W20159

MANNARKKAD RURAL SERVICE CO-OPERATIVE BANK:

INNOVATING AT THE EDGE

Nidheesh Joseph, Abhishek Totawar, and Ranjeet Nambudiri wrote this case solely to provide material for class discussion. The
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Copyright © 2020, Ivey Business School Foundation Version: 2020-03-12

I saw a bank that said “24 Hour Banking,” but I didn’t have that much time.

Steven Wright (popular American comedian)

On November 8, 2016, Manakad Purushothaman, the secretary1 of the Mannarkkad Rural Service Co-operative
Bank Ltd. (MCB) in the Palakkad district of the south Indian state of Kerala,2 was fielding calls from people
seeking his reactions to news about the upcoming process of demonetization3. The prime minister of India was
announcing that, effective at midnight, currency notes in denominations of ₹500 and ₹1,000 would be invalid
and would have to be either deposited or exchanged at banks.4 Callers wanted Purushothaman’s opinion on how
the unexpected national announcement would impact the bank’s operations. The next day was a bank holiday,
and on November 10, 2016, people would have to approach their respective banks for their currency
replacement. This unprecedented move, which was aimed at eradicating money that was unaccounted for in the
nation (“black money”), had been promised by the ruling party in its election manifesto.
Tired after a long day, Purushothaman was overwhelmed and pondered the sudden developments, which
required quick planning and action on his part. As the MCB’s secretary, Purushothaman had successfully
faced numerous challenges in his 27 years with the bank, but he wondered if MCB had prepared itself over
this time to successfully handle this crisis. How should MCB handle the demonetization crisis with its
existing and potential customers?

CO-OPERATIVE STRUCTURE IN THE STATE OF KERALA: BACKBONE OF THE RURAL ECONOMY

Banking in the state of Kerala followed a three-tier, short-term credit structure that included the Kerala
State Co-operative Bank as the apex bank, 14 district co-operative banks, and 1,647 primary agricultural

1
In the MCB, the secretary carried out the responsibilities of an executive director in a non-profit organization.
2
A district was a geographic territory inside a state. Indian states were divided into districts for administrative purposes. The
state of Kerala was divided into 14 such districts. A state held administrative jurisdiction over a defined geographic territory
and was a form of regional government. Such states differed from fully sovereign states, in that they had transferred a portion
of their sovereign powers to a central government. India was divided into 29 such states.
3
Vidhi Doshi, “India withdraws 500 and 1,000 rupee notes in an effort to fight corruption,” The Guardian, November 6, 2016, accessed
March 6, 2020, https://www.theguardian.com/world/2016/nov/08/india-withdraws-500-1000-rupee-notes-fight-corruption.
4
₹ = INR = Indian rupee; ₹1 = US$0.0151 on November 8, 2016; All currency amounts are in ₹ unless otherwise specified.

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credit societies (PACSs)5 (see Exhibit 1). Partly controlled by the government through a management
committee elected by the society members every five years, cooperatives in Kerala had a long history of
serving a society where almost everyone had access to institutional credit. They managed a deposit base of
₹1.1 trillion6 with 30 per cent market share of total banking transactions in Kerala; handled an estimated 70
per cent of the state’s total agricultural credit; held a significant reserve of gold; and often dispensed funds
to fuel regional development.7 These institutions were governed by the Banking Regulation Act, 1949, and
the Banking Laws (Co-operative Societies) Act, 1965.8
PACSs occupied a predominant position in the co-operative structure and were organized at the grass-roots
level within villages or groups of small villages. A PACS—the basic unit dealing with rural (mostly
agricultural) borrowers—disbursed and collected repayments of agricultural and rural loans and served as the
last link between the ultimate borrowers and larger financial agencies like the National Bank for Agriculture
and Rural Development (NABARD). PACSs formed the backbone of the rural agricultural sector but were
excluded from the purview of India’s central bank—the Reserve Bank of India (RBI)—and were governed
by the NABARD and state government regulations. PACSs in Kerala played a vital role in mobilizing rural
resources since they accepted all types of deposits and banking services (see Exhibit 2). They were governed
by the Kerala Co-operative Societies Act, 1969, and deposits were secured under the Deposit Guarantee
Scheme of the Kerala Co-operative Societies Act, 1969. In March 2011, PACSs in Kerala contributed ₹211.4
billion of the ₹372. 38 billion mobilized by PACSs across 25 states in India.9 In the fiscal “year 2016–2017,
primary service co-operative banks in Kerala” had disbursed ₹750 billion as loans out of ₹900 billion
deposited, achieving a “loan-deposit ratio of around 80 per cent” in “striking contrast to that of the biggest
nationalised bank, the State Bank of India in Kerala, which was estimated to be around 52 per cent.”10

