Punjab government has abandoned the idea of merger of The Punjab Provincial Co-operative Bank Ltd (PPCBL) with The Bank of Punjab, said sources in provincial finance ministry. According to the sources, a meeting held recently in this respect have finalised the strategy and a formal summary to stop merger of both the Bank of Punjab and the PPCBL has been sent to the Chief Minister for approval.
It may be noted that merger of both the Bank of Punjab and the PPCBL was taken with the change of political administration in the province, particularly after a strong realisation that the PPCBL has turned into dead wood. Unearthing of billion of rupees scam in the Bank of Punjab also play due role in making up of the mind of policy makers.
The sources further confided that the PPCBL's total assets total around Rs 7 billion against pending claims of Rs 4.8 billion. The recoverable of the co-operative bank stands around Rs 3.5 billion. Therefore, functioning of the bank is still considered as feasible after payment of all pending claims.
Recovery of PPCBL stuck up loans is through land revenue therefore, said the sources, the minister land revenue has also been requested to attend upcoming meeting to chalk out recovery plan of the bank. As per plan, the provincial government has decided to ensure 100 percent recovery of bank in next four months.
Punjab Finance and Planning and Development Minister Tanvir Ashraf Kaira, when contacted, confirmed the reports and pointed out that the provincial government has decided to revamp the PPCBL by initiating recovery campaign in co-ordination with the land revenue department. According to him, summary to this effect has been dispatched to the Chief Minister secretariat for a formal approval. The committee working on the idea is likely to meet soon to strategize the recovery plan.
The PPCBL is the only surviving co-operative bank in the four provinces. Since 2001, PPCBL has outstretched its role as a micro-finance institution within its existing co-operative fold and scheduled bank character, quite successfully. It has extensive network of 159 branches spread all over Punjab at grass root level.
The bank is meant for improving the socio-economic conditions of persons of humble means through the principles of co-operative and to promote self-help and mutual aid, thrift and resource building, equity and democracy and promote growth of the co-operative movement. It carries on banking and credit business to facilitate working of the member co-operative societies.
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