PANAJI: From merging branches to downsizing staff and offering special incentives to customers, the Goa State Co-operative Bank (GSCB) has embarked on an ambitious plan to reverse the problems plaguing the State's apex co-operative bank.
And if these plans are implemented fully, the GSCB hopes to become financially stable within the next five years.
Faced with several financial and administrative difficulties, the State government had recently appointed an administrative committee under the chairmanship of well-known chartered accountant V B Prabhu Verlekar.
Speaking to The Goan, Verlekar said the present team of administrators have begun cost-cutting measures at the bank.
"The GSCB will take around five years to regain its healthy status and there is no cause for concern at present, as efforts are already underway to bring the bank back into profit.
He added that the cost-cutting measures and innovative steps would save the bank around Rs 10 crore within a short while.
"We have begun the process of merging branches to cut costs and while merger of two branches is already underway, three more branches will be merged shortly," said Verlekar.
"The State government will also provide Rs 15 crore as capital to the bank very soon."
Commenting on the down-sizing of staff at GSCB, Verlekar added: "Sixty-two bank employees availed of VRS (voluntary retirement), which will save the bank Rs 4.5 crore and 22 additional staff will soon retire from service. We have decided not to recruit new employees."
In a bid to cut down on other costs, the GSCB has begun clearing and selling off scrap material lying in various branches and has begun reusing unused furniture after minor repairs.
Commenting on the loans and Non-Performing Assets (NPAs), Verlekar added: "Recovery of loans is going on in full swing. Although most loans pertained to mining trucks and barges, we have been working hard to recover these loans."
"All efforts to improve the bank's finances have resulted in the bank's present NPA dropping from 9 per cent to 8 per cent."
In a bid to attract customers, Verlekar said the GSCB has begun disbursing loans within 48 hours.
"Government employees and salaried persons will get their loans of up to Rs 15 lakh sanctioned within 48 hours. The file pertaining to the loan has to be returned the very next day from the head office," he added.
In another innovative facility, the GSCB has decided to scrap the withdrawal slip system and launch the biometric withdrawal system.
"Many account holders are senior citizens and Dayanand Social Security Scheme beneficiaries. They can now get their money at the press of their thumb," informed Verlekar.
According to bank sources, all administrators, including Verlekar, have been working at the GSCB without any pay. They have been visiting the GSCB head office on a daily basis and have been inspecting other branches as well.
-------------------------
Hope to reverse problems
of the bank within 5 years
* The process of merging branches to cut costs has begun. Merger of two branches underway
* The State government will also provide Rs 15 crore as capital to the bank very soon
* 62 employees availed VRS, will save the bank Rs 4.5 crore and 22 will soon retire
* Clearing and selling off scrap material lying in various branches has begun
* The bank has started reusing unused furniture after minor repairs
* All efforts have resulted in the bank's present NPA dropping from 9 pc to 8 pc
