Steps on for formation of Kerala Bank

Thiruvananthapuram: The State government has set up a task force with former NABARD Chief General Manager V R Raveendranath to work out steps for setting up of the ‘Kerala Bank.’

Government would nominate four members from different sectors including IT, Banking and Co-operation to the Task Force within one week, State Minister for Tourism and Cooperation Kadakampally Surendran told a meet-the-press programme here Thursday.

The expert committee, headed by M S Sreeram of Indian Institute of Management (IIM) Bangalore, entrusted with the study of various aspects of the proposed bank, had submitted its report in April, he said.

The report is likely to be discussed at the next cabinet meeting, the minister said.

“Government expects that Kerala Bank will become a reality in next 20 months time,” Surendran said.

The plan is to form a Kerala Bank by merging district co-operative banks with state co-operative banks, converting the present three-tier cooperative into two-tier system.

Surendran refuted the Congress-led Opposition UDF’s allegation that the new bank would destroy the cooperative sector in the state.

The Centre was insisting that the state should move from the three-tier cooperative system to two-tier, he said.

He also said there was a rethink among opposition parties with regard to the Kerala Bank in the changed banking atmosphere in the country.