VISION OF THE BANK
With a vision Padmashri Dr.Vithhalrao Vikhe Patil created facilities for education, agricultural processing unit for monitory purpose, health (hospital) and housing. Further it was experienced that existing system of Banking (PSU Banks & DCC Bank) is not sufficient to meet out credit facilities for purchasing land, medical needs of family, education and other consumption purposes. Urban Coop. Banking system was felt a necessity for area of the 50 villages. All the people come together along with other peoples raise share capital of 2-00 Lakh with 400 members and now it is banking unit of about 429.15 Lakh share capital without assistance of Government. It is self reliant movement.
Pravara Sahakari Bank was registered in 1974 and commenced banking business since June 1975. Bank was included in the second schedule of Reserve Bank of India on April 5th 2003 and became a scheduled cooperative bank.
Bank is basically from rural area. Head office of the bank is located in Loni Bk. The human touch in the services is a slogan of the bank.
From the inception, bank has generated 27990 self employment through need based finance in the operational area of the Bank
Before the inception of Pravara Co-op.Bank money lenders laid more important roll to finance in the area of operation of the bank. With the help of Pravara Co-Op.Bank rural entrepreneurs, self employed persons, agriculture labourers, small business entrepreneurs and marginal farmers were rescued from the clutches of money lenders.
At present, our bank is having 120648 account holders who are banking with branches. The system and procedure of lending is also made easy to cater the genuine needs of the rural masses in the area. Even after this money lenders are not completely eradicated from the area.
As we are working in rural area for future expansion of such banks following factors are to be considered by regulators–
i) The basic financial growth of the area is depending on agriculture income. Trade and commence and money circulation in the area is depending upon agriculture inputs. As such the NPA norms instead of 90 days should be one year for all type of advances.
ii) Income tax will be exempted for urban bank particularly in semi – urban and rural area as primary agriculture society and regional rural banks are exempted from income tax.
iii) Bank should be able to raise finance from cheaper resources to ECB and IPO.
iv) Interest should be given to CRR balance maintained with Reserve Bank of India.
Urban Cooperative Banking in Rural area tries to uplift weaker sector person to slightly upper income group. Urban banks may find it difficult to compete with private sector banks as they are trying to grab more business in the market. To compete with nationalized bank is also difficult. Urban Cooperative Banks which are working in rural area do have potential in working but may need certain protections.
Chief Executive Officer
PRAVARA SAHAKARI BANK LTD.