Excelsior Correspondent
JAMMU, Dec 1: Punjab National Bank (PNB), Circle Office Jammu, has asked its defaulting borrowers in the State to take advantage of One-Time-Settlement (OTS) Scheme to clear their outstanding.
Addressing a press conference, Deputy General Manager (DGM), PNB, Circle Head J&K Operations, Muhammad Latif Mir said that bank’s priority was to address issues pertaining to non-performing assets.
He added that the borrowers against whom the bank has initiated legal action under Sarfaesi Act and against whom civil suits have been filed in various competent courts should take advantage of OTS to clear their outstanding with the bank”.
He said the Secretary Legal Services Committee of J&K High Court is organizing a National Lok Adalat on December 6 through which borrowers will be given an opportunity to clear their dues under OTS.
“Sarfaesi Act allowed the banks and financial institutions to take possession and auction properties (residential and commercial) of borrowers who fail to repay their loans after giving sufficient time to them. It enables banks to reduce their non-performing assets by adopting measures for recovery or reconstruction”, he added.
BM Fazili, AGM, PNB Circle Office said that in various Lok Adalats, the bank has served notice to 618 defaulters which are having NPA of Rs 42 crore. Other borrowers are being contacted over phones for seeking their offer of compromise acceptable to bank, he added.
In case settlements are not acceptable, the bank may go for other hard recovery measures, for recovery of dues such as publication of photographs of defaulters, declaring them willful defaulters as per RBI guidelines, filing of winding up petitions in case of limited liability companies, he stated.
Rajendra Singh, Chief Manager, Recovery Department, circle office Jammu said that in these pre-lok adalats, 50 cases of NPA are already settled to the tune of Rs 1.87 crore and more cases are likely to be settled.
“The borrowers should take advantage of OTS to clear their outstanding with the bank, otherwise a willful defaulter shall be debarred from further institutional finance and from floating new venture for 5 years”, he added.
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