Telangana-based Karimnagar District Cooperative Bank, which is headed by the well-known cooperator K. Ravinder Rao, is not only helping PACS avail the benefits of initiatives launched by the Union Ministry of Cooperation but also has a remarkable turnaround story.
There are 130 PACS in the Karimnagar district, and out of these, only one is incurring a loss, while the rest are earning a profit. The bank is not only catering to their financial needs but also assisting them in adopting new technologies, ensuring they remain competitive and efficient in the changing market.
The bank, which had an accumulated loss of Rs 57.92 crore as of March 31, 2006, earned a gross profit of Rs 120 crore in the 2023-24 fiscal year. Ravinder Rao’s tenure has proven fortunate for the bank, and under his leadership, it has consistently remained on a growth path.
During his trip to Telangana, the Indian Cooperative correspondent visited the bank’s headquarters in Karimnagar and was impressed by its operations. The bank, which primarily serves farmers, is effectively managed with a corporate-style approach, combining professionalism with its commitment to agricultural development.
The bank’s CEO, N. Satyanarayana Rao, and his team guided the correspondent on a tour of the office, showcasing the bank’s efficient operations and modern infrastructure. Later, they provided a brief overview of the bank’s activities.
Sharing the bank’s turnaround story, the CEO said, “As of March 31, 2006, the bank’s business mix was around Rs 400 crore, with an accumulated loss of Rs 57.91 crore. However, as of March 31, 2024, the business mix and net profit of the bank stood at Rs 6,499 crore and Rs 53.89 crore, respectively. The bank has set a target to achieve a business mix of Rs 7,795 crore by the end of the current financial year”, he noted.
In a bid to support Karimnagar Dairy, the bank has sanctioned a Rs 40.45 crore term loan and a Rs 20 crore cash credit limit for the dairy’s 3 LLD expansion project. Additionally, the bank has issued non-agricultural gold loans totaling Rs 448.38 crore, with 36 PACS currently engaged in the gold loan business.
It is worth mentioning that the bank is the first in Telangana to have registered all affiliated PACS to serve as Common Service Centers. “NABARD has chosen our bank for the computerization of PACS affiliated with it on a pilot basis in India, and all 130 PACS are computerized and online,” Rao added.
The Karimnagar DCCB is also providing bank guarantees to PACS for obtaining fertilizers, pesticides, and seeds from supply companies on credit. The PACS in Karimnagar have diversified their business activities, offering various non-agricultural services such as gold loans, housing loans, vehicle loans, education loans, and more.
A few PACS in the Karimnagar district have established RO water plants in their operational areas, supplying clean water to rural communities at minimal prices.
After the visit, Karimnagar DCCB Chairman K. Ravinder Rao expressed some disappointment that the RBI is not granting permission for opening new branches and ATMs, which is becoming a roadblock in expanding the bank’s presence in untouched areas, he stated.
