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Board of Hindu Urban Cooprative Bank Pathankot placed under suspension

Press Trust of India  |  Chandigarh 

The board of directors of the Hindu Urban Bank, Pathankot, has been placed under suspension on complaints of "mismanagement", an said today.

"They (directors of the board) have also been put on notice to explain as to why action should not be taken against them as they have failed to perform their expected duties in a transparent and professional manner," a government release said here today quoting the Societies Registrar Arvinder Singh Bains.

The release said the financial health of the has been severely eroded thereby putting the interest of the depositors of the at a grave risk.

The department received complaints from the public and representations from the staff of the regarding alleged mismanagement by the board of directors, Bains said in the release.

"A detailed enquiry was got conducted by the Joint Registrar, Societies, This enquiry pointed out that Reserve Bank of while conducting the inspection of the bank has put the bank on notice under Self Corrective Action for the second consecutive year."

The NPA of the bank has shot up to 48 per cent, which is very high.

The enquiry report has also indicated that certain individuals/families/groups of individuals have unduly been favoured by giving very high amount of advance to them and recovery is not effected which has grossly affected the financial health of the bank.

"The bank, in fact, has to recover Rs 99.69 crore from 44 big defaulters," he said.

"The management of the bank has woefully failed to protect the interests of the institution, its depositors, its members and share holders compelling the (Cooperative Societies) Department to step in and suspend the Board," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, May 13 2018. 20:25 IST
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