Repco Bank has suspended its Dharmapuri branch manager over alleged fraud and irregularities relating to loan sanctions.

The bank suspended P Kamalakannan, who worked as Chief Manager in the Dharmapuri branch, and has initiated departmental action.

“The bank has also lodged a criminal complaint for further investigation and action,” according to a statement of the bank.

It said loans were provided without any documents, such as promissory note, loan agreement and mortgage deed, from the borrowers. In some loan disbursements, only partial loan amounts were given to the borrowers.

Also, during the period of demonetisation, it is alleged that Kamalakannan accepted demonetised notes on the pretext of remitting these to the loan accounts and issued fake receipts for closure of loans, whereas the said loan accounts are still outstanding.

Norms flouted

The bank found that there was total flouting of norms, guidelines, procedures and systems in many of the loan sanctions and disbursements leading to sizeable financial loss to the bank.

The bank’s action followed complaints from various quarters and alarmingly quick default of loans in the Dharmapuri branch.

A special inspection was conducted during June and irregularities in loan sanctions, documentation and disbursements came to light, said the bank.

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