Su­rat DCCB aims pa­per­less bank­ing, CBS driven PACS by 2020-21

Banking Frontiers - - Cooperative - Me­[email protected]­ingfron­tiers.com

Nareshb­hai Pa­tel, chair­man, gives in­sights in the over­all de­vel­op­ment of the Su­rat DCCB:

The Su­rat District Co­op­er­a­tive Bank, formed by the late Ba­manji Edalji Modi and the late Rav Ba­hadur Khan­dub­hai Desai, has com­pleted 109 years in June 2018. When started, it had a mem­ber­ship of just 21 in­di­vid­u­als and the to­tal num­ber of cus­tomers has touched 836,792 in March 2018.

Ini­tially, Su­rat DCCB’s area of op­er­a­tion was the erst­while Su­rat district, but af­ter the cre­ation of Val­sad district, it is now re­stricted to Su­rat and Tapi districts. It op­er­ates 68 ATMs and 89 branches, of which 51 branches are in ru­ral ar­eas. For pro­vid­ing bet­ter ser­vice and im­prov­ing the reach of the bank, 19 branches have been added in 2017-18. In all, there are 2322 co­op­er­a­tive so­ci­eties, PACS and LAMPS af­fil­i­ated to the bank.

Says Nareshb­hai B. Pa­tel, chair­man: “It’s been a long jour­ney from a hum­ble be­gin­ning in 1909. We have re­cently ob­tained the RBI per­mis­sion to open 32 branches. By 31 March 2019, we in­tend to have 100 branches. We also want to in­stall 15 more ATMs by the end of the cur­rent fi­nan­cial year and 30 ATMs in the next fi­nan­cial year. We have added 29 branches in the last fi­nan­cial year. We aim to ex­pand our foot­print to 112 branches by 2020-21. The net­work will cover the en­tire ge­og­ra­phy - ru­ral, semi-ur­ban and ur­ban ar­eas of Su­rat and Tapi districts.”

CUS­TOMER ED­U­CA­TION

The bank con­ducts aware­ness pro­grams in ru­ral ar­eas to ed­u­cate the peo­ple about bank­ing with the in­ten­tion of bring­ing more peo­ple into the fi­nan­cial fold. It holds Fi­nan­cial Lit­er­acy Aware­ness Pro­grams (FLAPs) and dig­i­tal FLAPs aas well as train­ing ses­sions with the help of NABARD. Pa­tel says 326 aware­ness pro­grams have been con­ducted so far and10 fi­nan­cial lit­er­acy cen­ters have been set up, which cover ru­ral cus­tomers so that they can adopt dig­i­tal bank­ing and avail other bank­ing ser­vices.

The bank has won many awards at FCBA like Best Chair­man (2015-16), Best CEO (2014-15), Best Data Cen­ter (201516), Best Mo­bile Bank­ing App (2018), Best IT Head (2018). It has also been ad­judged as the most promis­ing co­op­er­a­tive bank (2018) by World­wide Achiev­ers.

DE­POSITS, LOANS GO­ING UP

The bank be­gan its op­er­a­tions in 1909 with a mere work­ing cap­i­tal of `4780. At the end of 2017-18, its to­tal de­posits stand at `50.91 bil­lion and loans at `20.43 bil­lion. Max­i­mum credit in 2017-18 has been pro­vided to the agri­cul­ture sec­tor (`8.21 bil­lion), su­gar sec­tor (`3.1 bil­lion) and non­farm sec­tor (`9.11 bil­lion), which in­cludes ve­hi­cle loans, ed­u­ca­tion loans, hous­ing loans, etc. The de­posits and ad­vances were `23.78 bil­lion and `5.03 bil­lion re­spec­tively in 2009-10, which means the bank has been able to achieve a growth of 114.09% and 306.16% re­spec­tively in these in 2017-18.

