Pune’s Bhagini Nivedita Sahakari Bank Chairperson Rewati Paithankar raised several important concerns regarding the challenges faced particularly in the context of collecting deposits from the depositors.
Bhagini Nivedita Sahakari Bank, although is not a Mahila Bank, it is entirely run and managed by women for all and has become one of the leading banks in Pune. “There are many challenges that urban cooperative banks are facing, and one major issue is increasing the deposit portfolio. Many people have started investing their money in mutual funds, SIPs, and the share market, which has posed a challenge for us to increase our deposit base,” Paithankar stated.
She further added, “On several occasions, we have increased the interest rates on deposits to compete with other players in the market, but we still face numerous hurdles.”
Paithankar also highlighted the difficulty in achieving the Priority Sector Lending (PSL) targets, which she believes need to be reviewed by the Reserve Bank of India (RBI). “Most of our branches are in urban areas, and it is challenging to find good borrowers to meet the PSL targets,” she explained.
She demanded an increase in the loan disbursement limit for the weaker section from the existing Rs 1 lakh to Rs 5 lakh. She also advocated for raising the housing loan limits from the current Rs 1.40 crore , citing the high cost of flats in the area where the bank operates. “Due to the lower limits, we are unable to entertain good borrowers, and they are forced to go to private or nationalized banks,” she added.
Among other key demands, Paithankar called for a review of the unsecured loan disbursement limit, suggesting it be raised from present 5 lakhs.
Speaking to an Indian Cooperative correspondent at the Bank’s Pune office, Paithankar expressed optimism about the National Urban Co-operative Finance and Development Corporation (NUCFDC), which is envisioned as an umbrella organization for cooperative banks.
“It is a very positive development that an organization has been established to support urban cooperative banks at the national level. We hope it will be a game-changer for cooperative banks and assist UCBs in adopting the latest technology and other services. We have sent our consent for contributing to the share capital of NUCFDC but are awaiting further communication regarding payment,” said Paithankar, who has been associated with the bank for the last two decades.
She also shared that the bank’s current business mix is just short of Rs 1,600 crore, and by the end of the financial year, it is expected to reach around Rs 1,650 crore. The bank also aims to cross the Rs 2,000 crore mark in the near future.
Paithankar proudly stated that the bank recently completed 50 years of operations. “One of the key achievements of our bank is that our gross NPA has never risen above 2 percent since last more than 25 years, and we continue to maintain this consistency. Over the last 25 years, we have been paying 15 percent dividend to our shareholders, which is the maximum allowed as per the Cooperative Act. On our 50th anniversary, with prior permission from the state registrar and the RBI, we disbursed a 30 percent dividend,” she remarked.
Regarding future goals, she informed that the bank currently operates 19 branches, with 17 located in Pune district. Plans are underway to open a branch in Kolhapur district, with preparations already in progress. The bank is also working towards achieving scheduled status. “While we have fulfilled many parameters, a few criteria, such as achieving deposits of more than Rs 1,000 crore, are in the process of being met,” she said.
Established in 1974 by founders Vivek and Meenakshi Dadhe, the bank was created to serve people from economically weaker sections and provide relief from the exploitation of moneylenders. With a 99 percent women workforce, the bank has become a successful example of women-led banking excellence.
