Demonetization blessing in disguise, say co-op bankers

Demonetization seems to have had a happy ending for at least one group — cooperative banks in the Saurashtra region, who claim that after the initial pangs, the effects of the notes ban is now beginning to pay in terms of greater deposits.

Bankers and depositors in Bharatiya Janata Party (BJP)-controlled Dhrangadhra assembly segment, which is a part of the Surendranagar Lok Sabha constituency, say demonetization has actually helped boost the growth of rural and urban cooperatives, thanks to greater deposits by account holders who wish to avoid the inconvenience of move's initial days.

"Demonetization has come as blessings in disguise … turnover has grown to Rs 100 crore and (we) earned a record profit of Rs 50 lakh in FY2016-17. Had note ban not implemented, the bank would have taken another 25 years to earn this much profit," said Kishor Bhandari, CEO of the Dhrangadhra Peoples Cooperative Bank, adding that deposits from the parallel economy have completely stopped.

At the Dhrangadhra Peoples' Cooperative Bank in the city's market area, depositors were present in modest numbers. At the Patadi Nagrik Cooperative Bank, another leading cooperative bank, too, depositors lined up to deposit money.

"Initially, we suffered a lot due to nota bandi (note ban) but we have no issue now. There is no problem to get fresh loans," said Anandiben Sha, a farm labourer, after depositing part of her weekly wages.

Rural and urban cooperative banks in Saurashtra region, which sends 48 of the total 182 members in the Gujarat Assembly, have a collective turnover of more than Rs 10,000 crore.