RBI grants banking license to Co-op Bank

Scoop News October 18, 2011

Srinagar, October 18 (Scoop News) - In a significant move towards the development and prosperity of Jammu and Kashmir, Reserve Bank of India has granted license to the J&K State Co-operative Bank Ltd, Srinagar to carry on the business activities in any part of the country.

Giving this information at a high-level meeting of officers held here today, the Minister of State for Cooperatives, Finance & Planning, Dr. Manohar Lal Sharma said that it is a matter of pride for the State to get the license for a public sector bank. He hoped that the bank will be able to expand its activities in other parts of the country besides Jammu and Kashmir. This is an indication towards excellent performance of the bank which has paved way for granting the license, the Minister asserted.

The Minister directed the Managing Director, J&K State Co-operative Bank Ltd to further speed up its efforts to promote the business activities of the bank. He asked him to identify potential areas for establishment of more branches so that the network of the bank can be strengthened.

While reviewing the functioning of the SCARDB, the Minister issued instructions to the Managing Director, SCARDB to initiate measures to improve the functioning of the bank as per the laid down benchmarks so that the bank is revived as per its full capacity. He maintained that Government has already agreed to provide Rs. 25 crore as State equity for the revival of the bank over a period of ten years.

The Minister also discussed the overall functioning of the Cooperative Department and directed the officers to take necessary corrective measures to improve its working. Various issues came up for discussion including constitution of Board of Management of Cooperative Banks, authorization/administrative approval for execution of various on-going works, status of various court cases and other administrative issues. He issued directions to the concerned to vigorously pursue all the court cases and watch the government interests.

Commissioner/Secretary Cooperatives, Abdul Hamid Wani briefed the Minister about the functioning of the department and measures initiated for improvement.

Managing Director, J&K State Cooperative Bank, Mohammad Ashraf, Managing Director, SCARDB, Mohammad Aslam and other officers of the Cooperative Department were present in the meeting.