All Set For The Launch Of Kerala Cooperative Bank

Kerala is setting a new trend. The state is going to have an apex Kerala Cooperative Bank under a two-tier system, eliminating district cooperative banks.

The proposed Kerala Cooperative Bank is likely to become a reality in about 18 months. The government recently received a project report prepared by IIM Bangalore professor M.S. Sriram, which envisages the setting up of an apex bank in the state, restructuring the entire cooperative banking sector. When finally set up, it is expected to be the largest scheduled cooperative bank in the country and the second biggest scheduled bank in the state after the State Bank of India.

The state government intends to exploit the vacuum created by the merger of State Bank of Travancore with the State Bank of India.

PROFESSIONAL CEO

The state’s finance minister Thomas Isaac said the government intends to appoint a chief executive officer for the bank, who will be a true professional who can successfully run it. The project report says the bank will handle operations like small industries banking, consortium lending, foreign exchange and attracting NRI deposits. The report suggested that the government initiate steps to get necessary permission in principle from the Reserve Bank of India and the National Bank for Agriculture and Rural Development (Nabard). The state government has made it clear that there would be no job loss due to the proposed bank.

TWO-TIER SYSTEM