Kerala Bank sets Rs 3-lakh crore business target for next 3 years

Formally announcing formation of the bank, Chief Minister says short-term loans worth Rs 5,000 crore can be disbursed by March 2020

Published: 07th December 2019 06:32 AM  |   Last Updated: 07th December 2019 06:32 AM   |  A+A-

By Express News Service

THIRUVANANTHAPURAM: The Kerala Bank has set a business target of Rs 3 lakh crore for the next three years, Chief Minister Pinarayi Vijayan has said. The new bank, the second largest in the state, currently has a business value of Rs 1 lakh crore, he said. The chief minister was making the formal announcement on the formation of the Kerala Bank here on Friday.

Short-term loans worth Rs 5,000 crore can be disbursed by March 2020, said Pinarayi. He called for enabling cooperative banks to cater to the banking needs of local self-governments in their respective areas. He further asked banks in every panchayat to explore the idea of becoming stronger through merger.

The new Kerala Bank will offer more agriculture, agri-related, small and medium-level loans than those available through the previous structure, he said. “The Kerala Bank can provide agriculture loans at least one percent lower than the present rate. The new bank has immense opportunities,” he said.

Pinarayi said the Kerala Bank had sought RBI’s permission to accept NRI deposits. Efforts will be taken to start money transfer service for NRKs. Core banking will be implemented in the Kerala Bank and affiliated primary agricultural credit cooperative societies. PACS will be made touch points of the Kerala Bank. They will offer modern facilities and products.

The chief minister said the cooperative sector was instrumental in popularising banking in the state. Big deposits, loans and agricultural services are the highlights of the sector. The cooperative banks should not change their focus on agri loans.

The CM said corruption will not be tolerated in the sector. The inspecting mechanism will be strengthened. Referring to the Malappuram DCB which has not joined the new bank, he said: “Those refraining from the bank can clear their misunderstanding and join any time. They can talk to the cooperation minister or the chief minister.”

The chief minister also received a memorandum from the staff of Malappuram DCB seeking steps to merge the bank with the Kerala Bank. Cooperation Minister Kadakampally Surendran said that the new bank will not fleece the customers in the name of service charge.

The function was attended by ministers E Chandrasekharan, K Krishnankutty, Ramachandran Kadannappally, AC Moideen, MM Mani and TP Ramakrishnan, Mayor K Sreekumar, MLAs VK Prasanth and V Joy, district panchayat president VK Madhu, State Cooperative Union administrative committee convenor Koliyakode N Krishnan Nair, Chief Secretary Tom Jose, cooperation secretary Mini Antony, Registrar of Cooperative Societies PK Jayasree and State Cooperative Bank MD Rani George.


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