MUMBAI, Mar 31: Country’s leading co-operative bank, the Abhyudaya Cooperative Bank Limited (Scheduled Bank), has ransferred Rs 160.73 crore from Reserve fund to meet unforeseen losses to reduce its Non-Performing Assest (NPA).
Economy slowdown in most of the sector have adverse impact on the banking sector.
The bank had called Speceial General Body meeting of the shareholder on March 28,2016, here to get the permission from the shareholders to transfer the said amount to NPA account.
In the last financial year also the bank had trasferred good sum from reserve fund to unforeseen losses account.
The bank has transferred Rs 15.73 crore pf undistributed dividend of last financial year, Rs 45 crore from contingency reserve funds and Rs 100 crore from Statutory Reserve fund. The bank has 111 branches comprising over two lakh 26000 shareholders. Addressing the shareholders, its MD Vijay S Morye said that due to recession, some of the loan accounts of the bank are under stress. The bank has already taken several steps for recovery of overdues in loan accounts and upgradation of loan assets. The bank has taken all possible legal actions against the defaulters. The management is confident of recovering sizable amount of overdues in the coming months.
(UNI)
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