Dainik Bhaskar reports that eleven district cooperative banks in Madhya Pradesh are on the cusp of becoming bankrupt soon.
The banks all together account for about two lakh depositors. Non-performing assets of the banks have exceeded Rs. 800 crore and the cash deposits have slid past the minimum of seven percent.
The main reason responsible these banks’ miserable financial situation is their failure to recover Rs 1300 crore from about one lakh and twenty seven thousand farmers.
Not only that, in view of their dwindling finances, grain market associations have lately withdrawn Rs. 900 crore from their deposits.