Punjab: Lenient govt; bleeding Co-op Bank

With the Punjab government being lenient with farmers in repaying their crop loans, the Punjab State Cooperative Bank has witnessed a huge pile up of over Rs 5,300 crore in recoveries of loans, reports Hindustan Times.

As promised by the Congress during the recent assembly polls, the farmers are waiting for a loan waiver.

Immediately after the Congress government took over, it extended the deadline for loan recovery to March 31, which was again extended for another three months till June 30.

Sources say the Punjab government will do away with a clause in the Punjab Cooperative Societies Act that empowers the state to go for attachment of land of defaulter farmers.

Out of Rs 11,000 crore given to farmers, the bank could only recover Rs 5,700 crore, said a Punjab State Cooperative Bank official.

Out of around nine lakh farmers who are regular borrowers from the bank, about 4 lakh (over 40%) have just refused to pay.

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