MANNARKKAD RURAL SERVICE CO-OPERATIVE BANK: CREATING AN IMPRESSION

Purushothaman had experienced his fair share of struggles behind all his successes. People used to scorn and
ridicule him, asking if the chayakada (“teashop” in the local language) bank was closed or not. In 1989, when
Purushothaman was pursuing his master’s degree in commerce, a village elder approached him with an offer
to work toward setting up a PACS for Mannarkkad Panchayat (the village council). This joint proposal came
from the registrar of a co-operative society and some other like-minded individuals who wanted to start a
PACS once again for Mannarkkad Panchayat. Purushothaman recollected that “the previous PACS had been
liquidated in 1984 owing to administrative weaknesses; its low performance posed several challenges for
relaunching like raising the mandatory seed fund of ₹50,000 from the panchayat members to start a PACS.”
He gladly took up the challenge, went door to door but was met with hostility, abuse, and ridicule. Many
people gave him ₹100 to get rid of him. Finally, he was able to raise only ₹30,000 from 305 members, many
of whom were truly not interested. The registrar exercised his discretion and gave a special exception; thus,
MCB came into existence with ₹30,000 as share capital and 305 people as members.
The initial days, in a rented premise without basic facilities like electricity, were tough. The bank also
lacked a vault and even needed to raise funds to buy its first locker. People ridiculed the bank and predicted

5
Government of Kerala: State Planning Board, “Agriculture and Allied Sectors,” Economic Review – 2016, accessed June 1,
2018, http://spb.kerala.gov.in/EconomicReview2016/web/chapter02_09.php.
6
₹1 = US$0.02 on May 24, 2018.
7
M.K. Nidheesh, “How Kerala’s Cooperatives Are Planning to Take on Big Banks,” Livemint, May 11, 2017, accessed June 1, 2018,
www.livemint.com/Industry/iZuV8V0JMvs4mntT0s6umN/How-Keralas-cooperatives-are-planning-to-take-on-big-banks.html.
8
Department of Cooperation, Office of Registrar of Co-Operative Societies website, accessed June 1, 2018,
www.cooperation.kerala.gov.in/index.php?option=com_content&view=article&id=55&Itemid=65.
9
Biju Govind, “Nabard Decision Brings Big Relief to Kerala’s Farm Credit Societies,” Hindu, updated June 2, 2016, accessed
June 1, 2018, www.thehindu.com/news/national/kerala/nabard-decision-brings-big-relief-to-keralas-farm-credit-
societies/article5237486.ece.
10
K. Rajendran, “Post Demonetisation, Informal Moneylenders Thrive as Cooperative Sector Takes a Hit in Kerala,” The Wire,
December 7, 2016, accessed June 1, 2018, https://thewire.in/85253/demonetisation-kerala-cooperative-sector/.

