Minister pitches for ‘extensive recovery’ to maintain positivity, integrity of CCBs

Minister pitches for ‘extensive recovery’ to maintain positivity, integrity of CCBs
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Reviews modalities for recapitalisation of unlicensed CCBs with stakeholders

JAMMU: To improve the performance of three central cooperative banks (CCBs) which are presently unlicensed, professionals would be inducted in the board of directors (BoDs) soon, Minister for Cooperatives and Ladakh Affairs, Chering Dorjay stated adding that this step would surely help these CCBs to further strengthen and become as the full-fledged banks.
The minister was speaking during a meeting of stakeholders for recapitalisation of unlicensed central cooperative banks (CCBs) including Anantnag Central Cooperative Bank, Baramulla Central Cooperative Bank and Jammu Central Cooperative Bank, here on Monday.
According to an official handout, as per the MAPs prepared by the CCBs, Rs 366.71 crore was worked out as total fund requirement for recapitalisation out of which Rs 255.51 crore as state share and Rs 111.20 crore as GoI share. The state share has been released by the state government and presently is lying with the cooperative department, it read.
The minister said that recapitalisation would reform the central cooperative banks by providing them license by Reserve Bank of India (RBI). He stressed upon “taking initiatives for extensive recovery to maintain the positivity and integrity of these banks”.
“Bringing professionals in the board of directors is the need of the hour and these professionals will be taken as the members for strengthening the functioning of these CCBs,” he said.
He asked the officials to “make serious efforts for recovery plan for reducing the NPAs of these banks”.
He said it was the prior concern of the government to recapitalise the banks so that they could get the licence for running their business in the state.
“It becomes possible only through collective measures taken by GoI, RBI, and NABARD and by the state government “, he maintained.
Dorjay asked the concerned bank authorities to “develop the work plan according to the norms of the Memorandum of Understanding (MoU) signed by the GoI, state government, RBI and NABARD”.
He said that these CCBs would draw up a monthly Monitorable Action Plan (MAP) in consultation with the state government for achieving the specific business and financial targets.
He strictly directed the bank authorities to utilise funds judiciously and to show up their performance by working out some effective business strategy.