THIRUVANANTHAPURAM The CPI(M) leadership on Friday stepped up its troubleshooting efforts to contain the fallout of the Karuvannur Service Cooperative Bank scam.
Kerala Bank president Gopi Kottamurickal and vice-president M. K. Kannan held discussions with CPI(M) State secretary M. V. Govindan at AKG Centre here on Saturday morning amid speculations that the government was considering a bail-out package for the Karuvannur bank with support from Kerala Bank.
Meanwhile, in the coming week, the Cooperation department is hoping to come up with urgent solutions so as to allay investor concerns. Minister for Cooperation V. N. Vasavan is scheduled to hold a meeting of senior officials of the department and the administrative committee of the Karuvannur bank on October 3.
Mr. Vasavan will hold an online meeting with the heads of cooperative banks on October 4. The director board of Kerala Bank is scheduled to meet on October 11, as the bank’s annual general meeting is slated for October 12.
Mr. Vasavan told reporters on Saturday that investors’ money would be returned and that they need not be concerned. Meanwhile, there were also reports that the Cooperation department was planning to make use of the ‘consolidated fund’ to bail out the Karuvannur bank. The fund announced by the government last year was part of its interventions designed to resolve the crisis faced by institutions in the cooperative sector.
