Financial Daily from THE HINDU group of publications
Friday, May 28, 2004
Financial Daily from THE HINDU group of publications Friday, May 28, 2004 |
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Money & Banking
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Non-Performing Assets Ordinance needed to recover co-op bank dues: CPI(M) Our Bureau
Hyderabad , May 27 THE Community Party of India (Marxist) has urged the State Government to promulgate an Ordinance to help the State-based urban co-operative banks to recover their non-performing assets (NPAs) from the defaulters. The CPI(M) State committee has asked the immediate intervention of the Government to take steps towards an integrated management of the urban co-operative banks and protect the interests of the depositors and the employees of these banks. Nearly dozen co-operative banks including major ones such as Prudential, Vasavi, Charminar and Krishi have collapsed during the last three years, resulting in heavy loss for the depositors. In a letter addressed to the Chief Minister, Dr Y.S. Rajasekhara Reddy, the CPI-M State Secretary, Mr B.V. Raghavulu, has suggested convening a meeting of the representatives of the depositors, bankers, employees and political parties for evolving measures to effectively manage the co-operative banks. The Left party favoured provisions in the proposed Ordinance to confiscate the assets of the defaulters, initiate criminal cases against them and take serious disciplinary action. Aimed at protecting depositors' interests, CPI-M has urged the Government to seek the cooperation of the judiciary. In the cases of crisis-ridden banks such as Prudential and Vasavi where there is potential for revival, the Government should extend counter-guarantees. For enabling these co-operative banks to maintain statutory liquidity ratio and cash reserve ratio, the Left party has asked the Government to direct the profit-making State-owned organisations to deploy their surplus funds into these banks in the form of deposits. Expressing concern over the apprehensions on the retrenchment of the employees in these co-operative banks, the CPI-M suggested the Government not to allow such measures of down sizing, while stressing on the need for cost cutting measures.
More Stories on : Non-Performing Assets | Co-operatives | Andhra Pradesh
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