DIMAPUR, DEC 6 (MExN): Minister of Co-operation, Shurhozelie in his address at the 36th Annual general meeting of the Nagaland State Co-operative Bank (NSCB) pointed out the various developmental role-played by the NSCB in the socio-economic development of the people. He said that the NSCB as the apex co-operative credit agency is actively involved in the implementation of developmental schemes such as Integrated Cooperative Development Projects in various districts to boost up agricultural production and to improve agriculture allied sectors through co-operative societies.
Keeping in view the various problems faced by the Bank, he said that the major problems confronted by the Bank in extension of credit in the state was mainly due to weakness in the cooperation credit structure. Pointing to the structural weaknesses suffered by the grass root level societies, he articulated that it was high time to review the functioning of the primary societies. The NSCB extend credit facilities out of the deposit mobilized from the public as well as borrowing from the State Government, refinance agency so it is necessary for the bank to realize the loan said Shurhozelie. He suggested that methodologies of recovery machinery should be more practical strategies and continuous and urged to create a sense of accountability. Heavy default of loans by the co-operative societies and the other borrowers has been one of the most important problems of the Bank said Shurhozelie and added that the various measures and steps taken to recover sizeable overdue amount has been a failure. He warned that the State Government cannot always remain silent spectator to this burning problem but will be compelled to take drastic action against the defaulters.
He expressed happiness over the enhancement and approval of State Government Guarantee from Rs.5 crores to Rs. 15 crores in favour of the Bank, enabling them to avail higher dose of refinance from NABARD to increase the flow of credit in the state. The Government with a view to lift the restriction on the coverage of Kisan Credit Cards and Micro finance has taken quick action in strengthening the capital base of the Bank said Shurhozelie and informed that the State Government has committed to infuse funds to the tune of Rs25 crores within 2006-07, and of which Rs. 5 crores has already been released. He also informed that the Government has decided to amend the co-operative societies Act in force in the state for facilitating Deposit Insurance and also that a high power committee headed by the Chief Secretary was constituted in restructuring of the Bank. The State Government has also decided to bring out state’s own legislation and it is expected that the state will have its own state legislation by 2006-07.
He said that the state cabinet has decided to transfer all the VDB accounts to the NSCB to support and strengthen the NSCB. He urged the management to introspect and find out the deficiencies and shortcomings and to take necessary steps. He also urged the Board of Directors, officers and the staff to work with more understanding and sincerity to improve the Bank’s financial health and to achieve overall progress.
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