(a) whether financial conditions of Nanded District Bank is poor;
(b) if so, the details nhereof;
(c) whether the Government has formulated any scheme to provide grant to the
said Bank;
(d) if so, the time by which grant is likely to be provided to the said Bank; and
(e) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) 8s (b) : Yes, Sir. This Nanded District Central Cooperative Bank`s(DCCB) financial
condition is unsatisfactory, as revealed by the recent inspection conducted by NABARD
with reference to its financial position as on 31st March 2006. The bank is not complying
with th-s provisions of Section 11(1) of Banking Regulation Act, 1949 (AACS). The bank
has not been maintaining the minimum Cash Reserve Ratio (CRR) and Statutory liquidity
Ratio (SLR) requirement.
(c) to (e) : The Government of Maharashtra has released a sum of 20 crore to the bank on
4 April, 2007 towards Share Capital to be retired in ten years i.e. @ Rs.2.00 crore per year,
Further, a revival package for Short Term Co-operative Credit Structure (STCCS) has been
approved in consultation with the State Governments- The approved revival package, inter-;
alia, includes the wiping out of accumulated losses subject to certain legal and institutional
reforms to be initiated by State Governments.The Government of Maharashtra had entered into
a Memorandum ofUnderstanding (MoU) with Central Government and NABARO on 13th November2006
for implementation of the package.
The progress so far is i:hat Training of master trainers for special audit is
completed in Maharashtra and State/District Level Implementation & Monitoring Committees
have been set up to guide and monitor the implementation of the Revival Package.Nanded DCCB
and its affiliates are covered under the Revival Package subject.