FINANCE

JOINT STOCK BANKS

The following are the places in the district having banking offices (other than co-operative Banks) Gadhinglaj, Ichalkaranji, Jaisingpur, Kolhapur and Kurundwad. The table below gives the names of banks having offices in each of the above places: -

TABLE No. 11.

KOLHAPUR DISTRICT-BANKING OFFICES (OTHER THAN CO-OPERATIVE) IN 1956.

It would be seen from the above table that only three banks viz., The Commercial Bank Ltd., The Ratnakar Bank Ltd. and The Ganesh Bank of Kurundwad Ltd. have their registered offices in the district. The rest have them outside the district. These include the branch-office of the State Bank of India at Kolhapur.

The first bank that was established in Kolhapur district in 1913 was an urban co-operative Bank viz., the Kolhapur Urban Co-operative Society (now known as the Kolhapur Urban Co-operative Bank Ltd.). Among the banks having their registered offices in the district, the first one viz., the Ganesh Bank of Kurundwad Ltd. was established in 1920. The other two viz., the Commercial Bank and the Ratnakar Bank Ltd., were registered in 1936 and 1943 respectively. Mention may also be made of the Bank of Kolhapur, which was registered in the year 1926. The total deposits and the total loans and advances of the bank amounted to Rs. 90,54,000 and Rs. 68,21,000 respectively in the year 1951. The bank was subsequently closed down. There were other banks also which had their registered offices in the district, but most of them either went into liquidation or merged with other banks. Thus, there were eight banks in the city of Kolhapur as recorded in "Social Survey of Kolhapur city Volume II''' ["Social Survey of Kolhapur City-Volume II", Shri N. V. Sovani, 1951.]

Operations of the Joint Stock Banks.

Operations of the Joint Stock Bank.-The main business of these banks is to attract deposits-current, fixed and savings and to make available the requisite finance to their clientele. In all, there are eleven commercial banks operating in the district since 1957. They finance the storage and movement of agricultural produce in general and jaggery, the main agricultural product of a high quality, in particular. They also provide finance to various industries of the district such as textile mills, sugar mills, oil mills, engineering concerns etc. against pledge or hypothecation of liquid assets. Their insistence on tangible securities which are easily realisable is in tune with the common practice of banks as regards their advances. They are not so much concerned with the use of funds they lend as with the prospects of their repayment and the margin of profit. Their profits are mainly derived from the differences between the cost of their borrowings and the income from their advances. The Kolhapur branch of the former Imperial Bank of India which was opened in 1952 was taken over by the State Bank of India when the latter came to be established in 1955. This branch undertakes all commercial tanking transactions. As an agent of the Reserve Bank of India, the branch conducts Government cash work, provides remittance facilities to banks, extends exchange and remittance facilities to the public and pays, receives, collects and remits money and securities on Government account. Kolhapur is one of the centres at which a "Pilot" scheme for the provision of credit to small scale industries is being worked by the State Bank of India in collaboration with the State Financial Corporation, Government authorities and co-operative banks. The object of the scheme is to enable a small industrial unit to obtain its entire credit requirements expeditiously by approaching one of the local agencies participating in the scheme.

The following tables giving statistical information regarding the operations of various joint stock banking offices in the district include also the figures of the branch-office of the State Bank of India at Kolhapur:-

TABLE No. 12.

OWNERSHIP OF DEPOSITS WITH THE BANKS IN KOLHAPUR DISTRICT FOR THE YEAR 1955-56.

continued.

TABLE No. 13.

 OWNERSHIP OF DEPOSITS WITH THE BANKS IN KOLHAPUR

DISTRICT FOR THE YEAR 1955-56.

TABLE No. 14

OWNERSHIP OF DEPOSITS WITH THE BANKS IN KOLHAPUR DISTRICT FOR THE YEAR 1955-56.

continued.

TABLE No. 15.

ANALYSIS OF ADVANCES OF BANKS IN KOLHAPUR DISTRICT ACCORDING TO PURPOSE FOR THE YEAR 1955-56.

TABLE No. 16.

ANALYSIS OF ADVANCES OF BANKS IN KOLHAPUR DISTRICT ACCORDING TO SECURITY FOR THE YEAR 1955-56.

According to the Agent of the. Kolhapur Branch of the State Bank of India, the banking facilities and availability of credit resources in the district may be considered adequate.

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