Nishikant Khajuria
JAMMU, Apr 5: Coming out of the jinx of a loss earning bank, the Citizen’s Cooperative Bank Ltd Jammu has registered gross profit for the year 2016-17 by affecting significant recovery of its ever increasing NPAs.
By launching a vigorous drive in last quarter of the fiscal, the bank recovered Rs 1120 lakh NPAs, thus reducing the total NPAs from 29 percent to 20 percent. The NPA recovery was more than three times of its previous year figure, which was Rs 373.30 lakhs.
Besides, significant recovery of its ever increasing NPAs, various other initiatives were taken by the bank management following taking over of its control by the Government administered Board of Directors with Additional DC Jammu, Arun Manhas as the Administrator in November last, which ultimately led to profit earning by CCBL .
Pertinent to mention that the bank was in losses since several years, except for the fiscal 2012-13 and 2013-14, when nominal profit of Rs 50 thousands and Rs 84 thousands, respectively, was earned. In 2014-15 and 2015-16, the bank had registered net loss of Rs 2.783 crores and Rs 2.128 crore, respectively.
Even as the gross profit registered by the CCBL in 2016-17 is Rs 12 lakh only, the development assumes significance in view of the fact that the earning was solely generated through NPA recovery as well as increasing capital share, without advancing loans in last four months of the fiscal.
The CCBL NPAs have now decreased from Rs 4934.32 lakh to Rs 3595.48 lakhs while the total share capital has gone up from Rs 11.23 crores to Rs 11.82 crores with an increase of Rs 55 lakhs, which were generated from the existing shareholders, Ashok Goswami, Managing Director of CCBL, informed the Excelsior.
During the recovery drive, he added, action against defaulters was taken under Arrears of Land Revenue Act and in 136 loan cases, warrants have been issued till date involving an amount of Rs 6.00 crore and above. Besides, some units were seized and subsequently released after effecting recovery in these cases. The properties mortgaged in loan case of Aable Traders and Aable Industries was put to auction and an amount of Rs 60 lakh was recovered.
Further, Goswami said, the staff of the bank has been motivated and channelized properly by creating an appropriate working environment, delegating powers to more responsible officers and holding fortnightly meetings with Branch Managers to review the working of CCBL branches.
According to Goswami, the present management has also initiated steps to redress the grievances and demands of the staff, such as enhancing age of superannuation from 58 years to 60 years, introducing the Education Loan and transport policy, etc.
Further, the Bank has signed agreement with J&K Bank for sponsoring CCBL for NFS (National Financial Switch) & ATM services through ASP Model. This will enable the Bank to issue Rupay Debit Card to its customers.
Meanwhile, the process of election to the Managing Committee of the bank has also been initiated and shareholders of the CCBL are being asked to update their data and get their identity cards issued from Administrative office of the Bank.
Trending Now
E-Paper
Follow our WhatsApp channel