The Maharashtra State Cooperative Bank (MSCB) will now be getting agricultural loan refinance from the National Bank for Agriculture & Rural Development (Nabard). The efforts for the same are being put strongly by the Maharashtra state government.
The Reserve Bank of India has been requested by the state government to consider allowing the bank to continue its business as its net worth for the fiscal last ended figured to a positive amount of Rs 238.14 crore.
"We do not see any problem in MSC Bank getting refinance from Nabard for 2011-12 as the bank's net worth is positive. Necessary action has already been initiated by the state government for exempting MSC Bank from section 11. This means the bank's net worth is not less than Rs 1 lakh but it has turned positive as per the balance sheet of 2010-11 and, therefore, RBI is expected to accept our request and give its approval for MSC Bank to avail of the refinance from Nabard," said a state government official on condition of anonymity.
The board of the bank has already been brought under RBI control with the apex bank appointing two administrators of its own there.
The limit for refinance for MSCB on annual basis is Rs 2,160 crore, informed the official.