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Karnataka - Raichur Printer Friendly Page   Send this Article to a Friend

‘127 banks facing financial crunch'

Staff Correspondent

Raichur: Most of the Primary Cooperative Agriculture and Rural Development (PCARD) banks in the State are under loss because of which the State Government has decided to close down PCARD Banks with less than 50 per cent loan recovery performance as recommended by the Vaidyanathan Committee.

Speaking to presspersons here on Thursday, Chokkabasavanagowda, chairman of the Karnataka State Cooperative Agriculture and Rural Development Corporation, said 127 PCARD banks in the State are facing financial crunch and many are on the verge of closure.

For the past few years, all the PCARD banks have been under loss. In the last fiscal year, the banks incurred a loss of Rs. 320 crore owing to their inability in recovering loans extended to farmers through the Vyavasaya Seva Sahakara Sangha Niyamita (VSSSN) societies. Even the VSSSN societies are facing losses because of their failure to recover farm loans. So the Government has ordered closure of 219 societies, which recovered only 30 per cent of the loan amount. However, Mr. Chokkabasavanagowda added that NABARD had extended financial aid of Rs. 152 crore to the PCARD banks and this year the Government has decided to request NABARD to hike the aid to Rs. 250 crore.

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