MSC Bank brainstorms on recovery of ailing DCCBs; Pawar attends

Maharashtra State Cooperative Bank organized a day-long brainstorming session for addressing the burning issues pertaining to District Central Cooperative Banks of the state at its Vashi office on Monday. The workshop concluded with several agendas specially to bring those DCCBs into tracks that are facing a financial crisis.

The workshop was inaugurated by the State Cooperative Minister Balasaheb Patil and the valediction event was attended by the NCP chief Sharad Pawar.

In a bid to make the event successful, MSC Bank also called the cooperative commissioner Anil Kawade and Nabard DGM among others. On the occasion the Chairman, Vice-Chairman and Managing Directors of 31 DCCBs were present.

Later on, talking with the Indian Cooperative, Chairman of Administrative Board of MSC Bank Vidyadhar Anaskar said, “It was a very fruitful meeting with the representatives of DCCBs and hosts of issues discussed on the occasion. Several sessions were organized in a day-long workshop. We have not only raised the issues related to the Nabard but also highlighted the problems being faced by the DCCBs because of the government apathy”.

“We have demanded that ‘Scheduled Status’ should be given to those DCCBs which are fulfilling the financial parameters, so that they can get concessions and also take the benefits of several government schemes”, he informed.

Anaskar further added that “Due to negative net worth, Nabard is not giving re-finance to several DCCBs of the state. In this regard, we have decided to submit a proposal before the government to allow MSC bank to give refinance to those banks which are facing financial crisis”.

“We are in a position to lend them up to Rs 500 crore. We are ready to refinance them at concessional rates and will bring the bank on the track in five years. For instance, the Wardha DCCBs which are having a whopping 95 percent NPA, are not getting any refinance”, he said to this correspondent on the phone.

Besides, it was decided to amend the state cooperative law for making the PACCs secretary as the employee of DCCB. “In many cases, we have seen that during the time of loan recovery, some PACCs secretaries have been found to indulge in irregularities of funds. If the secretary becomes an employee of the respective DCCB, we may monitor him better “, Anaskar added.

It is to be noted that MSC Bank has got the approval from Nabard to give short-term refinance directly to the PACCs societies of the state and called a special general meeting through video conferencing on 28th February for amending the bye-laws of MSC Bank.

It bears recalling that due to the financial crisis many DCCBs are not in a position to give refinance to the PACCs.