Bhubaneswar: In a bid to ensure smooth functioning of cooperative banks, Cooperation Minister Surya Narayan Patro has issued guidelines asking the urban banks to initiate the process for one-time settlement (OTS) of their non-performing assets (NPA).
Patro instructed the registrar of cooperative societies to submit a detailed report on NPAs and steps taken for recovery of bad loans.He also asked the registrar to take action against the cooperative banks which failed to meet the targets on lending loans to the farmers during the Khariff season. The mangers, who have sanctioned commercial loans without proper scrutiny of immovable properties of the borrowers, should be taken to task. In his letter to the registrar, the minister pointed out the faults of Orissa State Cooperative Bank (OSCB) and asked him to address the issue.
“Though the bank has a loan policy, the system of credit appraisal was not found foolproof resulting in high incidents of over dues. Documentation in respect of loans sanctioned was also far from satisfactory,” Patro added.
Largest advances to Bijayananda Cooperative Sugar Mills and cash credit limit to Bargarh Cooperative Sugar Mills and Orissa Consumers Cooperative Federation were not monitored properly, resulting in huge over dues, he said. The government has also asked for stern action against the officials responsible for issuance of irregular advances. Managing director of OSCB Tushar Kanti Panda said, “I’m yet to receive the minister’s letter. We have taken steps for recovery of NPAs and also did one-time settlement for some cases. We will follow the instructions.”
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