HUBLI: The KCC Bank Hitarakshana Horata Samiti and the North Karnataka Federation of Urban Cooperative Banks have urged the State Government to immediately release the remaining amount promised for the revival of the Karnataka Central Cooperative (KCC) Bank in Dharwad.

Addressing presspersons here on Friday, P.I. Alagundagi, president of the samiti and the federation, said the Government was yet to release the pending amount, which it had to pay towards waiving of interest amount on agricultural loans to the KCC Bank.

Disbursement of loans

"The State Government has released Rs. 23.46 crore for the revival of the bank so far. It still has to release Rs. 31 crore. The release of the remaining amount will help the bank in disbursing crop loans to farmers at the interest rate of four per cent," he said.

Mr. Alagundagi said although Revenue and District-in-charge Minister Jagadish Shettar had promised to release Rs. 20 crore for enabling the bank to pay the depositors a fortnight ago, no action had been taken.

Lamenting the lack of interest among elected representatives of the region towards reviving the bank, he urged them to raise the issue during the legislature session to be held at Belgaum.

Mr. Alagundagi stressed the need for the Government to come out a with a one-time settlement formula for cooperative institutions that had taken loans from the KCC Bank.

Since the legal route was going to take long time, the State Government should resolve the issue through negotiations, Mr. Alagundagi added.

Printer friendly page  
Send this article to Friends by E-Mail