The bank pre­pares roadmap com­pris­ing the macro and mi­cro level goals in line with its mis­sion and vi­sion. As part of the broader strat­egy of busi­ness growth and ex­pan­sion plans, it mon­i­tors its per­for­mance against the tar­gets in re­view meet­ings of all the branch man­agers on quar­terly ba­sis. Says Pa­tel: “We want the busi­ness of the bank to reach `73.5 bil­lion (de­posits `52.5 bil­lion and loans `21 bil­lion) by the end of the cur­rent fi­nan­cial year. We are aim­ing to make our CASA to be 40% (`21.2 bil­lion) by 2018-19. Our CD ra­tio is ex­pected to be 40% by the year end. We es­ti­mate our in­vest­ments to be around `33 bil­lion this year.”

GROWTH TAR­GETS

The bank has made metic­u­lous plan­ning for the pe­riod up to 2020-21 to grow its busi­ness to a cer­tain level. It plans to take its busi­ness vol­ume to a sub­stan­tial higher level - from `71.34 bil­lion in 2017-18. “We have tar­geted to in­crease the busi­ness to cross `85 bil­lion (de­posits `58 bil­lion, ad­vances `27 bil­lion) by 2019-20 and `100 bil­lion (de­posits `65 bil­lion, ad­vances `35 bil­lion) by 2020-21. We also in­tend to achieve sev­eral other tar­gets by 202021 end, wherein our net worth will be `5 bil­lion, gross profit `1 bil­lion, net profit `250 mil­lion, per em­ployee busi­ness `120 mil­lion and per branch busi­ness `900 mil­lion,” says Pa­tel.

TECH SER­VICES & PLANS

The bank im­ple­mented CBS in 2010, one of the few DCCBs to do so. It pro­vides var­i­ous ser­vices to cus­tomers like ePass­book, NEFT/RTGS, APBS, CTS, IMPS, NACH, RUPAY, KCC, in­ter­net bank­ing (view mode), toll free bank­ing, mo­bile bank­ing,

RuPay debit cum ATM card, RuPay Kisan Credit Card, etc. Pa­tel says the bank could pro­vide quick and ef­fi­cient ser­vices to its cus­tomer be­cause of im­ple­men­ta­tion of CBS. Plans in­clude start­ing of eSer­vices and pa­per­less bank­ing of­fer Ox­i­gen PoS, MPoS, eCom and SMS alerts.

ATMS & MO­BILE VANS

The bank has in­tro­duced 4 mo­bile vans cov­er­ing some 304 vil­lages with cus­tomers around 24,717 in the ru­ral ar­eas of the two districts like Mandvi, Man­grol, Vyara, Son­gadh. Pa­tel says af­ter in­tro­duc­ing the mo­bile vans, the bank’s cus­tomer base has risen by 8.89% in 2017-18 and this has brought in help to farm­ers and lo­cal peo­ple. The ser­vice con­trib­uted to the in­crease in CASA de­posit by 19.70% yoy, he adds,

The bank has in­stalled cash de­posit ma­chines for its Su­mul dairy agents so that they can de­posit cash any­time. The main cus­tomer base is in ru­ral ar­eas where so­ci­eties/PACS/milk fed­er­a­tions are given ben­e­fits by POS/mPOS/mi­cro-ATM ser­vices. Claims Pa­tel: “We are the first bank to start off­site ATM ser­vices at a DCCB level for Su­mul dairy and su­gar fac­to­ries. With the help of mi­cro-ATMs in some 137 PACS/ so­ci­eties, ru­ral cus­tomers have now been able to avail bank­ing ser­vices by go­ing to near­est PACS/so­ci­eties for bal­ance in­quiry and cash with­drawal of up to `2000.”

POS TER­MI­NALS

Re­tail con­sumer bank­ing has changed rad­i­cally in the last few years and now one can ex­pect to see a fo­cus on the spe­cific needs of cor­po­rate and busi­ness cus­tomers. Ac­cord­ingly, the bank has started POS/ mPOS ser­vices for the ben­e­fit of mer­chants who are con­nected to these with­out charg­ing any in­stal­la­tion fee or rent. “This has in­creased our cur­rent ac­count hold­ers’ ra­tio. We have distributed more than 250 POS/mPOS ma­chines to dif­fer­ent PACS and mer­chants. We have started one ATM mo­bile van cov­er­ing re­mote ru­ral belts in the un­banked ar­eas,” says Pa­tel.

