Govt committed to recapitalize Cooperative Banks: Dr Drabu

JAMMU, NOVEMBER 17(KMW): Minister for Finance, Dr Haseeb A Drabu today said the government is committed to recapitalize the Cooperative Banks subject to the submission of a comprehensive revival plan by the Department of Cooperatives. The revival plan should include the business plan, the human resource and modernization plans for the cooperative banks.
The Finance Minister was speaking in a meeting convened to discuss the revival of Central Cooperatives Banks in the state here today.
Minister for Cooperatives, Chering Dorjay was also present in the meeting.
The Finance Minister stressed that the issue of recapitalization should not be addressed in isolation but should be made a part of the overall restructuring of the cooperative banks operating in the state.
While elaborating upon the financial architecture in the state, he said that Cooperative Banks need to be seen as part of the overall banking framework in the state. He urged upon the officers to prepare the revival proposal accordingly so that the synergies in the system are leveraged by the cooperative banks to their advantage. The Finance Minister asked the officers to identify specific niche business opportunities in which the banks have a competitive advantage.
The officers representing the NABARD were asked to help the cooperative banks in bringing efficiency into their systems and to strengthen corporate governance in these banks.
The Finance Minister asked the officers to submit the revival plan at the earliest so that further necessary steps are taken for the revival of Cooperative Banks operating in the state.
Financial Commissioner Planning & Development and Principal Secretary to CM, B B Vyas, Commissioner Secretary Finance Department, Navin Kumar Choudhary, Regional Director RBI Jammu S K Sahu, Chief General Manager NABARD Jammu Vijay Kumar, Secretary Cooperatives Hemant Kumar Sharma, Secretary Law Abdul Majid, senior officers of Finance and Cooperatives department attended the meeting.