About Us

The HP State Cooperative Agriculture & Rural Development Bank Ltd; was established in 1961 in the State and registered as ‘Cooperative Society’ under the provision of Himachal Pradesh Cooperative Societies Act 1956 as Himachal Pradesh Central Land Mortgage Bank. At the initial stages/years the main emphasis and concentration of the Bank has been to advance loans for redemption of land and to save the farmers from the clutches of money-lenders and big land-lords. With the passage of time the Land Mortgage bank in the State changed its lending policies and started providing long term credit/loans for developmental activities i.e. reclamation of land. Gradually the role and nomenclature of the Bank was changed as Land Development Bank through amendment in the bank Act/Rules.

On the recommendations of the National Bank for Agriculture & Rural Development bank this Bank diversified its activities and started lending for purpose like Dairy Development, Bee Keeping, Floriculture, raising of orchards, irrigation etc. With the passage of time and changed economic scenario the Bank further diversified its activities and started lending to non-farm sector activities verging agriculture, rural artisans and small enterprises and name changed as HP State Cooperative Agriculture & Rural Development Bank Ltd; Now Bank provides loans to the agriculturist/horticulturist/artisans of the State for purposes like land development, irrigation, dairy and poultry development, farm mechanization (purchase of tractors) plantation of orchards, small and cottage industries, non farm sector activities, purchase of transport and passenger vehicles and for recently introduced purpose i.e. Rural Housing against the security of agricultural land. In addition to it now Bank is going to introduce Kisan Credit Card Scheme for the rural people at low rate of interest and Kisan Clubs and Women Self Helf Groups are being organised by the Bank for increasing the economical status of the rural people. The working, aims, objectives and purposes of loans are defined under the HP State Cooperative Agriculture and Rural Development Bank’s Act 1979, enacted to supplement the main Act i.e.


HP State Cooperative Societies Act, 1968. The Bank, since its inception in the year 1961 working through its 33 branches in nine Districts of the State and has total Membership of exceeding 72794 Members. It has advanced loans amounting to Rs. 642.51 Crores, out of which loans to the tune of Rs. 251.40 Crores are outstanding as on 31-12-08. The total working capital of the Bank stood at Rs. 376.51 Crores and the Share Capital is Rs 15.48 Crores. The Bank advanced loans amounting to Rs. 22.22 Crores during the current year upto 31-12-08 against revised lending target s Rs. 40.00 Crores. The accumulated losses of the Bank as on 31-03-08 is Rs. 21.13 Crores. The reasons of the losses are attributed mainly to poor recoveries and consequent provisioning for Non Performing Assets (NPA) amounting to Rs. 24.76 Crores and interest overdues Rs. 47.98.

The provisioning for NPAs and poor recovery performance are mainly due to vagaries of natural calamities in the State, failure of cash crops, un-remunerative prices, poor economic status/background of the rural borrowers and repeated announcement of debt relief/ debt waiver schemes which has resulted into increasing rate of willful defaulters.

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