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| NPAs swell in JK Bank, chairman unmoved | | Witness surge by 800% in 5-years | | EARLY TIMES REPORT
jammu, Jan 20: The incumbent chairman of Jammu and Kashmir Bank is reportedly doing little to address the mounting crisis due to the non- performing assets which are swelling with each passing day.
Documents in possession of the Early Times reveal that Gross NPAs of the Bank have increased by Rs 5,362.93 crore (833.05 per cent) from Rs 643.77 crore to Rs 6,006.70 crore in the past five years. The Bank had classified advances of Rs 11,702.73 crore as NPAs during the period 2014-2018. Of this NPA, Rs 7,164.98 crore (61.22 per cent) were contributed by three Zones28 during 2014-2017. The overall reduction of Rs 6,339.80 crore in NPAs during 2013-14 to 2017-18 was on account of actual recovery of Rs 2,580.73 crore (40.71 per cent), up-gradation of accounts of Rs 990.79 crore (15.63 per cent) and write-off of Rs 2,768.28 crore (43.66 per cent). The percentage of NPAs to Gross Advances had increased from 1.66 per cent at the end of March 2014 to 9.96 per cent at the end of March 2018.
Audit conducted recently into the matter by Government of India revealed that the Bank had failed to effect recoveries in case of chronic NPA cases, as a result of which the NPAs under doubtful and loss assets category increased from Rs 612.13 crore (78.14 per cent of total NPAs) at the end of March 2014 to Rs 5,385.74 crore (89.76 per cent of total NPAs) at the end of March 2017. However, the same had come down to Rs 4,914.17 crore (81.81 per cent of total NPAs), mainly due to write-off of Rs 1,611.73 crore of NPAs during 2017-18.
The Management replied (December 2018) that most of these accounts are under consortium banking arrangement and the Bank's share in the total advances in these accounts ranged from one per cent to five per cent, so the Bank has to follow the consortium decision for recovery of dues in these accounts.
Reports inform further that the loan and credit facilities were extended overlooking the Bank's interest. There was loss/ non-recovery of Rs 197.98 crore, doubtful recovery of Rs 1,599.14 crore and excess payment of Rs 14.10 crore in the 29 cases on account of non-enforcement of internal control procedures, inadequate security cover, improper credit appraisal, non-adherence to the pre or post-disbursement conditions of the sanctions, irregular monitoring etc. These causes contributed to advances turning into NPAs enforcement of which would have sent warning to Bank to take rectificatory measures. |
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