The bank is pre­par­ing to pro­vide FASTag de­liv­ery chan­nel to its cus­tomers by the end of 2019. Pa­tel also men­tions that the bank would have pa­per­less bank­ing by 2020-21 and will try to get in­ter­net bank­ing with all func­tion­al­i­ties be­sides bring­ing all the PACS un­der the CBS fold in the next 2 FYs.

AL­TER­NATE CHANNELS

Su­rat DCCB has a plan in place to ex­tend CBS by of­fer­ing its cus­tomers in­ter­net bank­ing (trans­ac­tion-based), PFMS (di­rect credit of sub­si­dies), AEPS, tab­based ser­vice, CRM/BNA, mo­bile ATMs for ru­ral ar­eas, door-to-door bank­ing, UPI, BHIM, util­ity bill pay­ments through ATM ma­chines and sim­i­lar other ser­vices. “We will in­tro­duce in­ter­net bank­ing, BHIM, UPI and AEPS. Our mo­bile bank­ing chan­nel is al­ready live, and we are pur­su­ing to in­tro­duce UPI for our cus­tomers. On 13 April 2018, we shifted our head of­fice to a new state-of-the-art green build­ing, which was in­au­gu­rated by Gu­jarat chief min­is­ter Vi­jay Ru­pani,” says Pa­tel.

TRAIN­ING & UP­DA­TION

The bank has cre­ated in-house staff train­ing cen­ter and ap­pointed an ex-banker from na­tion­al­ized bank as its head to up­grade the skill sets of its em­ploy­ees and im­part com­puter lit­er­acy. The train­ing hall, with all mod­ern con­ve­niences, has a ca­pac­ity to ac­com­mo­date 140 per­sons at a time.

“We have been con­duct­ing train­ing month on month ba­sis and ed­u­cate the staff about CBS, loan ap­praisals, au­dit of co­op­er­a­tive so­ci­eties, GST, TDS, KYC and gen­eral bank­ing. Ven­dors of soft­ware com­pa­nies are also in­volved in such pro­grams. Be­sides, pro­grams are con­ducted to cre­ate aware­ness among the staff about cy­ber se­cu­rity and on mea­sures needed to counter cy­ber­crimes,” says Pa­tel.

The bank also en­cour­ages staff mem­bers to at­tend train­ing pro­grams con­ducted by NICM, VAM­NI­COM and BIRD-NABARD. Dur­ing 2018, it pro­vided train­ing to 995 staff mem­bers in 28 train­ing ses­sions on var­i­ous sub­jects. So far, it has 272 em­ploy­ees un­der in 16 pro­grams to var­i­ous in­sti­tutes. It now in­tends to con­duct 2-3 train­ing pro­grams on monthly ba­sis.

VEN­DORS’ SER­VICES

The bank’s tech­nol­ogy part­ners had pro­vided on­line and tele­phonic sup­port for the se­lec­tion of CBS, its im­ple­men­ta­tion and test­ing. Prior to the in­tro­duc­tion of CBS, the bank was us­ing Au­tosoft TBA sys­tem since 2006. It has been us­ing mul­ti­ple brands of servers but had a sin­gle brand for desk­tops to man­age re­sources avail­abil­ity and man­age­abil­ity. Says Pa­tel: “For CBS, we have worked with In­fra­soft­Tech. We are us­ing Dell and IBM servers and HP desk­tops. We have im­ple­mented vir­tu­al­iza­tion to im­prove over­all up­time for all the ap­pli­ca­tions,” says Pa­tel.

The bank has main­tained re­dun­dancy at hard­ware, soft­ware and net­work lev­els. It has cre­ated a se­cu­rity sys­tem through anti-virus pro­grams and other pre­ven­tion mea­sures and pre­scribed in­ter­net/net­work ac­cess priv­i­leges through mon­i­tor­ing soft­ware. Sanghvi Info Tech is the ser­vice provider for net­work­ing and the com­pany has helped the bank in cus­tomiza­tion of its sys­tems as and when re­quired.

Nareshb­hai Pa­tel re­veals that by us­ing mo­bile van the bank has been able to in­crease CASA de­posits by 19.70% yoy

Chair­man Nareshb­hai Pa­tel, CM Vi­jayb­hai Ru­pani, vice chair­man Sandip Desai at the in­au­gu­ra­tion of new HO build­ing

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