The Covid-19 pandemic has changed the way the whole universe and every individual is thinking, and the banking sector is no exception. All of us have seen how our life and how banking was in the days before Covid. The banking that was supposed to come to us in 15 to 20 years, has come 15-20 years early due to Covid. During this period, digital transactions have increased exponentially in all the banks. Cooperative banks are not far behind. Banks have launched their digital products in a new way to make use of the situation created by Covid and the changing mindsets of the people. It has become even easier for people to get used to it as we have changed the way we think, change the way we meet and visit and we are striving to create all digital records. One good fall-out of this is that, just as IT companies operate from home, in the next 5 years, about 75% of bank transactions are likely to be done from home. Considering this possibility, all banks have started preparing for it. Everyone is talking about pre-Covid and post-Covid scenario. Banking too is changing accordingly. In the new way of thinking, everyone is convinced that digital banking is safe, necessary, useful and time and effort-saving. Covid has facilitated this. We must think about every situation in a positive way. If the banking system is to be taken to the global banking level, technology alone can come to the rescue in the post-Covid situation. All the co-operative banks are set for this. Cosmos has been a reputed bank in the IT sector since its inception. Cosmos eSolutions & Services Pvt Ltd is a fully owned subsidiary of Cosmos bank.
A Shining Star in Sooperation Cosmos Bank
महाराष्ट्राची शैक्षणिक, सांस्कृतिक राजधानी असलेल्या पुण्यात सहकारी बँकिंग क्षेत्राचीही पाळेमुळे घट्ट रुजली आहेत. महाराष्ट्रात याचा प्रसार करण्यात यात मोलाचा वाटा आहे तो कॉसमॉस बँकेचा. ‘एकमेका सहाय्य करू अवघे धरू सुपंथ’ही उक्ती सार्थ ठरवत सर्वसामान्य ग्राहकाला पिढ्यानपिढ्या विश्वासाच्या नात्यानं जोडून ठेवणारी शतकोत्तर पंरपरा असणारी ही बँक महाराष्ट्रातच नव्हे तर देशातही आपला विस्तार करत आहे. त्यामुळं ही बँक खऱ्या अर्थानं महाब्ड आहे.
An eye on the future banking
It will provide this platform not only to Cosmos but also to other small banks. Our bank already has various digital products. We are now working to enhance their capacities, quality and experience, and Cosmos is not doing this for itself, but it is also trying to see how other banks in the cooperative sector can be involved with it. Cosmos eSolutions & Services Pvt Ltd will provide state-of-the-art facilities to small banks in the co-operative sector. The system of providing services to the account holder, the payment system, the collection system are all undergoing rapid changes. At the same time, customer experience, customer education, customer safety are also being taken care of, special initiatives will be taken for this in the future too. They may even be implemented by some banks collectively. The Banking Regulation Act was amended in the initial phase of Covid and it has given the RBI a lot of control. However, some banks do not have the discipline required by the Reserve Bank. In the last few years, the cooperative sector has not been able to meet the expectations of the Reserve Bank. With a view to disciplining the co-operative sector, the Reserve Bank has decided to implement the division of business risks, restrict large loans and force small loans. Banks have been given a deadline of March 2024 to achieve this target.
Moreover, in the next five years, the RBI expects cooperative banks to privatise wherever possible and convenient. This will allow the RBI to increase its control even further. The bank has started taking steps towards it. Guidelines have been given accordingly. The RBI has also issued guidelines on mergers. There are about 1,500 cooperative banks in our country. I think in the next 5 years, at least 300 to 400 cooperative banks will merge with each other or with the big banks. This will increase the size of banks. This process has started in nationalised banks. This is made possible by the decision-making capacity, strength and political will of the Union Government. It was difficult to introduce it in the field of cooperation, but now steps are being taken to achieve it. Banks also need this consolidation, so the strength of the banks is going to increase. Now it is pointless to talk of the area of operation in digital services. I don’t think cooperative banks will fall short in any of these changes. Cosmos Bank has started preparing for the digital transformation. The bank, along with cooperative banks, will keep the essence of cooperation intact while carrying out risk division and division of loan distribution in the process of consolidation, progress and change over time. Besides, we are preparing to provide all services including accepting online deposits, taking loans on deposits, depositing money in loan accounts, closing deposit accounts and it is Cosmos Bank’s goal for the next 5 years to fulfil these goals.
