The saga of problems with co-operative entities in Goa is never ending; but even then, neither the managements of these banks nor the state government has clearly explained as to what is ailing these banks.
No one likes to talk about the root cause of co-operative sector's problems. Sample this: There was uproar in a meeting at Madgaum Urban Co-Operative Bank over a demand for a CBI probe into the purchase of Rs 50 lakh IDBI bonds by the bank around 20 years ago. It's tough to believe that something that happened 20 years ago is at the foundation of the problems faced by this bank.
Similarly, there was chaos in the annual general meeting of Mapusa Urban Co-Operative Bank as shareholders demanded the resignation of the board of directors. But, why are the shareholders not clearly articulating the real nature of the issues with the Mapusa Urban Co-Op Bank? It's fair to demand resignation of the current board of directors. But, then, how do we know that the new board of directors will be more competent than their predecessors.
If you read the news about the co-operative sector in Goa, it is full of allegations and counter-allegations without any attempt at really even identifying the issues. People cite mounting losses and rising non-performing assets (NPAs) of co-operative banks. But, these are the effects and not the cause of the problems.
Recently, the Registrar of Co-Operative Societies said that Mapusa Urban Co-Op Bank and Madgaum Urban Co-Op Bank should inform the government about the true nature of their financial problems, in case they want government to step in and help them. In other words, these banks have not informed the registrar about the true nature of their problems as yet. Given that the registrar is the administrator for the co-operative sector, it is surprising that co-operative banks are not forthcoming with sharing information about their state-of-affairs.
The co-operative sector in Goa needs to realise that transparency is non-negotiable, if they want to remain relevant in the long run. If these banks are not transparent, then slowly and steadily, people will start avoiding these banks and start going to scheduled commercial banks.
However, it must be appreciated that transparency is not a one way street. If co-operative banks tell the state government the real nature of their problems, then, it must be ensured that the government shouldn't interfere with their workings.
The government should just be an efficient administrator to overlook and provide guidance to the co-operative sector. Any attempts on its part to control the sector will only ensure that vested interests play a bigger role thereby undermining whatever credibility is left in the sector. At the same time, members of co-operative banks should also participate more in the workings of their banks, rather than just approaching them to take loans.
No one likes to talk about the root cause of co-operative sector's problems. Sample this: There was uproar in a meeting at Madgaum Urban Co-Operative Bank over a demand for a CBI probe into the purchase of Rs 50 lakh IDBI bonds by the bank around 20 years ago. It's tough to believe that something that happened 20 years ago is at the foundation of the problems faced by this bank.
Similarly, there was chaos in the annual general meeting of Mapusa Urban Co-Operative Bank as shareholders demanded the resignation of the board of directors. But, why are the shareholders not clearly articulating the real nature of the issues with the Mapusa Urban Co-Op Bank? It's fair to demand resignation of the current board of directors. But, then, how do we know that the new board of directors will be more competent than their predecessors.
If you read the news about the co-operative sector in Goa, it is full of allegations and counter-allegations without any attempt at really even identifying the issues. People cite mounting losses and rising non-performing assets (NPAs) of co-operative banks. But, these are the effects and not the cause of the problems.
Recently, the Registrar of Co-Operative Societies said that Mapusa Urban Co-Op Bank and Madgaum Urban Co-Op Bank should inform the government about the true nature of their financial problems, in case they want government to step in and help them. In other words, these banks have not informed the registrar about the true nature of their problems as yet. Given that the registrar is the administrator for the co-operative sector, it is surprising that co-operative banks are not forthcoming with sharing information about their state-of-affairs.
The co-operative sector in Goa needs to realise that transparency is non-negotiable, if they want to remain relevant in the long run. If these banks are not transparent, then slowly and steadily, people will start avoiding these banks and start going to scheduled commercial banks.
However, it must be appreciated that transparency is not a one way street. If co-operative banks tell the state government the real nature of their problems, then, it must be ensured that the government shouldn't interfere with their workings.
The government should just be an efficient administrator to overlook and provide guidance to the co-operative sector. Any attempts on its part to control the sector will only ensure that vested interests play a bigger role thereby undermining whatever credibility is left in the sector. At the same time, members of co-operative banks should also participate more in the workings of their banks, rather than just approaching them to take loans.