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that it would meet the same fate as the previous PACS. But Purushothaman stuck to the task, slowly and
steadily, and in the end, he won people’s hearts as well as their wallets. In time, people’s attitudes changed,
and they started to trust him and MCB. He fondly remembered one local resident who approached him with
his pension fund and told him that he wanted to deposit it in MCB because he trusted Purushothaman. In
1993, within four years of its inception, the bank had become profitable. From then onwards, each
development was a stepping stone for the bank rather than a simple milestone. In October 1994, the bank
moved into a permanent building of its own. In January 2000, MCB launched fully computerized
operations, long before other co-operative banks or PACSs had envisaged this.11 In March 2004, the bank
created morning and evening branches that extended operations to 7:30 p.m. A branch banking system (the
precursor to core banking)12 was introduced in May 2008, and a new building, with 24/7, 365-day operations
(including on all public holidays) was inaugurated in January 2011. In 2007, the bank was awarded the
prestigious Subhash Yadav National Award by the National Federation of State Co-operative Banks for
being the best PACS in India; in 2011, the bank was also awarded the Banking Frontiers Award13 and was
recognized as the only bank that operated 24/7, 365 days a year in India. The bank had also given the
maximum allowed dividend of 20 per cent to its shareholders from 2013 onwards.
A particular incident stood out from Purushothaman’s initial days at MCB. In 2010, when the new premises
for the bank were constructed, he had been quite particular about the design of the parking lot. He wanted
the smallest possible number of pillars in the parking area. The architect responded in dismay: “It’s
impossible! It will result in huge columns,” which was not a common architectural practice. Purushothaman
insisted that, while not common, this task was certainly not impossible. He convinced the architects to come
up with a unique design and stated, “This is my demand, and you have the technical expertise. I don’t care
about the aesthetics aspect.” He was sure that customers would not look up and admire the columns when
they came to the bank, but they would surely be bothered if they had to navigate the columns and lose time
while parking their vehicles. And so, a beautiful 30-car parking lot with a single centre pillar was built
providing maximum convenience to the bank customers.

THE DOLPHIN BANK: INNOVATING TO MEET CUSTOMERS’ NEEDS

Customers were aware of these innovations at MCB immediately on their arrival at the bank. The banking
space was comfortably air-conditioned, the hallways were adorned with wood-panelled interiors, and the
waiting area welcomed customers with plush sofas. The bank was equipped with biometric automated teller
machines (ATMs), a passbook updater, and a printing machine beside a customer feedback kiosk near the
entrance (see Exhibit 3). Purushothaman’s room was equipped with an office computer and a centralized
closed-circuit television (CCTV) screen. Through the CCTV, he could monitor staff who worked at the
overnight counter, which could be accessed by customers only from outside the banking space through a single
window. The idea for the overnight counter came from the peculiar needs of MCB customers. Purushothaman
recounted that people used to come to his house at odd hours and ask for quick cash in exchange for their gold
ornaments. He recalled the night a family approached him and requested immediate cash to treat a snake bite.
Since traditional banks closed their counters around 5:00 p.m.14 and this family was too poor to withdraw cash

11
“Reports,” Reserve Bank of India, January 24, 2013, accessed June 1, 2018,
www.rbi.org.in/scripts/PublicationReportDetails.aspx?ID=697#00.
12
Core banking was a banking service provided by a group of networked bank branches where customers could access their
bank accounts and perform basic transactions from any of the member branch offices; Here MCB connected their morning
and evening branches.
13
“National Federation of State Cooperative Banks Ltd., “C. Subhash Yadav Award to the Best Performing PACS in the
Country,” Awards, accessed June 1, 2018, http://nafscob.org/AWARDS/SYAward.htm; Kerala: Cooperative Bank Wins
Award,” Hindu, August 2, 2016, accessed June 1, 2018, www.thehindu.com/todays-paper/tp-national/tp-kerala/cooperative-
bank-wins-award/article2557594.ece.
14
Reserve Bank of India, “Notifications: Master Circular on Customer Service in Banks,” Reserve Bank of India, July 1, 2013,
accessed June 1, 2018, https://m.rbi.org.in/commonman/English/scripts/Notification.aspx?Id=1266#71.

