Four DCCBs are on the verge of losing licence and 45% PACS are in the red, say officials
The District Cooperative Central Banks (DCCBs) of Anantapur, Kadapa, Kurnool and West Godavari are on the brink of losing their licence, and 45% of the Primary Agricultural Cooperative Societies (PACS) are in the red, officials have informed Chief Minister Y.S. Jagan Mohan Reddy.
In a review meeting on the cooperative sector on Wednesday, the officials said that the quantum of loans provided by the DCCBs and PACS was on a steady decline, with some of them restricting their business to farm loans. Besides, their adoption of technologies was poor, the officials said.
The Chief Minister direct the officials to take urgent steps for reviving the sector by utilising the services of the organisations such as NABARD Consultancy Services, which made certain recommendations.
The Chief Minister also ordered that computerisation be done across the sector from the AP State Cooperative Bank Limited (APCOB) to PACS. He also suggested that the PACS expanded their portfolio to non-credit services and to extend the PACS network in order to have one cooperative society for three Rythu Bharosa Kendras (RBKs).
Further, the Chief Minister agreed for induction of experts in agriculture, finance, accountancy and economics as specialist directors in the DCCBs and PACS, and for a overhaul of the Boards of Directors every two-and-a-half years.
Mr. Jagan Mohan Reddy ordered that the records of PACS be audited at regular intervals and independent investigations done by third parties to fix responsibility in the case of irregularities.
He wanted the DCCBs to look into the creditworthiness of the customers to avoid piling up of non- performing assets, while focusing on agriculture and allied sectors.
It was decided to increase the market share of the DCCBs to 20%. He suggested that the cooperative sugar factories give due priority to production of ethanol, and instructed the officials concerned to expedite the establishment of multi-purpose centres in the farm sector.