The State has accepted the recommendations of the Vaidyanathan Committee report, and the Centre has released Rs. 753 crore to the State for restructuring short-term loans, said S.N. Jayaram, managing director, Karnataka State Cooperative Apex Bank, here on Monday.
Funds would be released through the National Bank for Agriculture and Rural Development (NABARD).
Speaking to The Hindu, Mr. Jayaram, who was in Hassan to present a vision document prepared by the cooperative apex bank, said that according to the report, weaker financial institutions would be given a one-time financial impetus.
With this, many of the primary agriculture cooperative societies and District Central Cooperative (DCC) Banks would become financially more viable. He said 12 lakh farmers would benefit under the short-term credit structure, and the repayment would be more than 90 per cent.
The total working capital of all the banks and cooperative societies under the cooperative apex bank is Rs. 20,000 crore.
The cooperative banks were doing an excellent job in financing self-help groups (SHGs), he said. So far, the banks had financed 1.92 lakh SHGs with an outlay of Rs. 1,104 crore. The plan was to cover 4.7 lakh SHGs with an outlay of Rs. 5,000 crore by 2014-15, he said.
