Following in America’s footsteps by effecting a spike in taxation on the cooperative banks would have disastrous consequences, warned Prof Asad Ali, Chairman of Jamia Cooperative bank while talking to Indian Cooperative.com in Delhi.
If the urban cooperative banks continued to pay high taxes, most of them might unravel, he added.
According to Prof Ali, the coop banks are much smaller in size and can barely compare with the national banks.
The govt should bring in a taxation policy that strengthens the capacity of these banks to serve the weaker sections of society. The coop banks are doing a job, the big commercial banks can never do. This simple fact should be adequately appreciated by the govt and the RBI,he asserted.
Founded in 1995, Jamia Cooperative bank has six branches in all. It has posted a net profit of more than 2 crore this year. The bank is working hard to increase its annual profit.
The bank is being democratically governed by a board of 12 directors and has decided to open new branches in Nurnagar and Badarpur.
Jamia Cooperative bank has never attracted any punitive action from the RBI though it transacts business of more than 118 crore. It has been able to win the excellence award in the year 2001-2, claimed its Chairman. Along with Nafcub it intends to celebrate international year of cooperative,2012.
