The Hindu Business Line : KSCB projects Rs 2,636-cr loan disbursals in 2006-07

Kerala State Co-operative Bank Ltd (KSCB) has projected loan disbursals to the tune of Rs 2,635.64 crore in 2006-07. The bank is expecting Rs 3,043.50 crore as deposits during the year.

Besides, refinance assistance of the order of Rs 758.05 crore is projected to be made available by financial institutions such as IDBI, National Co-operative Development Corporation (NCDC), and SIDBI, according to Mr K.R. Aravindakshan, President of KSCB.

He added that the bank was expecting profit of Rs 11.19 crore after income of Rs 347.90 crore and expenditure of Rs 336.71 crore. During the current year, KSCB had projected deposits of Rs 2,690 crore; till December 2005 it had mobilised Rs 2,655.50 crore.

In the case of loan disbursals, the achievement till December 2005 was Rs 1,569.34 crore against the target of Rs 1,871 crore, Mr Aravindakshan said.

In 2006-07, out of the projected disbursals, Rs 761 crore has been earmarked for agricultural purposes.

The other major heads of disbursals are: medium term/long-term projects (Rs 519 crore); small-scale industries (Rs 100 crore); short-term non-farm loans through district co-operative banks (Rs 212 crore) and apex co-operative societies (Rs 185 crore).

Mr Aravindakshan said that the State and district co-operative banks have been brought under the purview of the Income-Tax Act with effect from the current year.

This was not justifiable as these institutions were not operating for profit but were acting as support mechanisms for farmers and other rural people.

This would put a heavy burden on the banks. For KSCB, the income-tax liability would work out to Rs 3.39 crore in the current year, while the district co-operative banks would have to pay up a total of around Rs 50 crore, he said.

Touching upon another issue facing the co-operative sector, Mr Aravindakshan said that the Centre was planning to bring the State and district co-operative banks under the purview of the Banking Regulations Act as per the Vaidyanathan Committee recommendations.

The Centre has also promised to float a fund of Rs 15,000 crore to assist the weak co-operative societies, but subject to conditions.

In Kerala, only 4-5 per cent of the total number of societies would be eligible for the assistance under these conditions and the co-operative institutions in the State have collectively registered their opposition to the move, he said.

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