Expansion
The bank has a network of branches spread all over Maharashtra. The bank is providing services in major cities like Pune, Mumbai, Satara, Phaltan, Karad, Sangli, Ichalkaranji, Kolhapur, Ahmednagar, Nashik, Aurangabad, Jalna, Jalgaon, Solapur, Amravati, Yavatmal, Bhusawal and Nagpur. Apart from that, the bank has expanded in six other states. It has a vast network of 140 branches in 39 major cities across seven states. Today, the bank has a turnover of Rs 27,500 crore and a net worth of Rs 2,000 crore. The RBI has opened the door to privatisation for cooperative banks with a turnover of over Rs 20,000 crore. Cosmos Bank is among the five banks in the cooperative sector that meets this requirement.
The first step
Cosmos is the first bank in the cooperative sector to get permission from the Reserve Bank to start its currency chest. Cosmos Bank was the first bank in the cooperative sector to implement the core banking system. The bank also updated the system four years ago in 2017. The bank has recently completed the execution of NPCI’s UPI 2.0 issuer platform certification. In the current digital age, the bank is providing all the latest services to customers. The bank offers all facilities like Debit Card, Internet Banking, Mobile Banking, RTGS, NEFT, NACH. Apart from Debit Card, Rupay and Visa, MasterCard services are also provided by the bank. In the future, the bank will provide many facilities like prepaid card, virtual card, prepaid forex card, etc.
The bank has established an easy connect with the young generation by providing state-of-the-art services on a priority basis and is also using New Age social media. The information about the bank’s services, activities and latest happenings is available on the youngsters’ favourite platforms like Facebook, LinkedIn, Twitter, Instagram, etc. The bank’s website is quite hi-tech and user-friendly. There is also a call centre providing uninterrupted services of the bank.
A bank that puts consumer interests first
Cosmos Cooperative Bank has a long 115-year-old history of customer service. Over the last 11 decades, the Bank has experienced many changes. Our work of bringing changes in customer-oriented work and technology with changing times and providing all kinds of innovative services to customers continues unabated today. As far as the changes in the Bank are concerned, the Bank has successfully crossed all milestones in its portfolio from being a Scheduled Bank in 1990 and Multistate Scheduled Bank in 1997 to bringing Core Banking Solution in 2003, getting Authorised Dealership Licence (Forex) in 2006, starting Internet and Mobile Banking Services in 2013 and shifting to a grand corporate office in 2014. The bank has branches in 7 states and is providing state-of-the-art services to over 18 lakh customers. The Bank has from time to time introduced various deposit schemes with attractive interest rates and convenient loan schemes at very low interest rates keeping in view the financial needs of the customers. The bank offers all the modern services like Net Banking, Mobile Banking, Rupay Debit Card, Demat Services, and Forex Services to its customers. It is worth mentioning that all these services of the bank match those of any other private bank. In order to protect the interests of the customers, the bank has so far merged 15 financially distressed small and large cooperative banks. The Board of Directors of the Bank is highly educated and has a professional outlook. The Board of Directors has always been a guiding force and extremely important for the development of the Bank. We intend to take other small cooperative banks along while we work to achieve progress. In the future, the main focus of the bank will be on digital banking, retail, and disbursal of priority loans. I am confident that my colleagues and I will succeed in achieving our goals in both these areas.
Along with all other positive things, I would like to specifically mention that the staff is an important asset to the Bank. It is because of the courage shown by the bank staff while facing various good and bad incidents, the integrity and loyalty with which they have rendered service that the bank has prospered so much and gained stability. We have earned the trust and goodwill needed while working as a financial institution.
Cooperative Movement and Banking
In the economic sector, the cooperative movement is considered to be very important. Many countries of the world have cooperative movements but the cooperative movement in India has some unique features. It has been almost 100 years since the cooperative movement started in India. These include cooperative sugar factories, cooperative mills, cooperative banks and many more. Currently, there are 1,500 cooperative banks in India. The Government of India recently amended the old law in India, the Banking Regulation Act, and now the Reserve Bank has almost 99 percent control over the cooperative banks. I have almost 45 years of experience in the cooperative sector. When I was on the RBI committee, I travelled all over India and discussed in detail with the co-operative banks there about business challenges, difficulties, competition, controls, etc. At that time, I realised that many cooperative banks are doing a very good job. But over the past month, the RBI has issued a new fatwa against cooperative banks. Some cooperative banks in the state are to be merged with Maharashtra State Cooperative Bank. I guess the RBI will either liquidate about 100 of the 1,500 banks this year or merge them with some other bank. Out of the total cooperative banks, 400 to 500 banks are small and have quite a few restrictions. Therefore, I think these banks will gradually get wiped out and will cease to exist. What is the future of the cooperative sector is a question on everyone’s mind, but the banks that will overcome the challenges will always be at the forefront. The cooperative banking sector is serving the customers very well. Cosmos Bank is also providing good personal services to its customers.
