The CPI (M) led new govt in Kerala is set to tweak the present three tier cooperative banks into a bank of Kerala. Addressing journalists chief minister Pinarayi Vijayan said this would raise the cooperative bank to the status of a big bank with financial resources rivaling any scheduled bank in the state.
Chief Minister said Kerala’s financial situation is critical and there is need for concerted efforts to bring about economic development of Kerala. A modest transformation of the cooperative banking sector is a step in this direction, he emphasized.
Last month, SBI cleared a proposal for merger of subsidiary banks and Bharatiya Mahila Bank. It sought the government’s approval for the same.
Referring to the difficult financial position of the State, he said that as per the latest Comptroller and Auditor General of India report, total debt stood at Rs.1.54 lakh crore. Arrears to the government contractors work out around Rs. 1,230 crore, chief minister said.
Sources say with the new govt in office, the cooperative movement in the state is likely to strengthen further.