State should sign revival package for co-op banks: Shekhawat

Thiruvananthapuram, Apr 10, (UNI) Noting that Kerala's apprehensions on the Centre's revival package for Cooperative Banks in the state was unfounded, National Bank for Agriculture and Rural Development Chief General Manager (CGM) B S Shekhawat today said the state should sign the revival package for improving and bringing in more professionalism in the cooperative banks.

"The cooperative banks in the state, which had mobilised about Rs 32,000 crore, has to improve a lot to bring in more accountability and responsibility as the banks dealt with public money," he told reporters here.

Stating that 16 states, including West Bengal, which was headed by a left government, had accepted the package, Mr Shekhawat said he did not find any reason for the Kerala government in not accepting the package. "The fear might be because of losing the autonomous status of the cooperative banks," he said.

Pointing out that the Centre had promised to sanction Rs 1,000 crore for the revival of the state's cooperative sector, he said true democratisation was not taking place in the cooperative sector.

"The cooperative societies must have duly elected governing bodies and the election process should be truly democratic with due representation to all sections of the stakeholders including the depositors. But now the depositors who really are the backbone of the bank do not have any rights to the governing bodies".

"More professionalism should be brought in to run the banks and these banks should be run as other banks. People should be recruited on merit basis," he said.

Mr Shekhawat also noted that cooperative banks had lapsed Rs 1,000 crore in crop loans. The NABARD had allocated Rs 650 crore for cooperative banks for crop loans after they fixed the credit as Rs 1,660 crore. But the cooperative banks could only disburse Rs 602 crore and NABARD had sanctioned Rs 343 crore at an interest of 2.5 per cent. But the state cooperative bank had drawn only Rs 125 crore from NABARD, he said, and added the money that was not disbursed had been lapsed.

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