Rs400cr raised via bonds, MSCB plans loans to NDCCB, other district banks
Nagpur: Maharashtra State Cooperative Bank (MSCB), which has raised Rs400 crore as tier-2 capital through bonds issue, plans to seek additional time from the Reserve Bank of India (
RBI
) to raise another Rs100 crore.
The ultimate plan is to lend part of the amount to the beleaguered Nagpur District Central Cooperative Bank (NDCCB), apart from funding other district-level cooperatives.
The funds will be provided to NDCCB as a short-term loan to improve its liquidity.
With its board of directors expelled, MSCB is itself run by an administrator — a veteran banker, Vidyadhar Anaskar. Last year, MSCB took over the management of NDCCB as an institutional consultant.
This was the first-ever such arrangement in the state's cooperative sector. On Tuesday, the state govt also issued orders to appoint MSCB as the institutional consultant of Nashik District Central Cooperative Bank.
MSCB is a part of the three-tier cooperative banking system in the state. Funds flow through MSCB to respective district central cooperative banks (DCCBs), from where they reach the primary agriculture cooperative societies at the village level.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
5 Books Warren Buffett Wants You to Read In 2025
Blinkist: Warren Buffett's Reading List
Undo
"Now, the money raised by the bonds is planned to be deployed in assisting the DCCBs across the state," Anaskar told TOI.
NDCCB has not been able to recover from the losses caused by an Rs150 crore investment scam two decades ago involving the then chairman and former Congress MLA from Saoner, Sunil Kedar. The losses had kept it under an administrator instead of an elected board of directors. Now, it's under the MSCB's control.
MSCB replaced a cooperatives department officer as the administrator for NDCCB. Normally, an individual takes over as an administrator in a crisis-ridden cooperative bank.
Anaskar told TOI that MSCB was able to raise Rs400 crore at 8.5% during the two-month window allowed by the RBI. The plan is to raise Rs500 crore in all, and the RBI will be approached to allow additional time. "MSCB has been able to raise funds at much more competitive rates compared to other cooperatives," he said.
Anaskar said there are five to six crisis-ridden DCCBs in the state. These include the banks in Wardha, Nagpur and Buldhana in Vidarbha. "MSCB is keen to deploy the funds in these DCCBs," he said.
Get the latest lifestyle updates on Times of India, along with
Eid wishes
,
messages
, and
quotes
!
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
30 minutes ago
- Time of India
Naxalites resort to cowardly acts out of frustration, says CM Sai
Raipur: Chhattisgarh Chief minister Vishnu Deo Sai on Tuesday paid tribute to Additional Superintendent of Police (ASP) Akash Rao Girepunje, who was killed in an IED blast in Sukma district. The emotional wreath-laying ceremony was held at the 4th Battalion of Chhattisgarh Armed Forces (CAF) in Mana area, where officials and hundreds of citizens gathered to pay their respects. CM Sai, along with Deputy Chief Ministers Vijay Sharma and Arun Sao, state assembly speaker Raman Singh, and various ministers, participated in the ceremony. CM expressed his certainty that Naxalism, which claimed the officer's life, is on its last legs and will soon be eradicated. Girepunje, 42, was killed and two officers injured when an IED planted by Naxalites exploded in Konta, Sukma. The officer's family, including his wife, parents, and two minor children, were present. His 7-year-old son bowed to the mortal remains with folded hands, and a relative carried his 6-year-old daughter in his arms. After the ceremony, Girepunje's body was taken in a flower-decked mini-truck for last rites at Mahadev Ghat, with hundreds following the procession, chanting slogans in tribute to the slain officer. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo At the crematorium, his 7-year-old son lit the funeral pyre, a moment that deeply moved those present. In his remarks, CM Sai stated, "We have lost a brave and committed officer. Naxalites have resorted to cowardly acts out of frustration. Naxalism is breathing its last, and its end is certain." Deputy chief minister Vijay Sharma, who also holds the Home portfolio, praised Girepunje's bravery and commitment to his duty. He recalled that Girepunje had vowed to stay in Sukma until the Naxal threat in the region was completely eliminated. Vow to Eradicate Naxalism Bastar IG P Sundarraj visited the blast site on Tuesday and pledged that the police forces are fully prepared to deal with the Naxal threat. The IG said that the police would not rest until Naxalism is completely removed from Bastar. "The sacrifice of Akash Rao and other martyrs will not go in vain. Their legacy will continue to inspire our mission for peace, prosperity, and progress," he said. Final Farewell to the Martyr Akash Rao Girepunje, originally from Raipur, had served as ASP of Konta for over a year and had previously been honoured with a gallantry medal for his dedication to the fight against Naxalism. His family was preparing to celebrate his daughter's birthday, which falls on Wednesday, but the tragic loss has shattered those plans. The ceremony was marked by emotional scenes, as the community and officials from across the state paid their respects to a fallen hero committed to safeguarding the people of Bastar. In a show of solidarity, locals in Konta region have expressed anguish over IED blasts and residents have called for Dornapal 'bandh' on Wednesday. Traders and businessmen on Tuesday plan to carry out candle march late Tuesday and a tribute ceremony was also held.
