Welcome to
The Formation of Pravara Cooperative Sugar Factory and the successful working it has shared a new area in the history of the Cooperative movement in India in general and in Maharashtra in particular.
The foresight of Late Dr. Padmashri Vithalrao Vikhe Patil has transformed the way of life of agriculturists, collective efforts through cooperation have given a new dimension and in course of time the area of river Pravara has grown up into a big complex where multiple activities viz Sugar Factory, Paper Mill, Distillery, Milk Chilling Plant, Soil Testing Laboratory. Seed Farms, Transport Operators Society, Consumers Society, PVP College of Arts, Science and Commerce, College of Engineering, Polytechnic, Pravara Rural Medical Hospital College, and many more are in existence. Among them Pravara Cooperative Bank under the system of Urban Banks is also marching ahead with successful working since 1975 under the able guidance of Hon’ble M.P. Shri.E.V.alias Balasaheb Vikhe Patil, ExCabinet Minister, Heavy Industries & Public Enterprises, Government of India, who happens to be the main source of inspirations. Bank has started banking transactions with a meager share capital of Rs.2 lacs and 400 members.
We are living in an environment that is full of paradoxes and contradictions. Whereas man achieved splendid success in the sphere of science and technology, his attainments in the field of social justice, economic uplift, and human relations lag far behind. The benefits of science and technology reached certain parts of the world, certain parts of the country, and certain sections of society. The affluent sections of society both in urban and rural areas were more than successful in fulfilling their ambitions and aspirations while poorer sections of these societies continued to live under grinding and ever-increasing poverty who were denied even basic necessities of life. As far as our country is concerned more than half of the population lives below the poverty line, so percent of the total population lives in villages and nearly 70% of the farmers are small/marginal.
This brief profile of our villages makes it evident that underprivileged village people continue to suffer even amidst plenty. With this in view, the emphasis of the Indian Government on rural development is more than relevant and is most welcome. But the going is not just a walkover. It is hazardous, challenging, and rewarding if one really means it. The only question now posed for an answer is who should take up this challenge and how to go about it?
This requires conscious deliberations individually as well as collectively. One would hardly disagree that the success of integrated rural development efforts is dependent on conscious involvement of all the affluent segments of the society at it cannot be left only to the Government. Social service organizations, medium and big industries, and other commercial cooperative organizations can render yeoman service by accelerating the pace of rural development. Particularly the business organizations may make a landmark in the direction by applying business acumen to the management of rural development efforts. There may not be a dearth of such examples and the example of Pravara Cooperative complex in general and of Pravara Cooperative Bank, in particular, can conveniently be cited as one amongst them.
Vision Of The Bank
With a vision Padmashri Dr.Vithhalrao Vikhe Patil created facilities for education, and agricultural processing units for monetary purposes, health (hospital), and housing. Further, it was experienced that the existing system of Banking (PSU Banks & DCC Bank) is not sufficient to meet out credit facilities for purchasing land, medical needs of the family, education, and other consumption purposes. Urban Coop. The banking system was felt a necessity for the area of the 50 villages. All the people come together along with other peoples raise share capital of 2-00 Lakh with 400 members and now it is banking unit of about 429.15 Lakh share capital without assistance of Government. It is a self-reliant movement.
Pravara Sahakari Bank was registered in 1974 and commenced banking business in June 1975. Bank was included in the second schedule of Reserve Bank of India on April 5th, 2003, and became a scheduled cooperative bank.
The bank is basically from a rural area. The Head office of the bank is located in Loni Bk. The human touch in the services is a slogan of the bank.
From its inception, the bank has generated 27990 self-employment through need-based finance in the operational area of the Bank.
Before the inception of Pravara Co-op. Bank money lenders laid a more important role to finance in the area of operation of the bank. With the help of the Pravara Co-Op. Bank rural entrepreneurs, self-employed persons, agriculture laborers, small business entrepreneurs, and marginal farmers were rescued from the clutches of money lenders.
At present, our bank is having 120648 account holders who are banking with branches. The system and procedure of lending are also made easy to cater to the genuine needs of the rural masses in the area. Even after this money lenders are not completely eradicated from the area.
As we are working in the rural areas for future expansion of such banks following factors are to be considered by regulators–
i) The basic financial growth of the area is depending on agricultural income. Trade and commence and money circulation in the area is depending upon agriculture inputs. As such the NPA norms instead of 90 days should be one year for all types of advances.
ii) Income tax will be exempted for urban banks particularly in semi-urban and rural areas as primary agriculture societies and regional rural banks are exempted from income tax.
iii) Bank should be able to raise finance from cheaper resources to ECB and IPO.
iv) Interest should be given to the CRR balance maintained with the Reserve Bank of India.
Urban Cooperative Banking in Rural areas tries to uplift weaker sector person to the slightly upper-income group. Urban banks may find it difficult to compete with private sector banks as they are trying to grab more business in the market. To compete with the nationalized banks is also difficult. Urban Cooperative Banks which are working in rural areas do have the potential in working but may need certain protections.
Chief Executive Officer
PRAVARA SAHAKARI BANK LTD.