CS Renjit, chairman of the expert committee on cooperative banking, set up by the Kerala government, in his theme paper highlighted the `gahan' system of mortgage in card banks, its minimum risk on assets, and its absence of exposure under the off-balance sheet items as factors that would lure people to invest in it.

The percentage of ovedues to demand of Kerala state card bank in 1995-96 was 8.25, the second best in the country, against all india figures of 45.1.

He also called for a prudent asset-liability management (ALM) programme classifying assets and liabilities based on residual maturity, inorder to identify short term mismatches and to plan fund flow in advance and to use the householdsavings as a tool to tide over alm problems. The loan policy and procedures should be revamped to ensure timely access to cost-effective credit in adequate quantities through simplified procedure, moreover, a uniform accounting system had to be introduced to streamline the accounting policies and pratices both at the primary and apex levels, he said.

To inculcate newer skills and knowledge levels for the bank's personnel, as part of meeting the human resources demands, the training system should be totally revamped and attitude towards borrowers redefined.

On the planning front, a strategy plan for the long term and a business plan for the intermediate term should be reckoned, with planning strictly being an internal process ensuring participation of the employees, the paper emphasised.

The original set up of card consists of 44 primary card banks with Kerala State Card Bank as apex organisation. Of the 43 functioning primary card banks, 12 were making profits.

The paper had suggested reducing thelevel of non-performing assets, increasing the volume of business and improving efficiencies in all the facets of operation to build reasonable profit levels in the card banks.