Thiruvananthapuram: UDF on Tuesday came down heavily on the state government for its alleged move to dismiss the managing committees of all the 14 district cooperative banks. They also opposed the LDF government's plan to set up a 'Kerala Bank' by merging co-operative banks. However, Chief Minister Pinarayi Vijayan brushed aside its concerns saying that the move would strengthen the co-operative sector.
While raising the issue through a notice for an adjournment motion in the assembly, P. Abdul Hameed of IUML said the enquiry was the first step in dissolving district bank committees. Replying to the notice, co-operation minister A. C. Moideen said probe into the functioning of district banks was ordered in the wake of the number of complaints including irregularities in appointments, disbursal of loans and regarding setting up of ATMs.
Following the reply by the minister, speaker P. Sreeramakrishnan denied permission for the motion. Following this, the UDF members staged a walkout. The chief minister pointed out that the plan to merge the district banks with State Co-operative Bank and create a big bank that would address the challenges faced by the state.