When it comes to cooperative banks, customers feel attachment and affection for the bank. So people want to deposit their money with cooperative banks. People still deposit money with good cooperative banks. Many banks have maintained the reputation of the cooperative sector. I think in the future, the cooperative banks that will absorb things like modern technology, emphasis on small loan distribution, minimum NPAs, best customer service, increase in profitability, etc. and move forward, will be capable of and competent enough to face the competition from any other bank.
A bank that comes to rescue in difficult times - Akshay Gadgil, PNG Brothers
The bond between PNG Brothers and Cosmos Bank is now 10 years old. We started with Cosmos Bank, offering small proposals, but the relationship was strengthened by their customer service and financial planning. Gradually, our financial transactions went on expanding exponentially. Our family business is more than 100 years old. Cosmos Bank too is a cooperative bank operating for more than 115 years. Under the leadership of Milind Kale, Chairman of the Bank, it is providing excellent customer service. In business, there are many occasions when you do not know how to get out of the financial difficulties or find a solution to them. Whenever we have put our difficulty before the bank, it has provided us the solution. I wish Cosmos Bank all the best for its future journey.
Valuable contribution to our business success Supriya Badve, Badve Engineering Pvt Ltd
The bond between Badve Engineering and Cosmos Bank is more than 15 years old. This bond was formed when our business turnover was small. Today, the turnover of Badve Engineering has gone up to Rs 5,000 crore. Cosmos Bank has been with us throughout this successful journey.
We could complete our projects on time because the Bank provided us with adequate financial assistance by sanctioning industrial loans for our projects from time to time. Apart from the business, our personal account is also with this bank. The Bank has provided excellent service to us for both these accounts. I am always grateful to the staff and officers of the bank for providing prompt service by giving priority to customer welfare. I wish that the progress graph of Cosmos Bank keeps going up.
The bank that supports us in our struggle Jagdish Kadam, Rajpath Infracon Pvt Ltd
Cosmos Bank and I have a dual bond. One as a creditor and the other as an affiliate of the bank’s chairman and Board of directors. In the case of Cosmos Bank, I would like to state for sure that the money from some banks is auspicious for our business. I have a first-hand experience of that. In a nutshell, we got a state highway contract from the Public Works Department and we needed a bank loan. At that time, I met Milind Kale, chairman of the bank and discussed the matter. Within a few days, the bank approved our loan. Around that time, the second Covid wave began. So everyone was hassled. I decided that we would stay positive in the depressing scenario around and carry on with our work. From 7 am on May 30 to 7 am on May 31, 2021, Rajpath,
our company, set a new world record by working on a 39.60-km road in one day. We were able to set this record due to the financial assistance provided by the Bank from time to time. As I said earlier, this is an example of how the money from some banks is auspiciousl to us. The Board of Directors is the face of a cooperative banks. The Board of Directors of Cosmos Bank consists of Chairman Milind Kale and some of his associates who are chartered accountants. There are also experts in cooperative movement like Munkund Abhyankar. The employees of Cosmos Cooperative Bank are very kind and affectionate. Although Cosmos Bank is a cooperative bank, it has branches not only in this state but many other states in the country. This Bank is known as a very good cooperative bank. This bank is not lacking in the latest technology either. Whether it is Net Banking or Rupay Card or any modern system, the Bank has promptly provided these facilities to its customers, members, depositors and hence all the depositors and members have full confidence in this bank. I wish the bank continues to make such progress in the future too.
The journey spanning over a century
Cosmos Bank was established on January 18, 1906 as a cooperative credit society. The 115-year-old bank was established by Krishnaji Sadashiv Gore and Shankar Hari Barve. Right from its inception, the Bank has won the hearts and trust of ordinary citizens by providing then service with affection. As a result, the bank’s customer base has grown rapidly in a short period. In just 20 years, this credit society has transformed into a cooperative bank. Ever since it started operating as a bank, Cosmos has been racing forward. The bank celebrated the Silver Jubilee in 1931 and Golden Jubilee in 1956. In the year 2006, the bank completed 100 years.
Retail loans monsoon bonanza
Currently, the bank has a special provision for retail loans monsoon bonanza for all customers. Under this, interest rates on all types of retail loans have been reduced. Home loans are offered at an interest rate of 6.70%, car loans at 7.40%, property mortgages at 8.75%, professional comfort loans at 8.25% and Cosmo small business loans at 8%.
Change manifesting through advertisements
The bank had published an advertisement in the daily Sakal in September 1988. We’ve reprinted this ad for our customers and readers. It is clear from this advertisement that the common man was at the centre of customer service even then. Having a savings account and opening a bank account are still very important -- this is the message that the bank had underlined through its advertisement 33 years ago.
The year 2021 Advertisement:
Today’s ad explains the bank’s policy of changing over time, accepting innovation.