The Hindu Business Line : TN to provide additional aid to Sivagangai coop bank

Announcing this in a press release, the Chief Minister, Ms J. Jayalalithaa, hoped the Reserve Bank of India will revoke its orders curtailing the bank's transactions bank and allow it to function at once in the current agricultural season.

She said the additional financial support, along with recoveries of Rs 12.23 crore made by the bank immediately after April 1, 2005, will enable the bank to meet the strict guidelines enforced by the RBI and the National Bank for Agriculture and Rural Development. Ms Jayalalithaa said she had pointed out in April that the action to impose restrictions on the functioning of the Sivagangai District Central Cooperative Bank was unfortunate and that she had appealed to the RBI to remove them.

The bank's audited accounts as on March 31, 2005 would have shown a positive net worth of Rs 2.35 crore and the bank would have complied with the requirements under Section 11(1) of the Banking Regulation Act, 1949.

She said the bank's detailed audit showed that it had a net worth of Rs 2.36 crore as on March 31, 2005, which indicated that the bank complied with regulations.

Thus, there is a clear case for withdrawing the orders curtailing the bank's activities. The audited figures show the bank earned a net profit of Rs 23.13 crore during 2004-05.

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TN to provide additional aid to Sivagangai coop bank