Thiruvananthapuram Bank Affirms No Support for Banks Engaged in Illegal Activities
By [Author’s Name], [Date]
The President of Kerala Bank, Gopi Kotamurikal, has emphasized the institution’s commitment to upholding financial discipline and maintaining transparency while addressing the ongoing banking crisis. He asserted that Kerala Bank does not engage in assisting banks troubled by irregularities and a lack of financial discipline. Instead, the President emphasized the importance of adhering to the norms set by the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD) when transferring funds between banks.
Kerala Bank has not received any directives from the government to assist Karuvannur Bank. The cooperative department is well aware that Kerala Bank cannot provide aid in such matters. At present, Kerala Bank has already provided a loan of Rs 42 crore to Karuvannur Bank, which could possibly amount to Rs 46 crore, according to the President’s statement.
Regarding recent news of Kerala Bank’s alleged plan to provide Rs 50 crore to Karuvannur Bank, the President indicated that it is devoid of factual accuracy. Moreover, NABARD has openly expressed opposition to this proposed transfer. Unfortunately, false propaganda targeting the cooperative sector has led to concerned investors approaching Kerala Bank. Nevertheless, given Kerala Bank’s robust financial foundation, this should not pose a significant threat. However, the President acknowledged that thousands of primary cooperatives may face repercussions.
Kerala Bank has dedicatedly extended assistance amounting to Rs 1431 crore to 341 banks operating in the agricultural sector, supporting farmers during times of crisis. These banks faced difficulties during periods of agricultural produce instability. Consequently, Kerala Bank provided aid in adherence to the guidelines outlined by RBI and NABARD. Gopi Kottamurikal clarified that banks involved in deliberate fraud and irregularities cannot expect support under such circumstances.
English Summary: Kerala Bank Asserts Withholding Support for Cooperative Banks Engaged in Illegal Activities
Thiruvananthapuram ∙ Kerala Bank president Gopi Kotamurikal has said that it is not the practice of Kerala Bank to help banks in crisis by not following financial discipline and showing irregularities, and whichever bank has to transfer money, it enough to follow the norms of the Reserve Bank. and NABARD. Kerala Bank has not received any instructions from the government to help Karuvannur Bank. The cooperative department knows that Kerala Bank cannot help in that way. Kerala Bank has already given Rs 42 crore loan to Karuvannur Bank. It might have been 46 crores – the President said.
I have no information about it except that I noticed the news that Kerala Bank would give 50 crores and NABARD opposed it. Fearing false propaganda about the cooperative sector, investors are also approaching Kerala Bank. This will not affect a bank with a strong financial base like Kerala Bank. But thousands of primary cooperatives will be affected.
Kerala Bank has provided assistance of Rs 1431 crore to 341 banks which have given loans in the agricultural sector and helped farmers. The banks that got into trouble when there was a crisis in agricultural produce. They are assisted as per RBI and NABARD norms. Gopi Kottamurikal explained that the banks that commit deliberate fraud and irregularities cannot be helped in this way.
English Summary: Kerala Bank will not help those co-operative banks doing illegal activities, says President Gopi Kottamurikkal
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