The Bihar State Cooperative Bank Ltd

Bank History – The Bank was registered in the name of Bihar and Orissa Provincial Co-operative Bank on 16.03.1914 under the Cooperative Societies Act II of 1912. Its registration no.267/1913-14. Initially, the area of operation of the Bank was Bihar and Orissa. After the separation of Orissa in the year, 1936-37 its area of operation was confined to Bihar and its name was changed to Bihar State Co-operative Bank Ltd. in December 1950. After application of the Banking Regulation Act 1949 to Co-operative Bank on 1st March 1966, this Bank was included in the second schedule of Reserve Bank of India in the month of July 1966. Earlier, The bank was doing trading business also, but this business was transferred to Bihar State Co-operative Marketing Union after its establishment in the month of June 1958.

The Founder Members of the Bank were as follows:

  1. Maharaja Bahadur Guru Mahadev Sharan Prasad Shahi (Hathua)
  2. Raja Bahadur Kritya Nand Sinha, (Banaili)
  3. Rai Bahadur Harihar Prasad Narayan Singh (Dumraon)
  4. Raja P.C. Lal (Purnea)

The Bank was established with an initial fund of about three lacs as detailed below:

  1. Share Capital 0.53 Lacs
  2. Reserves 0.01 Lacs
  3. Deposit 2.44 Lacs
  4. Working Capital 2.98 Lacs

Business Performance – The Bank is presently doing its business through its 11 branches and 23 DCCBs affiliated with it.

The Bank was earlier doing the lending business under the Agriculture sector only. But after the issuance of guidelines from NABARD regarding non-agriculture finance, the Bank started business under the non-agriculture sector in the year 1990. Thus the Bank is presently doing the lending business in Agriculture as well as the Non-agriculture sector.

Operational Efficiency – Bank has improved its operational efficiency during the last 2-3 years. The employees of the Bank are being sent to BIRD and other training institutions, for imparting training. Some new recruitment on a contractual basis has also been made of the persons having technical qualifications like MBA, MCA, BCA, etc. to improve the operational efficiencies.