The cooperative banks in J&K have been at the receiving end of political interference in their basic affairs , reports a news outlet.
Sources say CEOs with non-banking background are thrust on the managements of these cooperative banks which cause their abject failures.
There are allegations that loans are sanctioned under political pressure with the purpose of never being returned. In certain cases, the necessary norms have been flouted to sanction loans to the non deserving clients.
Consequently, there are outstanding loans which have eaten up the capital of cooperative banks in the state, say those familiar with the cooperative scene.