When a bank becomes too cooperative
The rift between the Congress Party and Nationalist Congress Party seems to have found a new battleground – Maharashtra State Cooperative (MSC) Bank. According to Nabard's inspection report, the bank resorted to ‘ever-greening of loans’ – it adjusted non-payment of loan installments and interest by issuing fresh loans. Drawals were allowed to defaulting units without submission of an unconditional irrevocable default guarantee upfront from the state government.
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