Nan­dur­bar Coop Bank

Banking Frontiers - - Housing Hihglights - Me­hul@bank­ingfron­tiers.com

Also takes up NPCI mem­ber­ship:

The Nan­dur­bar Mer­chant’s Co­op­er­a­tive Bank op­er­ates in Nan­dur­bar and Dhule dis­tricts of Maharashtra. Set up in Nan­dur­bar in April 1995 with a sin­gle branch by a group of per­sons com­mit­ted to so­cial ser­vice with a view to pro­vide fi­nan­cial needs of weak and lower class peo­ple, the bank to­day has 6 branches, all profit-mak­ing. It does not have any ATMs. Its em­ployee count in­creased to 53 by the end of 2017-18 from 49 as on March 2016. There has been a mar­ginal dip in the per em­ployee busi­ness to `35.5 mil­lion in 2017-18 from `37.53 mil­lion in the pre­vi­ous year.

How­ever, the bank’s chair­man Kishor Wani is op­ti­mistic about fu­ture plans. Says he: “We have plans to have at least 4 ATMs at branches and one at the head of­fice. We are also in­ter­ested in hav­ing a new busi­ness cen­ter in Nan­dur­bar district. This year, we have strength­ened our staff by en­gag­ing 2 per­sons in the mar­ket­ing and 1 in the le­gal depart­ments. We are tak­ing qual­i­fied peo­ple en­sur­ing that the se­lected per­sons have ad­e­quate knowl­edge of fi­nance and ac­count­ing and skills of good com­mu­ni­ca­tion, public re­la­tions and abil­ity to im­ple­ment pol­icy de­ci­sions.”

SERV­ING CUS­TOMERS

The bank’s ma­jor ob­jec­tive is im­prov­ing the eco­nomic stan­dard of peo­ple through so­cial in­ter­ac­tion. It has given top pri­or­ity for ef­fi­cient cus­tomer ser­vice even as it is fac­ing, like all co­op­er­a­tive banks, cut-throat com­pe­ti­tion. It be­lieves bet­ter ser­vice only would re­tain cus­tomers and fetch new ones.

Since es­tab­lish­ment, the bank has been re­ceiv­ing ‘A’ rat­ing in au­dits. One of the unique ef­forts of the bank has been to men­tion names of payee/ drawer in the pass­book / state­ment of ac­counts to fa­cil­i­tate easy iden­ti­fi­ca­tion of ev­ery trans­ac­tion. The reg­u­la­tor has ad­vised other banks to adopt this prac­tice in the in­ter­est of bet­ter cus­tomer ser­vice. The bank has been hon­ored with ‘Banco Award’.

An­other cus­tomer-ori­ented ser­vice of the bank is de­posit lock­ers at se­lect branches. These are avail­able in a va­ri­ety of sizes to suit cus­tomer needs.

Wani says the bank is pro­vid­ing best ser­vices to its cus­tomers. “At present, we have a cus­tomer base of 34,908 and we want to in­crease this by 1500. Our staff is giv­ing doorstep ser­vices to phys­i­cally hand­i­capped per­sons by in­di­vid­u­ally vis­it­ing their homes. We have a num­ber of firsts and sev­eral unique fea­tures, in­clud­ing 12-hour un­in­ter­rupted ser­vice from 8 am to 8 pm in most of our branches. We also pro­vide 360-day bank­ing, in­clud­ing on Sun­days and hol­i­days,” he says.

LEND­ING UP

In 2017-18, the bank has been able to achieve an in­crease in the to­tal amount of loans ad­vanced by `23.42 mil­lion from `672.02 mil­lion in 2016-17. This has been mainly on ac­count of re­duc­tion in in­ter­est rates. How­ever, growth in de­posits nil also be­cause of lower rates of in­ter­est. Al l branches have com­pleted their tar­gets of new bor­row­ers and CASA. The bank has re­duced loan pro­cess­ing fees in the last 12 months.

Wani says in 2017-18, the bank has ex­tended loans amount­ing to the tune of `35 mil­lion for self-em­ployed per­sons and pro­fes­sion­als, 13.5 mil­lion for re­tail trade sec­tor and 8.02 mil­lion for small busi­ness sec­tor. “We have de­creased the rate of in­ter­est on loans, in com­par­i­son to other banks in the area. Yes, there is a pos­si­bil­ity of credit growth in 2018-19 as we may cut in­ter­est rates fur­ther. Sim­i­larly, we are go­ing to bear the ex­pen­di­ture of reg­is­tra­tion of mort­gages in 2018-19,” says he.

NEW IT INI­TIA­TIVES

The bank be­gan com­put­er­i­za­tion of its branches way back in 1996-97, the first bank in the re­gion to do so. All its branches are au­to­mated now and it of­fers ser­vices like SMS mes­sages to cus­tomer’s mo­bile phone for each and ev­ery trans­ac­tion. It also of­fers fa­cil­i­ties like bal­ance in­quiry, last 3 trans­ac­tions, reg­is­ter­ing cheque book re­quest, cheque sta­tus, set de­fault ac­count and dif­fer­ent alerts.

“We have taken mem­ber­ship of NPCI now. We will pro­vide ATM ser­vices, for which we have tied-up with the HDFC Bank. This will start from 1 Septem­ber 2018. We are also go­ing to set up NCR ATMs at our branches. The ven­dor for core bank­ing soft­ware is Nag­pur-based Trust Sys­tem & Soft­ware. We have 3 IT staffers. We are not giv­ing POS ma­chine fa­cil­i­ties as of now, but we would like to of­fer it soon. We also have plans to set up POS ma­chines at all branches,” says Wani.

The bank has its own data cen­ter with IBM Servers in a 42u rack. The server op­er­at­ing sys­tem is Mi­crosoft Win­dow Server and the data­base is Mi­crosoft SQL Server. Be­sides, it also has its own dis­as­ter re­cov­ery site with NPLS con­nec­tiv­ity and Arc­serve soft­ware for data repli­ca­tion.”

CON­TAIN­ING NPAS

The bank’s to­tal NPAs for 2017-18 was `413.87 lakh. The gross NPA was 5.95% and net NPA is nil. Wani says he in­tends to bring down gross NPAs in 2018-19.

Kishor Wani is ready­ing the bank to in­tro­duce PoS fa­cil­ity for its cus­tomers soon

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