Surat-based Prime Cooperative Bank has started financing self-help groups in order to expand its credit portfolio. It has also tied up with housing finance companies to offer affordable housing loans. To further expand customer base, the bank is going to start UPI and Bharat Bill payment services within a couple of months so as to attract new customers.
Outlining the activities of the bank, Anand Bakshi, chairman of the bank, says during 2017-18, the bank had sanctioned fresh advances of Rs 22.9 million. Despite that, advances were reduced due to non-availing of loans on account of difficult situation in the industry after the introduction of GST, he tells Banking Frontiers, adding in deposits too, there was a drop of 2%, as the bank did not increase interest rate on deposits. Now the situation is being normalized and the bank expects 10-15% net growth in advances during the current financial year.”
Tie-ups is another expansion strategy for the bank. It has tied up with 3 life insurance companies, 3 general insurance companies and one health insurance company. It has also tied up with 11 AMCs to sell mutual funds to its customers.
