Introduction
High Lights
Co-operative movement in India has spread in all the spheres of economy. It has made significant development in sugar and dairy industries in Maharashtra, which is a leading state in the country in cooperative development. Obviously cooperative credit has lion’s share in these developments. The Kolhapur District Central Cooperative Bank Ltd., Kolhapur was set up on 1st October 1938 to meet the credit needs of some part of the Kolhapur district where remaining part was being financed by the apex bank. In the year 1952 the bank has been allocated the service area of the apex bank since then the Bank acts as a Central Cooperative Bank for the entire district in the three-tier Cooperative credit structure of ST. The Bank was granted a License in November 1980 by the RBI under section 22 of BR Act 1949 (AACS).
Bank’s Objectives :
The objectives of the bank, among others, are to finance cooperative societies, to carry on banking business, to arrange for supervision of affiliated cooperative societies to act as a balancing center for the surplus funds of the societies.
Members :
The Bank functions at district level as federal body of the credit cooperative societies. There are 10678 society members of the Bank out of which 1850 are PACS & 710 are individual members as on 31/3/2012.
Management :
Management of the bank is vested with Administrator.
Financial Resources :
The financial resources of the Bank include share capital, funds, deposits and borrowings. The authorized share capital of the Bank is Rs.200.00 crores. The paid up share capital is Rs. 114.75 crores while reserve funds are more than Rs.321.28 crores as on 31st March 2012.The Bank has initiated special efforts for deposit mobilization as per the NABARD’s policy of reducing dependence of cooperative banks on borrowings. Keeping this in view, the Bank launched special drive of deposit mobilization. As on 31 March 2012, total deposits are Rs. 1988.32 crores.
Apart from refinance facility of NABARD the bank borrows from apex bank as and when required Total borrowings of the bank are Rs. 56.58 crores as on 31.03.2012.
Investments :
As per RBI guidelines, the bank has invested Rs. 770.53 crores as on 31-3-2012. The Bank has initiated dealings in the government securities as per RBI guidelines. Accordingly the Bank operatesSubsidiary General Ledger (SGL) account with The Maharashtra State Cooperative Bank Ltd., Mumbai. For trading of these securities, the Bank is having a separate account, Designated Fund Account (DFA),with the MSC Bank, Mumbai. However at present Bank has classified Investment in Govt. Securities into HTM( Held to Maturity) category .
Advances :
Taking into account the thrust areas, the Bank sanctions cash credit and term loans to the member societies for various activities such as crop production, minor Irrigation, animal husbandry, hi-tech projects, farm mechanization, marketing and processing, cooperative urban banks, urban credit societies, sugar factories, apart from the State and Central Government sponsored schemes. The total loan outstanding is to the tune of Rs. 1500.76 crores as on 31-3-2012.
1. Agriculture :
The crop loan policy of the bank is production oriented and recovery is motivated through linking. Sugarcane is a predominant crop in the district, which is having longer cultivation cycle compared to the other crops. Therefore, credit plays vital role in its cultivation. Besides sugarcane, groundnut and paddy are also grown on large scale in the district and the bank finances for their production.
In case of term loan, the bank finances small and big lift irrigation schemes for augmenting of sugarcane and other irrigated crop production. The bank also encourages adopting water saving irrigation systems such as drip and sprinkler on account of their additional merits like labour saving and minimizing chances of soil salinity.
Kolhapur District has brought white revolution and has become the largest producer of milk in the State of Maharashtra. Such herculean task could be achieved only because of the adequate. Finance is made available by the Bank to purchase Milch animals. Bank is also having policy to finance animal husbandry. The Bank has also initiated financing Hi-tech agricultural projects such as greenhouse for production of flowers and vegetables and food processing.
2. Non Agriculture :
Apart from the dairy development in the district, there are sizeable number of cooperative societies engaged in consumer services, salary earners credit societies, urban banks, industrial societies, rural artisans societies, etc. The Bank caters their needs of working capital and block capital.
3. Marketing And Processing :
Market channels of agriculture produce and agro services are well developed in the cooperatives sector in the district. The bank sanctions cash credit and term loans to meet their financial requirements.
Sugar cooperative, a unique feature of agro processing in the cooperative sector, is the cause of changing economy of the district. The financial assistance provided to sugar factories constitutes a substantial loan portfolio. The bank sanctions working capital as well as term loan to these factories for their erection, modernization and expansion . The bank also caters the financial needs of the spinning mills and textile processing units for meeting their working capital and block capital requirements. Beside these, the bank encourages establishing food processing units through finance in the district. Some of the processing units are export oriented.
Apart from refinance facility of NABARD the bank borrows from apex bank as and when required Total borrowings of the bank are Rs. 56.58 crores as on 31.03.2012.
Business Development :
The Bank contributes significantly in the District Credit Plan (DCP) which is prepared by 30 participated banks. The Bank’s commitments for the development of rural, agriculture and weaker section is reflected in its involvement in the priority sector finance. Against the given target, the Bank achieved 79 % during financial year. For the year 2012-13 the Bank’s involvement is 37 % in the total DCP outlay of 2875.75 crores.
As per the policy of NABARD on Vikas Volunteer Vahini (VVV), the bank has promoted 305 farmers groups in the district. All these groups of volunteers are acting as facilitators for the bank as well as for the Government departments for grassroot development. The bank has also decided to make involvement of VVV club in promoting, linking and monitoring SHG effectively.
Keeping in view the involvement of women in almost all activities in agriculture and allied activities the bank has now implemented the SHG programme. The bank has formed more than 24578 SHGs as per NABARD’s guidelines. The total loan of Rs.22.41 crores has been sanctioned to 20388 Self Help Group (SHG) while Rs. 21.84 crores has been sanctioned to 1937 SGSY groups (upto 31/03/2010) in the district and made them easy access to the credit.
Development Action Plan(Dap) :
Based on the salient features of the Development Action Plan (DAP), the bank has signed Memorandum of Understanding (MOU) for achieving a higher growth and better quality in the bank operations. The bank has registered significant achievements in many of the parameters stipulated under MOU. To enhance the efficiency and to remove the bottleneck in the day to day functioning, the Bank has set up a Think Tank of higher officers.
Credit Monitoring Arrangement (Cma)Cell :
Introduction
NABARD has introduced the Credit Monitoring Arrangement (CMA) in lieu of Credit Authorization Scheme (CAS) under which the Bank has to obtain prior authorization from the NABARD for sanctioning working capital and term loans beyond certain cut-off points. However, under CMA Bank has to fully satisfy itself about technical feasibility, financial viability, credit worthiness, adequacy of margin, security etc. for quality lending. While taking decisions in these aspects the Bank has to consider exposure as well as other prudential norms so as to minimize risk in over all finance, in general and sugar industry finance in particular for the Bank. For this specific purpose the Bank has set up “Credit Monitoring Arrangement Cell (CMA)”.
Computerisation, A.T.M. :
In the present scenario of modernization & competition, the bank has undertaken C.B.S. for the further enhancement of speed and accuracy in operations. The Bank has also installed sophisticated Automated Teller Machine (A.T.M.) in the head office premises, which serves 24 hrs of banking service to customers conveniently.
Appreciations :
The Bank has bagged many awards at state and regional levels for the better performance. Bank has been awarded by NABARD state level Third for higher number of SHG linkage.
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