Other States - Orissa   

Coop bank to modify its credit policy

BERHAMPUR: The Berhampur Cooperative Urban Bank, which is more than a century old, has decided to diversify its credit policy to increase its profits.

Speaking to newsmen on Tuesday, its newly-elected president Dipak Patnaik said that no major change was brought out in the credit policy during last few decades.

At present, the bank mostly provides housing loans and gold pledge loans. “Our credit policy should be such that the common mass of the city identified themselves with the bank to increase its profits,” Mr. Patnaik said.

The board of directors of the bank decided to study the credit policy of successful urban cooperative banks of the country to devise a profitable credit policy.

As an initial measure, the bank would start providing loans for consumer durables and home appliances to those whose employers would stand guarantee for the amout.

Mr. Patnaik said he would impress upon the local municipality and the Berhampur Development Authority to keep their deposits with the urban cooperative bank in line with the government’s directive. During the year 2006-07, the bank achieved a profit of some Rs. 12 lakhs. To increase it, the bank decided to decrease its Non Performing Assets (NPA). At its recent board meeting, it was decided to take legal action against long- standing defaulters to recover the loans. The recent audit bracketed the bank in grade II category, Mr. Patnaik said.

Stating that the bank had 13,884 shareholders, he said the list would be updated as many of them were no more. A door-to-door survey would be taken up for the purpose, he added.

After taking charge. the new managing board passed disbursement of loans worth Rs. 40 lakhs to 51 applicants on Tuesday.

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