4% Interest Loan from Kerala Government Kerala Bank

The beginning of the Kerala State Cooperative Bank Ltd (KSCB) dates back to early 20th century. In 1914, the then Maharaja of Travancore, his highness The Moolam Thirunal Ramavarma, by his proclamation introduced the “Travancore Cooperative Societies Regulation Act”. As per the Act, the first cooperative society - The Trivandrum Central Cooperative Bank - was registered in the year 1915. The bank started functioning on 18th January 1916 with a share capital of Rs.1.00 Lakh consisting of 1000 shares of Rs.100 each.

Later, in 1943, the bank was converted into the ‘Travancore Central Cooperative Bank’ with a federal character, for the entire Travancore State. Aftermath of the Indian independence, the bank was reorganized as a State Cooperative Bank for Travancore – Cochin State in 1954. On linguistic basis, the State ‘Kerala’ was formed in the year 1956. Then the bank was also elevated to the position of State Cooperative Bank, and further it became ‘The Kerala State Cooperative Bank Ltd.’ The Kerala State Cooperative Bank was approved and retained as an Apex Bank, in which, only Cooperative Banks approved by the Registrar of Cooperative Societies were allowed as members. At present all the 14 District Cooperative Banks in the State and the Government of Kerala are the members and Shareholders of the Bank.

From 1st March 1966 onwards the Kerala State Cooperative Bank Ltd. was brought under the control of Reserve Bank of India (RBI). In July 1966, the RBI as per the provisions contained under second schedule of RBI Act, approved the Bank as a ‘Scheduled State Cooperative Bank’. The Kerala State Cooperative Bank is the first scheduled Apex Cooperative Bank in the Cooperative Banking Sector in the Country. In 1972, RBI issued license to The Kerala State Cooperative Bank for doing banking business. At present, The Kerala State Cooperative Bank is not only the leader of cooperative sector in the state but also a model for cooperative banking structure in the country.

Our mission is to remain as the strong, sound and leading organization in the cooperative credit structure and to be the backbone for the rural financial sector of Kerala. Through the efficient management of the organization, it would aspire to function as a professional, profitable and socially responsible organization ensuring the best service to its stakeholders and customers by providing good value for their money and thereby ensure accelerated development of the rural population.

KSCB is marching towards its centenary by 2016. In this context the vision statement of the Bank to be achieved by the centenary year is stated below :

To emerge as the best rural financial institution in the state having a wide network through successful District Cooperative Banks and efficient Primary Agricultural Cooperative Societies, having 50% of the households as members transacting business, having a minimum business of Rs.24000 crores by 2016.
Envisages to provide best banking services to DCB’s, to PACS/ Other Cooperative Institutions and to agriculture, industry, trade, service and manufacturing sectors, and to the general public.

Our Role

KSCB – The Leader of Cooperative Credit Structure: KSCB is the Apex Bank of the Short Term credit cooperatives in Kerala. It guides, supervises, coordinates, monitors and controls all the 14 DCB’s and through DCB’s to 1587 Primary Agricultural Cooperative Societies (PACS) in the State. KSCB’s active leadership is making the lower tier credit cooperative institutions more accountable to the rural community.

KSCB – A Lender : The KSCB being the central financing agency acts as the lender of last resort to the DCBs. Besides this the Bank finances the Apex Cooperative Institutions and extending direct credit to individuals. The KSCB provides assistance in the form of Short Term Credit, Medium Term Credit and Long Term Credit for the constituents as per their requirements. Also it acts as a central balancing centre to absorb surplus funds of DCBs, PACS and other Cooperative institutions.

KSCB – A Retail Banker : In July 1966, the RBI as per the provisions contained under second schedule of RBI Act, approved the Bank as a ‘Scheduled State Cooperative Bank’. It is therefore permitted to perform banking functions as per the Banking Regulation Act. In this ground the Bank is doing the basic banking functions of accepting deposits and lending loans through its branches.