Following the division of Andhra Pradesh, a crisis has overtaken the Andhra Pradesh State Cooperative Bank (APCOB) as its assets are yet to be shared between Andhra Pradesh and Telangana.
A sub-committee formed to resolve the problem has met umpteen times but to no avail. At its last meeting, the committee decided to dissolve itself. The cooperative bank is in limbo and its activities are being affected.
Meanwhile, the representatives of Andhra Pradesh districts mooted the division of funds in the ratio of 32:68 for Telangana and AP respectively. This ratio was worked out on the basis of capital shareholding percentage of DCCs. However, the Telangana representatives did not agree resulting in a standoff.
Another problem confronting the bank is the uncertainty over farm loan waiver in both states. The APCOB may not meet its annual targets as farmer societies have not been repaying their loans owing to the promises of waiver announced by the political parties during the elections.
Sources say the bank’s management board may either decide to call in an adjudicator or a third-party to draw up a fresh roadmap for the bank’s division.
