A beleaguered Punjab State Co-operative Bank is planning to raise a loan from the National Cooperative Development Council NCDC, and repay NABARD laon. The Congress government says, however, it would stand guarantee for the loan, sources assert.
Punjab State Co-operative Bank is going through a rough patch due to farm loan waiver announced by the new govt in the state, reports Indian Express.
The state government with its severely depleted finances has urged the bank to borrow Rs 3600 crore to pay its installment to NABARD. This amount, however, was to be paid by the state government that had promised to take over the short-term loans of 6 lakh farmers.
The bank with 802 branches across the state provides short-term crop loans to farmers.