Co-op sector crisis of its own making, says AP CM

Our Bureau

Hyderabad, March 17

The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, has advised the cooperative banks across the country to improve their efficiency levels so as to withstand the increasing competition from the commercial and regional rural banks.

Addressing the board of directors meet of National Federation of State Cooperative Banks Ltd (NAFSCOB) as chief guest here on Friday, Dr Reddy said, "In the light of the stiff competition from commercial banks and regional rural banks, the cooperative banks need to perform well or else they will have no option but to perish."

According to Dr Reddy, the liberalisation policies had come to stay and the cooperative banks would have to improve their efficiency and transparency in operations.

He described the crisis currently being faced by the cooperative sector of "its own making" and said the successive Governments "somehow never bothered about making them efficient."

Dr Reddy said the Congress-led Government in the State was, however, trying to make the cooperative sector vibrant.

(This article was published in the Business Line print edition dated March 18, 2006)
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