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using an ATM, Purushothaman seemed to be their last resort. In fact, most of his customers were farmers who
struggled to make ends meet. In times of emergency, they pawned their wives’ or mothers’ gold jewellery to
obtain quick cash. Even private financiers were averse to allowing 24-hour access. Purushothaman’s clients
trusted him due to his credibility in the society as the secretary of MCB. But how long could he have helped
such needy people in his personal capacity? He believed that it was the duty of a bank to provide cash to needy
customers in lieu of a guarantee like gold. He was clear that customers who trusted banks with their money
and gold were reasonably justified in demanding this basic service.
This belief led Purushothaman to the idea of setting up an overnight counter at MCB that would operate
around the clock—24 hours a day and 365 days a year. Banks did not operate beyond certain hours because
the footfall from customers was unlikely at night time, but the critical issue here was the need of even a
single customer. Purushothaman believed that even one life saved was worth the efforts required to operate
the overnight counter. MCB devised a unique plan akin to the sleep of a dolphin. Dolphins performed mono-
hemispheric sleep:15 at any point in time, only one hemisphere slept, while the other was active. This helped
dolphins to stay awake and still get the required rest for rejuvenation. Similarly, at any point in time one of
the branches of MCB would be operational. Apart from the headquarters (HQ), two more branches were
located at Kodathippadi (just a mile away) and at Thengara (in the neighbouring panchayat).16 While the
Kodathippadi branch operated from 8:00 a.m. to 8:00 p.m., the HQ branch was open from 8:00 p.m. to 8:00
a.m., with a single counter managed by two clerks. The overnight counter was empowered to conduct all
operations like savings deposits, loan repayments, demand drafts, cash withdrawals, gold loans, and self-
help group (SHG)17 deposits. The only two activities that were not possible at the overnight counter were
gold loan withdrawals and processing of new loans. The overnight counter started its operations in January
2011, and since then, an average of 50 customers per night had used the counter. Evidently, customer needs
were not only due to medical emergencies. Shopkeepers and fuel station operators who received significant
amounts of cash carried the currency home and deposited it in the bank the following day. MCB’s 24-hour
banking helped them safely deposit their daily collections after they had closed their shops, without
worrying about keeping large amounts of cash safe in their houses. SHG women could deposit their money
in the bank without fear of their cash being misused by their husbands or sons, a plight usually attributed
to the high rate of alcoholism among the men in the state.18 Customers indicated that accessing banking
facilities day or night, even on public holidays, encouraged them to use MCB’s service for gold loans even
when the private financiers offered lower interest rates.
What prevented other banks from replicating this model? RBI guidelines did not allow scheduled banks and
co-operative banks (see Exhibit 4) to operate beyond normal working hours or to sanction gold loans without
the approval of the branch manager. However, MCB’s strategy could be replicated by other PACSs, which
were outside the purview of the RBI guidelines. According to Purushothaman, the night counter alone did not
provide a promising profit and loss statement; combining this lack of profit with the added responsibility of
night services might have discouraged other PACSs from implementing 24-hour banking. Purushothaman was
not against making a profit. Under his guidance, the bank had been profitable from the fourth year of its
operations and had disbursed a 20 per cent dividend (the maximum possible under the Kerala Co-operative

15
Joseph Castro, “How Do Dolphins Sleep?,” LiveScience, April 14, 2014, accessed June 1, 2018,
www.livescience.com/44822-how-do-dolphins-sleep.html.
16
India followed a three-tier system of local self-government consisting of village, block, and district levels. Panchayat was
formed at the village level.
17
A self-help group (SHG) was a village-based financial intermediary committee, usually composed of 10–20 local women or
men. A mixed group was generally not preferred. Most self-help groups were located in India, though SHGs could be found in
other countries, especially in South Asia and Southeast Asia.
18
Ishita Akhoon, “How Women in India Are Able to Help Each Other through Self-Help Groups,” Youth Ki Awaaz: YKA, May
24, 2017, accessed June 1, 2018, www.youthkiawaaz.com/2017/05/self-help-groups-an-anecdote-of-women-empowerment-
in-india/; Murali Krishnan, “Alcoholism, Crime on the Rise in Indian State of Kerala,” ABC News, February 17, 2014, accessed
June 1, 2018, www.abc.net.au/news/2014-02-14/an-indian-kerala-alcohol-feature/5260354.

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Societies Act, 1969) to all its shareholders each year from 2013 to 2017.19 In Purushothaman’s own words,
“At the end of the financial year from April to March, we should be making a profit, and it doesn’t matter if
the overnight counter made a loss while the micro-ATM (field agents reaching out to customers with handheld
customized ATM machines) made a profit.” Purushothaman seemed to share Henry Ford’s philosophy, that
“A business that makes nothing but money is a poor business!”20

