Co-op bank funding Transport Corporation?

The buzz is that the Ernakulam district cooperative bank will provide the Kerala state road transportation corporation (KSRTC) with a loan of Rs 300 crore to help it overcome current financial problems.

The corporation has formally got in touch with the bank and sought at least Rs 123 crore immediately to meet salary, pension and other urgent expenses.

Sources, however, say the bank has yet to arrive at a decision and it could do so only if it has got approval to the loan from the state govt and the Nabard.

”The loan will be given against landed property and with the state govt as the co-guarantor” said bank president N.P. Paulose.

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