OSCARD At a Glance
The Odisha State Cooperative Agricultural & Rural Development (OSCARD) Bank as the Apex Bank at the State level and 46 Primary Cooperative Agricultural and Rural Development (CARD) Banks located at the Revenue Sub-Divisional level have been functioning since 1938 and constitute the Long Term Credit Structure in the State. This Bank was providing Long Term Credit for both farm and non-farm activities to individual member-farmers through the Primary CARD Banks. The main areas of financing covered by these Banks include Minor Irrigation schemes, Pisciculture, Horticulture and Plantation, Animal Husbandry, Farm Mechanisation, Diesel and Electrical Pump sets etc.Present Status
The 68-year old Long Term Cooperative Credit Sector in the State has, in the past, played a vital role in purveying long term credit through its affiliated Primary CARD Banks mainly for farm activities. The Sector became weak owing to financial and administrative mismanagement over the years which has led to huge accumulated losses and non-repayment of loans to NABARD and to the State Government. Owing to the precarious financial position of the OSCARD Bank, NABARD has closed the line of credit for the Bank since October-2003. The Cooperation Department has taken up the matter with NABARD for opening the line of credit which will help in revival of this Bank.Revival of the Long Term Credit Structure
The Task Force on Revival of the Cooperative Credit Institutions (Long Term) chaired by Prof. A. Vaidyanathan has submitted its report to the Government of India. The report has been circulated by the Government of India to all State government for their views. The State Government have furnished their positive views for implementation of Revival Package for LTCCS. After implementation of ADWDR Scheme, Government of India have constituted a Task Force under the Chairmanship of Additional Secretary, Ministry of Finance (GoI) to review the need for a separate package for revival of LTCCS. The 2nd meeting of the Task Force to review the need for a separate package for revival of LTCCS was held at Delhi on 5th January 2010 and the decision of the Government of India is awaited.OSCARD Bank at the State Level and 57 CARD Banks at Primary Level situated at the Revenue Sub-Divisional Level are functioning since 1938.
|i||No. of Functional CARD Banks||:||46|
|ii||No. of CARD Banks put under liquidation||:||05|
|iii||No. of CARD Banks under Amalgamation||:||06|
|iv||No. of Branches of OSCARD Bank||:||05|
The objective of the Bank is to provide L.T. Credit for both Farm and Non-Farm activities to the individual member farmers through CARD Banks.
Main loaning activities covered by Banks relate to Minor Irrigation Schemes, Pisciculture. Horticulture and Plantations, Animal Husbandry, Farm Mechanisation, Diesel and Electrical Pump sets and SRTO & N.F.S.
The Bank was running in profit till 1992-93. The Bank started incurring loss from 199394. Accumulated loss from 1993-94 to 2008-09 comes to Rs.128.19 crores. Main reasons for such accumulation of loss are due to provisioning of Rs.108.18 crores against NPA and OD Interest and on account of interest on high cost borrowings from State Govt, and OSCB.
Due to various external and internal reason the recovery of the loan is not up to expectation. State is yet to take up flood, cyclone and natural calamities protective arrangement. There is lack of assured irrigation. Besides launching various populist measures and political interferences has led to crumbling of the structure. Frequent interruption of NABARD's line of credit has also acted adversely.