Mumbai: The appointment of two Administrators for the State Cooperative Bank by the Reserve Bank of India (RBI) has reportedly been disfavoured by Union Agriculture Minister Sharad Pawar. The RBI took this decision following the brittle condition of the bank. (JPN/ Bureau)
The decision is expected to affect the NCP-Congress relation as for the past one decade, the State Cooperative Bank has been dominated by Union Agriculture Minister’s nephew Ajit Pawar.
According to sources, the NABARD in its annual report on the bank has found several discrepancies in its functioning. Besides, it also came to conclusion that despite a huge loss of Rs 775 core, the data was twisted to show a profit of Rs two crore in the balance sheet. The amount of loans which couldn’t be recovered has reached 30 percent which should not go beyond more than 5 percent, the report stated.
Meanwhile, after getting the RBI directive, the state’s Cooperative Commissioner on last Friday suspended the board of directors, and appointed Agriculture Secretary Dr Sudhir Kumar Goel and Sudhir Srivastava, a senior IAS officer, as Administrators of the bank.
Since the NCP politics is dependent on sugar mills, the state cooperative bank has extended a loan of over Rs 1500 crores to these mills.
So far 44 leaders were accommodated in the board and if we believe the sources, RBI had expressed displeasure over the involvement of so many politicians.
Although the board had included the leaders from all parties in the state, the NCP leaders were ruling the roost. Therefore, the move is supposed to have given a big blow to the latter.
According to reports, NCP chief Sharad Pawar has decided to discuss the matter with Congress Chairperson Sonia Gandhi,as he is of the view that a section of Congress leaders have played a crucial role in the appointment to scuttle his party’s influence.
Mumbai: The appointment of two Administrators for the State Cooperative Bank by the Reserve Bank of India (RBI) has reportedly been disfavoured by Union Agriculture Minister Sharad Pawar. The RBI took this decision following the brittle condition of the bank.