Kerala Bank to form biggest network

Thiruvananthapuram: Finance minister T.M. Thomas Isaac on Thursday announced that the Kerala Bank will give shape to the largest banking network in the state with the integration of State Co-operative Bank, District Co-operative Banks and more than 800 of their branches. Kerala Co-operative Bank will be the first Scheduled Bank in the co-operative sector in India.

It is expected that the deposit strength of the new bank will increase from Rs 57,761 crore to Rs 64,741 crore as it can accept deposits from non-residents as well, unlike the existing co-operative banks. As a result of this, the bank can strongly support new enterprises in agricultural and industrial sectors.

Along with this, the bank being an apex body, can provide a protective cover to 1,542 Primary Credit Co-operative Societies/Banks.

The minister said during demonetisation the state realised the adverse effects of the absence of such an upper tier with complete banking rights.

Most modern banking facilities can be ensured for the customers of co-operative banks as the mirror accounts of the accounts in Primary Co-operative Societies will be created in Kerala Bank.

“The banks which had organic linkage with our state had been taken over by outsiders. Many had been merged with other banks. This has created a big fiscal gap in the state. Kerala Bank will help in bringing a big leap in development by filling this gap,” Isaac said