Time of India
44 minutes ago
- Time of India
Get old wine at old rates beforeduty hike kicks in
Nagpur: The state govt has hiked excise duty on liquor, so tipplers have only a few more days to get a high from old wine and pay the old rates. Though state cabinet has cleared the hike, a final notification is yet to reach excise offices. Some liquor dealers and bar managers say the drinkers may not have to shell out more right away. The new taxes are expected to be applicable on fresh stock. This means old stock, which generally lasts for a week at the outlets, will still be available at the same price. Excise is levied at manufacturing stage & passed down trade channels, finally reaching the consumer, explained a state govt official. Dealers said increase in duty will make a peg of entry-level drink costlier by Rs15-20. The increase would be substantial for premium brands like scotch. Rajeev Jaiswal, president of Nagpur District Permit Room Owners Association, said a quarter bottle of rum that cost Rs145 would now retail around Rs160. In the bar, a peg of any of commonly consumed brands may cost Rs100 or more, depending on the type of outlet. Jaiswal said liquor in the state is among costliest, which leads to smuggling from neighbouring states. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo Often, liquor is brought illegally from Madhya Pradesh, where rates are substantially lower. The govt must also act to prevent smuggling as it also leads to revenue loss. The move has left tipplers disappointed. "We are barely able to afford peanuts along with drinks. Now even that would be a luxury," said Siddharth, a youngster. "I may have to cut down on weekly trips to the bar with my friends," said Priyank, also in his 20's.
Time of India
44 minutes ago
- Time of India
Now, govt allows 18 months for probe against erring officials
Mumbai: For the general administration department, it took four and a half decades to realise that a departmental probe against errant officials cannot be completed in six months. On Tuesday, it amended the 1979 rule to allow 18 months for the probe. As per a government order, the Maharashtra Civil Service (Appeal and Discipline) Rules promulgated in 1979, a departmental probe is expected to be completed in three to six months. It was found that owing to complex procedures, particularly the serving of charge-sheet and appointment of inquiry officer, it was not possible to complete the probe in three to six months. "We found that several erring employees took advantage of the situation, suspended employees secured reinstatement on the grounds that six months had passed after suspension and that the probe is yet to be completed," a bureaucrat said. The bureaucrat said the 1979 rule was defective and should have been amended long ago to provide for time-bound disposal of departmental probe. "We took note of the shortcomings in the 1979 rules and amended these suitably. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Now we expect that all the pending departmental probes will be completed in 18 months," he said. As per the GR, for misconduct and misbehaviour, the departmental probe must be completed in three months. "For minor penalties, the probe must be completed in three months. For cases involving major penalties, the probe must be done in 18 months," the official said. The bureaucrat said that for the first time the general administration has provided a time limit for every step. As per the revised procedure, it will be the responsibility of the department to serve the charge-sheet on the erring employee within three months and that he should reply within 15 days, which may be extended by 45 days. "We expect that the report of the departmental probe will be submitted within nine months, which will be placed before the pubic service commission and on the basis of the recommendation, a final decision will be taken in a month," the official said.
