CGFAPSCAB to revive Arunachal's 'Apna Bank'

Itanagar, Nov 28 (UNI) To revive the state's 'Apna Bank', the newly constituted Citizen's Grievances Forum on Arunachal Pradesh State Co-operative Apex Bank (CGFAPSCAB) aims to redress grievances of the loanees, bank officials and concerned loan recovery drive authority.

Addressing a press conference here yesterday, the forum's Chairman Techi Necha informed that the bank, established in 1978 with Rs 200 crore capital, had burgeoned to Rs 400 crores by virtue of public savings deposit.

However, he alleged that only Rs 40 crores were sanctioned towards public loans and the rest of the money including the Rs 200 working capital had vanished.

Mr Necha alleged that the bank had not followed the RBI norms of maintaining 28 percent liquidity ratio, 30 per cent daily of transactions and 42 per cent extension of public loans and held the officials responsible for the bank's plight.

He said, '' Loanees alone are not responsible for the bank's downfall. Lack of professionalism, collective responsibility, poor knowledge of handling the banking transactions of the employees were equally responsible.'' Pointing out certain discrepancies in the bank, he said there were wide gaps in the interest rates of the loanees.

''Some genuine loanees were charged 12 to 18 percent high interest rates, while some 'favourites' were charged only 6 to 8 percent interest rates,'' he added.

He also welcomed the government's move to hold a CBI probe into the matter.

''It is high time to find an amicable solution to revive the lone state owned bank,'' he added.

Meanwhile, CGFAPSCAB secretary Nabam Jose said only Rs 33 crore was sanctioned as loan of the total Rs 600 crore capital and wondered how a bank could collapse due to a meager loan amount.

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