Fin­growth Coop Bank ..............................

Ashok Kumar Shah, MD, Fin­growth Co­op­er­a­tive Bank, ex­plains how the multi- state bank has been achiev­ing growth over the years and how it pro­poses to con­tinue:

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Fin­growth Co­op­er­a­tive Bank is a multi-state co­op­er­a­tive bank hav­ing 22 branches in Ra­jasthan and Gu­jarat and 4 on-site ATMs. The bank has not added any branch in the last fi­nan­cial year as RBI has with­held branch li­cens­ing for co­op­er­a­tive banks dur­ing the last 4 years as the li­cens­ing pol­icy for is un­der re­vi­sion. Ashok Kumar Shah, MD of the bank, says thee bank pro­posed to add 2 on-site ATMs and 3 branches by the end of 2019-20 sub­ject to ap­proval by the RBI.

The bank’s branches have ad­e­quate se­cu­rity sys­tem and fire-fight­ing equip­ment. There is pro­vi­sion for safe drink­ing water and all the branches are air-con­di­tioned. Ex­plains Shah: “We have provided armed se­cu­rity guards at each branch and there is 24-hour se­cu­rity at the head of­fice. The branches have ramps for phys­i­cally chal­lenged / dis­abled cus­tomers.”


The bank firmly be­lieves that only when there is sat­is­fied cus­tomers, it can mul­ti­ply its busi­ness. There­fore, im­prov­ing cus­tomer ser­vice is an on­go­ing process.

Fin­growth Co­op­er­a­tive Bank is es­sen­tially an ur­ban bank and since its branches are lo­cated in cities and towns, it does not have farm­ers as its cus­tomers. There are cus­tomer com­plaint boxes at branches and com­plaints re­ceived are re­solved ex­pe­di­tiously. “We have been or­ga­niz­ing cus­tomers’ meet at least once in a year at the branch level where cus­tomers from all seg­ments can have face-to-face in­terac­tion with the bank of­fi­cials and re­solve any is­sues within the pol­icy frame­work. More­over, mo­bile num­bers of 2 se­nior of­fi­cers of head of­fice are dis­played at each branch and cus­tomers are free to dis­cuss their prob­lems / sug­ges­tions with these of­fi­cers dur­ing bank­ing hours,” says Shah.

The bank has been tak­ing up reg­u­lar mar­ket sur­veys to as­cer­tain the need for new loan prod­ucts in any par­tic­u­lar seg­ment of cus­tomers.

The cus­tomers of the bank as of Q2 2019-20 is around 60,000. It plans to add more de­pos­i­tors and bor­row­ers to take the num­ber to 65,000 by end of the cur­rent FY.


The bank has been a zero NPA bank for the last 16 years. It has framed cor­po­rate gov­er­nance and reg­u­la­tory com­pli­ance norms. It has a very healthy pro­vi­sion for NPAs of `97.76 mil­lion.


The bank has a CASA of more than 51.9% re­flect­ing the faith of its cus­tomers. Home loans, in­clud­ing mort­gage loans, are a key seg­ment of its ad­vances. The other ad­vances in­clude com­mer­cial loans, CC loans and mort­gages. Shah up­dates: These 3 seg­ments con­sti­tute 31%, 19% and 18%, says Shah.

The bank of­fers term loans and CC lim­its to MSMEs and traders, which con­sti­tute 19% of the to­tal loan port­fo­lio. Its to­tal busi­ness in the sec­ond quar­ter of the cur­rent fi­nan­cial year in­creased to `5.64 bil­lion. In­vest­ments in­creased from `1.46 bil­lion in 2016-17 to `1.68 bil­lion in 2018-19 and `1.77 bil­lion as on 30 Septem­ber 2019. Shah says in­tra-bank de­posits have in­creased from `468.1 mil­lion in 2017-18 to `586.6 mil­lion in 2018-19. The bank has a net worth of ` 813.3 mil­lion and cap­i­tal of ` 58 mil­lion.


The bank has mo­bile bank­ing fa­cil­ity and of­fers IMPS 24x7 in ad­di­tion to other ser­vices like fund trans­fer through RTGS / NEFT on mo­bile ap­pli­ca­tion. It has launched a plat­inum vari­ant RuPay EMV chip card with fea­tures of eCom­merce ac­ces­si­ble at more than 200,000 ATMs na­tion­wide.

Shah says the bank plans to im­ple­ment UPI and net bank­ing for trans­ac­tions shortly. It al­ready has bio­met­ric au­then­ti­ca­tion as sec­ond fac­tor of au­then­ti­ca­tion for core bank­ing ac­cess by in­ter­nal users.


The bank has im­ple­mented CBS [email protected] on an ASP model and hence does not need a large IT team. It has a 6-mem­ber team, who are ex­perts in soft­ware devel­op­ment as well as hard­ware main­te­nance. ATM cards print­ing is out­sourced through the CBS ven­dor. Ac­cess to on­site ATMs is avail­able from 7 am to 10 pm. On an av­er­age 500 trans­ac­tions hap­pen at the on­site ATMs. The bank’s main IT ven­dor is C-Edge Tech­nolo­gies. AML and KYC soft­ware is provided by BSG IT Soft.


The bank has set the fi­nan­cial tar­gets for 2019-20 and cre­ated a long-term prospec­tive plan for 2021-23. Says Shah: “We have de­cided to keep a tar­get of `1.1 bil­lion for new loans ad­vances and `4.15 bil­lion for de­posits for 2019-20. Our net NPA will con­tinue to be zero. We have also set a tar­get of `1.7 bil­lion for loans and ad­vances and `4.6 bil­lion for de­posits for 2022-23.”

Ashok Kumar Shah re­counts the bank has set a tar­get of 1.7 bil­lion for loans & ad­vances and 4.6 bil­lion for de­posits by 2022-23

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