5% incentive on interest for PACS that repay loan promptly: Kerala Bank AGM
Kerala State Cooperative Bank (Kerala Bank) president, Sri.Gopi Kottamurickal has informed the Annual General body Meeting (AGM) of the Bank for the year 2024-2025 that the Bank will be providing pay back of 5 % on interest on loans of Primary Agricultural Credit Societies (PACS)to those PACS that repay loans promptly. The AGM was held at Al Saj Convention Centre in Thiruvananthapuram on September 19,2025.
The Bank has lowered the interest rate on General Banking Cash Credit (GBCC) disbursed to PACS from 10.25 % to 9.75 % and the interest rate on Gold Loan Cash Credit from 9 % to 8.9 %.The bulk deposits above Rs 15 lakh put in by PACS and individuals are being provided an additional interest of 0.5 %.
This year the tenure of first Governing body of the Kerala Bank, which took charge on November 2020, comes to an end. The growth on business in these five years has been to the tune of Rs 19,912 crore. The business which stood at Rs 1,01,194 crore has been increased to touch 1,21,106 in 2024-25.
The total loan portfolio of the Bank has now crossed above 51,000 crore.A total of 27 per cent of this amount is being disbursed to agricultural loanees, who comes to more than 5.5 lakh customers. A total of 12 per cent is disbursed to MSME sector and 25 per cent to PACS.
The customers who flocked to the cooperative sector got mobile banking services including UPI services through the Kerala Bank from 2023 onwards , after the Bank quickly completed the IT integration which earlier functioned on 14 different softwares. The UPI services of the Bank, in a short span of time, witnessed an inflow of more than Rs 16000 crore in transactions that ran to more than 8 crore. Now, Bank has a deposit base of Rs 70,763.11 crore. Gold loan increased to Rs 1267 crore when 57 days passed in an ongoing intensive gold loan campaign of 100 days.
The Bank disbursed Rs 467 crore for converting PACS into Multi Service Sectors under the PACS as MSC scheme through NABARD support .
A total of 1351 representatives from PCS attended the AGM, which was presided over by Bank president, Sri. Gopi Kottamurickal. Vice president, Sri.M.K.Kannan welcomed the gathering. Chief Executive Officer (CEO), Sri.Jorty M.Chacko presented the report on the performance of the Bank during the year 2024-25.
The AGM was attended by among others, State Cooperation Department Special Secretary, Smt. Veena N.Madhavan, IAS, Board of Management, chairman, Sri.V.Reveendran, Bank Directors, Board of Management members, Chief General Managers, Sri.Roy Abraham, Sri.A.R.Rajesh and Sri.A.Anilkumar, and General Managers. Bank director, Adv.S.Shajahan proposed the vote of thanks