The Belgaum Industrial Cooperative Bank Ltd. has responded to the ongoing agitation by weavers, under the banner of Belgaum Nekarara Vedike, and admitted to the delay in disbursing benefits under the loans at 3 per cent interest as announced by the State Government.

Talking to presspersons, bank president Kishor M. Badgavi said the Government had announced to provide loans to weavers at 3 per cent interest.

At this, the bank had extended loans at the normal rate of 13 per cent, and requested the Government pay the difference amount of Rs. 65 lakh i.e. 10 per cent of the interest component.

However, this amount was due from the government for the last 13 months, he said.

The bank could not sanction loans for processing units, embroidery, dying and other modernisation processes at 3 per cent interest as demanded by vedike, as the government itself has not made any such provision, he said.


He said renaming the bank as ‘Belgavi Industrial Weavers Cooperative Bank Ltd.' would only reduce the scope of the bank, which had been established with the objective of catering to the needs of entrepreneurs in various industrial and manufacturing sectors. There were at least four cooperative societies, exclusively established by and for the weavers.

Ironically, none of these societies had sanctioned loans at 3 per cent interest to their members, he noted.

He said steps had been taken against U.G. Bolmal, member of the Board of Directors, for his alleged anti-bank activities.

The bank could not sanction loans as the government had not made any provision