₹2,886 Crore Stuck in 43 Loan Cases; State Cooperative Bank Launches Resolution Scheme 2026

Maharashtra State Cooperative Bank has ₹2,886 crore locked in 43 long-pending institutional loan cases and has introduced a structured 2026 resolution scheme to expedite recovery and support borrower rehabilitation.

March 21 | Pune The Maharashtra State Cooperative Bank (MSCB) is grappling with a substantial financial challenge, with as many as 43 institutional loan accounts pending for over 25 years, locking in approximately ₹2,886.73 crore. In a bid to resolve these long-standing dues and strengthen its financial position, the bank has rolled out a comprehensive “Long Pending Dues Resolution Scheme 2026.” Announcing the initiative, MSCB Administrator Vidyadhar Anaskar stated that the scheme is designed around three key principles simplified terms, transparent procedures, and time-bound implementation. He urged all eligible institutions to come forward and take advantage of the scheme to settle their outstanding liabilities.

Despite being regarded as one of the leading state cooperative banks in India and Asia, MSCB continues to face the burden of unresolved loan cases. Several of these involve industrial units and cooperative entities that have defaulted for decades. Efforts to recover dues through asset seizures, auctions, or leasing arrangements have yielded limited success so far. The bank has also incurred significant recurring expenses in maintaining seized properties, including factories, while simultaneously making provisions for non-performing assets. Prolonged legal and administrative delays have further added to the financial strain.

Officials believe that the newly introduced scheme could provide a balanced solution, offering relief to borrowers while enabling the bank to recover a portion of its stuck funds. The initiative is also expected to facilitate the revival of struggling institutions by allowing them to restructure their financial obligations and resume operations with dignity.Anaskar expressed confidence that the scheme would not only improve the bank’s financial health but also contribute to economic activity by bringing defunct units back into the system. He has appealed to concerned institutions to approach the bank’s regional offices or its Mumbai headquarters for further details and participation

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