NT NETWORK
Panaji
Moving a step further towards full financial recovery, Goa State Cooperative Bank (GSCB) became eligible for concessional refinance after a gap of 24 years.
The apex bank of cooperatives in the state was sanctioned Rs 20 crore refinance loan by NABARD on Tuesday to meet the working capital requirements of cooperatives and primary agriculture credit societies (PAC) in the state.
“The sanction of refinance will ultimately benefit the farmers of the state,” said Usha Ramesh, general manager and officer in charge, NABARD-Goa, while handing over the loan letter to Anand Chodankar, managing director, GSCB.
The short-term refinance loan extended by NABARD is for one year and at low rate of interest of 5.25 per cent. It is expected to help GSCB to supplement its resources and improve credit flow at the ground level.
Speaking to this daily, Chodankar, said that, the refinance was granted by NABARD looking at the bank’s recent performance. He disclosed that, the refinance loan although for a period of one year is renewable and can be
further extended.
“Since the ending of the June 2020 quarter the bank is fully compliant with CRAR norms but is awaiting official acknowledgement of the same,” said Chodankar.
GSCB is due for inspection of its accounts by NABARD in December 2020, after which it is likely that it will officially be declared as compliant with capital adequacy norms, indicated Chodankar.
GSCB earned net profit of Rs 40.2 crore for the year ended March 31 2020, followed by profit of Rs 12.7 crore, for quarter ended June 30 2020. After wiping out the past accumulated losses, the bank’s net profit is presently
Rs 2.7 crore.
The refinance sanction letter was handed in the presence of bank officials including Krishna Kudnekar and Premananda Chawadekar, directors, GSCB and Vasant Savardekar, deputy general manager, NABARD.
