State-owned Apex Bank is on the verge of collapse because of Congress government’s farm loan waiver scheme.
To waive off loans of farmers, the previous Congress government disbursed loans of co-operative banks through Apex Bank.
The Congress government may have waived off loans through the bank but it did not transfer the money to financial institution. The loan waived off in second phase was Rs 792 crore. The bank is facing problem because this sum was not transferred to it.
The co-operatives department has been demanding money from state finance department but received no response.
Apex Bank earned profit of Rs 28 crore in 2018-19. This year’s balance sheet is being prepared. If the bank does not get back money, the financial institution will be in trouble.
The bank management is planning to debit the amount deposited to farmers’ accounts if the government does not give the money. The bank may also take money back from farmers.
The Apex Bank management has refused to say anything on the matter. The Congress claims that it has waived off loans worth Rs 6,000 crore, which belongs to nationalised and co-operative banks.
The nationalised banks began loan waiving process after taking money from the government. But the co-operative bank may incur a huge loss.
In the first phase of loan waiver and later, the government gave part of money to co-operative banks and societies. As the Congress government is no longer in power, it may be difficult for bank to get back money.
When Congress launched loan waiving scheme, it was feared that it would affect co-operatives sector financially.
After the change of government and after the economic slowdown because of the corona pandemic, the finance department would find it difficult to pay the amount.
Agriculture minister Kamal Patel said Congress deceived farmers in the name of loan waiver. Patel said an FIR would be lodged against former chief minister Kamal Nath.
