Surat co-op banks better show

The position of urban co-operative banks (UCBs) in south Gujarat, particularly Surat, has improved in the last five years, according to the South Gujarat Urban Co-operative Banks Association.

The association's president Dilip Gajjar, said: "It is true that quite a few co-operative banks have collapsed in recent years, but a large section of society still trusts co-operative banks."

"The paid-up share capital of 31 UCBs in Surat has increased from Rs 40.20 crore as on March 31, 2000, to Rs 64.30 crore on March 31, 2004. Similarly, the number of share holders has increased from 2.52 lakh to 3.23 lakh," he elaborated.

"The total reserve funds of the banks increased from Rs 237.14 crore in 2000 to Rs 449.82 crore in 2004. The total deposits rose from Rs 1798.50 crore to Rs 2323.27 crore, while advances climbed up from Rs 928.91 crore to Rs 1153 crore," he added.

According to the figures issued by the association, the total investments of the 31 UCBs increased from Rs 908.39 crore in 2000 to Rs 1462 crore in 2004. The net profit of these banks rose to Rs 45.14 crore (Rs 37.90 crore).

The performance of the fifteen UCBs in Bharuch, Narmada, Navsari and Valsad has also improved in the last five years. Gajjar said all the 46 UCBs in south Gujarat are major players in the overall co-operative banking sector of the state.

"The 46 UCBs in south Gujarat contribute 19.62 per cent of the total share capital of all UCBs in Gujarat. The total share capital of the 352 UCBs in the state was Rs 424.88 lakh as on March 31, 2004. Of this, the south Gujarat banks contributed Rs 83.34 crore," he informed.

"Similarly, the reserve funds of the UCBs in south Gujarat, at Rs 547 crore, constitute 11 per cent of the total reserve funds of Rs 5052 crore of all UCBs in the state. The UCBs in south Gujarat also play a major role as far as the total deposits, advances, investments, working capital, net profit, and other financial parameters of the co-operative banking sector are concerned," he said.

"The co-operative banking sector has played an important role in the development of the state. The sector has been plagued by various problems, but we firmly believe that it is here to stay. The co-operative banking sector will continue to grow and prosper in coming years," he added.

Four co-operative banks have collapsed in Surat in the last six months. One Valsad-based bank also collapsed four months back.