Banking Frontiers

Sharad UCB to upgrade to a new CBS

Performanc­e of employees on the handling of CBS is watched carefully:

- Manoj@bankingfro­ntiers.com

During the severe drought condition in the western region of Maharashtr­a during 1972, the agricultur­e community suffered the worst blow. Taking this as challenge the architect of Ambegaon Taluka late Dattatrya Govindrao Walase Patil, along with his close associates come together to form a cooperativ­e on 13 Nov 1972 to help out the farmers and down-trodden community, which were exploited at the hands of the money lenders. The cooperativ­e’s banking license from RBI came in December 1976.

TEST, INTERVIEW, APPRAISAL

Sharad Bank does not conduct any periodic test for existing employees. There are no significan­t changes done in the tests. No psychometr­ic tests are held. Vasant Kulkarni, Deputy CEO, says: “For new candidates written test/oral test/interviews are conducted before final appointmen­t. Marks obtained in the written test, plus marks obtained in a university exam and experience, if any, is considered for final entry. The outcomes of these tests over a period of time have been satisfacto­ry in a limited sense. No such tests have been planned for the current FY. However, every year appraisal report is taken to continue services of the existing staff. Their reports are revised every 3-4 years.”

WATCH ON HANDLING OF CBS

Sharad Bank, a member of Indian Institute of Banking & Finance (IIBF), encourages the employees to appear for its various online courses.

Kulkarni informs: “In-house tests are conducted on the personal computers provided to concerned employees. Overall performanc­e on the handling of CBS and other software is watched. Every year training review is taken and from the feedback of Annual Confidenti­al Report (ACR), training is given.”

CUSTOMER BASE, CRM

The customer position of Sharad Bank is marked with some additions, as the first and second waves hit the banking sector. Total number of customers increased by 2727 to 147,995 as of FY21. Kulkarni updates: “Number of the new customers, added in the current FY, is 3129, thereby bringing the customer base to 151,124.The growth in customer base as of Q1 of the current FY is not as per our expectatio­n. CAGR in customer base in last 5 years is around 5%. Due to presence in rural areas, customers prefer to visit branch offices of our bank. We propose to increase our customer base in the current FY by higher rate. Website, mobile banking and advertisem­ents are the major avenues for CRM.”

Sharad Bank has no presence is social media for the presence. Kulkarni adds: “The social obligation­s are honoured by the bank. We have given help to covid centres through supply of food packets, we provide support in water storage management.”

DEPOSITS UP BY PIGMY AGENTS

Sharad Bank offers deposit products, which include fixed deposits, recurring deposits, reinvestme­nt deposits, pigmy deposits and special scheme for Diwali/Ganeshotav. The bank has yet not appointed Business Correspond­ents.

Kulkarni points out: “Since we deal only in Maharashtr­a state, newly added 5-6 districts are covered. Pigmy agents are the marketing forces and they are doing major business of collecting deposits. In addition, employees are given deposit/loan targets each year.”

The deposit growth of the bank was 8.93% In 19-20, which increased to 10.33% in ‘20-21. Kulkarni states: “We recorded 1% growth in the deposits as of Q1 and the growth is flat as of Q2 in the current FY.”

NEW CBS SOFTWARE SOON

Sharad Bank has 20 ATMs, along with 27 branches. The bank has been keeping all its ATMs full of cash to avoid inconvenie­nce to its customers vis-a-vis customers of other banks. CBS is used for NEFT/RTGS. AI, ML is not presently in vogue and the bank is not providing internet banking. Kulkarni states: “The response on ATM usage has been good, and not a single day have the ATMs have run out of cash. Our proposal to add 4 more ATMs is awaiting RBI’s nod. Mobile banking is widely used by our customers. We propose to shift on new CBS software before December 2021. New features will be added after the CBS change over. We aim to increase our customer base significan­tly in the next 5 years by upgrading the present CBS for enabling net banking facilities.”

IT TEAM

The bank has outsourced its DC & DR sites. Kulkarni updates: “Our vendor is Pi Data Centers. The IT team of bank consists of 2 senior level managers and 7 supporting staff members.”

IT PLANS

Kulkarni reveals: “We want to get as soon as possible the RBI nod for net banking to enhance customer services through CDMs (cash deposit machines), BCs (BCs (business correspond­ents) etc.”

 ?? ?? Vasant Kulkarni aims to increase bank’s customer base significan­tly in the next 5 years by upgrading the present CBS
Vasant Kulkarni aims to increase bank’s customer base significan­tly in the next 5 years by upgrading the present CBS

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