KOLLAM: A cooperative in rural Kollam has turned into a role model for others in the sector with its innovative ‘welfare banking’ initiative inspired by ‘welfare economics’ of Amartya Sen. The Kadakkal Service Cooperative Bank which is in its diamond jubilee year has a slew of such programmes in its kitty, apart from just lending. The bank founded in 1954 as a farmers’ cooperative society now has over 34,000 members and a deposit of Rs 245 crore. It also has set up a model for effective combating of post-demonetisation issues.
“We spend the net profit generated from the banking business after keeping the statutory reserve money and paying dividends at the rate of 10-11 per cent for welfare programmes in two panchayats — Kummil and Kadakkal. As a next step, a cooperative super speciality hospital owned by the bank is on the anvil,” said S. Vikraman, bank director. “We eased distribution of money through several programmes to help people handle the aftereffects of demonetisation. We also intervened by not levying unnecessary fees including service charges on our customers.”
The bank provides over Rs 20 lakh a year in medical aids for the villagers, to the benefit of 680 patients already. It pays the remuneration to ensure cultivation in the paddy fields and promotion of organic farming. It provides scholarships to students, special subsidies to milk farmers, and pension for dependents of freedom fighters, to name a few permanent financial assistance programmes. It also has contributed to several public institutions.
