Bihar seeks financial help from Centre to cut co-op banks' NPA

Bihar today sought the central government's assistance to bring down the non-performing assets (NPAs) of the state's cooperative banks, which currently stand at Rs 197.32 crore.
"Increase in NPA of state cooperative banks has become a major problem. It is important to address the issue not only for cooperative banks but also for farmers of the state," Bihar Cooperative Minister Alok Kumar Mehta said in a letter to Union Agriculture Minister Radha Mohan Singh.
At present, NPAs of cooperative banks in Bihar stand at Rs 197.32 crore.
The state is facing partial drought due to deficit monsoon for last three years. Moreover, many districts have faced floods and hailstorm impacting recovery of loans by banks, he said.

"The central government gives necessary financial assistance to commercial banks for bringing down NPAs. Even financial assistance is given to cooperative banks of Uttar Pradesh. Therefore, I request the central government to provide assistance to Bihar also," he added.
Besides, Mehta demanded funds for setting up of processing and distribution infrastructure for fruits and vegetables, cold storage units and maize processing units. He also raised concerns about the new crop insurance scheme.