More branches for successful cooperative banks: PC

New Delhi, Mar 20 (UNI) Finance Minister P Chidambaram today announced that successful, profit-making cooperative banks would be allowed to open more branches in the near future.

''I intend to take the proposal to the RBI,'' Mr Chidambaram said in his reply to the debate on the Finance Bill 2006-07 in the Lok Sabha.

Giving the background to the proposal, Mr Chidambaram said the chairman of India's most successful cooperative bank had come to meet him in Mumbai recently.

''When I asked him what he thought of the 80P proposal in the Budget under which all cooperative banks, except Primary Agricultural Credit Societies, and Primary Cooperative Agricultural and Rural Development Banks, should pay income tax on profit, he said it was a good measure.

''He said he did not mind paying tax as he was making profit, but his grouse was that he was not able to open more branches.'' Mr Chidambaram said he told the visitor that he would approach the RBI with his proposal.

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