Apex Bank to focus on forming more SHGs

State-owned Karnataka State Cooperative Apex Bank has set a target of forming 4.

70 lakh selfhelp groups (SHGs) across the state and give them loans of Rs 5,300 crore by 2015, the bank’s President R M Manjunath Gowda said on Monday.

 Addressing a press conference here to announce future activities of the bank, Gowda said, “Our priority sector is formation of SHGs through District Central Cooperative (DCC) banks and primary Agricultural Credit Cooperatives societies (PACs).

 This year alone, we have formed 1.95 lakh SHGs and have given loans up to Rs 20.74 crore.

” The Apex Bank’s 2015 Vision Document for SHGs coincides with its golden jubilee.

 “By next March, we have a target of forming 2.11 lakh SHGs and provide advance loans up to Rs 2,690 crore,” he stated.

 At the end of 2011-12, the bank’s total deposits stood at Rs 52. 64 crore, working capital was Rs 88.11 crore and the profit was Rs 61.41 lakh.

 In this year, the bank wants to increase deposits to Rs 60 crore with a working capital of Rs 101.76 crore and targets earning of profit of Rs 100 crore, he noted.

 Agri Loan Waiver

In line with the State government’s decision to waive crop loan and interest to the extent of Rs 25,000, Gowda said 16 lakh farmers are enjoying this benefit.

 “The total loan waiver amount comes to nearly Rs 3,500 crore without interest.

 The government has made a budget provision for this and we have already received Rs 2,500 crore from the government,” he added.

 He stated that there are 7.8 lakh farmers who have availed loans more than Rs 25,000.

 In the Pipeline

Gowda said the bank plans to open five more branches in R P C Layout, Kengeri Satellite Town, J P Nagar, Koramangala and NGEF East Layout at an estimated cost of Rs 10 crore in the city.

 It has also proposed to construct hi-tech building complexes with a training centre, a guest house, a farmers community hall at an estimate cost of Rs 20 crore on 3 acres of the bank’s land near Yeshwantpur.

 “The ATM facility will be offered at the head office branch, Vidhana Soudha branch, L H branch, M S Building branch and Basaveshwaranagar branch this year,” Gowda said adding that core banking system would be implemented across the bank by December