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Our Bureau

Thiruvananthapuram, Sept. 4

The Kerala State Cooperative Bank (KSCB), which is burdened with mounting non-performing assets, has initiated steps to recover loan arrears to the extent possible during the current year.

As on July 31, 2008, the bank’s NPAs amounted to Rs 489.81 crore or 22.9 per cent of the outstanding loans and this is targeted to be brought down to Rs 300 crore during the year, according to Mr Koliakode N. Krishnan Nair, President of KSCB.

He said here on Thursday that the recovery proceedings, however, had not been progressing as expected because of various reasons. For one, the loans extended during the period of the earlier governing body between 2001 and 2006 in violation of the norms had proved difficult to be recovered for lack of clear addresses of the loanees or proper guarantees.

Besides, many state-level apex cooperative institutions have not repaid or renewed the loans and the arrears in this respect stood at Rs 168.90 crore as on July 31, 2008. The institutions included Hantex, Coirfed, Marketfed, Rubbermark and Rubco and the bank had approached the Government seeking help to recover the arrears, Mr Nair said.

He noted that the bank’s deposits had grown beyond the expected level during the current year. The deposits stood at Rs 3,924.94 crore as at the end of July as against the target of Rs 3,650 crore for the year.

The bank, however, has not received any refinance assistance from the National Bank for Agriculture and Rural Development (Nabard).

More Stories on : Non-Performing Assets | Co-operatives | Kerala

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