Kerala Bank has made remarkable progress in the cooperative banking sector and experts believe that it can be the model for rural credit delivery. Formed by the merger of Kerala’s District Cooperative Banks (DCCBs) into the State Cooperative Bank, the bank has made remarkable progress in financial inclusion.
At a meeting of Kerala Bank’s Board of Directors and Board of Management, RBI Central Board Director Satish Marathe appreciated the initiative. He pointed out that the bank has given loans to more than one lakh small and micro enterprises, which is a very significant contribution in the development of rural economy. In its total lending, agricultural loans are 27%, and the bank is therefore a key player in improving the standard of living of farmers.
Marathe applauded the efforts of Kerala Bank and called for more innovation in financial products that are targeted at the rural enterprise sector. He also stressed the importance of policy measures that can boost the development of agricultural processing industries as this would greatly boost the rural economy.
The President of Kerala Bank, Gopi Kottamurikkel, and the CEO, Jorty M Chacko, said that the bank has a great potential to contribute to financial inclusion. They restated their willingness to deposit and loan to the unreached areas of the country, to reach out to farmers and other small business people.
The meeting was attended by the BoM Chairman, V Raveendran and NABARD Chief General Manager Baiju N Kurup among others. The issues of capacity building of Kerala Bank to support rural enterprises and financial inclusion were also discussed.
Kerala Bank is a pioneering cooperative banking initiative that combines cooperative finance with conventional banking services. Thus, the bank’s growth and flexibility may determine the future of cooperative banking in India and its potential to enhance rural economic development.
