'Co-op banks should learn from counterparts in Saurashtra'

Despite the cloud over several co-operative banks in the state, banks in Saurashtra have been very successful.

"The progress in the banking business in Saurashtra should be an example for other co-operative banks in the state," J P Gupta, the general registrar and special auditing authority of co-operative societies in the state said.

"It is also notably remarkable that, besides the banking business, the co-operative banks of Rajkot are also active in social work. They have also taken several measures to bring down the NPA level," he added.

The financial scandal of co-operative banks of Gujarat had its effects in many parts of the state. "However, the performance of banks in Saurashtra has helped restore faith of the public in co-operative banks," he said.

Gupta suggested that the progress of co-operative banks of Rajkot, their donations and participation in the development of Rajkot city and other such merit works should be published for the other parts of the regions of the state so that people may know and take inspiration of their progress.

Meanwhile, the state government has lined up a new policy aimed at strengthening the structure of the co-operative banks. As a part of these initiatives, a meeting of all chairmen and managing directors of district co-operative banks was held recently. The main agenda was to work out ways to stabilise co-operative banks.

In the meeting, Gupta took details of the financial status of various co-operative banks and gathered information on their role in the industrial development of Rajkot.

The new policy will improve the position of weak co-operative banks and make the progressive banks sounder. "We will arrange regional as well as state-level meetings and, with these references, the government will take further steps to strengthen the banking system," Gupta said.

Gupta said reforms in co-operative banking will enable Gujarat to achieve success in this field. "We need to put more stress on staff training and modernize the system of disbursing and monitoring loans," he said.

There are 360 co operative banks and nearly 55000 co-operative credit societies in Gujarat. "Compared with other states, co-operative banks in Gujarat enjoy more liberty and there should be a system of self-accountability and self-discipline in the sector," Gupta said.

He stressed that co-operatives banks should go beyond giving loans for agricultural purposes and also give loans for affiliated works such as for digging wells, setting up irrigation systems etc.

"Banks should find ways to increase the number of beneficiaries of loans by decreasing interest rates," he added.