Oscar to attend Apex Bank revival function

Itanagar, Jul 26: Putting all speculations to rest, the State Cooperative Apex Bank sick since 2004 would start normal operation soon after a grand revival function at Indira Gandhi Park here on August four next where Union Labour Minister Oscar Fernandes would distribute drafts for the purpose to the bank.

Disclosing this at a press conference here yesterday, Cooperation Minister Lombo Tayeng informed that the state government has decided to hand over Rs 225 crore it had received as royalty advance from National Hydro-electric Power Corporation Ltd. (NHPC) to the bank, which would be distributed by the union minister for making payment to over 1.52 lakh depositors of 32 branches of the state-owned bank.

State Chief Minister Dorjee Khandu would preside over the function, he said.

The bank incurring reasonable profit till 1999 started declining since 2000 and its loss reached the peak in 2004 following a loan scam to the tune of over Rs 140.40 crore which had resulted in liquidity crunch evoking strong protest from all over the state.

With over Rs 175. 49 crore working capital, the bank incurred a loss of over Rs 145.05 crore as on March 31 last.

The bank collapsed for various reasons, including irregularity at bank level and pressure from BoDs to sanction loans, Mr Tayeng said adding a district recovery committee headed by DC was working to recover the outstanding loan. Various modalities are in the offing for making it the people's bank, he reassured.

However, advisor to state chief minister and MLA R K Khrimey informed that the prime objective was to repay the depositors and gain their confidence. The deposited amount with interest up to 2003 would be immediately paid while allowing the interest accrued during 2004-07 to grow in the interest of the bank and the depositors.

It is their bank and could revive and resume normal functioning with their support only, he added.

The SREI Capital Market Ltd, the first Indian company listed with London stock exchange, has been appointed as consultant, to suggest various modalities for making the bank a profitable organisation, Mr Khrimey said assuring professional functioning to achieve the goal.

Explaining various steps initiated to revive the bank, its administrator and cooperation secretary Dr B S Banerjee disclosed that 28 employees (including probationary officer-2 and security guards-24) were terminated, two POs demoted and 21 suspended (including former MD, DGM-1, AGM-3, senior manager-3, manager-1, senior accountant-2, senior cash clerk-3, junior cash clerk-2 and junior security guard-2).

The actions were taken on the basis of audit report of registrar of cooperative societies (RCS) and inspection report of NABARD which had established the prima facie charges, said Banerjee. He was supported by bank's CEO-cum-MD Tarin Dakpe, who said that strict disciplinary action would follow against any irregularity.

UNI