New Delhi, Dec 4 (KNN) The Cooperative department of Punjab has decided to merge 20 District Central Cooperative Banks (DCCBs) with the Punjab State Cooperative Bank (PSCB) after facing a loss of Rs 700 crore.

The Punjab Cabinet gave its approval for the merger.

With the merger, the DCCBs would now be the branches of the PSCB and function like other commercial banks.

The 20 DCCBs, having 804 branches across the state, were district-wise independent authorities. Out of 20 DCCs 11 were in losses.

Cooperation Minister, Sukhjinder Singh Randhawa said, “The merger was the need of the hour to run the system smoothly and ensure that there was enough money for lending.”

The Cabinet also approved a One Time Settlement (OTS) policy to give defaulter companies the last chance to settle their dues with Punjab State Industrial Development Corporation (PSIDC) and Punjab Financial Corporation (PFC).

The PSIDC has extended term loans to 861 industrial units, of which 739 units have already settled with the corporation and only 122 units are pending, and all of them have already become non-performing assets.

Besides, PSIDC had made equity investment in 322 units, of which 245 collaborators have already settled their dues by way of buyback of their equity/settled their accounts under OTS, and only 77 promoted units are yet to buy way of equity investments.