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Rs. 19.65 crore Govt grant to Apex Bank

By Staff Reporter

GUWAHATI, Nov 23 � The State Government on Tuesday distributed an amount of Rs 19.65 crore to the Assam Cooperative Apex Bank as per the recommendation of the Baidyanathan Committee to revive and strengthen the cooperative banking system.

Chief Minister Tarun Gogoi presenting the cheque at a function held here in the conference hall of Chief Minister's block said that the need of the hour was to improve economic condition and productivity which could be achieved through the cooperative movement.

Stressing the importance of cooperative credit structure in rural areas, Gogoi said that the government will focus on micro financing to boost the agricultural sector.

The government will start ATM services and core banking network of the Assam Cooperative Apex Bank by February next year. Health Minister Himanta Biswa Sarma who is also the Chairman of the bank informed that both the services will be launched in February 15.

Sarma further said that the bank has recovered around Rs 100 crore from different creditors and has succeeded in registering profit of Rs 15 crore upto September in the current financial year. In the last financial year, the bank, Sarma said, had made profit of Rs 6.44 crore.

It needs to be mentioned here that the bank had incurred immense loss almost to the tune of Rs 150 crore in the last two decades and to recover the loss, the government took a major step by clearing most of its pending liabilities to the bank. "The bank is on the path of revival," said Sarma adding that the deposit ratio of the bank has increased to Rs 1400 crore as of now and it is in a position for major investment.

On the other hand, Chief General Manager (CGM) of the National Bank for Agriculture and Rural Development (NABARD) AK Srivastava who was present at the function said that it was a great positive development for the State that the government has come forward to strengthen the cooperative movement. "We expect progress in agriculture and rural credit in the next one or two years," he said.

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