The Bhubaneswar Urban Cooperative Bank, which is up for sale. Telegraph picture

Bhubaneswar, Sept. 7: The Kendrapara Credit Cooperative Society has scripted a success story at a time when things were not looking good for a number of cooperatives in the state.

The society has already opened 13 branches in Jagstinghpur, Jajpur and Cuttack apart from Kendrapara. Four more branches are expected to open soon.

President of the society Pramod Sahu said: “The society has been able to make annual transactions of Rs 73.67 crore because of the goodwill of our customers and hard work of the staff and management members.”

In sharp contrast to its success, losses of the Bhubaneswar Urban Cooperative Bank, which is up for sale, is pegged at Rs 32 crore. These losses have accumulated over the last decade. Significantly, this bank was supposed to have been managed by government officials with least political interference. The Kendrapara Credit Cooperative Society, which was set up one year after the 1999 super cyclone, has managed to overcome all its financial problems and turned itself into a profit-making venture. Nearly 28,000 people have been its beneficiaries.

Secretary of the society Prahalad Sahu said: “While the society’s deposits have reached Rs 40.30 crore, its has lent Rs 33.25 crore to the people. While the deposits have been in national banks in the form of various investments, the society has kept a deposit of nearly Rs 9 crore with it to meet any unforeseen situation.” Manager of the society’s main branch Manoj Sahu said: “The society has followed a simple business model to keep its business intact. The society will give loans only to its members. Only on special request can it consider an outside proposal. To take a loan from the society, one has to give two guarantors who have been regular customers of the society. We check whether the creditors paid their installments regularly.

“Our 100 odd agents visit our creditors everyday to collect due amounts.”

The society has helped bring to life the dreams of many poor people who have turned into successful entrepreneurs.

Surendra Sahu, 53, is one of them. “I lost everything in the super cyclone. However, with the timely intervention of the Society, I have been able to start a fresh life. Taking loans from the society, I managed to expand my business and have been able to set up a motorcycle-tyre repairing shop.”

Forty-year-old Ajay Kumar Das was able to revive his business after the super cyclone with the help of the society. “Now, I earn between Rs 1,500 and Rs 2,000 a day from my gift shop,” he said.

Abdul Riha is another beneficiary of the society. He already has an ice-factory and is planning to set up a rice mill.

“I have transacted with the Society a number of times. With the help of the Society, I set up an ice-cream factory and am planning to set up a rice mill in the future,” said Riha.