Repay Apex Bank loans or face action, Dispur to defaulting employees

BY OUR STAFF REPORTER

GUWAHATI, Oct 13: The Assam Cooperative Apex Bank Limited is now facing hurdles in opening new branches due to accumulation of huge burden of non-performing assets far more than the prescribed limit set by the Reserve Bank of India. The Apex Bank has presently Rs 97 crore worth non-performing assets, which is in excess of the 5 per cent limit fixed by RBI.

According to RBI, the amount of non-performing assets for any bank should be less than 5 per cent against the total amount of loan sanctioned.

A non-performing asset (NPA) is a loan or an advance given by a bank or a fincial institution for which the principal or interest payment has remained overdue for a period.

Officials of Apex Bank informed that out of Rs 97 crore loan sanctioned by the Bank, Rs 20 crore (including principal and interest amount) was taken by 2,200 State government employees as persol loan. They have failed to repay their loan amounts within the fixed time limit of 7 years. For those government employees, the limit for repayment period is over, added the Bank officials.

Given the non-repayment of this Rs 20 crore loan, the Fince department of Assam government through a letter has directed deputy commissioners and treasury officers to recover the loan amount by deducting a portion from salaries and pensions of defaulting employees.  The Fince department has also warned that if defaulting employees, serving or retired, do not repay their loan despite the directive, their salaries and pensions will be held up.

Of the Rs 97 crore loan sanctioned by Apex Bank, Rs 24 crore and Rs 35 crore were taken by different tea companies and Gaon Panchayat Samabay Samitis respectively, but these parties too are yet to repay their loan amounts. Another Rs 18 crore was taken as loan on different occasions by various trade and business groups based in the State, but these groups have all defaulted on repayment.

Officials of the Assam Cooperative Apex Bank Limited have said that the bank is now trying to bring the level of non-performing assets below 5 per cent so that RBI gives permission for opening new branches across the State. At present, the Apex Bank has 67 branches across Assam. As per its March 31, 2016 balance sheet, the Bank is still making profit, despite its Rs 97 crore burden of non-performing assets.