UP Cooperative banks under losses, State govt to Assembly

Lucknow, Feb 19 (UNI) The Uttar Pradesh government today admitted that out of the total 50 district cooperative banks in the state, 37 were running in losses.

In a written reply to the State Assembly, the UP Cooperative Minister Swami Prasad Maurya cited reasons for poor performance of those banks including overdraft, implementation of loan waiver scheme in 1990, banning of government money deposition in them to increase the resources and provisions for them under Public Distribution System (PDS).

He, however, said the government had prepared an action plan for their revival. The recommendations of Prof A Baidyanathan Committee, with regards to renewal package, were also being implemented, he added.

The State government has been striving hard to revive the loss making banks as early as possible, the minister said.

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