UCBs thank Shah for his efforts; Minister delivers scintillating speech

In an event held for giving thanks to Union Cooperation Minister Amit Shah for resolution of the issues of the UCB sector in rapid succession, Nafcub President Jyotindra Mehta and other UCB leaders turned emotional while recounting how the sector had come to a dead-end post Madhavpura episode.

“For fifteen long years there was no growth as the RBI curbed the UCB sector in all respects. And then Amitbhai emerged on the scene and things started to move”, said Mehta underlining that Shah is a true cooperative worker having a cooperative DNA in his blood to understand the issues in no time.

While Amit Shah and others on the dais which included Co-op Secretary Gyanesh Kumar, Saraswat Bank Chairman Gautam Thakur and Nafcub Vice President Vidyadhar Anaskar, heard Mehta with rapt attention, the audience comprising UCB leaders went on clapping.

The felicitation of Shah took place in Bharat Mandapam in New Delhi on Thursday evening. More than 155 leaders from 15 states had come from across the nation to greet Shah on this occasion. Several UCB Chairmen including Saraswat Cooperative Bank Chairman Gautam Thakur, Cosmos Cooperative Bank Chairman Milind Kale and SVC Cooperative Bank Vice-Chairman Arun D. Mavinkurve got an opportunity to felicitate Shah separately as well.

On behalf of the entire UCB’s fraternity, NAFCUB had got a huge garland, held by many of the leaders for garlanding Shah. It was quite a sight! Jyotindra Mehta had clarified in the very beginning that the meeting was not aimed at raising any fresh issue before the Minister but was meant only for thanking him for what he has done for the sector.

Speaking on the occasion, Union Minister Amit Shah raised several issues before the delegates and asked them to brace up for new challenges including One bank, one district. “I am thankful to you as you have come from 15 states at such short notice to attend the event.”, said Shah adding that the idea to have a new ministry was there since 2015 but a section of bureaucracy thought otherwise.

It was an era when liberal policies were ruling the roost and co-op looked irrelevant and outdated to fit into the modern ways of business. Still our Prime Minister thought co-op could be a tool of all-encompassing growth and formed a separate Ministry. It was my fortune that I have got a chance to revive the co-op movement in the country and I have no doubt that in the next 10 years people would marvel at the rise of this sector”, said Shah amidst huge applause from the audience.

Making a very smart comparison between the Western model of growth and Indian reality, Shah said that GDP or per capita GDP is ok for smaller countries but we need to have a high per capita GDP for each person and this is possible only through co-operatives.

And with this, Shah came to the issue of 60 crore people who have overcome basic poverty but have little capital. Co-operative is the only model which could engage crores of people with a little capital, said Shah giving examples of Amul and IFFCO. 36 lakh women contributed less than Rs 100 to build Amul and the women are today earning more than their husbands.

Giving an example of IFFCO, Shah said that run by farmers, IFFCO is today a global brand name as it earns several international awards in the fertilizer sector, beating even the corporate world through a professionally managed team.

Shah also took a class of those who hesitate to contribute to the Umbrella Organization and said that co-op should think with a holistic mindset. “If you are not helping the UO it means you are not truly a co-op entity but a private entity with a cloak of co-operative”, Shah was brutally frank.

Shah also narrated how to resolve the issues of the UCB sector he and his team first met with Nafcub delegates and understood the issues and how later he met the Finance Minister to convince her of the same. “The final meeting with the RBI Governor is still awaited and I wish you to complete your list of demands so that in the final meeting you could drape the Governor with a shawl and say “All resolved”, said Shah in a tone that provoked huge mirth from the audience.

Sensing the unwillingness of a section of UCB in accepting the new amendments in the B R Act, Amit Shah asked them to adopt it wholeheartedly underlining that transparency and professionalism are factors which can help the sector survive.

Shah also gave a target to the leaders to double the business to Rs 11 lac in the next five years. You have to think of ways to develop business and Nafcub should help you in this, said Shah, adding that UCBs should give loans to small borrowers also. “I have also worked with a co-op bank and my experience tells me that the issue of NPAs does not arise with small borrowers” said Shah.

Stressing on the need to have a co-op bank in each district, Shah asked the leaders and the Nafcub Directors to give it a serious thought. Find out nearby successful co-op societies in each district and set up a bank as only UCBs can help the downtrodden of society in an unprecedented manner, said Shah.

Shah also made two important announcements on this occasion. He said as is the case with the PSUs, one whole time Director from the co-op banking sector would be put on the RBI Board. Secondly, the sector could tie up with Rupay Cards sooner than later. Shah also mooted the idea of having a separate clearing house for co-op banks. “Why should you write cheques of HDFC or ICICI Bank”, he asked? But he also demanded discipline from the leaders.

Underlining cooperation between co-ops, Shah mentioned a pilot project launched in two districts of Gujarat– Panchmahal and Banaskatha where all the PACS, fisheries co-ops and dairy co-ops have begun to transact banking operations in the DCCBs. Revealing the figure, he said that there was a flight of more than Rs 30,000 crore from SBI branches in these areas.

Besides Mehta, Umbrella Organization CEO Atul Khirwadkar briefly explained the progress made in the formation of NUCFDC. He underlined that UO is not only meant for small banks but it would also cater to capital needs, liquidly issues and asset management of the bigger UCBs. “UO’s main aim is to raise your bottom-line and help you earn more”, added the CEO.

In his presentation D Krishna traced the history of the growth of the urban co-op bank movement and said that of all the co-op systems, this is the oldest one. Appreciating the work done by the Ministry for the sector, Krishan had been expecting its formation since 2014. Krishna also raised the issue of monetary penalty and its subsequent implications and said the BR Act is double edged.

Nafcub Vice President Vidyadhar Anaskar proposed a vote of thanks. He said that he has been working in the sector for the last 35 years but it is perhaps the first time that he does not feel sheepish about it and declares with pride that he is working with co-ops. “It was all possible due to you”, said Anaskar thanking Shah profusely from the dais.