Agriculture Rural Development Banks Needs To Increase Recovery of Loans for Sustainable Growth : Sandhu



NewZNew (Chandigarh) : The National Cooperative Agriculture and Rural Development Banks’  Federation jointly with Punjab State Cooperative Agricultural Development Bank has organised a Seminar on reforms in Long Term Cooperative Credit Structure on 7th November, 2014 at Chandigarh. Mr. S.K. Sandhu, Principal Secretary Chief Minister, Punjab and Financial Commissioner Cooperation formally inaugurated the seminar.

In his keynote address Mr. Sandhu said that the motive behind holding the seminar is to consider reform, needs of institutions in the Structure. He said that the Long Term Cooperative Credit Structure comprising of Agricultural and Rural Development Banks (ARDB) at the State and at Primary levels is going to complete 100 years in 2020. He threw lights on the various kinds of challenges being encountered by the State Cooperative Agricultural Development Bank. He exhorted the officers to put in their energy in bringing reforms in the structure and moulding their working in accordance with the changing needs by adopting modern banking techniques and Information technology. He emphasised that Agriculture Rural Development Banks must exert to increase the recovery of loans for the long term sustainable growth.

Mr. K.K. Ravinderan, M.D. National Federation of ARDB, Mumbai, while taking part in the deliberation said that one set of these challenges, being encountered by ARDBs, relates to the need for change in the institutional framework and business model, as laid down by provisions of its statutes.  He said that the Vaidyanathan Task Force II in 2006 suggested wide ranging reforms to address these challenges as part of the Revival Package recommended for this structure.  Even though Government of India announced implementation of the Revival package in the Union Budget 2008-09, the same remains unimplemented even today.  The Federation is taking up this issue once again with the new Government in the Centre with the support of State Governments.

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Mr. Ravinderan said that apart from structural reforms recommended by Vaidyanathan Task Force, changes are also required in ARDBs in their systems, procedure, business practices, design and delivery of products etc.  Most of the required changes in these areas are within the mandate of these institutions themselves.  National Federation of ARDBs in this context constituted Core Groups for Reforms Initiatives (CGRI) in each State about two years back.  This initiative succeeded in bringing some improvements in the above areas.

He said that National Federation is currently organising series of State Level Seminars to internalise these reforms institutionally and take these lessons further down to the structure.

Mr. Arunjit Singh Miglani, IAS, Registrar Cooperative Societies Punjab graced the occasion as guest of honour. Earlier in the morning Mr. G.S. Mangat, MD, State Cooperative Agricultural Development Bank welcomed the dignitaries and participants. Mr. Sukhdarshan Singh Mrar, Chairman of the Punjab State Cooperative Agricultural Development Bank chaired post lunch session of the seminar.


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