The Maharashtra state cooperative bank has been found to have not followed RBI guidelines that are to be followed by a cooperative institution, said National Bank for Agriculture and Rural Development (NABARD).
The bank has been found to have not involved itself adequately in agriculture loans as it has in the sugar sector and other investments.
A report prepared by NABARD has said that the bank has not worked on the affairs of the bank in the interest of its stakeholders. Amongst other charges put are hiding of non performing assets (NPA), ignoring RBI directives.
In fields like deciding cash credit limits, release of pre-seasonal loans and short term loans for cooperative sugar factories, all regualations set by NABARD in the regard had been plainly ignored.
"Infrastructure projects are required to be financed provided Nabard approves it. Surprisingly, the bank never approached Nabard for approval,'' he said.