The Hindu Business Line : TN co-op bank staff seek compensation

While hailing the Government for declaring waiver of farm loans of Rs 6,680 crore, the Tamil Nadu Co-operative Bank Employees' Association (TNCBEA) has appealed to the Government to recompense the banks to the same extent at one go to ensure flow of funds to the needy farmers.

The TNCBEA General Secretary, Mr P. Balakrishnan, said that 70 per cent of these advances were met out of the banks' own funds and therefore, the entire sum (principal and interest) would have to be compensated by the Government in one go.

"The co-operative banks in Tamil Nadu extend support to the marginal and sub-marginal farmers. This relief would be more in favour of these farmers. Hence, we welcome the waiver."

The TNCBEA has also said that the partial relief would not only help these banks secure necessary relief and come out of unhealthy situations, but make them ineligible to advance any further loans to the farmers.

"Ten banks have already been identified as `non compliant central co-operative banks and some 1,150 primary agricultural cooperative banks unviable under Sec 11 (1). The Government would do good in ensuring that the relief is extended to the banks in full," Mr Balakrishnan said.He stressed the need for extending the relief (waiver of loan and interest) to the honest borrowers as well, as their number was "limited. It is only just that these (honest) borrowers, who have remitted their dues before the due date, be extended the relief," he told Business Line.

More Stories on : Co-operatives | Tamil Nadu

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