)
With Land Development Banks in the state facing the default of repayment of loans by over two lakh farmers, the Maharashtra government is weighing various options, including their merger.
The options under consideration of the Maharashtra government are - to merge these banks with the district banks, ask the employees to take VRS, and to sell the properties of these banks to disburse the salaries of the employees who would be asked to take VRS.
A final decision on the issue will have to be taken by March 31, 2014, state co-operative minister Harshavardhan Patil said.
Also Read
A meeting in this regard has been organised on June 25, he said.
"We are contemplating merger of these banks with the district banks. Other options are whether the properties of these banks can be sold to disburse the salaries of employees who will be asked to take VRS," Patil said.
A core group has been formed to take a decision on the fate of these banks, which comprises legislators from both state Legislative Assembly and Council, he said.
However, he was doubtful whether banks will agree to merge with 28 district land development banks, which are running into a loss of Rs 1,800 crore.
"In order to merge these banks with the district banks the Capital to Risk (Weighted) Assets Ratio (CRAR) should not be below 4 per cent as per the guidelines issued by the RBI.
As many as 1,300 employees would be asked to take VRS and by selling the property, the government will receive around Rs 500 crore, he said.
"Rs 150 crore will be spent on disbursing the salaries of these employees," he added.
