The growth rate of deposits held by savings and credit cooperatives took a dive in the first half of the fiscal year. Deposits inched up 1.07 percent compared to a jump of 4.87 percent during the same period last year.
According to the Department of Cooperatives (DEoC), deposit collection increased to Rs 119.45 billion, up Rs 1.27 billion, in the first half of 2013-14. During the same period in the last fiscal year, deposits swelled by Rs 5.36 billion to Rs 115.30 billion.
The slowdown in the growth rate of deposit collection by savings co-ops has been attributed to the ban on registration of such organizations in the Kathmandu valley besides growing public concern over misappropriation of money by them.
Under secretary Bishnu Prasad Ghimire of the department said that deposit collection could have gone down because the government had stopped issuing licences to open new savings and credit cooperatives in the Kathmandu valley. Lending by savings and credit cooperatives has gone up marginally by Rs 986.4 million.
Meanwhile, the total number of cooperatives of all kinds has reached 29,712 with the addition of 186 new organizations during the first half of this year. Their deposit collection amounted to Rs 159.45 billion, up Rs 1.28 billion, during the review period.
Similarly, the number of agriculture cooperatives reached 7,230 with 135 new entrants in the first half of the year. Khem Pathak, president of the Central Agri-culture Cooperatives Association, said the number of agriculture cooperatives could have swelled due to the ban on establishing new savings and credit cooperatives . “Many operators could have considered agriculture cooperatives as an alternative to savings and credit cooperatives to carry out their business,” he added.
Pathak said new organizations could have been opened with expectations of receiving government grants being provided to the farming sector through cooperatives . According to him, many youths nowadays are attracted to rearing goat, cow, fish and pig while some are engaged in tunnel farming of vegetables.
Meanwhile, the reserve fund with the cooperatives has gone down by Rs 21.028 million to Rs 4.46 billion.
Ghimire said the distribution of dividends with the cooperatives , reduction in loan loss provision and investment in the development of social sectors like education and health could have led to a fall in the reserve fund.
source: the kathmandu post,24 feb 2014
LINK
According to the Department of Cooperatives (DEoC), deposit collection increased to Rs 119.45 billion, up Rs 1.27 billion, in the first half of 2013-14. During the same period in the last fiscal year, deposits swelled by Rs 5.36 billion to Rs 115.30 billion.
The slowdown in the growth rate of deposit collection by savings co-ops has been attributed to the ban on registration of such organizations in the Kathmandu valley besides growing public concern over misappropriation of money by them.
Under secretary Bishnu Prasad Ghimire of the department said that deposit collection could have gone down because the government had stopped issuing licences to open new savings and credit cooperatives in the Kathmandu valley. Lending by savings and credit cooperatives has gone up marginally by Rs 986.4 million.
Meanwhile, the total number of cooperatives of all kinds has reached 29,712 with the addition of 186 new organizations during the first half of this year. Their deposit collection amounted to Rs 159.45 billion, up Rs 1.28 billion, during the review period.
Similarly, the number of agriculture cooperatives reached 7,230 with 135 new entrants in the first half of the year. Khem Pathak, president of the Central Agri-culture Cooperatives Association, said the number of agriculture cooperatives could have swelled due to the ban on establishing new savings and credit cooperatives . “Many operators could have considered agriculture cooperatives as an alternative to savings and credit cooperatives to carry out their business,” he added.
Pathak said new organizations could have been opened with expectations of receiving government grants being provided to the farming sector through cooperatives . According to him, many youths nowadays are attracted to rearing goat, cow, fish and pig while some are engaged in tunnel farming of vegetables.
Meanwhile, the reserve fund with the cooperatives has gone down by Rs 21.028 million to Rs 4.46 billion.
Ghimire said the distribution of dividends with the cooperatives , reduction in loan loss provision and investment in the development of social sectors like education and health could have led to a fall in the reserve fund.
source: the kathmandu post,24 feb 2014
LINK
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