The board of Management of AP State Co-operative Bank on Thursday took the decision to bifurcate the bank into two for Telangana State and AP.
In a big relief to AP, it was decided that Telangana State Co-operative Bank would pay Rs 50 crore as compensatory fund for setting up headquarters and new branches in Andhra Pradesh.
The move also helps Nabard to refinance the two State Co-operative banks so that they renew the loans of farmers in AP and TS through established credit structure of district cooperative central banks and primary agriculture cooperative societies.
APCOB MD V. Giridhar said, “The Board took a historic decision in a unanimous resolution for reorganising APCOB into two State Co-operative Banks.
Telangana State Cooperative Bank covers the newly formed State of Telangana with 10 districts and the continuing Andhra Pradesh State Cooperative Bank covering the 13 districts of AP.”
APCOB board in October 2014 paid a few lakhs and asked Nabcons (Nabard consultancy services) to come out with a bifurcation scheme.
The agency submitted a report in October and the same was considered for bifurcation. The two state cooperative banks will start functioning independently from April 2, 2015.
Meanwhile there are only 2 branches in andhra
AP has to start from the scratch to build State Co-operative Bank and its branches. There are only two branches of APCOB in AP—one in Vijayawada and other in Tirupati whereas all 35 branches in Hyderabad are transferred to TS. The APCOB union staff has earlier objected to the revaluation of buildings.