Ahmedabad-based Gujarat State Cooperative Agriculture and Rural Development Bank Ltd, popularly known as Kheti Bank, Tuesday declared a 20 per cent dividend–the highest yet in its 70-year history. It also amended its rules to provide gold and education loans to farmers.
“For the first time in the history of Kheti Bank, we announced a dividend of 20 per cent. The 70th Annual General Meeting (AGM) was called after four years. We could not call the meeting earlier due to the absence of the custodian. The meeting falls under the purview of the custodian,” Dollarrai Kotecha, chairman of the bank, said on the sidelines of the AGM. The dividend declared by the bank has never been above 12 per cent.
In the financial year 2021-22, Kheti Bank clocked a net profit of Rs 29.29 crore, more than double the Rs 11.5 crore
clocked in 2020-21. During the AGM held Tuesday, the bank also amended some of its rules and provided more credit to its three lakh members, who are mostly farmers.
Under the changed rules, a farmer-member can avail 85 per cent of the valuation of the gold in his possession as a loan. Members have also been allowed to loan up to Rs 20 lakh if any of his kin is planning to travel overseas for studies. Similarly, a farmer could get a loan of up to Rs 10 lakh for building a house or purchasing a car or motorcycle. Under the changed rules, loans from the bank have also been made available for marriages and for incurable diseases within the family.
Subscriber Only Stories
“We have always wanted to give gold loans. But we did not have the supporting infrastructure needed for this. Now, we will begin from six to seven locations,” K B Upadhyay, managing director of Kheti Bank, told The Indian Express. The bank will also be giving out education loans and credit for purchase of house, car or for marriage for the first time. “We will be asking for gold or property to be mortgaged against such loans,” said Upadhyay, a retired IAS official.
The bank disbursed total loans worth Rs 158.28 crore during the financial year 2021-22. Officials from the bank said it disburses loans for more than 300 activities under the farm and non-farm sectors.
Meena’s husband Vidyasagar passes away