Bhuj bank told to explain loan interest waiver

Sources said Mahendra Thakkar,one of the directors of the bank,has resigned recently. Bank chairman Dinesh Thakkar on Thursday,however,said his resignation had nothing to do with the ongoing trouble over the allegedly unauthorised interest waiver in favour of around 100 loan defaulters.

Thakkar claimed the interest waiver in favour of the 100-odd loan defaulters amounted to Rs 4 lakh. He said two of Mahendra Thakkar’s relatives were also among the beneficiaries,of which the RBI was not intimated. This amounted to violation of relevant rules of Banking Regulation Act. The money had been repaid but since the district registrar had called them to explain the queries mentioned in the showcause notice,they would appear before the district registrar now.

Bhuj Commercial Co-operative Bank was set up 35 years ago and its current level of deposits is Rs 33 crore while advance stands at Rs 16 crore,said Thakkar adding that the bank has 11,000 shareholder members now.

He said the present crisis was a result of a former office-bearer who had parted ways with the bank some years ago.