Member of Maharashtra Legislative Council Kapil Patil today took a dig at BJP MLC Praveen Darekar, also chairman of Mumbai District Central Cooperative Bank, over the banks poor financial condition.
Speaking to reporters outside the House, Patil said that the bank's Non-Performing Assets (NPAs) were as high as 10 per cent when it should not have been more than 5 per cent.
"It was the same bank that was earlier chosen to operate the salary accounts of teachers. I doubt if the money deposited in this bank will be safe," he said.
Patil said that he had raised the issue in the House and had asked the state finance minister to protect the money of depositors.
Earlier, an inspection report by the National Bank for Agriculture and Rural Development (Nabard) stated that the cooperative bank had a weak appraisal system, inadequate loan review and monitoring system, defective documentation, lack of independent risk appraisal and inadequate recovery strategy, "thus leaving the bank with high operational risks."
The cooperative bank's gross NPAs stood at Rs 169.40 crore in March 2017, which is 10 per cent of its total assets. "This also shows that the bank is exposed to high credit risks," said the report.
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