Chief Minister Pinarayi Vijayan has reassured investors that their deposits in State’s cooperative societies are safe.
Speaking at the inauguration of Kerala Bank’s year-long action plan in Kannur on Monday (November 25), he stressed that the State government guarantees the stability of the cooperative sector.
Highlighting the State’s cooperative model, the Chief Minister pointed out safeguards like the Deposit Guarantee Board and the Cooperative Restoration Fund, designed to secure investments.
“Cooperative societies ensure adequate liquidity and are the wealth of Kerala. Attempts to discredit them in favour of corporates and multi-State cooperative societies are unacceptable,” he said.
Warning against the risks posed by multi-State cooperative societies, he revealed that of the estimated 1,500 such societies in India 44 such entities were shut in 2022 for corruption, collectively defrauding the public of over ₹10,000 crore.
“Kerala’s cooperatives are built on trust and a dedication to societal welfare, from agriculture and industry to welfare pensions,” he added, urging vigilance and adherence to norms.
The Chief Minister outlined five goals for Kerala Bank’s action plan: advancing technology, prioritising small and medium enterprises, enhancing profitability, guiding primary cooperatives, and improving project efficiency. Kerala Bank, he noted, has grown into Asia’s largest cooperative institution, with 823 branches and total business worth ₹1.16 lakh crore as of March 2024.
The bank plays a vital role in agriculture and employment, with agricultural loans comprising 25% of its portfolio. “Cooperatives must take greater responsibility, such as managing paddy procurement in major production hubs like Palakkad,” he said, urging Kerala Bank to resolve existing challenges.
Kerala Bank’s technology integration has also set benchmarks, unifying core banking systems and attracting 2.2 lakh mobile app users, who have transacted ₹7,600 crore to date. “Efforts must continue to expand these services, ensuring modern banking is accessible to all,” he said.
Through its inclusive approach and robust growth, Kerala Bank exemplifies the cooperative sector’s potential, serving as a model for the rest of the country, he added
Minister for Cooperation V.N. Vasavan, who presided over the event, credited Kerala Bank for stabilising struggling district banks. “Without its formation, some district banks in Kerala might not have survived,” he remarked, highlighting the bank’s transformative impact on the cooperative landscape.
Published – November 25, 2024 11:28 pm IST
