ITANAGAR: After reports of a massive loan fraud in Roing branch of Apex Bank in Lower Dibang Valley district, there was panic among depositors, and there was mass withdrawal on Tuesday from the branch.
The suspected financial malpractices, amounting to Rs 14 crore, are suspected to have been carried out by the then manager of the branch, creating severe doubts over the operational integrity of the bank.
Depositors, panicked over the security of their deposits in the wake of rumors that the bank could be declared a defaulter shortly, swarmed the branch to withdraw their deposits. Large numbers of them, mostly women, were observed waiting in hordes both outside and inside the bank building in a panic mode. Authorities have so far recovered approximately Rs 6 crore out of the defaulted loan against the Roing branch.
The Managing Director (MD) of the Apex Bank had previously issued a show-cause notice on April 27, 2025, that the then-Branch Manager had grossly abused banking regulations by approving a loan under cash credit account number 190002664733. The manager was also called to report before the bank's disciplinary committee at the office of the MD in Naharlagun on October 10, 2023, but allegedly failed to do so.
The said account was categorized as a Kisan Credit Card (KCC) account in the name of M/s Hapi Enterprise, a private company. KCC accounts are generally kept at a loan limit of Rs 3 lakh. Transaction records, however, showed that an amazing Rs 14 crore had been settled through this account from February 2 to August 23, 2024—an amount overwhelmingly over permissible limits and defying KCC norms.
These irregularities not only invited immediate disciplinary action, such as suspension of the Branch Manager, but also laid bare systemic weaknesses within the bank. The episode has added to the Apex Bank's mounting woes, with the bank now facing a Non-Performing Asset (NPA) ratio of 31 percent, which is worth Rs 121.94 crore.
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