Page 22 - Banking Finance December 2024

Co-operative Bank Ltd., Rajkot, and were unanimously passed by the to take their concern seriously, other-
Gujarat (the bank) for non-compliance shareholders with one voice. wise it will badly impact the bank's
with certain directions issued by RBI on performance", he noted.
Talking to this correspondent at the
'Know Your Customer (KYC) norms". bank's headquarters at
.The Reserve Bank of India imposed a Visakhapatnam, the bank Chairman Zoroastrian Co-op Bank
monetary penalty of Rs 1.25 lakh on Komma Reddy Rambabu informed, making waves with its di-
the Rajula Nagrik Sahakari Bank Ltd., "We are eager to expand our footprint
Rajula, Dist. Amreli, Gujarat (the bank) in the state of Telangana. We have verse loan offerings
for non-compliance with certain direc- obtained the necessary permissions Maharashtra-based Zoroastrian Coop-
tions issued by RBI on 'Loans and Ad- from our shareholders in this regard. erative Bank Ltd (ZCBL) is making
vances to directors, relatives and Once we secure the NoCs from both waves with its diverse loan offerings
firms/concerns in which they are Inter- states, we will submit our application that have garnered widespread con-
ested' and 'Maintenance of Deposit to the Reserve Bank of India", he said. sumer interest.
Accounts - Primary (Urban) Co-opera-
Besides, we plan to become a sched- A press note sent by the bank reads,
tive Banks'. uled bank and hope to be eligible for "One of the standout offerings is the
scheduled status within a few years. Solar Loan designed to support the in-
AP's Kanaka Mahalakshmi Most importantly, our goal is to con- stallation of rooftop or ground-

Co-op Bank aims SFB & vert into a Small Finance Bank, which mounted solar units, catering to both
will open new avenues for our busi- industrial and residential customers",
Multistate status ness. Expanding our footprint within the press note stated.
One of the leading urban cooperative the cooperative banking structure is "This product stands out with its at-
banks in Andhra Pradesh- Kanaka challenging, especially due to the RBI's tractive financing terms-up to 85% of
Mahalakshmi Cooperative Bank is on stringent rules and regulations," said the total project cost can be covered,
the verge of achieving multi-state sta- Rambabu. with a flexible repayment period ex-
tus while also aiming to transition into He further said that Cooperative Banks tending up to seven years. The loan is
a Small Finance Bank.
are facing major challenges in collect- free from prepayment charges, allow-
The resolutions to attain multi-state ing deposits, particularly from the ing for early closure without penalty,
status and convert into a Small Finance youth, who are high-risk takers and and features a competitive interest
Bank were presented at the bank's prefer investing in SIPs, stock markets, rate starting as low as 7.99% p.a.
recently held Annual General Meeting and other ventures. "There is a need making it an attractive option for
those investing in renewable energy
solutions", it read.
Govt plans to merge more regional rural banks
Another attractive offering from the
Regional rural banks are poised to go through a fourth round of consolida- Zoroastrian Bank is its Car Loan
tion with the government planning to embark upon a state-wise amalgam- scheme, designed for fast and hassle-
ation exercise, which would bring down the number of RRBs to 28 from the free vehicle financing. This product
current 43.
promises approval within just four
The government has prepared a roadmap towards the goal of 'One State- hours, providing swift access to funds
One RRB' in consultation with the National Bank for Rural & Agricultural for customers eager to make a pur-
Development (Nabard). The government thinks this exercise would "derive chase.
the benefits of scale, efficiency and cost rationalisation".
The interest rate is competitive, start-
Consolidation of RRBs started in 2004-05 and after three phases of amal- ing at 8.25% p.a., making this scheme
gamation, the number has come down to 43 from 196. This has helped RRBs an appealing choice for those looking
"minimise their overhead expenses, optimise the use of technology, enhance for both efficiency and affordability in
the capital base and area of operation, and increase their exposure".
their car financing needs.

20 | 2024 | DECEMBER | BANKING FINANCE