Kerala - Thiruvananthapuram   

Professional running of coop. banks sought

Special Correspondent

NABARD chief seeks more autonomy

THIRUVANANTHAPURAM: Y.S.P. Thorat, Chairman of National Bank for Rural and Agriculture Development (NABARD), has urged the State Government to make cooperative banking institutions as competent as regular banking institutions by giving them more autonomy and instilling professionalism in their running.

Dr. Thorat had wide-ranging discussions with representatives of the State Government, cooperative banks and commercial banks during his visit here this week, NABARD said in a press release on Saturday.

Finance Minister T.M. Thomas Isaac, Cooperation Minister G. Sudhakaran and Agriculture Minister Mullakkara Ratnakaran represented the Government at the discussion.

Dr. Thorat drew the Government's attention to the Vaidyanathan Committee Report, which had suggested several reforms in the cooperative banks.

The report had also proposed a financial package, with the Governments at the Centre and the State sharing the burden, to strengthen the capital base of cooperative banking institutions, he said.

Rs. 900 crore needed

Dr. Isaac said the State's cooperatives would require the infusion of fresh capital of Rs. 900 crore to turn them into a vibrant mechanism that could effectively tackle the problems plaguing the rural economy, especially the farm sector and the traditional industries.

Mr. Sudhakaran urged NABARD to evolve State-specific policies to make its interventions in rural economy more effective than at present.

He said the resources, opportunities and the size of the cooperative credit disbursement mechanism in Kerala was quite different from other States.

More support sought

He said the Left Democratic Front Government was taking effective steps to cleanse the cooperative sector of inefficiency and corruption.

He wanted NABARD to increase its financial support to the State Cooperative Bank.

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