UP: Yogi’s efforts to merger DCCBs hit a roadblock

The efforts of Yogi govt in Uttar Pradesh to amalgamate DCCBs into one single entity on the lines of Kerala hit a roadblock when the committee formed for the purpose ruled that an important entity- UP’s Sahakari Gram Vikas Bank (UPSGVB) be kept outside the merger process.

It bears recall that the UP Cooperative department formed a committee in November last year asking it to submit its report within two months.

In case of UP, a high powered committee was set up by Uttar Pradesh government for merging District Central Cooperative Banks (DCCBs) of the state with the apex bank Uttar Pradesh State Cooperative Bank under the leadership of Associate Professor Vikas Srivastava of Indian Institute of Management (IIM) Lucknow has kept UP’s Sahakari Gram Vikas Bank (UPSGVB) outside the merger process.

The news was shared by Bank Employees Association General Secretary Asif Jamal. He said, “Nabard has recommended the merger of three cooperative banks like UPCB, DCB and LDB disbursing short term loans and long term loans to the borrowers. However, the committee formed by state cooperative department had only given the report about banks which are giving short term loans”, he claimed.

Asif Jamal further said the committee has kept the UP Sahakari Gram Vikas Bank outside the merger process in a pre-planned manner. That is why, the LDB employees are planning to hold a protest meeting. The workers will meet at the bank headquarters on 24th February to work out their strategy.

Besides Srivastava, committee members include Retired Add. Registrar Cooperative, Retired CGM NABARD, Convener Bank of Baroda, Lucknow, Cooperative Secretary Lucknow, Uttar Pradesh Cooperative Bank Managing Director and others.

Interestingly, Congress is upturning this move wherever it is able to form the govt. Recently, Chhattisgarh Chief Minister Bhupesh Baghel decided against merging District Cooperative Central Banks with the Apex Bank, thereby reversing the stand taken by the Raman Singh govt of BJP in the past.

It bears recall that the state BJP govt was almost on the verge of merging all district cooperative central banks (DCCBs) of the state into a single State Cooperative Bank called Apex bank in Chhattisgarh.

In UP, the committee is expected to give its detailed report soon. And later the state cabinet will look into the committee report and decide about the merger process.

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