AGARTALA, November 09 (TIWN): A meeting of the board of directors of the national federation of state cooperative banks limited (NAFSCOB) is going to be held on November 10 at state guest house.

Speaking to the media persons at state guest house today Managing Director of NAFSCOB,  B. Subrahmanyam said that major chunk of the Govt. of India share, as was assessed for recapitalization of the state co-operative bank (Apex Bank) and PACs in the state of Assam under revival scheme of short term cooperative credit structure (STCCS) has not been released by the NABARD as yet.

In fact against assessed amount of Rs. 11868.09 lac for the Apex bank no amount has been released by the GOI and likewise amount of Rs. 1454.18 lac being part of the assessed amount for PACs is yet to be released, he added.

He further mentioned that other co-operative banks in the north eastern region have also remained deprived from availing of the GOI share though the amounts have been cleared by the State Level Implementation Committee (SLIC) and that most of the important bench mark activities for release of the amounts have been completed by the SCBs/ respective state Govts.

The amount pending for release based on the recommendation of the SLICs are as follows:-

Arunachal Pradesh-------------Rs. 3651.75 lacs

Assam----------------------------Rs. 13322.27 lacs

Manipur-----------------------Rs. 4162.00 lacs

Meghalaya--------------------Rs. 566.27 lacs

Mizoram----------------------Rs. 2176.00 lacs

Nagaland ---------------------Rs. 5465.00

Tripura-----------------------Rs. 1759.27 lacs

He also said that relevant of the income tax Act now in force, makes it obligatory for this bank to make payment of income tax at rate at per with companies, registered under companies Act 1956. Whereas the state cooperative banks were totally exempted from payment of income tax under section 80 (P) till assessment year 2006-07, the said exemption stood withdraw from the assessment year 2007-08 causing huge erosion in net profit scenario in the year ending final accounts bank, he added.

As restoration of section 80 (P) of the income tax Act has not been effected so far, NAFSCOB is urged upon to take up with appropriate authority for bringing suitable changes in the tax structure for the state cooperative banks (including DCCBs) so that, tax burden is substantially reduced and it becomes possible for the bank to redeploy residual profit for improvising its net worth, B. Subrahmanyam said.