Kangra coop bank officials indicted for NPAs

The State Vigilance and Anti-Corruption Bureau has finalised the inquiry report into bad loans extended by the Kangra Central Cooperative Bank (KCCB) during the stint of previous Congress government.

Sources said the inquiry had indicted bank managers, members of loan sanctioning committee of the previous board of the KCCB and evaluators for a criminal conspiracy for extending risky loans that caused losses to the bank.

SP Vigilance S Arul Kumar admitted that the inquiry had been completed. The report would be sent to head office after which directions would be issued.

The sources said a loan of Rs 62.72 crore extended to a steel unit in Amb area of Una had turned out to be an NPA. Similarly, the Palampur branch of the bank had taken over a bad loan of a bank and the account now was an NPA.

The loan given to the Palampur based hotel had been a bone of contention between the former board of directors of the bank.

The MD in his report has said Credit Monitoring Arrangements (CMA) norms of the RBI were violated while granting the loan. The MD had stated in his report that as per norms circulated by NABARD to cooperative banks the financing of individuals by cooperative banks with ‘A’ rating would be Rs 60 lakh, with ‘B’ rating Rs 40 lakh and with ‘C’ rating Rs 25 lakh. The CCL limit of Rs 1.30 crore to Anand Chauhan was a violation of the CMA norms for the cooperative banks.