Cooperative banks are mostly the whipping horses for Nabard and RBI. But what they do not seem to take into account is the unviable propositions these banks are subjected to. A case in point is Karnataka.
Karnataka Chief Minister said on Thursday that the state has decided to wave loans to the tune of Rs.25000 obtained by farmers from the agri-cooperative societies.
Karnataka has had a deficient monsoon and some portions of the state are already seriously affected by drought.
Talking to the press at Bangalore ,Chief Minister Jagdish Shettar said, his govt.would have to undertake both short term and long term measures to organise relief works. The state govt. has called upon the center to waive loans given to farmers by the nationalised banks.
Well, nationalized banks ever eager to earn profit, may or may not pay heed to CM, cooperative banks have no options and would rather happily help the poor farmers out.
Observers say it is evident from Chief Minister’s remarks that the cooperative bodies would play a role in fighting the difficulties arising out of drought in the state.
