Business Remedies | Charu Bhatia, Senior News Editor | May 25,2025 | With the experienced insights and light on the operational strategies of cooperative banks, Mr. DS Narula, General Manager of The Rajasthan Urban Co-operative Bank Ltd. shared with Business Remedies how the bank serves the public successfully and is one of the most trusted sources of commercial lending in urban city, Jaipur. DS Narula is a look upto name in the banking sector. He has served a long time in Rural Cooperative Sector, and post-retirement, he joined The Rajasthan Urban Co-operative Bank, which shows his fluidity and diverse approaches and work profile.
Question- Please tell us something about how urban-cooperative banks came into being. Also, kindly add how many branches are functioning in Jaipur?
Answer- Well, the history of this kind of bank clearly dates back to post-independence when RBI acknowledged the need of a widespread and financially sound framework of urban co-operative banks. Later, concerns were raised about their regulation. Cooperative banks with paid-up share capital and reserves of Rs. 1 Lakh were brought under the purview of Banking Regulation Act 1949 and within the ambit of RBI. However, after 1991 economic liberalization, these banks were given autonomy and they started working independently, but within the rules and regulations of RBI.
There are two branches of the bank, functioning in the urban city of Jaipur and all the employees who are working in both the branches are on contractual basis.
Question- Sir, please elucidate on your working experience and how do you describe your approach to leadership in the banking environment?
Answer- I am retired Deputy General Manager from Rajasthan State Co-operative Bank Ltd. After retirement, I joined this bank as the GM. If I talk about my previous role as a Deputy General Manager in Rajasthan State Co-operative bank, I was engaged mainly to provide refinance support to District Central Co-operative Banks for agricultural and rural development purposes, but my current position allows me to work towards distribution of loans for trade, housing and commercial purposes. So, the nature of both the assignment and the ultimate aims are different. If we say about the leadership in an urban cooperative bank setup, then there is a general body with Board of Directors headed by chairman, and the Managing Director to execute the policies of the Board.
Question- How do you ensure operational efficiency and financial health of the bank while maintaining strong customer service standards?
Answer- We are regulated by RBI. Every important policy of the bank is ultimately governed by RBI. Here, at the bank, we are cautious of whom we are lending to, and generally, all the advances we make out, have a detailed information about what we expect of our borrowers. So, our efficiency and financial health is taken care of the way we serve our customers, that is a personalized attention. The nature of lending of this bank is riskier than Agricultural cooperative banks because there, we were just mediators. Here, we distribute advances for commercial purposes. We are in direct contact with all our borrowers and over a period of time, we get the gist of their intentions and requirements. So, we believe in a mix of both, stringency as well as an embracing attitude towards our customers.
Question- There are so many banks functioning and serving the urban population of Jaipur like PNB, ICICI, HDFC etc. How is The Rajasthan Urban Co-operative bank different, maybe, in its working structure or the way it handles its customers?
Answer- I believe it is in the manner in which we deal our customers. It is a very personalized way and we lend advances at a lower interest rate and give higher ROI on deposits. It makes us different from other banks. Also, the procedure of applying for loans is hassel-free as compared to other banks. However, we also ensure that all our borrowers are fully aware of the terms and conditions well before being extended any advances. Also, we are always in touch with our borrowers.
Question- What metrics do you track to assess bank’s performance?
Answer-Basically, bank raises resources from public in the form of deposits for lending to public. It is the public money that we raise in the form of deposits and deploy them in advances. The net interest margin is our profit to sustain the activities of the bank. There are some rules and regulations that RBI expects every bank to follow like compliance to SLR, CRR. We adhere to them all. As of March 2025, our assets are of about 50 crores. Our deposits amount to 38 crores and our advances amount to 25 crores, while the share capital is 6.5 crores. We keep all the checks in position and therefore, the bank performs efficiently in all areas.
Question- What do you think about the recent increasing emphasis on integration of technology in banking?
Answer- Today, the need to integrate technology in banking is of utmost importance. However, concerns of security remain intact. Our bank had adopted CBS system in 2010, and NEFT and RTGS facilities are also available. The long-term aim is to establish and upgrade ATMs all across the country, which is on its way of realization.
Question- In any event of economic downturn, like recent escalating tensions between India and Pakistan, how do you ensure bank’s stability?
Answer- In any financial distress or economic downturn, bank has Business Continuity Plan, which ensures its stability and proper functioning.
Question- What do you think is the biggest challenge that banks face?
Answer-I think the biggest challenge that banks face is that they are competing against each other. The need of the hour is to recognize and practice the spirit of collaboration and harmony, not competition.
Interviewed & Edited By:
Charu Bhatia
