Visakhapatnam

Andhra Pradesh: political interference increasing in the functioning of cooperative banks, alleges VCB Chairman

Visakhapatnam Cooperative Bank Chairman Chalasani Raghavendra Rao addressing a press conference in Visakhapatnam on Tuesday.

Visakhapatnam Cooperative Bank Chairman Chalasani Raghavendra Rao addressing a press conference in Visakhapatnam on Tuesday. | Photo Credit: V. RAJU

The Visakhapatnam Cooperative Bank (VCB) Limited Chairman Chalasani Raghavendra Rao has alleged that political interference is increasing in the functioning of cooperative banks, which is leading to the disintegration of the cooperative sector.

Addressing a media conference here on Tuesday, Mr. Raghavendra Rao said that in the name of reforms, the Centre was amending the Banking Regulation Act and imposing several restrictions, to the detriment of shareholders and depositors of cooperative urban banks. Visakhapatnam Cooperative Bank was established in 1916, and the cooperative movement and several other cooperative urban banks were launched much before the RBI came into existence. He said that the bank was taking legal recourse against the amendments made to the Banking Regulation Act.

Mr. Raghavendra Rao said that VCB has emerged as the largest cooperative bank in south India with a share capital of ₹272 crore and 92,200 shareholders in the 2021-22 fiscal.

The share capital of the bank stood at the sixth position among 1,531 cooperative urban banks in the country. It stands 9 th in net profit and in the 15 th position in total income, in advancing of loans and in the payment of interest on deposits.

‘Plan to open new branches’

The bank, which already had 50 branches in Andhra Pradesh and Telangana, was planning to open more branches but the RBI has not given any approval for opening of new urban banks during the last five years. The RBI was likely to accord permission for new branches this year.

He said that the plan was to open new branches in Tadepalligudem, Amalapuram, Bhimavaram, Chirala, Ameerpet (Hyderabad) and Kommadi (Visakhapatnam). There was also a proposal to open new branches, in a phased manner, in all the new districts of Andhra Pradesh.

The pandemic situation during the last two years has led to a decline in savings by the people. This would have an adverse impact on the banking sector. The RBI has estimated that it would take at least 12 years for the economy to recover.

Chairman Emeritus Maanam Anjaneyulu and CEO PV Narasimha Murthy were present.


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Printable version | Aug 9, 2022 7:58:24 pm | https://www.thehindu.com/news/cities/Visakhapatnam/andhra-pradesh-political-interference-increasing-in-the-functioning-of-cooperative-banks-alleges-vcb-chairman/article65575605.ece