NABARD has approved a refinance of Rs 60 crore for the Rajasthan State Cooperative Land Development Bank (Rajasthan LDB) after a delay of nearly six months.
The move is expected to provide much-needed relief to the bank, which has been struggling with high levels of non-performing assets (NPAs).
Principal Secretary for Cooperation and Registrar of Cooperative Societies, Rajasthan, Ms. Manju Rajpal, welcomed the development, stating that the refinance would enable Rajasthan LDB to offer long-term loans to farmers at lower interest rates, thereby boosting the state’s long-term credit infrastructure.
However, the bank is grappling with significant financial challenges. As per the financial figures reported on March 31, 2024, the total loans outstanding stood at Rs 1,541.39 crore, with NPAs amounting to Rs 946.52 crore, representing a staggering 61.41% of total loans.
In an effort to address the NPA crisis, the state government is reportedly planning to launch a One-Time Settlement (OTS) scheme to recover bad loans and improve the bank’s financial health. Additionally, the government is making continuous efforts to bring the bank back on track and ensure its sustainability.
