AP State Co-op Bank splits into two

The AP state cooperative bank would finally be divided into two for AP and Telangana. The bank’s governing board has taken the decision in this connection.

As per the decision , the Telangana state cooperative bank would pay Rs. 50 crore as compensation for setting up main office and branches in AP. Nabard consultancy services had prepared the reorganization plan.

This has cleared the decks for a resumption of refinance by Nabard soon as also for both the state cooperative banks to function independently from early next year, say sources.

However, AP has to build headquarters and branches of its State Co-operative Bank. The state has only two branches as all 35 branches in Hyderabad are transferred to Telangana.