The National Cooperative Development Corporation (NCDC), a statutory institution under the Ministry of Cooperation, Government of India, has sanctioned a Rs 5,000 crore working capital loan to the Maharashtra State Cooperative Bank Ltd. (MSCB), marking a significant milestone for the cooperative banking sector.
According to the sanction letter issued by NCDC, the loan has been sanctioned under its Direct Funding Scheme for a period of five years. With this sanction, MSCB is stated to be the first cooperative bank in the country to receive an NCDC loan of this magnitude.
The funds will be utilised by MSCB for onward lending to its member cooperative institutions, helping them meet their working capital requirements and strengthen their financial operations.
The loan will be repaid in 10 half-yearly instalments over five years. The drawdown can be made in one or more instalments in consultation with NCDC. The sanction also provides a Refund & Redrawal facility up to the prescribed limit of repaid principal, offering greater flexibility in working capital management.
As the apex cooperative bank of Maharashtra, MSCB plays a key role in financing district central cooperative banks, cooperative institutions and other entities in the state’s cooperative sector.
The Rs 5,000 crore facility is therefore expected to extend its impact beyond MSCB, strengthening the flow of institutional finance to cooperatives across Maharashtra and supporting their working capital needs.
Vidyadhar Anaskar, Administrator, Maharashtra State Cooperative Bank, termed the sanction a historic development for Maharashtra’s cooperative sector and said it would provide substantial financial strength to the cooperative movement under the broader vision of “Sahkar Se Samriddhi.”
