Success story of the Kanga Cooperative Primary Agriculture and Rural Development Bank Ltd; Dharamshala Distt. Kangra (H.P)

The superb performance of the KPARDB Successively for two years i.e. 1996-1997 & 1997-1998 has brought a glow of pride to the state of Himachal Pradesh and all other circle which are associated with this institution. This bank has won best performance award for the year 1997-1998 as adjudged by the NABARD, Head Office Bombay. Now it attained the status of recognize excellence at the national level and dynamically progressing during the current years, setting new record in lending and recovery.

It will be appropriate to make reference of the origin of this KPARDB and its development phase. This institution was registered on 30th September, 1966 with H.Q at Dharamshala when the area of Kangra was under the erstwhile state of Punjab. On 1st November, 1966 this District was allotted to Himachal Pradesh due to re-organization of states of Punjab, Himachal Pradesh and Heryana. Later on it actually started functioning in the month of March, 1967 in single hired room with merely two members in staff. On its path of gradual development over the years it expended its branch network and business activities. Presently its area of operation extended of three hilly districts of Kangra, Hamirpur & Una of the state of Himachal Pradesh with 12 branch offices situated mostly at sub Divisional level.

In fact the significant achievement made by this bank is the sequel of dedicated services rendered by its staff, cooperation from the managing commit of the bank, valuable guidance from the NABARD and co-operative department of the state Govt. the main factor of the success story are being summed up as under


We provide distinguished services to our clients as the are entitled to privileges of a customer as well as owner i.e. share holder contrary to the others commercial bank where they are merely customers. Our members have easy access to the Branch Managers in the field officers, and General Manager in the Head office. Thus we have developed healthy atmosphere conductive to the customer oriented services. We have instructed our employee to pay special attention to the visitors, listen to their problem with patience, conversed with them in local dialect, deal with there loan cases in minimum time and provide them financial assistance according to their requirement. By giving practical shape to the above methodology, the bank has been recording very significant growth in its business performance during the past 4-5 years which was about at the level of Rs. 846.42 lacs in the year 1995-1996 has since pushing up to Rs. 3203.46 lacs within a span of 3 years i.e. up to 31.03.1999we expended our branch network in potential areas on priority basis to ensure effective coverage both for lending activities and recovery performance. The bank diversified its loan portfolio by venturing into new activities under non Farm-sector like cottage & tiny villages industries and transportation. The bank has also made good progress in other fields like Farm

Mechanization, Horticulture and minor irrigation. The figure of lending achievements for the past five years are being given as below:-

Year Amount (in lacs)
1994-95 155.62
1995-96 405.33
1996-97 809.57
1997-98 1051.16
1998-99 1395.56


Recovery performance is a vital aspect for adjudging the performance of an institution. We have planned recovery performance at the level of more then 80%. NABARD has also provided assistance to this bank under cooperative Development fund for one jeep and three motor cycles to push up recovery work. The deployment of these vehicles in the area brought miracle in effecting recoveries. Our branch officers send demand notices to the loanee’s well advance i.e. about two month’s before the due date. Thereafter personal contact programme is launched. The will full and chronic defaulters are persuaded to repay the overdue amount through special recovery campaign using hard steps under the provision of sale proceeding. The staff is duly rewarded for better recovery performance by allowing them cash incentive. The assistant registrar, cooperative societies who function as sale officers for recovery purpose are also extending valuable cooperative in this field. The director of the bank also uses their influence in the effecting recoveries the respective areas. The role of management in making recovery of overdue is highly laudable. The recovery performance of the bank during the past five years is being below:-

Position as on 30th June each year

Year Demand Collection %age of collection
1994-95 181.77 212.06 66.6%
1995-96 212.58 146.33 68.84%
1996-97 316.00 253.86 80.34%
1997-98 534.36  429.70 80.41%
1998-99 789.81 638.46 80.71%

The recovery performance is reviewed at the H.Q. level on monthly basis and with the bank management on quarterly basis besides in the M.R.C. meetings. Special meeting of branch manager are also convened to monitor recovery performance and providing necessary guidelines to work out action plan make improvement for achievement of targets


The bank had been incurring losses continuously since its inspection. However due to implementation of development action plan (DAP) as suggested by the NABARD the financial base of the bank was strengthened and all accumulated losses were wiped out and it turned into profit earning institution. The strategies incorporate in memorandum of understanding (MOU) in consultation with the NABARD and entered into with H.P. state cooperative Agriculture and rural Development Bank Ltd; Shimla (SARDB) had been adopted and perused effectively. As a result of these measured, the trend of net profit earned during the past three years was recorded as detailed below

Year Profit
1996-97 27.96 Lac
1997-98 17.32 Lac
1998-99 33.68 Lac


The role of the bank management in bringing stability and prosperity to the institution is worth recording. Through the role of all the previous management had been commendable yet the business of the bank flourished to the new heights during the tenure of present management. The achievement of better result was possible due to the prudence of decision taken by the management on the one hand and allowing free hand to the chief Executive in the implementation task on the other hand. The concept of professional approach stressed upon by the management during the past years has revolutionized working of the bank. The management has also played vital role in boosting the morale of the staff by rewarding them as per financial result derived at the end of each year. The local Director and the president of the bank have allowed free access to the shareholders/borrowers of the bank and acted promptly and judiciously for red resale of their grievances, if any. Thus the management has always lent a hand of cooperation in connection with bank matters. It can be rightly said that our management has proved like a lighthouse for this institution and its role would be remembered in future.

It is wished that this bank may progress leaps and bounds and get recognition as a model institution and become a source of inspiration to other credit providing institution.

“The process by which banks create money is so simple that the mind is repelled.”

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