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| Steep increase in NPAs, touches 2995.8 lacs mark | | Non accountability, mismanagement by administration responsible: DAOs | |
Jammu | Apr 12
The percentage of Non Performing Assets (NPAs) of the Citizens Cooperative Bank (CCB) has uninterruptedly escalated in the past few years due to the sheer non-accountability and mismanagement of the bank authorities. In 2003, the NPAs figure stood at Rs 1412.39 lacs but soared upto Rs 2995.8 lacs in the year 2005, as per the inference drawn by District Audit Officers (DAOs)
According to sources, the NPAs of the bank were 1412.39 lacs in the year 2003, which escalated to 2690.38 lacs in 2004. The same trend followed next year also and NPAs touched the mark of 2995.8 lacs in 2005. In terms of percentage, these have risen to 31.94 per cent in the year 2005 as compare to 14.63 per cent in 2003. Since, there was the direct involvement of pubic money; DAOs sought details regarding the measures taken by management to check incorrect NPAs, enlistment of branch wise default with proper accountability and action against the erring ones.
In response to this, bank management furnished that in order to reduce the NPAs of the bank various steps have been taken including constitution of special recovery cell for effecting recoveries in delinquent loan accounts, initiation of action against SARFAESI Act 2002 in many cases and in some cases the possession of immovable properties. Moreover, the legal section of the bank has been instructed to expedite the arbitration cases at all levels to facilitate recoveries of over dues and NPAs, added further.
But, the DAOs termed the reply vague as no accountability for the stated position was pointed out. Similarly, branch wise default with the accountability and action taken was not furnished and the reply deviated from the given lines, DAOs inferred. It was further concluded that there was an uninterrupted escalation in the NPAs as evident from the comparative positions of the NPAs in the last few years.
DAOs advised CCB management to initiate recovery process on priority to bring down the NPAs along with the clarity in the matter as the reply furnished by the institution does not convey clarity of the matter as rose in the observations. It is to mention that pursuant to the instructions issued by the Registrar Audit Cooperatives Societies J&K, DAOs were required to conduct test check of at least 25 per cent of the audited part. The same was taken up at the CCB in April, 2006 and the exercise was based on the Annual Audit Report and the subsequent audit observations issued on the accounts of the bank for the year 2003-04.
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