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Posted at: Nov 9, 2018, 12:43 AM; last updated: Nov 9, 2018, 12:43 AM (IST)

Will set things right: KCCB chairman

Rising NPAs an issue

  • In the financial year2017-18, the NPAs had risen sharply allegedly due tobad loans given by the bank
  • The NPAs were wellabove 15 per cent
  • These had increased from Rs 402 crore in March 31, 2016, to Rs 542 crorein March 2017
  • The NPAs had increased by about Rs 140 crore in one year
Will set things right: KCCB chairman
KCC Bank chairman Rajeev Bhardwaj being welcomed by BJP workers at Dharamsala on Thursday. Photo: Kamaljeet

Tribune News Service

Dharamsala, November 8

Amid the rising non-performing assets (NPAs), Rajiv Bhardwaj, nominated member of the Kangra Central Cooperative Bank (KCCB), today took over as Chairman of the bank. The government had also nominated two members of the KCCB, Ranjit Rana from Dharamsala and Ramesh Kumar from Una. After taking charge, Bharadwaj, while talking to newsmen, said he would try to set things right. He would devote time exclusively for the bank.

The NPAs of the bank had risen alarmingly in the past. Last year, the then MD of the bank had written to branch managers that it was a matter of grave concern that marking of the NPAs had not ensured as per the Income Recognition and Asset Classification norms in most branches on a monthly basis.

The letter stated that it had been observed from the system generated report that there were 3,633 accounts of Rs 169.36 crore which had not been marked as NPA by the branches. Keshav Korla, former director of the KCCB, had been alleging that the NPAs of the bank were increasing due to faulty loans.

In the financial year 2017-18, the NPAs had risen sharply allegedly due to bad loans given by the bank. The NPAs were well above 15 per cent. The NPAs had increased from Rs 402 crore in March 31, 2016, to Rs 542 crore in March 2017. The NPAs had increased by about Rs 140 crore in one year.

The letter had further raised apprehensions that the NPAs worth about Rs 170 crore were hidden in the balance sheet. Korla had alleged that the letter of the MD illustrated that in the last financial year, the NPAs rose by Rs 270 crore instead of Rs 140 crore stated officially.

Now all eyes are on the new management as to how it will tackle the problem.

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