Page 17 - Banking Finance August 2019

CO-OPERATIVE BANK NEWS

CO-OPERATIVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

J&K state Co-op Bank U’khand Govt introduces scheme for co-op bank loan

signs pact with 6 trade defaulters
federations In order to reduce the burden of Non Performing Assets (NPA, the Uttarakhand
government has decided to launch a ‘one time
In order to channelise the credit flow settlement’ scheme for thousands of defaulters of
to the members of the associations cooperative bank loans. The 100 day scheme
without any hassle and undue delay,
started on July 1 this year.
J&K State Cooperative Bank has en-
tered into an agreement with In this respect, a decision was taken by the minis-
Madina Chowk Federation, Maisuma ter of state (independent charge) Dhan Singh Rawat
Bazar Federation, Red Cross Road while presiding over a meeting of cooperative de-
Federation, Bazar Committee Koker partment. In last 25 years, the cooperative banks of the state have NPAs of Rs
Bazar, Nai Sarak Traders Association 391.50 crore. These banks undertook a special recovery campaign last month
and Boulevard Business Association. in which Rs 21 Crores were recovered from loan defaulters.
A MoU, in regard to that, was The settlement scheme has started on July 1 and would end on October 7. The
signed between the Bank and the as- minister clarified that the defaulters up to Rs 50 lakh would be able to avail
sociations. Chairman of the Bank M benefit of the scheme. A total of 18465 accounts in different cooperative banks
S Dar was the chief guest on the are categorised as NPA.
occasion, a statement issued by the The minister stated that the NPA accounts have been divided into three cat-
Bank said. egories. In the first category, the pending interest amount would be waived off
The MoU was signed by the Manag- completely from the account holders who have deposited the capital amount
ing Director of the Bank M Lateif and and the account holder has died.
the President Madina Chowk Federa- In the second category under the ‘one time settlement scheme’ the account
tion Sajjad Hussain Gull, General Sec- holders who have deposited interest equivalent to the capital, only remaining
retary Maisuma Bazar Federation, capital amount would be charged.
Nissar Shahdar, President Red Cross
Road Federation, Abdul Majeed In the third category, the department has kept the dubious account holders.
Bhat, General Secretary Boulevard These are those defaulters who have taken loan from other banks also and have
Business Association, Iqbal Amin, kept papers of property mortgaged in different banks. Under the scheme only
Vice President Bazar Committee 30% interest along with capital would be charged from such account holders.
Koker Bazar, Khalid Ahmad Baba and The minister said that the ‘one time settlement’ scheme would be beneficial
President Nai Sarak Traders Associa- for all stake holders. He expressed confidence that the scheme would be a huge
tion, Rouf Malik. success.

BANKING FINANCE | AUGUST | 2019 | 17