Fin­growth UCB

Also plans to add branches, ATMs:

Banking Frontiers - - News - Me­[email protected]­ingfron­

The Fin­growth Co­op­er­a­tive Bank was es­tab­lished in 1959 by the late Har­ish Golcha. It now has 22 branches and 4 ATMs in Rajasthan and Gu­jarat. In 201718, it added 1 ATM. It is propos­ing to add 3 more branches in Udaipur, Ahmed­abad and Su­rat dur­ing the cur­rent fi­nan­cial year sub­ject to RBI ap­proval, while 2 more ATMs are to be added by the end of 2018-19.

The bank has 129 em­ploy­ees at present against 136 in 2016-17. Ac­cord­ing to S.K. Golcha, chair­man of the bank, there is need for more pro­fes­sion­als for can­vass­ing cus­tomers and do­ing sys­tem­atic busi­ness de­vel­op­ment for the branches. He adds that busi­ness per em­ployee has in­creased to `40.10 mil­lion in 2017-18 from `30.77 mil­lion a year ago.


As on 31 March 2018, the bank has more than 70,000 cus­tomers. Its branches have the lat­est locker in­fras­truc­ture with mir­ror fa­cil­i­ties. There are 4880 lock­ers avail­able to the cus­tomers. The bank has re­duced in­ter­est rates on cer­tain loan prod­ucts so as to at­tract new cus­tomers. Says Golcha: “We are tar­get­ing to in­crease our cus­tomer base to 75,000 by March 2019. We have also in­creased re­pay­ment pe­ri­ods up to 20 years for hous­ing loans to suit cer­tain class of cus­tomers.”


The bank has ob­tained ‘A’ grade and has its own funds of over `740 mil­lion. It has 6507 share­hold­ers and serves peo­ple in the low and medium in­come groups. It servers trad­ing com­mu­nity, work­ers and la­bor­ers to whom it of­fers credit. De­posits as on 31 March 2018 are to the tune of `3.52 bil­lion, up from `3.46 bil­lion a year ago and loans of `1.92 bil­lion, up from `1.66 bil­lion a year ago. Says Golcha: “We had given hous­ing loans of `70.7 mil­lion (6.47% of to­tal loans) and CC/OD loans of `90.57 mil­lion (8.09%) dur­ing 2017-18. We have achieved a growth rate of 15.79% for loans and 1.82% for de­posits dur­ing 2017-18.”

The bank has re­duced in­ter­est rates for hous­ing loans from 9.8% to 9%, for gold loans from 13% to 12.5% and for mort­gage loans from 13.25% to 12.75% in or­der to at­tract new bor­row­ers. Af­ter pre­sanc­tion­ing vis­its, all el­i­gi­ble ap­pli­cants are sanc­tioned loans.

“We have given to­tal loans of `180.81 mil­lion in Q1, 2018-19. Of these, `20.65 mil­lion worth of loans are to the MSME sec­tor and `160.17 mn to other sec­tors in­clud­ing in­fras­truc­ture. We are strength­en­ing our hous­ing fi­nance port­fo­lio dur­ing the next 12 months. Our loan pro­cess­ing/sanc­tion­ing time is only 6-10 work­ing days,” says Golcha.


The bank has im­ple­mented core banking so­lu­tion and has own RuPay debit card, NEFT/RTGS, mo­bile banking, net banking (view only) and PoS fa­cil­i­ties. C-Edge Tech­nolo­gies is the tech­nol­ogy part­ner for the bank. At present, there are 4 mem­bers in the IT team of the bank. On an av­er­age, 50-60 trans­ac­tions are tak­ing place per ATM of the bank.


The bank’s gross NPA stands at `20.7 mil­lion (1.4%) as on 31 March 2018. It has ex­cess pro­vi­sion of `64 mil­lion over and above the pro­vi­sions re­quired for gross NPA. Golcha points out that the net NPA is zero for last 15 years in a row. The staff mem­bers are per­son­ally in touch with the bor­row­ers to re­cover over­due in­stall­ments and make the ac­counts reg­u­lar, he adds.


The bank has of­fers Prad­han Mantri Su­rak­sha Beema Yo­jna (PMSBY) ac­ci­dent pol­icy for its cus­tomers pro­vid­ing in­sur­ance pro­tec­tion in case of ac­ci­dents. It also of­fers group pro­tec­tion plan with low pre­mium to its bor­row­ers pro­vid­ing cover in case of ac­ci­den­tal or nat­u­ral death dur­ing the pe­riod of the loan. “We have tie-ups with 4 mu­tual funds for in­vest­ments, 2 in­sur­ance com­pa­nies on re­fer­ral ba­sis for our mem­bers as well as loan hold­ers. Our non­in­ter­est in­come has sub­stan­tially in­creased from `30.15 mil­lion in 2016-17 to `40.71 mil­lion in 2017-18.”


The bank recorded a to­tal busi­ness of around `5.45 bil­lion by the end of March 2018. Says Golcha: “We are tar­get­ing to achieve de­posits of `3.8 bil­lion and loans of `2 bil­lion, ie a to­tal busi­ness of around `5.8 bil­lion by the end of March 2019.”

Branch man­agers’ con­fer­ence be­ing ad­dressed by A. K. Shah, man­ag­ing di­rec­tor.

S.K. Golcha claims em­ployee pro­duc­tiv­ity in the bank has grown 30% dur­ing last FY

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