ALL THAT GLITTERS IS TAGGED: MCB’S INNOVATIVE BARCODE TAGGING

MCB emphasized the speed of processing customer requests through its tagline, “the pleasure of personal
banking.” As a result, customers were never troubled by the time it took to complete administrative
procedures. Consequently, MCB was the first bank in Kerala to introduce barcode tagging for gold loans.
These tags ensured that retrieving gold from the safe deposit locker took less than two minutes. A customer
who wanted to pawn gold would bring in the gold, which was tagged with a barcode. A copy of the code was
pasted into the customer’s passbook, and later, when the customer came to close the loan and withdraw the
gold, the passbook would be scanned for the barcode; all the details appeared on the screen within a few
seconds, and the corresponding gold packet was retrieved from the locker by matching the barcode on the
screen. This process also meant that pawned gold was no longer accidentally switched with gold from different
customers, a common occasional error during manual operations. Informal feedback indicated that customers
were very satisfied with this process. Similarly, MCB also streamlined its gold loan operations through its
overnight counter. A standard fixed rate for one gram of gold could be sanctioned by the clerks at their
discretion, without the approval of the secretary. However, some customers asked for higher loans per gram,
based on their need. This request required approval of the secretary or the assistant secretary, either by
telephone in real-time or in person the next day.

GOOD TO GREAT: INNOVATING AT THE EDGE

MCB did not have a banking licence, so it issued its customers smart cards in lieu of ATM cards and
conducted banking operations like national electronic fund transfers (NEFTs)21 and real-time gross
settlements (RTGS)22 through its current accounts in the State Bank of India (SBI) and the Federal Bank.
At the entrance, MCB provided biometric touch screen information kiosks for customers who were not used
to retrieving their account details with regular ATM cards (issued by the scheduled banks) or MCB own
smart cards. Reports showed that over 46 per cent of the customers of PACSs were more than 50 years
old.23 “Customers in this age group, especially those from semi-urban or rural backgrounds, were generally
seen to be struggling with technology enabled services like ATM machines, smart cards or mobile
applications,” says Purushothaman from his experience over the years. They preferred updating their
passbooks at the counter, which provided them the satisfaction of seeing the interest amounts printed in

19
Mannarkkad Rural Service Co-operative Bank, accessed March 6, 2020, http://mrscb.in/ReadMore.aspx?ID_HomePageTile=58.
20
Kar, "A business that makes nothing but money is a poor business,” Business Fundas, September 12, 2010 accessed
March 6, 2020, http://www.business-fundas.com/2010/a-business-that-makes-nothing-but-money-is-a-poor-business/.
21
Automatic teller machine cards were payment cards issued by financial institutions to individual customers, who could then
access cash from automatic teller machines at different locations; National electronic funds transfer (NEFT), started in
November 2005, was an electronic funds transfer system maintained by the Reserve Bank of India (RBI). NEFT enabled bank
customers in India to transfer funds between any two NEFT-enabled bank accounts using electronic messages. According to
RBI records, India had 151,046 NEFT-enabled branches across 242 banks. “For Bankers,” Reserve Bank of India, accessed
March 6, 2020, https://www.rbi.org.in/Scripts/neftIFS.aspx.
22
Real-time gross settlement (RTGS) systems were specialist funds transfer systems where the transfer of money or securities
from one bank to another took place in real time and on a gross basis. RTGS systems were typically used for high-value
transactions that required and received immediate clearance. According to RBI records, India had 147,623 RTGS-enabled
branches across 223 banks. “Real-Time Gross Settlement System,” Reserve Bank of India, accessed March 6, 2020,
https://www.rbi.org.in/Scripts/Bs_viewRTGS.aspx.
23
Government of Kerala, “Expert Committee on the Formation of Kerala Cooperative Bank: Final Report,” accessed March 9,
2019, https://kerala.gov.in/documents/10180/9a3e118f-791c-46c7-9451-f51913681e00.

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their passbooks (only then were they convinced that the interest amount had been credited). To reduce the
resulting long queue at the counter, the bank installed a passbook updating machine. It also created a
missed-call service to send account details as text messages, and it enabled customers to register their
complaints or provide feedback about the bank or any of its staff at the customer service kiosks. The bank
ensured that feedback was addressed within 24 hours by the secretary, who received a text message every
time someone registered at the kiosk. The bank also owned and operated systems for sorting, counting, and
bundling currency; scanning signatures; and analyzing gold carat at its headquarters.

