TSCAB chairman advises DCCBs to diversify business activities
Ravinder Rao said the banks business can be developed only if they diversify their portfolios.
Hyderabad: Telangana State Cooperative Apex Bank Chairman Konduru Ravinder Rao on Thursday called upon District Cooperative Credit Banks (DCCBs) to diversify their business activities along with the farm sector lending for sustained growth of the banks and benefit of the customers.
“All the cooperative banks are progressing well. However, they have to change according to the present situation after coming under the purview of the Reserve Bank of India (RBI) as per the Banking Regulation Act,” he stated.
Participating as chief guest at the day-long workshop on “Strategy meet on business development of the DCCBs and PACS” at the TSCAB office here, Ravinder Rao said the banks business can be developed only if they diversify their portfolios. Along with farm sector lending, the banks should open up to other activities to increase profits, he stated. “If every loan is utilised properly, there will not be any problem in recovery,” he pointed out.
Citing the success story of Karimnagar DCCB, he said the bank staff accorded priority to recovery of loans through a 100-day action plan. “Incidentally, the bank staff and the customers live like one family,” he said and added that NABARD chairman GR Chinthala was also according priority to the strengthening of the cooperative sector.
Stating that they were holding consultations with employees on transfer and promotion policy, he said they will chalk out a uniform policy throughout the State for all DCCBs.
NABARD Chief General Manager YK Rao said that the DCCBs and PACS will progress only with proper governance, HR policy and service to customers. He informed them to accept deposits for lending purposes and to ensure that the banks remain in profits.
Stating that there was no dearth of funding for cooperative sectors, he wanted the banks to diversify the PACS into Multiservice Centres (MSC). The NABARD was providing any loans at only three per cent interest under the watershed areas, he said and called upon the cooperative banks to utilise the opportunity. He also informed the bankers to upgrade the KYC frequently.
TSCAB Managing Director Nethi Muralidhar Rao said that they had entered an MoU with the Telangana State Cooperative Rural Irrigation Corporation for third party monitoring of projects sanctioned under the PACS as MSC scheme.
The amount would be released to DCCBs only after the TSCRIC certifies about the quality of work. They had sanctioned Rs 153.16 crore to 200 PACS for conversion into multi service centres (MSC).
TSCAB Professional Director Mohanaiah, TSCAB consultant Sherief and others were also present.
