THIRUVANANTHAPURAM: The Kerala State Co-operative Bank (KSCB) has met almost all criteria like non-performing asset ratio and internet and mobile banking services. Bringing down the NPA ratio below 7 per cent was one of the main criteria for giving clearance for the formation of new bank and the KSCB could bring down the gross NPA ratio from 8.36 to 5.95 and net NPA from 3 to 1.49 by the end of last fiscal, he said.
There is only some technicalities left for the formation of the new bank and its is expected that the new Kerala Bank will become a reality within the first half of the current fiscal, said senior KSCB officials. The new scheduled bank would have about 800 branches and all assets and liabilities of the district cooperative banks will be transferred to the new bank once the RBI gives its nod.
Senior KSCB officials hinted that at present the cooperative sector has only around 13 per cent of the total domestic deposit of Keralites which would come around Rs 2,67,000 crore. The KSCB also hopes to get a 25 per cent of the total NRI deposit of Kerala Rs 1,61,000 crore, to the banking network of the new scheduled bank. Once the new bank is formed, it can raise its domestic and NRI deposits and infuse more money into the economy of the state, they said.
Further, the transaction and other banking charges can be reduced in the new scheduled Kerala Bank apart from lowering the interest of loans upto 1.5 per cent. It is also expected to render basic banking services without any service charge.
At a glance
It will infuse money into the economy by funding developmental projects
The new bank eyes a 25 per cent share of the total NRI deposit of Rs 1,61,000 cr
At present, only 13 per cent of the total domestic deposit of Keralites is handled by the KSCB. The new bank hopes to raise its domestic deposit share
The surplus deposit can provide a lease of life to the agriculture sector in the state by infusing more money
Procedures for applying loans by entrepreneurs will be liberalised
Most of the charges for the banking service will be abolished or reduced