77,000 Account Holders Still Await Relief as Baghat Bank Moves to Reduce NPAs
Solan – Baghat Bank has introduced a one-time settlement policy aimed at providing major relief to loan defaulters. Under the policy, defaulters will get a concession on interest, although the full principal amount will have to be repaid. The bank has recently approved and implemented the scheme after recommendations from the Assistant Registrar’s office.
Baghat Bank Chairman Arun Sharma said that the decision will help loan defaulters clear old dues at reduced interest rates. He added that in the coming days, repayment will become easier and cheaper for those who have been unable to settle their loans.
The bank’s Non-Performing Assets (NPA) have already dropped from 138 to 129. The Reserve Bank of India had earlier taken strict action against the bank after rising NPAs and reports of irregularities. Since then, recovery has improved. Notices are being sent to borrowers from the Assistant Registrar’s office, and several cases have already been settled through the Registrar’s court.
Recently, the bank’s chairman and executive managing director met Chief Minister Sukhvinder Singh Sukhu and Deputy Chief Minister Mukesh Agnihotri to brief them on the progress of recovery. Discussions have also been held with the State Cooperative Bank. If recovery continues at the current pace, the bank may soon write to the RBI seeking relaxation.
At present, account tapping is still in place, and customers are unable to withdraw more than ₹10,000 from their accounts. Over 77,000 account holders are affected and their money remains stuck. They are now also hoping that improved recovery will lead to relief from the Reserve Bank of India in the near future.
