Only if the borrowers come forward to repay the loans will the bank see any future, said Picard bank’s district manager Hanumantarayappa.

Speaking at a meeting organised at SSK Community hall to discuss the state of affairs of Picard banks, he said as per Prof Vaidyanathan Committee report, the Centre will bear the losses of those Picard banks which have achieved at least 50 per cent loan recovery. The banks which have been struggling in loan recovery will either be closed or merged with Picard banks of other taluks.

Since Pavagada Picard bank has been able to achieve only 18 per cent loan recovery it faces the threat of closure, he said.

Former legislator Timmarayappa said the bank should not be allowed to close.

He called upon borrowers to repay the loans and save the bank. He also accused the government of being responsible for deterioration of the bank.

Picard bank’s former president L S Narasareddy blamed the politicians who assure farmers of loan waivers.

Regulations
“In order to woo farmers, politicians keep talking about waiving off loans if they came to power. Such statements mislead the farmers who default on repayments. This has indeed weakened the cooperative banking sector,” he said.

The officials of the Election Commission and the Reserve  Bank of India should issue strict orders to politicians not to indulge in making such statements which are detrimental to the growth of banks, he added.

ZP former president Jampaiah said the borrowers should be convinced about the problems the bank is facing and the leaders of the cooperative sector and the people’s representatives should make collective efforts to recover loans.

Senior leader N Timmareddy said if repayments are not done on time, the taluk will lose an illustrious bank that has a history of 63 years. Picard Bank’s director K V Srinivas said a notification has come from the Government that loans have been waived.

However, no amount has been credited to the bank so far, he pointed out.

People’s movement
Deputy manager H D Shivanna said loan recovery should be converted into a people’s movement.  T V Jagannath, Bank Develop ment Board official A N Murthy, Anjinareddy, S V Govindappa, G S Dharmapal and R C Anjinappa took part. Eranna presided over. Secretary D Chittappa welcomed the gathering.