Due to losses, the six branches of Uttar Pradesh Siddharthnagar District Cooperative Bank have been shut down and their activities are being adjusted to the nearest branches of the bank.
Customers of these branches are forced to move from pillar to post to withdraw their deposits. It is being reported that there are 12 branches of DCCB which have been in the red for many years.
One of the depositors Kailash Yadav said when the branch of the bank was closed we thought we lost our money but we are hopeful we will get back our money with the help of the state government and Nabard.
Arun Kumar, DCCB branch manager of Naugarh said, “After getting fund from Uttar Pradesh Cooperative Bank, the money will be paid to the customers”.
It was only recently that we published a story in these columns on the poor performance of co-op banks in UP and the efforts of the Chief Minister to revive them. Underling the role of cooperative sector in the state’s growth story, Uttar Pradesh Chief Minister Yogi Adityanath has asked state co-op department to look into the causes of co-op banks’ continual downfall and suggest measures to check the same.
Yogi was reviewing the performance of the cooperative sector last week and felt that an urgent road-map is needed to stem the slide. There are about 50 district central cooperative banks in the state, which are continually sliding down despite the govt support to some of them in the past.
Poor loan recovery and outdated technology are two factors that plague DCCBs in the state, say those connected with the sector.