SPINACH, X-RAYS, AND SOLAR PANELS: A SOCIALLY RESPONSIBLE BANK

In general, the co-operative sector was known for its social outlook and welfare orientation24. Over the years,
MCB had initiated a range of projects in diverse areas and thus had differentiated itself as a socially
responsible organization. An organic shop that operated in the nearby complex sold organic vegetables
cultivated on the terrace of the HQ. The terrace also housed solar panels that provided electricity for the whole
HQ building. MCB’s healthcare initiatives included a medical store (Neeti), which sold generic medicines at
low cost; a scanning and X-ray centre, which provided specialist doctor consultations in collaboration with
Narayana Health25 and X-ray centre scan reports for just ₹50 (less than one dollar); a dialysis unit; and a
physiotherapy unit. MCB’s academic initiatives included a scholarship program for academically excellent
but needy students. Responsible 40 was a program led by IAS26 officers that gave free coaching to community
students who were preparing for the civil services’ entrance examination. MCB had also successfully operated
a railway ticket counter for three years before it was shut down in 2015 by the railway department—but not
before being judged as one of the best ticket-booking facilities outside the direct operation of railways.27

CASHLESS ECONOMY: AN EXTERNAL SHOCK

The demonetization announcement came at a time when MCB was making strides in the co-operative banking
sector through its stellar performance and novel initiatives. Through innovations like its overnight counter,
the micro-ATM, and barcode tagging of gold, MCB had successfully pushed the boundaries of rural co-
operative banking to provide maximum convenience to its customers. MCB had never initiated a bank loan
recovery in its entire working history, since it never had to. Such was the trust and goodwill that MCB enjoyed
among the people of the panchayat. The bank had stood the test of time and won the hearts of the people.
Would that all change tomorrow in the newly envisaged “cashless” economy?
Purushothaman pondered the possible options to ride out this crisis. Should he keep the overnight counter open?
He could justify this action because MCB was the only bank in India offering 24/7, 365-day operations. Should
he alert the bank’s micro-ATM agents? Would MCB’s parent bank, the Palakkad District Co-operative Bank
Ltd., provide funds the next working day? He needed updated information to effectively consider these options;
this crisis had the potential to undo the progress that he and MCB had made over the past 27 years.

24
“Co-operatives Surge Ahead,” National Co-operative Union of India, accessed March 6, 2020, https://ncui.coop/wp-
content/uploads/2018/07/Success-Book.pdf.
25
Narayana Health operated a chain of hospitals, heart centres, and primary care facilities across India with its headquarters
in Bengaluru, Karnataka, India. The hospital chain operated one of the largest telemedicine networks in the world.
26
Members of the Indian Administrative Service (IAS) were civil servants who constituted the top level of the Indian
administrative system. They were recruited through a common civil services exam conducted every year by the Union Public
Service Commission (UPSC). This exam was considered one of the toughest exams in the world.
27
The railway ticket counter was shut down as part of the austerity measures of Indian railways; “Resentment at Closure of
Train Ticket Booking Office,” Hindu, October 20, 2015, accessed June 1, 2018,
www.thehindu.com/news/national/kerala/resentment-at-closure-of-train-ticket-booking-office/article7782552.ece.

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EXHIBIT 1: CO-OPERATIVE CREDIT STRUCTURE OF INDIA

Co-operative Credit Institutions

Rural Co-operative Credit Urban Co-operative

Institutions Banks
(109,924) (1,853)

Short-Term Long-Term
Structure Structure
(109,177) (747)

State District Primary

Co-operative Central Agricultural
Bank Co-operative Credit Societies
(31) Bank (108,779)
(367)

State Co-operative Primary

Agriculture and Co-operative
Rural Development Agriculture and
Banks Rural
(20) Development
Banks
(727)

Note: The figures in bracket indicate the number of each type of institutions.
Source: “Structure of Co-operative Credit Institutions,” Co-operative Banking in India, accessed March 6, 2020,
https://www.drishtiias.com/current-affairs-news-analysis-editorials/news-editorials/04-10-2019/print.

