*Reviews modalities for recapitalization of unlicensed banks
Excelsior Correspondent
JAMMU, Mar 19: Minister for Cooperatives and Ladakh Affairs, Chering Dorjay today said that to improve the performance the three Central Cooperative Banks which are presently unlicensed, professionals would be inducted in the Board of Directors soon. This step would surely help these CCBs to further strengthen and become as the full-fledged banks.
This was stated by the Minister while chairing a meeting of stakeholders for recapitalization of Unlicensed Central Cooperative Banks (CCBs) including Anantnag Central Cooperative Bank, Baramulla Central Cooperative Bank and Jammu Central Cooperative Bank, here today.
During the meeting, it was informed that as per the MAPs prepared by the CCBs, Rs 366.71 crore was worked out as total fund requirement for recapitalization out of which Rs 255.51 crore as State Share and Rs 111.20 crore as GoI’s share. It was informed that the State share has been released by the State Government and presently is lying with the Cooperative Department.
The meeting was also informed about the additional fund requirement by these CCBs.
He said that recapitalization will reform the Central Cooperative Banks by providing them license by Reserve Bank of India (RBI). He stressed upon taking initiatives for extensive recovery to maintain the positivity and integrity of these banks.
He asked the officials to make serious efforts for recovery plan for reducing the NPAs of these banks. He said that it is the prior concern of the Government to recapitalize the banks so that they can get the licence for running their business fully fledged in the State.
Dorjay asked the concerned bank authorities to develop the work plan according to the norms of the Memorandum of Understanding (MoU) signed by the GoI, State Government, RBI and NABARD. He said that these CCBs would draw up a monthly Monitorable Action Plan (MAP) in consultation with the State Government for achieving the specific business and financial targets.
He strictly directed the bank authorities to utilize the funds judiciously and to show up their performance by working out some effective business strategy.
The meeting was attended by Regional Director RBI, Thomas Mathew, Chief General Manager NABARD, Vijay Kumar, Registrar Cooperative Societies, Peerzada Hafeezullah, MDs of 3 CCBs, besides officers of several departments including Planning, Finance and Cooperatives.
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