The beginning of the Kerala State Co-operative Bank Ltd dates back to early 20th century. In the year 1914, the then Maharaja of Travancore, His Highness Sree Moolam Thirunal Ramavarma, through a proclamation introduced “The Travancore Co-operative Societies Regulation Act”. The Bank was registered in the year 1915 as the “Trivandrum Central Co-operative Bank” which was the first Cooperative Society to be formed in the former princely State of Travancore . It started functioning as a Bank on January 18, 1916 with a share capital of Rs.1,00,000 /- made up of 1000 shares of Rs.100/- each. In the beginning there were 16 Co-operative Societies and 69 individuals as its members.
In 1943, it was converted into the Travancore Central Co-operative Bank, giving it a federal character of the Travancore State. In the wake of Indian Independence and the reorganization of States, the Bank was re-organized as a State Co-operative Bank for Travancore-Cochin State in the year 1954. In the year 1956, the reorganization of Indian States took place and the State of ‘Kerala’ was formed. The Bank was then elevated to the position of State Co-operative Bank for the State of Kerala and it became “The Kerala State Co-operative Bank Ltd.” At that time, the Bank had a working capital of Rs.42.90 lakhs, deposit of Rs.30.33 lakhs and loans and advances to the tune of Rs.21.66 lakhs.
The Kerala State Co-operative Bank was registered and retained as an Apex Bank in which only Co-operative Banks approved by the Registrar of Co-operative Societies were admitted as members. Since then the Trivandrum District Co-operative Bank and the Government of Kerala were the only members. Subsequently after the formation of the Districts, District Co-operative Banks were registered in each District and all the District Co-operative Banks were admitted as members.
In July 1966, the Kerala State Co-operative Bank Ltd was included in the 2nd Schedule of the Reserve Bank of India Act 1934 . The Reserve Bank of India as per the provisions contained in the 2nd Schedule of the Act approved the Bank as a Scheduled State Co-operative Bank. The Kerala State Co-operative Bank Ltd is the first Scheduled Apex Co-operative Bank in the Co-operative Banking Sector in the country. In 1972 it was issued a license to carry on the business of Banking under Section 22 of the Banking Regulation Act ,1966. The Bank is a financing bank as defined in the Kerala Co-operative Societies Act ,1969 is a Co-operative Society having its members only other Co-operative Societies. The bank is doing the business of banking within the frame work of rules/regulations/guidelines stipulated by Reserve Bank of India and National Bank for Agricultural and Rural Development (NABARD).
The Government of Kerala has taken a policy decision to convert the present three tier short term co-operative structure within the state into a two tier structure. The Reserve Bank of India had conveyed their consent for the amalgamation of 13 District Co-operative Banks who approved scheme of amalgamation with Kerala State Co-operative Bank. The Registrar of Co-operative Societies has approved the resolution passed by 13 District Co-operative Banks on 07-03-2019 to transfer its assets and liabilities in whole to Kerala State Co-operative Bank and issued order for amalgamation of 13 District Co-operative Bank with Kerala state Co-operative Bank, based on the resolutions passed by General Bodies of respective District Co-operative Banks as provided under section 14A of KCS Act. Accordingly from 29-11-2019 onwards, Kerala State Co-operative Bank and 13 District Co-operative Banks are functioning as a single entity with Brand Name “Kerala Bank”
The General Body of the Bank shall consist of;
i. Delegates of the A class members (PACS & UCBs)
ii. Ex-officio Directors
iii. Directors nominated by the Government
THE BOARD OF DIRECTORS
The Board of Directors of the Bank shall consist of twentyone members, of which fifteen members are elected by the ‘A’ Class members of the Bank. The classification of Members of the Board of Directors are as follows;
(a) Fourteen members, one from each district representing the PACS, elected by theA Class members of the Bank from among the delegates of PACS, categorized as follows:
i. General - 10 members
ii. Women (Reservation) - 3 members
iii. SC /ST (Reservation) - 1 member
The districts from which women and SC/ST members to be elected shall be decided by the Registrar of Cooperative Societies by way of taking lots. In subsequent terms the districts once represented, in each category, shall be excluded from the lot till all the districts have been represented.
(b) One member representing the Urban Cooperative Banks in the State is elected from among the delegated board members of the Urban Co-operative Banks by A class members of the Bank.
