Updated on Nov 21, 2018 08:51:40

 

 

Hindu Urban Co-Operative Bank Pathankot Board Of Directors Placed Under Suspension

Mismanagement Pertaining To Financial Nature By Board Of Directors

Web Admin

Web Admin

5 Dariya News

Chandigarh , 13 May 2018

Arvinder Singh Bains, Registrar, Cooperative Societies Punjab informed today that the Board of Directors of the Hindu Urban Cooperative Bank, Pathankot has been placed under suspension and put on notice to explain as to why action should be not be taken against them as they have failed to perform their expected duties in a transparent and professional manner.The financial health of the bank has been severely eroded thereby putting the interest of the depositors of the bank at a grave risk.He said that the department received complaints from the public and representations from the staff of the Bank regarding the mismanagement by the Board of Directors. A detailed enquiry was got conducted by the Joint Registrar, Cooperative Societies, Jalandhar Division. This enquiry pointed out that Reserve Bank of India while conducting the inspection of the bank has put the bank on notice under Self Corrective Action for the 2nd consecutive year. The bank has shown its CRAR to be 9% on 31.3.2017 whereas after the inspection of RBI it has been lowered to .68% as the bank had not made the required provisions in its books of accounts. 

The NPA of the bank has shot upto 48% which is very high. Further, Board of the Bank indiscriminately extended financial benefits to certain selected defaulters of the bank by charging lower rate of interest or waiving off the penal interest to be

charged from them by going beyond their jurisdiction and without any policy. For e.g. Board reduced the rate of interest from 13% to 12% in case of M/s Mahajan Lamination Works, from 12.5% to 12% in M/s Vikas Ventures, from 13% to 12% in M/s Venus Public Resort, waived off penal interest of Rs 43.39 lacs in case of M/s Transworld Sellways, Rs. 26,49,321/- in case of M/s Sai Enterprises, Rs. 4,21,361/- in case of M/s SS Timber and Rs. 62,949/- in case of M/s Narinder Singh. There are many such cases where Board has taken a decision beyond its jurisdiction and has worked in a way detrimental to the interests of the Institution. The enquiry report has also indicated that certain individuals/families/groups of individuals have unduly been favoured by giving very high amount of advancement to them and recovery is not effected from such loanees which has grossly affected the financial health of the bank. The Bank in fact has to recover 99.69 crores of rupees from only 44 big defaulters.Hence, the management of the bank has woefully failed to protect the interests of the institution, its depositors, its members and share holders compelling the Department to step in and suspend the Board.Mr.Bhupinderjit Singh Walia Deputy Registrar, Cooperative Societies, has been appointed as Administrator and he has assumed charge on 11th May.

 

Tags: Spokesman Punjab Govt

 

 

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