Telangana’s largest UCB, Gayatri Co-op Urb Bank aims converting into SFB

The largest UCB in Telangana, Gayatri Cooperative Urban Bank, is planning to convert into a Small Finance Bank (SFB) and is currently awaiting the No Objection Certificate (NOC) from the Central Registrar of Cooperative Societies.

As soon as the bank receives the NOC from the Central Registrar of Cooperative Societies (CRCS), it will submit its conversion proposal to the Reserve Bank of India (RBI). Interestingly, the bank is already fulfilling all the necessary parameters for this transition, positioning itself well for approval.

Sharing the reason behind the bank’s conversion into an SFB, Gayatri Cooperative Urban Bank CEO Vanamala Srinivas said, “It is very challenging for us to work within the cooperative culture due to its narrow scope. This strategic shift aims to overcome these limitations, allowing the bank to expand its operations, diversify its services, and better meet the evolving needs of its customers.”

“For instance, if we have to open a branch, we have to take permission from the RBI. However, as an SFB, we can open up to 50 branches without any prior permission. We are firm in our decision and will not change our mind. We are also fulfilling all the parameters in this connection,” added Srinivas while speaking to this correspondent at the bank’s headquarters in Jagtial district, Telangana.

The bank wrote a letter to the CRCS in 2022 requesting the NOC. Despite several reminders, the bank has yet to receive any response. This delay has been a significant hurdle in their plans to transition into a Small Finance Bank.

Besides seeking conversion into a Small Finance Bank, Gayatri Cooperative Urban Bank is also pursuing ‘Scheduled Status.’ The bank has recently written a letter to the RBI regarding this matter.

Established in 2000, the bank is continuously on a growth path. At the time of its inception, the bank had a share capital of Rs 25.11 lakh, which has now reached Rs 66.12 crore. As of March 31, 2024, the bank’s total business stood at Rs 2526 crore, with a goal to achieve a business mix of more than Rs 3500 crore by the end of the current financial year, according to Srinivas.

Additionally, the net worth of the bank for the FY 2023-24 stood at Rs 116.29 crore. The bank has adopted all the modern technology in its operations, providing technological services such as AePS, UPI, Mobile Banking, Aadhaar Payment System, and others.

It is worth mentioning that since its establishment, Gayatri Cooperative Urban Bank has acquired three urban cooperative banks, including Samatha Mahila Cooperative Urban Bank, Bhimavaram Cooperative Urban Bank, and Yadagiri Lakshmi Narasimha Swamy Cooperative Urban Bank. The polite and mild-mannered CEO, Vanamala Srinivas, has played a significant role in taking the bank to new heights.