The Hindu : Karnataka / Bangalore News : Coop. societies should focus on loan recovery: Satyanarayana

Online edition of India's National Newspaper
Friday, Oct 14, 2005

Karnataka

Karnataka - Bangalore

Coop. societies should focus on loan recovery: Satyanarayana

Special Correspondent

Mismanagement blamed for closure of many cooperative societies

BANGALORE: Minister of State for Rural Water Supply B. Satyanarayana has said that the cooperative societies must accord priority to recovery of loans and remain efficient.

The Minister, who inaugurated the new building of the Janahita Credit Cooperative Society at Rajajinagar (near Modi Eye Hospital) here on Thursday, said many old cooperative societies were closed down owing to poor recovery of loans and mismanagement.

NPA

The Minister noted that the Janahita Credit Cooperative Society, opened in 1983, had over 4,000 members. However, the non-performing assets (NPA) of the society were more than 14 per cent.

Members of the board of management should make an attempt to reduce the NPA below 10 per cent, which would enhance the credibility of the society in the eyes of the public, he said.

Mr. Satayanarayana appreciated the various activities of the society over the years and said its success in the future would depend on hard work and recovery of loans.

Borewells

He said the Government had sunk over 30,000 borewells across the State to tackle the drinking water problem during the last one year. Besides that, it had undertaken several other steps to overcome the water shortage.

Net profit

The President of the Janahita Credit Cooperative Society Bairanna said the society's net profit in 2004-05 was Rs. 14,14,945. The management had decided to set up a few more branches in Bangalore apart from enrolling new members.

Narendra Babu, Rajajinagar MLA, and T.V. Maruthi, KPCC General Secretary, were present.

The Janata Dal (Secular) President and former Prime Minister H.D. Deve Gowda and the BJP General Secretary H.N. Ananth Kumar, who were scheduled to participate in the function, did not turn up.

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