Kerala Bank will be a full-fledged bank, not NBFC: Pinarayi Vijayan1 min read . Updated: 14 Jul 2016, 08:59 PM IST
Pinarayi Vijayan says that Kerala Bank will be a two tier facility merging the state and district co-operative banks
Thiruvananthapuram: The proposed Kerala Bank, an ambitious project by the CPI(M)-led LDF government, would function as a full-fledged bank and not a non-banking financial institution (NBFC), chief minister Pinarayi Vijayan informed the state assembly on Thursday.
He also said the proposed bank has great potential in view of the merger of State Bank of Travancore with State Bank of India. He was replying to a question by Congress MLA V. D. Satheesan on the modalities of the functioning of the proposed bank, which would be set by merging all co-operative banks in the state.
“The coming up of the new bank will result in expansion and development of the co-operative sector. We are not intending a non-banking system. The new bank will be a two tier facility merging the state and district co-operative banks," Vijayan said.
“If the merger of the State Bank of Travancore becomes a reality, we will lose our state bank. Then, it will open immense possibilities for the new bank in the state," he added.
In his budget for 2016-17, Kerala finance minister T. M. Thomas Isaac had allocated ₹ 10 lakh to set up a committee to prepare directions and recommendation in this regard. At present, Kerala State Co-operative Bank is the apex bank for short term credit cooperatives in the state.