STOCK MARKET BSE NSE

After Closure, Coop Bank Issues Notices to Recover Rs 12.5 Cr Loan

Published: 20th July 2015 05:54 AM  |   Last Updated: 20th July 2015 05:55 AM   |  A+A-

DHENKANAL: Dhenkanal Urban Cooperative Bank (DUCB) has recently issued notices to around 500 loanees in the district for recovery of Rs 12.50 crore. Loans were sanctioned before 2010.

The cooperative bank was liquidated due to persistent bankruptcy by Reserve Bank of India (RBI) on February 17, 2010. Around Rs 10 crore was deposited by the bank customers while the bank had disbursed loan amounting to more than Rs 12.5 crore before closure.

As per provision, Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI, and the bank concerned have to repay the customers having Rs  one lakh and below deposit after liquidation.

Assistant Registrar of Cooperative Societies Sangram Kishore Rout said the bank has returned deposits worth over Rs 6.84 crore to the customers who had deposit of Rs  one lakh and less during 2012-15. Reports said the bank has to return Rs 2.21 crore to its customers having deposit of more than Rs  one lakh.

The DICGC had asked the bank to return the deposited money to customers within three months but it took more than two years, he added.

Bank sources said Rs 93 lakh has been submitted to the corporation as the customers did not turn up to receive their money despite repeated communication. However, 362 customers recently claimed to get their money back but the approval from higher authorities is awaited, Rout said.

RBI had first decided to return the deposited money to customers in a bid to restore faith in banking system.

Later, it was decided to recover the loan amount from defaulters. Notices have been issued to the defaulters. If they fail to repay the loan, the bank will start proceedings against them in court, sources said.

Stay up to date on all the latest Odisha news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp