Commercial Banks are giving tough competition for Co-operative Banks

Nanjangud:  President of Mysuru-Chamarajanagar District Co-operative Central (MCDCC) Bank G.D. Harish Gowda said that the State Government has waived off Rs. 449 crore loans borrowed by farmers in various banks of Mysuru and Chamarajanagar districts by the loan waiver announcement scheme.  

Speaking after felicitating the newly elected Presidents and Directors of Primary Agricultural Co-operative Credit Society (PACCS) held at Dr. B.R.  Ambedkar Bhavan at Nanjangud on Tuesday, he said that the Government had already released Rs.110 crore against the total Rs. 449 crore and will release the remaining Rs. 340 crore in a phased manner. Over 4,000 farmers of Nanjangud taluk were benefited from the loan wavier scheme and their loan of Rs. 48.21 core will be waived off, he said.

The annual business turnover of the bank is around Rs. 750 crore. Government has kept Rs. 350 crore with it will be spent for loan waiver, he added.   

Stating that the Co-operative Banks across the State are facing serious challenges in loan recovery and administrative issues,  he asked the Presidents, Directors and employees of the co-operative sector to work united and efficiently to strengthen the co-operative institutions to make it profitable and  a productive sector for the welfare of the masses.

Urging farmers to repay the loan amount within the deadline, he said the success of the co-operative banks depend on loan recovery. The role of Secretaries, employees, Directors of PACCS is very important in loan recovery to build a robust co-operative sector, he said.

Harish Gowda also urged PACCS to encourage deposits and saving schemes as such measures are must to give more loans to borrowers. Stern measures will be taken on erring staff for not maintaining financial discipline in their banks.

Speaking on the occasion, Chief Executive Officer of the Bank Lingannaiah said that the MCDCC Bank has 31 branches in both the districts and have a  deposit amount of Rs. 373 crore. Commercial banks are giving tough competition for co-operative banks in all aspects and posing a threat for its survival. Hence, the co-op sector employees and director must work efficiently.

MCDCC Bank Vice-President and ZP member Sadananda, Directors Kurahatti Mahesh, Sindhuvalli Kempanna, Chikkahalli Kumar, Nagaprasad, Subbaiah, Sunil and others were present.