The Kapol Co-operative Bank Ltd was established in the year 1939 by our Founder Late Rajratna Shri Khushaldas Kurji Parekh, an Educationalist, Socialist & Reformist. The main objective of the Bank is to service the downtrodden and economically weaker sections of the society. I have been associated with Kapol Bank since the year 1991. The Bank has achieved an all-round performance in all banking parameters be it deposits, advances, net profit or reserves. Kapol Bank offers the entire gamut of services that are offered by any bank from the co-operative sector as well as the PSU’s and Private Banks. What is the Mission of your bank and how much have you been able to achieve that so far? The main objective of the bank is to serve the downtrodden and economically weaker section of the society.
We have always supported people who have no means of finance available to them and it is a matter of great pride for us that many of our clients had started with virtually nothing and today are doing very well for themselves. We have been always supportive to self-help groups who approach us with a desire to enrich their lives by taking on viable business options. We have always ensured that credit is made available to the needy people with timely finance at an affordable rate of interest.As a bank with rural focus, can you describe how Kapol Bank chose to implement Core Banking? Being aware of the latest developments, in the early 90’s we identified IT as a major driver of business in the years to come. Hence, we embarked upon computerization of the branch operations and the Corporate Office functions. Once these were streamlined we started working on integrating the processes and implementing Core Banking.
What about the bank’s retail operations? We are offering retail products to our customers at competitive price due to which retail forms a substantial part of our portfolio. It is because of the importance on retail operations that we as a Bank have a CASA of 27% as on date.IT has been playing an important role in banking sector. Has Kapol Bank also taken advantage of it?It is only because of IT that banking is now made available to the people even in the most remote places. It has helped us to offer customized products and helped in carrying out the day to day banking transactions.How do you see the status of co-operative banking in India? Co-operative banks have and shall remain an important part of the economy.
Co-operative movement was started mainly to help the downtrodden and the economically weaker sections of the society. If you compare the performance of some of the leading co-operative banks you will see that, though smaller in size, they are at par with their peers in the banking industry in all the ratios, and in some cases better. With the recent changes in the norms regarding capital co-operative banks are finding it difficult to raise capital as required under BASEL II norms. However, RBI has granted newer avenues for raising capital, for example, Long Term Deposits. However much needs to be done. Co-operative banks cannot be put in the same bracket as others in capital augmentation. Well run co-operative banks will continue to flourish in the years to come.What are your future plans?Our main focus will be on strengthening the bank and ensuring that it be considered as one of the best run bank amongst the co-operative sector. And we working hard towards this goal. R&M