The National Bank for Agricultural and Rural Development (Nabard) has let it be known that it would stop refinance schemes if the AP state cooperative bank (APCOB) did not soon complete the process of its division between the two states.
The Nabard is roiled by the unusual delay in resolving the bifurcation issue by the Apcob’s governing board. The National Bank’s anger is compounded by the fact that despite concrete suggestions made its own wing ”consultancy services’ the Apcob has not been able to address the problem thus far.
Division of reserve funds and assets including immovable assets has been a contentious issue, experts say.
The Nabard refinances loans to farmers and agricultural societies through the Apcob , for the District Cooperative Central Banks. The Nabard Act, 1981 prohibits refinancing of loans to banks operating in more than one State. As the situation is , the Apcob is functioning in both Andhra Pradesh and Telangana..
Sources close to the Nabard claim , the National Bank intends offering thousands of crores of rupees towards various loans if the process of bifurcation of the Apcob is completed.
