SUCCESS STORY

OPPORTUNITY RECOGNISED

Fresh from the training after my probation I was posted as a Field Officer in a rural branch in remote Koraput District of Orissa called ‘PAPDAHANDI’. The advance portfolio of the branch at that time fourteen years back comprised of only Government sponsored schematic finance beside a few ACC loans only. The percentage of bad loans was a staggering 80 %.

It was rainy season of that year and the villages were almost invincible with muddy and non- motorable roads. I was overflowing with enthusiasm and zeal. I started to visit the villages to get the revival letters for the time barred documents which I found during taking over. I took along the all-in-one, dare devil Canteen boy with me in the old Rajdoot motorcycle of the branch.

During the course of my visit to almost all the villages in the service area of the branch, I could get a first hand report of the area. There were scattered lending and almost all schematic lending had turned out to be bad. For the first time that year, unit of finance under IRDP was fixed at a minimum of Rs.15000 and we had a target of 150 units. Papdahandi was a block headquarters and we had good relations with the Government Official there. The block authorities were unable to suggest any scheme to fit the guidelines and were seeking my help. I was also wondering myself through the NABARD booklet I had received during my training. Though dairy firming was the most suitable scheme, I was apprehensive about its success, since all dairy units financed earlier had measurably failed. During the course of my visit to the villages, I noticed that,
• some of the first batch of animals which were given to the beneficiaries had died and no reports were made nor any attempts were visible in lodging any insurance claim.
• Again, some animals that were still alive were not yielding anymore since insemination was not done and the villagers were very ignorant about handling crossbreed cows.

There was a veterinary dispensary in the village and a milk processing cold storage was coming up in the nearby newly formed district headquarter. I found a business opportunity in the Schematic finance and took it as a challenge. I consulted the block officials, the veterinary Doctor who were my good friends and along with some like minded youth of the village we decided to revive the dead Milk Producers Co-operative Society that existed in the village. We also found one enthusiastic young boy who could handle the job. A room lying unused at the veterinary dispensary was allotted to the society and on the first year, I sanctioned almost 100 numbers of dairy units. The animals were procured by one approved agency and they were issued to the beneficiaries after due verification by the District Screening Committee. All the beneficiaries were convinced to subscribe to the society. In the second year, I sanctioned another 60 units and soon the Society became the No. 1 Milk Society in that area supplying a major share to the District Processing Unit. The same year the society was flushed with milk and started commercial production of some by-products.

As per my understanding with the Society, they used to call us when they disburse the payments to the members weekly and I made it a point with the beneficiaries to collect one third of the payment towards the loan leaving another one third for the animal and remaining one third for the beneficiaries. Two fodder retail shops also came up in the village market.

On the first year itself, I organized two health camps for the animals with the support of the veterinary staff, where besides distribution of medicines on Bank’s behalf, educational programme for the beneficiaries were undertaken. There were remarkable improvement in the attitude of the villagers towards artificial insemination and calf rearing.

I ensured that each and every case of animal death is reported to me and Insurance claim is lodged and settled in our favor. It took three to four months on an average to reimburse another cow to the beneficiary. When I left the branch after three years, I calculated that, I had received cattle insurance claim by more than the premium I had paid for them.

The initiative not only made the schematic finance a business proposition for the branch, which otherwise is considered bad ab-initio, but also brought a sustainable and alternative earning source to hundreds of beneficiaries and their family which changed the standard living of the family.

Now, the concept of Self Help Groups has been introduced in the villages and the standard of living of the villagers have improved considerably.


Contributed by:
Gopal Chandra Guru,
Chief Manager (P&E)&
Facilitator,Citizen SBI
State Bank of India
LHO, Guwahati