In a major boost to Maharashtra’s cooperative banking network, the state cabinet led by Chief Minister Devendra Fadnavis on Tuesday approved a Rs 827 crore share capital assistance for three District Central Cooperative Banks (DCCBs)- Nashik, Nagpur, and Dharashiv.
The decision, taken during the cabinet meeting, aims to revive financially stressed cooperative banks and strengthen their lending capacity to benefit farmers and the rural economy. As per the cabinet resolution, the share capital assistance will have to be repaid to the government within 10 years.
Under the approved plan, the Nashik DCCB -one of the largest and most distressed in the state -will receive Rs 672 crore, disbursed in two installments of Rs 336 crore each this year and next year. The Nagpur DCCB will get Rs 81 crore, while the Dharashiv DCCB will receive Rs 74 crore as share capital infusion.
This crucial financial support is part of the state government’s continued efforts to stabilize and reform Maharashtra’s cooperative banking sector, which remains a backbone of rural credit and agricultural finance.
The Maharashtra State Cooperative Bank (MSCB), acting as the Institutional Advisor for Nashik DCCB and Institutional Administrator for Nagpur DCCB, has played a key role in guiding their recovery and financial restructuring.
While the Nashik DCCB has been burdened with accumulated losses of over Rs 921 crore, the government’s intervention and MSC Bank’s supervision are expected to accelerate its turnaround.
Earlier, the National Bank for Agriculture and Rural Development (NABARD) had reportedly issued a clear warning to the Nashik DCCB, stating that failure to comply with key financial and regulatory norms could lead to cancellation of its license.
In contrast, the Nagpur DCCB’s CRAR is currently in the negative, but with the capital infusion, it is expected to rise above 9%, turning positive. The bank also successfully monetized long-stuck assets, including a building valued at Rs 14 crore that had remained unsold for 14 years.
Expressing gratitude for the state government’s decision, the MSCB Administrative Board Chairman Vidyadhar Anaskar said, “We sincerely thank Chief Minister Devendra Fadnavis and his cabinet for extending this crucial share capital support. This will strengthen Maharashtra’s cooperative banking system and boost confidence among depositors, farmers, and the rural economy at large.”
This move once again underscores the Fadnavis government’s commitment to building a strong, transparent, and sustainable cooperative banking ecosystem in Maharashtra- one that continues to serve as the lifeline of rural finance and agricultural growth.
