NABARD flags Nagaland’s poor PACS computerisation, weak record-keeping and failure to identify three societies for the Centre’s grain-storage scheme
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DIMAPUR — Nagaland is lagging behind in computerising Primary Agricultural Credit Societies (PACS), with poor record-keeping and inadequate cooperation with auditors holding back progress, a senior NABARD official said on Friday.
P Bulte, General Manager and Officer-in-Charge of National Bank for Agriculture and Rural Development’s regional office in Nagaland, said the state’s performance had become a matter of embarrassment at national-level review meetings.
“There are various reasons. One, because of poor maintenance of records and poor cooperation to the auditors and System Integrator (SI) team, we are still lagging behind,” Bulte said at the 57th annual general meeting of Nagaland State Cooperative Bank (NStCB) in Dimapur.
With March 31, 2027, set as the deadline for completing all parameters under the PACS computerisation project, he appealed to the 231 societies covered under the scheme in Nagaland to cooperate with auditors and the system integration team.
The official also flagged the state’s failure to identify even three PACS for the Centre’s World’s Largest Grain Storage Plan in the Cooperative Sector, despite being given a small target.
Calling the situation “very embarrassing”, Bulte said MARCOFED had come forward to support the initiative and that the detailed project report was ready, with loan applications already submitted.
He urged PACS with suitable land to come forward, pointing out that pre-construction refinance and interest subvention were available under the scheme. The Food Corporation of India had also agreed to utilise warehouses constructed under the programme, he said.
Three districts had been identified for the initiative. Interested PACS in those districts were asked to approach their respective Assistant Registrars of Cooperative Societies and bank branches concerned.
Bulte, however, pointed to a significant increase in concessional refinance available to the state, saying Nagaland had received an allocation of more than INR 345 crore this year at an interest rate of 4.5%, against INR 60–70 crore in earlier years.
“I’m not sure whether we can utilise the full amount, but let us try to use maximum possible. We have to be a little aggressive in lending, we have to take risks,” he said, urging the bank’s board to guide the process.
He also said the NStCB should consider pursuing scheduled-bank status, citing what he described as a favourable financial position. Improvements in human resources, governance and lending, however, were needed, he added.
Scheduled status would give the bank greater flexibility in borrowing, mobilising funds and deploying them, Bulte said.
NStCB urged to strengthen operations
Earlier, Commissioner and Secretary for Cooperation Orenthung Lotha said the NStCB still had considerable ground to cover despite efforts to strengthen its future.
Addressing the bank’s board of directors and management, Lotha stressed the need for closer coordination between the board, management and shareholders, who he described as the owners of the institution.
He said the bank had only 23 branches across Nagaland despite 57 years of operation, compared with 72 branches of the State Bank of India in the state. He also called for greater adoption of banking technology as transactions and fund transfers increasingly move towards digital platforms.
Lotha informed that the bank was working to bring down its non-performing assets (NPA), which he put at 12–13%, through closer monitoring by the board and management.
He also pointed to a staffing gap, saying that against 309 sanctioned posts, the bank had 209 employees. At the same time, he stressed the need to control expenditure and improve operational efficiency.
The commissioner and secretary called for stronger deposit mobilisation, lending and customer relationships, and closer engagement with the state’s 85 federal cooperative societies to expand the bank’s reach.
He also launched two NStCB products—the PACS Integrated Value Chain Development Scheme (PIVCDS) and NEED-BRIDGE, a customised loan solution.
NStCB Vice-Chairman H Kashito Yepthomi urged the Reserve Bank of India and NABARD to facilitate the introduction of mobile banking, saying the absence of the service was inconveniencing customers and prompting some to leave the bank.
Registrar of Cooperative Societies, Nagaland, Bendangla Longkumer, called for stronger loan recovery, NPA management and internal controls, stressing that the bank’s financial position must be accurately reflected and audit observations addressed promptly.
She also questioned whether lending was reaching intended beneficiaries and said financial inclusion should mean more than merely opening bank accounts.