Shivalik bank opens its 1st two branches in Lucknow

Lucknow, 4 November , 2017: Shivalik Bank, one of the largest Urban Cooperative Banks (UCB) has opened two more branches at Alambagh and Vikasnagar in Lucknow on Wednesday, November 1, 2017. The bank has a target of opening seven new branches in Uttar Pradesh, Madhya Pradesh and NCR in the financial year 2017-18.

While the Alambagh branch of the bank was inaugurated by chief guest Shri Sanjiv Mittal, Principal Secretary, Finance, Vikasnagar branch was opened up in the presence of chief guest Shri RK Tiwari, Additional Chief Secretary, Commercial Tax, Entertainment Tax, Labour and Employment, Uttar Pradesh government.

Having emerged as the largest UCB with and association of 9000 self-help groups in state, Shivalik bank operates through 24 branches across UP, MP, Delhi, and Uttarakhand. It has 12 Business Correspondents offices in remote villages.

With a target of bringing in 35 more branches in the next financial year, the bank has already secured RBI permission to open branches 10 in districts, including Shamli, Sardhana, Mawana, Hapur, Noida, Lucknow, Khargone, Dewas, Ujjain across UP and MP.

With the intent to expand area of operation to adjoining states giving a greater push to Digital Banking for the benefit of customers and increase per employee productivity, Shivalik bank has set a target of a net proft of ₹ 10 crore for the next financial year. It also aims for Rs ₹ 1,250 Crore of deposits, Rs ₹ 810 Crore as loans and credits, ₹ 55 Crore as share capital for 2018-19.

Pioneering the benchmark for its excellence in banking services, Shivalik Bank provides a gamut of banking solutions to its valued customers including Loan Products (personal, professional, business & microfinance), Deposit products (Savings A/C, Current A/C, Fixed Deposit) & services like remittances, lockers, ATM Cards, Insurance, Forex, Modern Payment system etc. Also, the Bank has been instrumental in meeting the credit requirements of its clients via demand loans, term loans, overdraft & financial guarantees against tangible assets.

The Bank also holds corporate agency for Oriental Insurance, Bajaj Allianz & ICICI Lombard (General Insurance), Star Health (Medical Insurance) and Life Insurance Corporation of India (Life Insurance).
Other key initiatives of the bank for next financial year include migration to commercial bank (Small Finance Bank) and expansion of branch network and area of operation. Besides, that has already received approval from the RBI to expand its area of operation to Delhi and two districts in Uttarakhand. As a result, the Bank will focus on stabilizing the newly opened branches in the current year and apply to RBI under Annual Business Plan 2017-18 for a few additional branches in the newly expanded area of operation.

The bank also contemplates to implement a CRM system and open newer avenues for customer interaction such as call centres; online chat facility and email help lines. In addition, the bank aims to provide a seamless customer experience on all channels – branch banking or one of the digital channels. This requires many initiatives such as long term, large scale technological improvements and staff training.

It has a plan to further automate its risk reporting mechanisms and prepare itself for future conversion into a scheduled commercial bank. In addition, the bank is working on developing a robust framework on information and cyber security.

Besides, a digital roadmap built on 5 pillars, include Employee Digital Enablement, Internal Processes, Customer Experience, Compliance, Risk and Reporting, Data and Analytics.

Incorporated in 1997, Shivalik Mercantile Co-operative Bank Ltd. commenced its journey as a district level urban cooperative bank (UCB) on 5th Sept. 1998 with a single branch in Saharanpur. Expanding and growing steadily, the bank first got permission from RBI to open its branches anywhere in U.P. In 2010, Shivalik Bank acquired a loss making small bank in Dhar (M.P.) and converted it into a profit-making branch for the bank within a year. This successful acquisition also helped the bank in attaining Multistate Bank status, a first for any UCB in the State of U.P. Encouraged with the success of the acquisition, the bank successfully acquired another cooperative bank at Indore (MP).
Afzal Ali Shah Maududi