Shimoga co-op bank on revival path

A leading English daily quoted a Karnataka minister as saying the state govt will soon restore normality in the working of the Shimoga district cooperative central bank. The govt will release Rs 28 crore it owes to the crisis ridden bank. The minister said while opening agricultural loan disbursement program organized by the bank.

It is worth mentioning that when the gold loan scam came to light depositors had withdrawn Rs 109 crore from their accounts severely affecting the lending capacity of the bank. Meanwhile, the Karnataka Apex Cooperative Bank has also come forward to help the beleaguered bank with Rs 75 crore to effect an improvement in the bank’s financial situation.

The SDCC Bank had advanced loans worth Rs. 315 crore in 2013-14. In 2014-15, it has so far advanced loans to the tune of Rs. 220 crore. As the SDCC Bank was functioning as per the regulations of the Department of Cooperation, the customers should not have any apprehensions about the safety of their deposits.

Important cooperative officials and office -bearers of the Shimoga bank were present on the occasion.