(c) Two Independent Professional Directors nominated by the Government.
(d) Four ex-officio members ;
i. Secretary, Co-operation, Govt. of Kerala.
ii. Registrar of Cooperative Societies.
iii. Chief General Manager, NABARD, Regional Office, Kerala and
iv. MD, Kerala State Cooperative Bank Ltd.
(e) Apart from the 21 members,
i. One member who shall be invited by the Director Board to represent the non-credit societies for a period of one year on rotation basis from among the Apex Cooperative Federations of the State. Such “invitee” shall not have any voting right.
ii. The Government may nominate two members as per section 31 of KCS Act.
BOARD OF MANAGEMENT (BoM)
A Board of Management shall be constituted by the Board of Directors as per the guidelines of RBI. There shall be a Board of Management consisting of not more than 12 members.
(i) At least fifty per cent of the members of BoM shall consist of persons having special knowledge or practical experience in respect of one or more of the following matters, namely:-
(i) accountancy, (ii) agriculture and rural economy, (iii) banking, (iv) co-operation, (v) economics, (vi) finance, (vii) law, (viii) small scale industry, (ix) Information Technology (x) any other matter the special knowledge of which would be useful to the Bank.
(ii) BoM shall be constituted from the elected members of the Board of Directors provided they meet the criteria specified. However, not more than 50 per cent of the BoM members shall be from BoD. Under all circumstances, BoM shall have at least two members from outside the BoD.
The Board of Management may hold meeting at such periodicity as deemed necessary. The Chairman of BoM shall be selected from the BoM by the BoD. The independent professional members of Board of Management will be paid sitting fees/allowances as fixed from time to time by the Board of Directors in accordance with the RBI guidelines. The tenure of the Board of Management shall be co-terminus with the tenure of Board of Directors.
Office and Administrative Set up
The Head Office of the Bank is at Thiruvananthapuram, Corporate Business and Liaison Office at Ernakulam, Seven Regional Offices (each for two adjacent Revenue Districts) at Thiruvananthapuram, Alappuzha, Kottayam, Thrissur, Palakkad, Kozhikode and Kannur, Credit Processing Centres (CPC) at each District Head Quarters and Branch Offices across the State. The bank operates through a network of 769 branches. The hierarchical order in the Bank is Chief Executive Officer, Chief General Manager, General Managers, Deputy General Managers, Senior Managers, Managers, Accounts Officers and assistants with necessary supporting staff.
The head office of the bank consists of the following 6 departments,each headed by a General Manager.
1. General Administration, HR & Law
2. Credit, Credit Monitoring and Recovery
3. Business Planning and Co-operative Credit
4. General Banking and Treasury
5. Audit, Inspection & Marketing
6. Information Technology and Digital Banking
The Regional Offices are headed by the Regional Managers in the rank of General Manager
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.
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.
- Accepts Deposits from DCBs, Other Institutions and Individuals
- Provides loans and advances to DCBs, Other Institutions and Individuals
- Performs miscellaneous banking functions
- Invests funds with other institutions
- Borrows from other institutions as per needs
- Liaison work with Government/RBI/NABARD
- Acts as an agent of Government
- Coordinates cooperative credit institutions
- Organizes campaigns on cooperation
- Cooperative Ideology & Principles
- Apex Bank with Good Network
- Vast Human Resources
- Refinance on Concessional Rates
- Support from Government
- Support from NABARD
- Quality Leadership at Management Level
- Dedicated Staff
- Most Modern Banking Technology Support
The beginning of the KSCB was humble but elegant. In 1916, at the time of its inception the Bank’s share capital was Rs.1.00 Lakh. Progresses of the Bank over the decades was tremendous and at present the Kerala State Cooperative Bank enjoying a prestigious position in the cooperative banking sector in the country. The growth indicators in financial terms can be summarized as given below:
Progress of KSCB at a Glance
|Sl.No||Particulars||30-Jun-1955||30-Jun-1965||30-Jun-1975||30-Jun-1985||31-Mar-1995||31-Mar-2005||31st March 2015||31 st March 2015-16|
|6||Loans & Advances||14.40||787.10||2662.23||10768.30||49661.15||166259.00||347827.66||341227.07|