Maharashtra state cooperation commissioner has said one time settlement scheme (OTS) for defaulters of cooperative banks in the state would be continued upto March 2014. The move is intended to ensure better recovery of outstanding loans.
According to a report compiled by the state govt, various credit societies and cooperative banks in Maharashtra are weighed down with the NPA counting a whopping Rs. 1917. 14 crore.
Urban cooperative banks and multi-state urban cooperative banks in Maharashtra claim deposits worth Rs. 1. 54 lakh crore and disbursement of loans by them counts Rs. 1. 05 lakh crore.
Cooperative sources are optimistic the one time settlement scheme would cut the NPA maximally and help banks strengthen their flailing finances.