The leading bank of Telangana- Agrasen Cooperative Urban Bank, has a fool proof plan for the future to take the bank to new heights. The bank is not only focusing on strengthening its internal system but also looking to adopt the latest technology and build professionalism.
The bank’s Chairman Pramod Kedia and his colleagues Suresh Agarwal and Naveen Agarwal, shared their future plans and other activities of the bank with this correspondent during his visit to Hyderabad.
The bank has just received the Financially Sound and Well Managed (FSWM) status from the Reserve Bank of India and has also obtained permission to expand its footprint across the entire state of Telangana, which was previously limited to the Hyderabad district.
“We are looking forward to meeting the parameters for achieving a ‘Scheduled Status’ from the RBI, and we have set a target to achieve a business mix of more than Rs 1,500 crore within the span of five years”, stated Kedia.
In his conversation, he also expressed disappointment over various issues pertaining to the cooperative sector, which need to be resolved at the earliest. “The Reserve Bank of India should treat cooperative banks on par with commercial banks. It’s very difficult for us to provide technology-oriented services to our customers due to various roadblocks,” he lamented.
Elaborating more on this subject, the Vice-Chairman, CA Naveen Agarwal, highlighted the need for policy changes that would enable cooperative banks to adopt new technologies more seamlessly, ensuring better service delivery and competitive standing in the banking sector.
They also touched on the mandatory achievement of Priority Sector Lending Targets, emphasizing that these should be aligned with the standards set for commercial banks. Additionally, they highlighted the challenge of meeting the minimum percentage of Small Value Loans in aggregate loans and advances, which is particularly difficult for banks operating in urban areas like theirs.
The top functionaries of Agrasen Cooperative Urban Bank expressed high praise for the activities being undertaken by the Union Ministry of Cooperation in the interest of the cooperative sector, under the leadership of Union Home and Cooperation Minister Amit Shah.
Though the bank has a network of only four branches, it boasts a substantial business mix of more than Rs 950 crore. The bank has recently applied to the RBI for permission to open six more branches.
As on 31st March 2024, the deposits and advances of the bank stood at Rs 592.44 crore and Rs 365.19 crore respectively. The bank earned a net profit to the tune of Rs 8.59 crore, registering a growth of 14.14 percent. Besides, CRAR stood at 19.06 percent, which is improved in comparison to previous financial year i.e. 2022-23.
The bank, which started its journey way back in 1998 with Rs.0.89 Crores Share Capital and Rs.3.04 Crores Deposits, has completed 25 years of its existence.