No new agricultural loans, Kadapa District Cooperative Central Bank focuses on recovery
KADAPA: The Kadapa District Cooperative Central Bank (DCCB) has stopped sanction of new agricultural loans this fiscal, and laid emphasis on loan recovery to boost its financial health. The DCCB has launched a special drive to recover outstanding loans worth Rs 3,157 crore, and set up eight official teams for the purpose.
The DCCB’s emphasis on loan recovery has hit small and marginal farmers who rely on farm loans for agricultural operations.
In the erstwhile undivided Kadapa district, there are 71 Primary Agricultural Cooperative Societies (PACS). The DCCB has already recovered Rs 2,700 crore outstanding loans, achieving 75% of the set target in the first two quarters. With the yielding of good results in the first two quarters, it is striving to achieve 100% target at the earliest.
As the DCCB achieved success in its deposit mobilisation drive last year, it is planning to prioritise sanction of new loans next year after recovering all the outstanding loans this year to stay healthy and competitive in the banking business.
The eight special loan recovery teams are headed by nodal officers and consist of 10 DCCB officials each, including branch managers and officials of PACS. Setting daily recovery targets, these teams have intensified the drive across 24 DCCB branches in the district. The recovery process includes contacting borrowers, issuing notices to defaulters and taking legal action if necessary.
Explaining the objectives of the drive, DCCB Chief Executive Officer P Rajamani said, “The bank has made significant progress in loan recovery, and aims to achieve the target fully by the end of current fiscal. The DCCB will prioritise sanction of new loans once the recovery process is complete.”
Rs 2,700 cr outstanding loans recovered
The special loan recovery drive of the District Cooperative Central Bank is aimed at strengthening its financial position to expand its banking operations in Kadapa. The DCCB has already recovered Rs 2,700 crore outstanding loans from ryots, achieving 75% of the set target in the first two quarters of the current financial year