Lok Sabha Question No. 2009 (UNSTARRED), answered on 2017-12-29
Subject: SCARDBs
Ministry: FINANCE
Asked by: VIJAY KUMAR S.R., SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR, NARANBHAI KACHHADIA, BIDYUT BARAN MAHATO

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA

Unstarred Question No. 2009

To be answered on Friday, December 29, 2017/Pausha 08, 1939 (Saka)

## SCARDBs

## 2009. SHRI S.R. VIJAYAKUMAR: SHRI SUDHEER GUPTA: SHRI GAJANAN KIRTIKAR: SHRI NARANBHAI KACHHADIYA: SHRI BIDYUT BARAN MAHATO.

Will the Minister of FINANCE be pleased to state:

- (a) the number of State Cooperative Agriculture and Rural Development Banks (SCARDBs) along with their branches that are existing and functioning in the country at present, State/UT-wise;
- (b) whether the Government is aware that the SCARDBs in the country are on the verge of closure due to their poor financial conditions;
- (c) if  so,  the  details  of SCARDBs which are closed down due to their poor financial conditions, State/UT-wise;
- (d)  whether  the  Government  has  conducted  voluntary  inspection  of  SCARDBs  to  assess  their financial health and suggest corrective measures and if so, the details thereof;
- (e) the details of the scheme formulated by the Government for their revival so far; and
- (f) the steps taken/being taken by the Government to revive the closed SCARDBs in the country?

## Answer

The Minister of State in the Ministry of Finance (Shri Shiv Pratap Shukla)

(a) to (f): As reported by National Bank For Agriculture and Rural Development (NABARD), as per  56 th   Annual  Report  2015-16  &  2016-17  of  National  Cooperative  Agriculture  and  Rural Development  Bank  Federation  (NCARDBF),  the  details  of  functional  State  Cooperative Agriculture and Rural Development Banks (SCARDBs) are as under:

| SN   | Particulars                     | 2014-15                                                                                                                                  | 2015-16                                                                                                                                  |
|------|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
| 1    | No. of SCARDBs                  |                                                                                                                                          |                                                                                                                                          |
|      | I Fully Functional              | 13                                                                                                                                       | 13                                                                                                                                       |
|      | No. of Branches                 | 610                                                                                                                                      | 616                                                                                                                                      |
|      | II Others                       | 4                                                                                                                                        | 4                                                                                                                                        |
|      | III No Business                 | 3                                                                                                                                        | 3                                                                                                                                        |
| 2    | No. of SCARDBs in profit        | 9                                                                                                                                        | 10                                                                                                                                       |
| 3    | No. of SCARDBs in losses        | 4                                                                                                                                        | 3                                                                                                                                        |
|      | I Fully Functional              | Haryana, Himachal Pradesh, J&K, Punjab, Rajasthan, Tripura, West Bengal, Uttar Pradesh, Gujrat, Karnataka, Kerala,TamilNadu & Puducherry | Haryana, Himachal Pradesh, J&K, Punjab, Rajasthan, Tripura, West Bengal, Uttar Pradesh, Gujrat, Karnataka, Kerala,TamilNadu & Puducherry |
|      | II Others                       | Manipur (Defunct), Chhatisgarh (Merged with ST structure), Maharashtra (Under Liquidation), Madhya Pradesh (Under Liquidation)           | Manipur (Defunct), Chhatisgarh (Merged with ST structure), Maharashtra (Under Liquidation), Madhya Pradesh (Under Liquidation)           |
|      | III No Business in Last 3 Years | Assam, Bihar, Odisha                                                                                                                     | Assam, Bihar, Odisha                                                                                                                     |

NABARD has informed that with respect to financial position as on 31.03.2016, inspection of 10 SCARDBs was conducted. Based on the performance/ financial position of SCARDBs, 'Letter of supervisory  concern'  were  also  issued  to  the  Cooperation  Department  of  the  respective  State Government and the Bank concerned for initiating corrective action.

In order to infuse liquidity into SCARDBs, NABARD provides refinance to eligible SCARDBs. The Long Term Rural Credit Fund (LTRCF) was set up in 2014-15 with NABARD out of the shortfall in Priority Sector lending target of scheduled commercial banks, to provide long term refinance to Cooperative  Banks  and  Regional  Rural  Banks  at  reduced  interest  rate  for  their  long  term investment credit lending in agriculture.