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