have been in­tro­duced. “We have up­graded our mo­bile bank­ing app by in­te­grat­ing it with BBPS for bill pay­ments. We have im­ple­mented pass book kiosk and self-bank­ing kiosk in the branch premises. We are us­ing tech­nol­ogy for bet­ter cus­tomer sat­is­fac­tion.”

He men­tions that In­ter­op­er­a­ble Cash De­posits are be­ing planned by the bank. This is un­der­go­ing a cer­ti­fi­ca­tion process by NPCI and may be­come live in first week of Novem­ber. This will help branches to in­crease the num­ber of cus­tomers. The bank is also planning up­grades for UPI, BHIM, AEPS tech­nolo­gies.

There is 24x7 se­cu­rity avail­able at the ATMs. The 10 ATMs have been ex­pe­ri­enc­ing 340 trans­ac­tions on an av­er­age per ATM per day. The bank has is­sued 21,965 RuPay ATM/debit/Plat­inum cards. At present there are 4 mem­bers in the IT team.”

NPA RE­dUC­TION

The bank’s gross NPA is a nom­i­nal `742,000 (0.15%) and net NPA is nil as on 31 March 2018. The yoy re­duc­tion in net NPA is 0.51% in 2017-18. Srini­vas says he has has ac­corded top pri­or­ity to NPA re­cov­ery.

THIRd PARTY PROd­UCTS

The bank has tied up with Shri­ram Life In­sur­ance to of­fer life cover to all its bor­row­ers. It is not in­ter­ested in sell­ing third party prod­ucts be­cause it feels that its core busi­ness is bank­ing, and it has to con­cen­trate on im­prov­ing this busi­ness. “We ahve in­tro­duced in­sur­ance scheme with low pre­mium to en­able the sav­ings ac­count hold­ers and loan ac­count hold­ers to get in­sur­ance pro­tec­tion ei­ther in case of ac­ci­den­tal death or nat­u­ral death so that the loan out­stand­ing is cov­ered,” says Srini­vas.

GROWTH TAR­GETS

The bank had tar­geted a to­tal busi­ness of `1.72 bil­lion by the end of March 2019. Srini­vas says he is also tar­get­ing to achieve de­posits of `1.04 bil­lion and loans of `680 mil­lion in the cur­rent fi­nan­cial year.

Seetha Srini­vas is planning to in­tro­duce UPI, BHIM and AEPS tech­nol­ogy up­grades dur­ing 2018-19

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