Cooperatives double deposit in one year
KATHMANDU, June 17:
Deposit in cooperatives has doubled in the last one year, when the banks and finance companies are reeling under a liquidity crunch following loss of depositors confidence.
According to Department of Cooperatives, the deposit increased to Rs 102.06 billion in mid-April compared to the same period last year, when they had Rs 58.04 billion deposit. “There is no liquidity crunch in cooperatives sector as its deposit has increased significantly in a year,” said under secretary of the department Bishnu Prasad Ghimire.
According to him, saving and credit cooperatives were not affected by the current liquidity crunch because of the deposit growth of Rs 54.56 billion in a year ending mid-April 2011. “Despite policy dilemma in regulating cooperatives, the sector grew significantly,” he said, adding that the sector seems to have been maintaining the confidence of people.
From mid-March 2010 to mid-April 2011, saving and credit cooperative financed projects worth Rs 30.77 billion and their total investment touched Rs 79.66 billion. According to the department, deposit of multipurpose cooperatives increased from Rs 12.80 billion to Rs 21.15 billion while deposit of other cooperatives increased by 40 per cent. “Deposit of cooperatives related to milk, vegetable, tea and coffee, herbs and health has seen growth,” he said.
Consumer cooperatives achieved a marginal growth of 19.93 per cent in their deposit despite the government incentives to open cooperatives shops.
The government has provided Rs 100,000 incentives to over 1,000 consumer cooperatives in the fiscal year 2009-10. Likewise, hydro-power cooperatives recorded a deposit growth of 19.23 per cent.
According to the department, 10,326 saving and credit cooperatives share 80.82 per cent in the total deposit of Rs 120.06 billion, while 11,913 cooperatives of other categories share stood at Rs 23.13 billion.
Authorised capital of saving and credit cooperative is around Rs 14.04 billion in mid-April this year.
Investment of cooperative sector has also been significantly increased in last one year. The total lending of cooperatives from street shops to real estate touched Rs 104.09 billion, while the sector has invested Rs 42.54 billion in last one year.
According to Ghimire, cooperative sector did not faced liquidity crunch because they have managed cash reserve of Rs 12.02 billion. However, there is a strong need of regulating cooperative sector for better financial health of the country. Cooperatives have billions of rupees deposited from thousands of poor and middle-class people, so it needs to be protected.”
About three million of 28 million population are associated in cooperative sector. The government needs to closely monitor big cooperatives, which have deposit over billion. About 20 Kathmandu Valley-based saving and credit cooperatives falls in the category and the department has been requesting NRB to monitor them.
Source: THT
Deposit in cooperatives has doubled in the last one year, when the banks and finance companies are reeling under a liquidity crunch following loss of depositors confidence.
According to Department of Cooperatives, the deposit increased to Rs 102.06 billion in mid-April compared to the same period last year, when they had Rs 58.04 billion deposit. “There is no liquidity crunch in cooperatives sector as its deposit has increased significantly in a year,” said under secretary of the department Bishnu Prasad Ghimire.
According to him, saving and credit cooperatives were not affected by the current liquidity crunch because of the deposit growth of Rs 54.56 billion in a year ending mid-April 2011. “Despite policy dilemma in regulating cooperatives, the sector grew significantly,” he said, adding that the sector seems to have been maintaining the confidence of people.
From mid-March 2010 to mid-April 2011, saving and credit cooperative financed projects worth Rs 30.77 billion and their total investment touched Rs 79.66 billion. According to the department, deposit of multipurpose cooperatives increased from Rs 12.80 billion to Rs 21.15 billion while deposit of other cooperatives increased by 40 per cent. “Deposit of cooperatives related to milk, vegetable, tea and coffee, herbs and health has seen growth,” he said.
Consumer cooperatives achieved a marginal growth of 19.93 per cent in their deposit despite the government incentives to open cooperatives shops.
The government has provided Rs 100,000 incentives to over 1,000 consumer cooperatives in the fiscal year 2009-10. Likewise, hydro-power cooperatives recorded a deposit growth of 19.23 per cent.
According to the department, 10,326 saving and credit cooperatives share 80.82 per cent in the total deposit of Rs 120.06 billion, while 11,913 cooperatives of other categories share stood at Rs 23.13 billion.
Authorised capital of saving and credit cooperative is around Rs 14.04 billion in mid-April this year.
Investment of cooperative sector has also been significantly increased in last one year. The total lending of cooperatives from street shops to real estate touched Rs 104.09 billion, while the sector has invested Rs 42.54 billion in last one year.
According to Ghimire, cooperative sector did not faced liquidity crunch because they have managed cash reserve of Rs 12.02 billion. However, there is a strong need of regulating cooperative sector for better financial health of the country. Cooperatives have billions of rupees deposited from thousands of poor and middle-class people, so it needs to be protected.”
About three million of 28 million population are associated in cooperative sector. The government needs to closely monitor big cooperatives, which have deposit over billion. About 20 Kathmandu Valley-based saving and credit cooperatives falls in the category and the department has been requesting NRB to monitor them.
Source: THT
