The Hindu Business Line : South Canara co-op bank shows the way

The Mangalore-headquartered South Canara District Central Cooperative (SCDCC) Bankhas been registering 100 per cent recovery in crop loans since 1994-95. Only in 1996-97 it reported 96 per cent recovery in crop loans. June-end is the cut-off period for the recovery of crop loans.

Mr M.N. Rajendra Kumar, President of the SCDCC Bank, told Business Line the quality of borrowers and the follow-up procedures adopted by the bank had helped it in achieving this.. "We have acre-wise details of our member farmers, and we assess their (members) repayment capacity before sanctioning loans," he said.

On the follow-up actions, he said the bank made sure that the loan taken was used for the purpose mentioned. Mr Kumar said the borrowers would fail to repay the amount if they used it for some other purposes.

Most of the crop loans are short-term ones. The bank primarily extends loans to arecanut, coconut and paddy cultivation.

The bank, which disbursed Rs 131.53 crore to 42,069 farmer members during 2004-05, recorded 81 per cent increase in the amount disbursed during 2005-06. In the last fiscal, the bank advanced Rs 237.96 crore to 51,092 farmers.

As many as 10 primary agriculture cooperative societies, coming under the jurisdiction of SCDCC Bank, have recorded 100 per cent recovery in all loans, including crop and gold loans.

More Stories on : Co-operatives | Farm credit | Karnataka

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South Canara co-op bank shows the way