The success of Kerala Bank, formed by merging Kerala’s District Cooperative Banks (DCCBs) into the State Cooperative Bank, is being closely watched in the cooperative sector. If successful, it will serve as a model for rural credit delivery, said Satish Marathe, Director of the Reserve Bank of India’s Central Board.
Marathe was speaking at a joint meeting of the Kerala Bank’s Board of Directors and Board of Management at the bank’s headquarters. He highlighted that Kerala Bank has disbursed loans to over one lakh small and micro enterprises, playing a crucial role in supporting rural economic growth. Notably, agricultural loans make up 27% of the bank’s total lending portfolio, demonstrating its commitment to the farming sector.
Congratulating the bank on its achievements, Marathe emphasized the need for developing innovative products and services tailored to the unique challenges faced by rural enterprises, both in the farming and non-farming sectors. He also stressed the importance of policy interventions to support agricultural processing industries, which can significantly boost the rural economy.
Kerala Bank President Gopi Kottamurikkel and Chief Executive Officer Jorty M Chacko expressed optimism that Marathe’s visit would further strengthen the bank’s initiatives aimed at fostering economic development in Kerala. They reiterated their commitment to expanding financial services to underserved rural areas and enhancing credit accessibility for farmers and small businesses.
Also present at the meeting were Board of Management Chairman V Raveendran, NABARD Chief General Manager Baiju N Kurup, and other key officials, including members of the Administrative Committee and Board of Management.
Kerala Bank, established as a pioneering initiative in cooperative banking, aims to provide a robust financial infrastructure for rural communities. By integrating cooperative banking with modern financial practices, it seeks to offer efficient credit solutions to small businesses, farmers, and self-help groups. The bank’s performance and adaptability will be crucial in determining whether similar cooperative banking models can be replicated in other states.
Marathe’s endorsement of Kerala Bank’s progress reflects its growing significance in the cooperative sector. His suggestions for policy development and product innovation are expected to shape the bank’s future strategies, reinforcing its role as a catalyst for rural economic transformation.
With continued government and institutional support, Kerala Bank’s success could mark a turning point for cooperative banking in India, demonstrating how state-level cooperatives can effectively contribute to financial inclusion and rural prosperity.
All India co op bank employees federation demanding and persuasive since long time for implementation this type of two tyire STCCS in every state.