Gandhi Cooperative Town Bank in Andhra Pradesh is yet another UCB, which is planning to convert itself into a small finance bank in the near future. The UCB and is making significant strides towards this goal fulfilling the required criterion.
While no formal resolution has been passed yet—neither at the board level nor before the shareholders at the Annual General Meeting (AGM)—the bank has been actively making necessary arrangements for the transition. It has also fulfilled a few key parameters required for the conversion.
Talking to Indian Cooperative correspondent at the bank’s head office in Vijayawada, Chairman Vemuri Venkatrao said, “We are making necessary preparations to convert our bank into a Small Finance Bank. In the next AGM, or the one after that, we will present the proposal to the shareholders for their approval regarding the SFB transition,” he said.
Venkatrao also highlighted that the bank has already met some key requirements for the conversion. “The bank’s net worth, as of 31st March 2024, stood at around Rs 80 crore. Becoming an SFB will not only allow us to expand our business but also open up many new avenues,” he added.
The bank currently operates a network of 12 branches, with plans to open five more in Visakhapatnam in the near future. “To boost advances, we have launched several new products. Previously, our loan schemes were limited to home, mortgage, and gold loans, but we have now added options for construction, purchase, and additional gold loans,” Venkatrao said.
Gandhi Cooperative Town Bank has a business mix of around Rs 1,200 crore, comprising Rs 700 crore in deposits and Rs 500 crore in advances. As of 31st March 2024, the bank earned a net profit of Rs 8.81 crore and paid a 15 percent dividend to its shareholders on their share capital.
Additionally, the bank has shown its commitment to social causes, donating Rs 10 lakh to the Chief Minister Relief Fund to support the victims of last month’s Budameru floods.
