mangalore today

SCDCC Bank branches loss worrisome, yet to recover from demonetisation impact: Chairman

Mangalore Today News Network

Mangaluru, July 29, 2018: Speaking at a training for SCDCC Bank branch managers organised by the Karnataka State Cooperative Federation, the SCDCC Bank and the DK District Cooperative Union on July 28, Saturday;  SCDCC Bank Chairman M N Rajendra Kumar expressed concern over 52 branches of SCDCC Bank incurring loss in the last financial year.

SCDCC bank

SCDCC bank

Mr. Rajendra said the SCDCC Bank has 105 branches in Dakshina Kannada and Udupi districts. About 49 branches have more than 10 NPAs. The branch managers should make efforts to bring down the non-performing assets (NPAs) in the current financial year.

“It is normal for a newly opened branch to incur loss. However, there is a need to prevent old branches from incurring loss. There is a need to reduce NPAs. Cooperative bank officials, directors and members should unitedly work towards reducing the NPAs in the cooperative banks,” said Rajendra.

“A few rules and regulations of the Central government are posing hurdles to the cooperative sector. The Central government is biased against cooperative banks,” he alleged.

Further, he demanded, “We do not need monetary benefit from the government. Let the government stop bringing out new rules and laws. We will empower and build the cooperative societies on our own. Let the Centre give us concession in dealings of the cooperative societies.”

Demonetisation:  He said the cooperative banks are yet to recover from the impact of demonetisation. “Farmers, who are the backbone of the cooperative sector, are not making deposits fearing notice and inquiry from the authorities, following demonetisation,” he said.

The education fund of the DCC Bank given to the Karnataka State Cooperative Federation should be used to impart training to the officials of cooperative societies. The officials should update their knowledge on advance in technology, he advised.

Cooperative Societies Deputy Registrar B K Saleem said there are 843 cooperative societies in Dakshina Kannada, of which 115 are primary agriculture cooperative societies, 372 are milk producers’ cooperative societies, 150 are multipurpose cooperative societies and employees credit cooperative societies.

Out of 843 cooperative societies, more than 750 societies have posted profits in the district. The officials from the cooperative societies should update their knowledge, he concurred.

Karnataka State Cooperative Federation President N Ganganna urged the Central and state governments to consult cooperatives while bringing in rules and regulations to the cooperative sector.

He said the DCC banks of DK-Udupi, Tumakuru and Bengaluru have made rapid progress. “All efforts are being made to strengthen the remaining 17 DCC banks,” he added.