More than 200 banks and cooperative societies in Goa see losses of Rs 800 crore | Goa News

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PANAJI: Up to 244 banks and cooperative societies in Goa have failed to generate profits, with their total loss currently estimated at Rs 800 crore.
The Goa State Co-operative Bank, Urban Co-operative Banks, and Urban Co-operative Credit Banks lead the list of such loss-making entities.
Attributing this phenomenon to the increase in non-productive assets (NPAs) at some cooperative banks, one official said their fiscal position had weakened further in recent years after mining operations in the state closed.
There are 4,805 banks and cooperative societies registered in the state.
Following restrictions imposed by the Reserve Bank of India (RBI), some cooperative banks have been forced to take severe measures to reduce their liabilities.
“Banks in red for political interference”
For example, the management of Mapusa Urban Cooperative Bank (MUCB) had in principle decided to merge with Punjab and Maharashtra Cooperative Bank Ltd (PMC) to get out of the financial difficulties it had been grappling with in recent years. But with the PMC itself under RBI control, the MUCB will be forced to look for a new bank.
One of the directors of a cooperative bank said that some financial institutions have fallen into the red due to unprofessional operation and interference from politicians who run the affairs of those banks. “In many cases, loans have been sanctioned on the basis of a person’s influence. Ten years ago that was almost a norm, ”said the director.
The financial health of 14 cooperative fishing companies has also deteriorated. In fact, only eight reported profits.
The director of MUCB asserted that although the number of cooperative societies has increased over the years, they are not managed effectively. “The board members made sure their parents were employed even though they ignored the eligibility criteria. Even when the eligibility criteria were met, merit took a back seat, ”said the director.
“As a result, the functioning of these entities has been affected. In some cases, more than the required staff have been appointed. The inadequacy and unprofessionalism of some banks have become the norm and their finances have taken a hit, ”said the director.
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