Nabard may soon deem Andhra Pradesh state Cooperative Bank defaulter as it has failed to pay money it owes to the former.
This will possibly be for the first time in history that a state cooperative bank will attract this label. This is being attributed to the fact that most of district cooperative banks in the state did not repay their dues in the last fiscal.
Sources say the populist loan waiver scheme announced by the state govt. has compounded the financial problems of cooperative banks.
However, observers of the farm sector have sounded dire warnings about the consequences of the financial collapse of the cooperative banking sector in the state.