To encourage the State’s Cooperative Banks to compete with private banks, the Punjab Government is going to revamp the cooperative banks by introducing gold loan and insurance schemes.

Sharing this, the state Cooperation Minister Sukhjinder Singh Randhawa on Wednesday said that new recruitment will also be done to deal with the staff shortage, and for starting the net banking and other online banking services to include the Cooperative Banks in top banks of the state.

Randhawa, after inaugurating the workshop on ‘Micro Finance, New Business Opportunities for Cooperative Banks’ organized by Punjab State Cooperative Bank in association with NABARD, said that there are as many as 802 branches of cooperative banks in the State and due to the lack of professional approach of cooperative banking sector, these banks are lagging behind their private counterparts besides having reach in the remote areas.

“To compete with private banks, the cooperative banks will have to change its working for the welfare of the rural people by introducing marketing strategies,” he said. Declaring that strict action will be taken against the culprits of corruption and indiscipline, the Minister also directed the bank officials to act tough against the major defaulters.

The Minister also thanked NABARD for providing financial assistance of Rs 750 crore to Punjab State Agriculture Development Bank and also appealed to the NABARD to bind the State Government to utilize these funds through cooperative banks which would strengthen them.

“After getting approval from the Reserve Bank of India (RBI), the District Central Cooperative Banks (DCCBs) will be merged soon in Punjab State Cooperative Banks (PSCBs) which would add strength to these banks and new challenges as well,” he said.

Registrar Cooperative Societies Vikas Garg said that the bank has diversified its loans portfolio with micro finance thus enabling the bank to develop a new customer base and earn good profit margins. “The bank has also started earning more fee based income due to tie ups with insurance and stock holding corporations,” he said while pointing out a tie-up with Stock Holding Corporation of India Limited for issuance of e-stamp papers through the bank branches throughout Chandigarh and Punjab.