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Tag: M/s Narinder Singh

Hindu Co op Bank’s Board Suspended in Punjab

[Chd,Pb]Hindu Coop Bank’s Board of Directors Suspended in Punjab
Board of Directors of the Hindu Urban Cooperative Bank, Pathankot has been placed under suspension for failing to perform their expected duties in a transparent and professional manner.
As per Punjab Govt ,The financial health of the bank has been severely eroded thereby putting the interest of the depositors of the bank at a grave risk.
This action is based on A enquiry conducted by the Joint Registrar, Cooperative Societies, Jalandhar Division. The bank has shown its CRAR to be 9% on 31.3.2017 whereas after the inspection of RBI it has been lowered to .68% as the bank had not made the required provisions in its books of accounts.
The NPA of the bank has shot upto 48% which is very high. Further, Board of the Bank indiscriminately extended financial benefits to certain selected defaulters of the bank by charging lower rate of interest or waiving off the penal interest to be charged from them by going beyond their jurisdiction and without any policy. For e.g. Board reduced the rate of interest from
13% to 12% in case of M/s Mahajan Lamination Works,
12.5% to 12% in M/s Vikas Ventures,
13% to 12% in M/s Venus Public Resort, waived off penal interest of Rs 43.39 lacs in case of M/s Transworld Sellways, Rs. 26,49,321/- in case of M/s Sai Enterprises, Rs. 4,21,361/- in case of M/s SS Timber and Rs. 62,949/- in case of M/s Narinder Singh. There are many such cases where Board has taken a decision beyond its jurisdiction and has worked in a way detrimental to the interests of the Institution.
The enquiry report has also indicated that certain individuals/families/groups of individuals have unduly been favoured by giving very high amount of advancement to them and recovery is not effected from such loanees which has grossly affected the financial health of the bank. The Bank in fact has to recover 99.69 crores of rupees from only 44 big defaulters.
Bhupinderjit Singh Walia Deputy Registrar, Cooperative Societies, has been appointed as Administrator and he has assumed charge on 11th May.