Baripada: Although the fate of the Baripada Urban Cooperative Bank (BUCB) has been hanging in balance allegedly due to huge financial frauds, the authorities of the state registrar of cooperative societies in Bhubaneswar Tuesday directed the deputy registrar of the bank to take quick steps for ending its court case. Around 71,324 depositors are waiting to get Rs 71.56 crore from this bank.
The Baripada Urban Cooperative Bank was set up in 1958 to provide banking services to people in this tribal district. The bank was run successfully and was counted as one of the leading cooperative banks in the state.
However, the bank gradually plunged into crisis and the Reserve Bank of India, which had given it licence in 2009, cancelled it in 2014. Since then, thousands of customers have been facing a lot of problems in carrying out financial transactions.
In 2015, the state government had taken steps to liquidate the bank and to sell its movable and immovable assets. But the bank authorities challenged the RBI move in High Court. As the case is sub judice and its licence has been cancelled, the bank is in a stalemate and is unable to carry out financial transactions.
It may be noted here that the bank was being managed by a management board from 2001 to 2014. During that period, the bank was in crisis due to mismanagement, irregularities and loan defaults (NPAs). Loans worth Rs 62.21crore are pending with 20 customers alone.
The bank has 2,953 debtors and 72,324 depositors will get Rs 71.56 crore from the bank. As the bank has Rs 70.28 crore at its disposal, the customers can transact business easily, it is learnt.
If the state government apprised the RBI about the fiscal ability of the bank, the apex bank may grant permission for transactions.
Customers alleged that neither people’s representatives nor the administration is keen on reopening the bank.
Though customers whose funds are stuck in the bank have taken up the issue with the bank president and directors several times, nothing has come out of it.