Shimla, Oct 10 (UNI) Himachal Pradesh Cooopeative Minister Kuldeep Kumar, today said working capital of Himachal Pradesh State Cooperative Agriculture Rural Development Bank was Rs 360 crore outstanding loan was Rs 273 crore as on March 2006.
He was speaking in a National Seminar on Recommendations of Task Forces for Revival of Rural Cooperative Credit Structure (long term) at New Delhi, he said that 33 branches of State Cooperative Rural Development Bank were functioning in nine districts of the State whereas one primary level credit structure, KPARD was operating in three districts through a network of 16 branches.
Mr Kumar said Kangra Primary Agriculture Rural Development Bank had 24,000 members with a working capital of Rs 73.40 crore and added that total loan was Rs 73.55 crore with a recovery percentage of 63 per cent.
The Gross NPAs of the bank were Rs 28.26 crore, he said.
He said the State Government had lauded the recommendations of Task, Forces and added that it was important that cooperative societies were Members Control and Members Management Institutions to operate in their chosen spheres of business.
The State Government had already initiated a Model Cooperative Societies Bill to provide functional autonomy to cooperatives and restrict the ability of State Government to intervene in day to day functioning,he said.the Minister also endorsed proposal for amendment in the NABARD Act which would fulfill the financial requirements of Agriculture Cooperative Banks through other financial institutions.
There was a need to evolve long term policy to make these institutions viable and self sustaining in the long run and added that the accumulative losses of ARDBs in the State was Rs 11.67 crore whereas their NPAs were about Rs 114.57 crore last year, he said.
The rate of increase of NPAs in these institutions as per NABARD report was 32 percent during the year, he said.
He also urged for appropriate incentives on long term basis besides lump sum financial assistance to the banks in form of revival package, saying that withdrawal of State Government equity and participation in the management of these institutions would have opposite effect and added that participation of State Government had contributed towards growth in business besides credibility.
Seeking financial assistance of Rs. 38 crore to State Government institutions,he said this was essential for effective implementation of recommendations of Task Forces besides adopting a long term policy for their viability.