KARNATAKA

Apex Bank vows to make cooperative banks competitive

Special Correspondent

All district cooperative banks to be given a grant of Rs. 30 lakh every year



It will adopt one primary cooperative bank in each district for modernisation

Farm loans are the mainstay of the bank



BANGALORE: Cooperative banks in the State need to be more competitive in the changed economic situation and the Karnataka State Cooperative Apex Bank will take steps to put them on par with the commercial banks or even foreign commercial banks in terms of functionality and efficiency of services, according to bank’s chairman M.N. Rajendra Kumar.

He told presspersons here on Saturday after the 82nd annual general body meeting of the bank that all district central cooperative banks will be given a grant of Rs. 30 lakh a year to improve their work environment and customer services, especially in enabling the bank to take up IT driven products and services. The Apex Bank will adopt one primary co-operative bank in each district for upgradation and modernisation. He said despite being in the cooperative sector, the cooperative banks needed to function on commercial lines.

Mr. Kumar said to service the banking needs of the customer in the cooperative sector, the Apex Bank would open a special counter where the customer could ask for the kind of service he would like to have. All the cooperative banks in the State would be IT-enabled and every counter in the bank would offer all the services on a “single window platform”.



Dividend

The bank has declared 12 per cent dividend for 2006-07 and has earned a net profit of Rs. 13.35 crore for 2006-07, said Mr. Kumar.

Releasing the financial results of the bank here, Mr. Kumar said the bank’s net profit before tax was calculated at Rs. 25.35 crore and Rs. 13.35 crore after tax. The bank had mobilised deposits of Rs. 2,664.14 crore and its working capital was Rs. 4,332.69 crore. The bank had sanctioned loans of Rs. 2,237.66 crore.

Mr. Kumar said farm loans were the mainstay of the bank’s business. The bank had extended Rs. 2,220.39 crore credit to 8,77,628 farmers in the State through Primary Agricultural Co-operative Societies. The bank extended a special credit of Rs. 160.57 crore out of its own funds to the weak district cooperative banks.

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