Officials speed up recovery of default loans
Aurangabad, Dec 1:
The Reserve Bank of India (RBI) imposed restrictions on the Malkapur Urban Cooperative bank as about 70 per cent of loans disbursed by were Non Performing Assets (NPA). The bank has issued notices to officials to speed up the recovery. Meanwhile, account holders are lining up in front of the bank to withdraw money for surgery, wedding and education. But their requests are being turned down.
The bank officials are working on war footing to remove the restrictions by speeding up the loan recoveries. The account holders are assured that the NPA will be brought down in a month and the restrictions will be lifted. However, the officials are finding it difficult to convince the account holders that their money is safe.
Nearly two to three applications are being received at various bank branches including Gulmandi, TV Centre and Waluj seeking money. Gulmandi branch manager informed that an application has been received requesting money for surgery, wedding and other important work. All the applications are being forwarded to the head office of the bank. From there, the application and information will be sent to the RBI.
Loans turn into NPA
According to reliable sources, the bank has disbursed more loans than they can recover. The NPA on the bank has risen as a large number of industrial loans disbursed from the bank branches across Marathwada has turned bad. This amount is in several crores.
Arguments on a rise
The bank has 40,000 to 50,000 account holders in six branches in Aurangabad. The RBI imposed restrictions on the bank on November 24. Since then customers have been lining up in front of the branches to withdraw their money. Many traders and businessmen have their current accounts in this bank. The number of such accounts is 70 to 80 per cent. The bank holds fixed deposits worth crores of rupees. But due to restrictions only Rs 10,000 is distributed to the account holders. This is also leading to arguments between staff and customers.