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There is a need for cooperative banks in the country to diversify their portfolio, according to a senior banker.
Inaugurating the new centenary building of South Canara District Central Cooperative (SCDCC) Bank in Mangaluru on Thursday, Harshkumar Bhanwala, Chairman of National Bank for Agriculture and Rural Development (Nabard), said that though the cooperative banks should continue to fund agriculture sector in the country, they should also focus on diversifying their portfolio.
In some cases, the exposure of cooperative banks to agriculture sector is almost 90 per cent. It will be difficult for them to sustain their operations if there is a calamity or drought in their areas of operation.
He urged the SCDCC Bank to focus on areas such as rural housing and sanitation, and non-farm activities.
Suggesting the SCDCC Bank to set up a skill development centre for rural youths, he said if the bank comes out with a two-month skill development course for rural youths, Nabard is ready to extend its assistance to such a course.
It will go a long way in reorienting rural youths to newer skills, he said.
Karnataka Cooperation Minister HS Mahadeva Prasad said on the occasion that more families of farmers are getting interest-free loan of ₹3 lakh from the last two years. By the end of March, 22 lakh farmers in the State got the interest-free loans as against 14 lakh farmers two years ago, he said.
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