MSCB loss is nationalized bank’s gain. So it is the case with farm credit loans being routed through them and not through cooperative banks.
The state cooperative minister of Maharashtra has said that Rs 23,000 crore credit loan would be served to farmers through Primary Agriculture Societies , no doubt. But PACs would get money from nationalized banks instead of MSCB or DCCBs’ coffer as in the past.
Earlier, nationalized bank share in farm loan disbursal used to be 31 percent but this time it has jumped to 51 percent. The three tier cooperative structure has crumbled to two tier with nationalized banks at the top and Primary Cooperative societies at the bottom.
Several District Central Cooperative banks have also bee facing financial mismanagement in the wake of Maharashtra State Cooperative Bank flouting norms. State government dissolved the Board of MSCB leading to lots of political hullabaloo between Congress and NCP.
It was the intervention of Sharad Pawar, the warring state factions of each parties sat on the negotiating table and hammered out a truce treaty. Details of the truce are not known to public.
But it is sad to note that leaders make cooperatives bleed by lack of financial prudence.