'APCOB Giving a Dividend For First Time'

VIJAYAWADA: Chief Minister Y.S. Jagan Mohan Reddy has said the growth journey of the cooperative banking system in AP began four years ago when the YSRC government implemented the recommendations of the Nabard Consultancy Services (NABCONS).

In his address at the Diamond Jubilee celebrations of APCOB here on Friday, the Chief Minister said that the banking entity, which saw several ups and downs in its 60-years, has grown to the stage of ‘hand- holding’ the farmers and contributing to their economic prosperity, thereby also strengthening the rural economy.

He said, “Following the Nabcons recommendations, the government amended the 1964 law to strengthen  cooperative banking governance and appointed professionals to run APCOB and DCCBs through a uniform selection process. We also provided '295 crore as share capital for DCCBs.”

The CM unveiled APCOB’s new logo and the APCOB Brand Identity Guidelines (BIG) book. The bank presented him a dividend cheque of '55.93crore. Jagan Mohan Reddy said, “For the first time, APCOB is giving a dividend to the government, and I am happy to receive it. This remains as a special day in the state's cooperative history.”

Terming the celebrations as Shastipurti, he said his father and former chief minister Y.S. Rajasekhara Reddy played a key role in strengthening the cooperative credit system by putting in '1,850 crore into the bank and paying ' 217 crore as share capital to DCCBs in 2008. This was done following the recommendations of the Vaidyanathan Committee, he noted.

The CM said APCOB came back to the path of growth after the YSRC came to power. Its efficiency and transparency improved. The commercial banks have also contributed to the growth of agriculture in AP and prosperity of the farmers by liberally granting loans, he said.

He pointed out that the government has gone one step ahead by introducing reforms.

The Chief Minister revealed, “In the last four years, the net worth of the DCCBs and APCOB has gone up to Rs 1,005,89 crore and Rs 36700 crore from '53,249 crore and Rs 13,700crore respectively in 2019 due to digitalisation and professional administration. With the government allotting Rs 25 crore for digitisation and computerisation of the cooperative banking system, APCOB and DCCBs will move much closer to the farmers and self-help groups in villages.”

Except for Eluru, all other DCCBs are now running in profit. “It is a matter of pleasure that Kurnool and Kadapa DCCBs have made profits after 36 and 28 years respectively.”

After the government introduced farm mechanisation with the support of RBKs, APCOB has granted ' 500 crore as loans. For the first time in the country, all PACs (Primary Agricultural Cooperative Societies), DCCBs, APCOB are being linked to RBKs to enable them extend more efficient and transparent credit services to the farmers and women’s self-help groups.”

“At village level, farmers and self-help groups are benefited under Cheyuta, Aasara and zero interest schemes. Once the linking of PACs and cooperative banks with the RBKs is completed, the rural economy will get a boost, resulting in more prosperity to the farming community and women’s groups,” he said.

The Chief Minister gave away awards to the CEOs and other officials of Krishna, Srikakulam, Nellore and Kurnool DCCBs for their exemplary performance.