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EXHIBIT 2: MEMBERSHIP AND FINANCIAL POSITION OF PACSs IN INDIA (AS OF MARCH 31, 2017)

State/Union No. of Total Total no. of Total Total Short-Term

Territory Societies Membership Borrowers Deposits Loans Issued
(in (in (amount in ₹ (amount in ₹
thousands) thousands) millions) millions)
Andaman and
Nicobar 51 12.41 4.79 10.926 61.789
Andhra Pradesh 2,051 5,270.01 942.97 18,548.802 74,726.257
Arunachal Pradesh 34 21.00 0 0 0
Assam 766 3,034.41 82.00 0 71.300
Bihar 8,463 9,765.00 234.00 1,753.291 4,218.921
Chandigarh 17 1.80 0.56 0 0.076
Chhattisgarh 1,333 4,838.00 1,988.00 3,902.400 32,078.335
Delhi 0 0 0 0 0
Goa 81 96.42 0.60 562.500 119.600
Gujarat 8,484 2,795.74 1,007.91 8,036.739 106,704.690
Haryana 711 3,695.00 1,672.00 5,047.685 88,665.097
Himachal Pradesh 2,127 1,481.00 129.66 4,712.683 236.697
Jammu and
Kashmir 643 377.79 10.95 41.544 160.733
Karnataka 5,679 6,696.68 5,130.71 74,970.100 149,565.800
Kerala 1,647 22,973.46 18,166.69 831,935.129 432,519.428
Madhya Pradesh 4,457 5,249.47 2,853.00 8,173.100 46,553.400
Maharashtra 21,217 15,236.00 427.00 1,774.300 121,676.700
Manipur 223 127.86 81.00 0 0.714
Meghalaya 179 106.28 1.78 68.376 49.522
Mizoram 159 0 0 63.142 18.296
Nagaland 1,719 13.28 13.68 641.923 15.686
Orissa 2,701 6,564.56 2,874.15 15,791.182 57,254.658
Pondicherry 53 172.00 53.00 1,359.329 139.030
Punjab 3,543 2,518.83 1.05 24,124.242 110,683.600
Rajasthan 6,411 5,567.97 3,033.02 26,922.393 136,580.458
Sikkim 176 32.69 0.93 - 61.340
Tamil Nadu 4,511 13,201.30 5,568.37 94,602.713 135,463.371
Telangana 798 4,843.00 1,569.00 6,031.300 42,947.300
Tripura 268 352.88 10.14 173.138 38.200
Uttar Pradesh 8,929 2,748.00 616.00 682.000 7,858.000
Uttarakhand 759 1,285.00 213.00 8,494.767 10,054.100
West Bengal 7,405 12,157.16 5,261.97 20,418.238 15,370.820

Source: Prepared by the case authors based on “Directory of PACS,” National Federation of State Cooperative Banks Ltd.,
accessed March 9, 2019, http://nafscob.org/pacs_f.htm.

This document is authorized for use only in Prof. Subhasree Mukherjee and Prof. Rojers P Joseph's MBA-HRM 2021-23/Entrepreneurship at Indian Institute of Management - Ranchi from Jan
2022 to Jul 2022.
 Page 9 9B20C009

EXHIBIT 3: MCB INNOVATIONS AT THE EDGE

Interior of MCB

Customer accessing biometric kiosk in the customer lobby

Left to right: Customer at overnight counter, Biometric touchscreen information kiosk, Customer feedback touch
screen, Micro-ATM.
Source: Photos by the case author.

This document is authorized for use only in Prof. Subhasree Mukherjee and Prof. Rojers P Joseph's MBA-HRM 2021-23/Entrepreneurship at Indian Institute of Management - Ranchi from Jan
2022 to Jul 2022.
 Page 10 9B20C009

EXHIBIT 4: SCHEDULED BANKING STRUCTURE OF INDIA

Scheduled Banks in
India

Scheduled Commercial Banks Scheduled Co-operative

(149) Banks (83)

Public Sector Private Sector Foreign Rural Regional

Banks (27) Banks (23) Banks (43) Banks (56)

Scheduled Urban Scheduled

Co-operative State
Banks (52) Co-operative
Banks (31)

Nationalized SBI and Its Five Old Private New Private

Banks (19) Associates (6) Banks Sector Banks

Note: The figures in bracket indicate the number of each type of institutions.
Source: Jagran Josh, “Scheduled Banking Structure in India,” Jagran Josh (blog), March 3, 2016, accessed June 1, 2018,
www.jagranjosh.com/articles/scheduled-banking-structure-in-india-1457006553-1.

This document is authorized for use only in Prof. Subhasree Mukherjee and Prof. Rojers P Joseph's MBA-HRM 2021-23/Entrepreneurship at Indian Institute of Management - Ranchi from Jan
2022 to Jul 2022.