In a decisive effort to revive the financially distressed Nashik and Beed District Central Cooperative Banks (DCCBs), Maharashtra Deputy Chief Minister Ajit Pawar convened a high-level meeting in Mumbai with key officials and stakeholders.
The meeting focused on finding practical solutions to stabilize and revitalize these struggling financial institutions.
The meeting was attended by Cooperation Minister Babasaheb Patil, Agriculture Minister Manikrao Kokate, Food Minister Narhari Zirwal, and senior officials from the Cooperative Department, along with representatives from Nashik and Beed districts, and MSC Bank MD Dilip Dighe.
One of the primary outcomes of the meeting was a directive to the Maharashtra State Cooperative (MSC) Bank to prepare a comprehensive blueprint for the revival of both Nashik and Beed DCCBs within a week.
This plan is expected to outline specific strategies for capital infusion, loan recovery, and addressing administrative challenges.
Vidyadhar Anaskar, the MSC Bank Administrative Board Chairman, who attended the meeting virtually, emphasized that merely providing loans to Nashik DCCB from the MSC Bank would not suffice. Instead, he suggested that the state government should infuse around Rs 500 crore into the Nashik DCCB to help restore its financial health.
The Nashik DCCB is currently grappling with a CRAR of -74 percent, well below the regulatory minimum set by the Reserve Bank of India (RBI). To meet RBI’s requirements and bring the bank back on track, the infusion of substantial capital is essential.
Anaskar further pointed out that bad loan recovery remains a significant hurdle for the bank, which is contributing to its ongoing financial crisis. A detailed approach on how to tackle this issue is yet to be formulated, with stakeholders planning to brainstorm potential solutions.
Another critical issue discussed was the high administrative costs of Nashik DCCB, which are significantly higher than those of other district cooperative banks in Maharashtra. The staff strength at Nashik DCCB stands at 1,200, compared to the 700 staff members at MSC Bank, further complicating operational efficiency.
While the MSC Bank currently employs 700 staff, an increase to at least 1,200 employees is seen as necessary to ensure the smooth functioning of these banks. The Nashik DCCB, in particular, is expected to recruit 400 new employees as part of its operational expansion.
As for the Beed DCCB, the meeting also focused on potential assistance to stabilize its financial position. MSC Bank is expected to extend a loan of Rs 300 crore to Beed DCCB as part of a revival plan. This loan is seen as a vital step in bolstering the bank’s operations.
Following the meeting, Vidyadhar Anaskar shared with Indian Cooperative that the team is actively working on the revival plan and is optimistic about submitting the finalized blueprint to the state government soon.
The team is confident that with the government’s backing and strategic reforms, both the Nashik and Beed DCCBs can return to financial stability in the near future.
