Co-operative banking sector clocks double digit growth
Ahmedabad: The co-operative banking sector
scenario in the country stands improved as the sector has
clocked a double digit growth of 12-13 percent in its
deposits, a top official said.
"The deposits of co-operative banks in the country
stood at 1.17 lakh crore upto March 2007, and reached Rs 1.38
lakh crores upto March 2008, a hike of 12-13 pc," National
Federation of Urban Co-operative Banks and Credit Societies
(NAFCUB) CEO D Krishna told a news agency.
"We expect the growth in co-operative banking sector
to be better this fiscal, especially after RBI's nod to the
co-operative banks to open new branches," Krishna said.
Also, the working of co-operative banks in the country
is satisfactory now. The 1770 odd co-operative banks in India
today deploy total working capital (deposits and share capital
plus reserves) of Rs 1.50 lakh crores in service and have
deposits of Rs 1.38 lakh crores upto March 2008," NAFCUB
Chairman H K Patil told reporters.
"We are looking at setting new targets for deposits in
the next proposed General Body Meeting of the Federation on
September 22," Patil said.
If we want financial inclusion to happen in India,
then co-operative sector should be encouraged by the
regulators, he said.
"In the last one decade, co-operatives' have been
neglected and discouraged by the regulators or government.
Almost a prohibition was imposed on the sector's growth,"
"Consequently, money lenders share in the finance
market grew from 17 percent in 2001 to 29 percent in 2008.
The figures on money lenders market share are as per data of
Sen Gupta Committee report," he said.
On co-operative banking scenario in Gujarat, Chairman
Gujarat Urban Co-operative Banks Federation Jyotindra Mehta
said, "the state co-operatives registered deposits of Rs
16,700 crore in 2008, and we expect to cross Rs 17,800 crore
mark this fiscal."
The growth in deposits here has been around 9-10 percent, he added.