Nagaland commissioner & secretary, Co-operation,BP Chettri, addressing the 44th annual general meeting of the Nagaland State Cooperative Bank Limited on Tuesday. (Morung Photo)
Dimapur, February 11: Nagaland commissioner & secretary, Department of Co-operation, BP Chettri, today said the state government has taken up the issue of revitalization of the Nagaland State Cooperative Bank Ltd. (NSCB) with all seriousness.
“Special committee” soon
to monitor progress of bank
Being the lone State-partnered bank in cooperative sector in Nagaland, the commissioner & secretary said the state government has initiated a number of measures to ensure healthy growth of the cooperative bank so that it can deliver goods to the people, especially in rural areas.
to monitor progress of bank
Being the lone State-partnered bank in cooperative sector in Nagaland, the commissioner & secretary said the state government has initiated a number of measures to ensure healthy growth of the cooperative bank so that it can deliver goods to the people, especially in rural areas.
Besides providing assistance to the bank in recovery of “current and overdue loans” and to bring NSCB under core banking system, Chettri disclosed that the government would soon constitute a “special committee” under the chairmanship of the State chief secretary, to monitor the progress of the bank and to bring improvement in its functioning.
“The State Government has released Rs. 3 crores from its committed share of recapitalization under short term cooperative credit structure (STCCS)…Release of a sum of Rs. 1 crore by the state government to the bank is in pipeline, which will further improve the position of CRAR (capital to risk weighted asset ratio”, she added.
The commissioner & secretary was addressing the 44th annual general meeting of NSCB, which was also attended by stakeholders and cooperative societies from all districts of Nagaland, at NSCB conference hall.
Chettri informed that after the implementation of income recognition and asset classification (IRAC) by Reserve Bank of India, the financial position of NSCB “reversed” and declined from 1998 till 2005, forcing RBI to clamp Section 35 (A) of BR ACT 1949 (AACS) on the bank. “In order to rescue the bank from crisis, Government of Nagaland had infused additional share capital to the tune of Rs. 20 crores during 2005-06 consequent to which the above imposition was partially lifted by RBI,” she said. Simultaneously, the state government also repaid an amount of Rs. 1,29,35,000 to the bank which was lying overdue in the name of various government undertakings.
However, from the year 2007 the bank changed its strategies and took a u-turn by giving more emphasis on “non conventional finance” and from 2007-08 onwards the bank started reducing its negative net worth. With additional infusion of Rs. 13 crores to the bank by the state government, NSCB became compliant to licensing parameter of 4% CRAR fixed by RBI and by September 13, 2013, the bank attained 7% CRAR, Chettri said.
The meeting also approved the annual report of NSCB board of directors 2012-13, auditors’ report for the year ended March 31, 2013 and revised budget for 2012-13 and estimated budget for 2013-14 and 2014-15. Four new members were also inducted into the NSB board of directors. Awards were presented to NSCB officials and branches excelling in recovery of loans and deposit respectively and to best performing cooperative societies.
Earlier, special officer NSCB, BK Thadani delivered the welcome address and managing director NSCB, S Atovi Sema, proposed vote of thanks. Vice chairman, NSCB, Tali Longkumer, chaired the meeting.
