The Hindu : Karnataka / Hassan News : Hassan cooperative bank posts profit

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Friday, Apr 01, 2005

Karnataka

Karnataka - Hassan

Hassan cooperative bank posts profit

By Our Staff Correspondent

HASSAN, MARCH 31. Hassan District Cooperative Central Bank (HDCCB), which was incurring losses till 2001, has posted profits in the past four years. The bank has received accolades for its achievement and succeeded in securing an A category listing, the outgoing president of bank, G.B. Subrahmanya has said. Mr. Subrahmanya lost the elections to the bank's board held here recently.

Addressing a press conference he said the bank has posted a profit of Rs. 8 crores and the turnover is Rs. 186.04 crores. He said that bank has been able to wipe out losses and has been posting profits from 2002-03. The bank, which is celebrating its golden jubilee year, is now an A category bank for having posted deposits of Rs. 84.42 crores. The bank has 25 branches and has made advances of Rs. 142 crores and paid dividends to its members. The bank has also contributed Rs. 10 lakhs to the drought relief fund, Rs. 3 lakhs for the victims of the Gujarat earthquake, and Rs. 4 lakhs to the Chief Minister Relief Fund.

Model scheme

Mr. Subrahmanya said that the bank has achieved record recovery by offering a model scheme to farmers. They reduced the interest rate from 18 per cent to 8 per cent. The scheme is the first of its kind extended to the farming community in the State, he claimed. Though the scheme caused a reduction of Rs. 5 crores in the total profits of the bank, it has helped around 8,906 farmers. The recovery rate for credit to the farm sector is 52 per cent and non-farm sector is 92 per cent. The non-performing assets of the bank stands at 10 per cent.

Self-help groups

He said that the bank has formed 9,500 self-help groups and 90 per cent among them have been credit-linked. The bank has advanced Rs. 20 crores under the credit linkage scheme to SHGs and the latter has saved Rs. 14 crores so far, he added.

The former president H.P. Mohan said that the bank has formed cooperative resource centres by selecting resource persons from SHGs. The bank intends to diversify its activities through the self-help groups and village forest committees.

He said that the recovery rate has reduced owing to the delay in appointing a managing director. The bank has initiated action against employees who were allegedly involved in the misappropriation of funds.

He said that the Hemavathi Cooperative Sugar Factory, which had borrowed Rs. 13.5 crores from the bank, has repaid the loan.

Mr. Mohan said that it is imperative to introduce a model cooperative Act to insulate cooperative societies from political interference.

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