Loans – Greater than 25Okay debtors owe unhealthy loans of over ₹3,500 crore to GB Nagar banks – noida
Gautam Buddh Nagar district banks have declared excellent loans worth ₹3,549 crore as non-performing property (NPA).
A bank classifies a loan as an NPA when the beneficiary fails to repay after 90 days.
In accordance with official figures, 25,141 loan accounts had been declared NPA. A majority of those accounts had been of micro, small and medium entrepreneurs.
Not solely that, because of lack of correct equilibrium between the deposits and advances, the credit-debit ratio (CDR) of the banks within the district, has gone all the way down to 56.15%, which is lower than the ‘healthy’ CDR of 60%.
GB Nagar district lead bank supervisor (LBM) Ved Ratna stated, “Recovery of NPA is never an easy task for banks as most of these loans come under litigation at later stage.”
The LBM stated banks have already initiated the restoration course of of those ‘bad’ loans. “At first, they will start the recovery of these defaulted loans without recourse to judicial process, under which the banks will issue notices to debtors and ask them to make payments of dues on their heads. If the borrower is cooperative, their assets charged to banks will be sold by private negotiations or by auction. If they do not co-operate, the banks will take legal course and the loans will be recovered through legal process by the orders of the courts,” he stated.
In regards to the CDR of the banks, the LDM stated that whereas the deposits in numerous banks of the district have been recorded ₹1,08,474 crore, the advances given to the shoppers have gone all the way down to ₹60,926 crore. “It is mainly due to heavy push of deposits into government accounts, which has caused imbalance between deposits and finance. The government has deposited heavy funds of over ₹4,000 crore in its bank accounts as many upcoming projects like Jewar airport and Smart City will come up soon. On the other hand, we don’t have as many entrepreneurs here, who seek funds from the banks. As a result, the CDR has gone down,” he stated.