Bhubaneswar: Cooperation Department has decided to launch a drive across the State for recovery of outstanding loans advanced by PACS/LAMPCS and DCCBs from May 25 to June 25.
Principal Secretary Cooperation has written a letter to all Divisional DRCSs/all Circle ARCSs/all CEOs of DCCBs in this connection.
“…. it has been decided by the Department to initiate a drive for collection of loans advanced by PACS/LAMPCS and DCCBs from 25th May to 25th June 2023. Special drive including vehicle movement be done by all these institutions mobilising all the human resources available with them. Due support to this drive is to be extended by the Departmental officers stationed in the field. Proper planning should be done by each and every organisation and all the defaulting loanees must be touched at least once during this drive by arranging RECOVERY CAMPS at Gram Panchayat Level,” read the letter issued by the Principal Secretary on Tuesday.
The letter says that more importance should be given to long overdue loans adding that
progress (Realisation of amount towards Principal and Interest year-wise) should be submitted to the Directorate, OSCB and the Department every week for perusal and further necessary action.
The Principal Secretary has pointed out in the letter that it has come to the notice of the Department that the recovery of loans advanced by PACS/LAMPCS and DCCBs is not being properly attended and monitored.
“Due to negligence of this aspect, lot of these advances are slipping to Non-Performing Assets (NPA) putting the resources of these public institutions at risk. Growing NPA in financial institutions is eating away the profits generated and compelling to do provisions against these bad/doubtful assets and NPAs for longer terms is adding to the losses incurred,” the letter further pointed out.
The letter asserts that being public financial organisations, these institutions must adhere to prudent financial norms to perform sustainably.
“This makes recovery of loans a vital function of credit institutions. But unfortunately, this is the most neglected aspect in the functioning of Cooperative Banks/Societies,” the letter added.
