Tags:
Journalism of Courage
CHANDIGARH, July 21: The UCO Bank has launched a Special Settlement Scheme for settlement of chronic loan overdues dated before March 31, 1996.
The scheme was launched as per the guidelines issued by the Reserve Bank of India (RBI) last month for formation of Settlement Advisory Committees (SAC), to compromise settlements of non-performing advances given by PSU banks to the small sector. According to bank’s Local Zonal Manager, R.K.Samaiya the chronic loan overdues of borrowers related to small-scale industries, small business including small road transport operators, agriculture including animal husbandry, government sponsored schemes viz IRDP, PMRY etc. would be the beneficiaries under the scheme.
The scheme will last till September 30, 2000. Under the scheme, the bank will consider, on the merits of each case waiving of compound, penal interest and charging interest on simple basis not below 10 per cent, from the date the account turned sticky. The schemes also applies to suits filed, decreed accounts and fraud cases, he said.
He further said that last year the Chandigarh zone had non-performing assets (NPA) worth Rs 44 crore and this year it has come down to Rs 35 crore. By implementation of this scheme this year we are targeting to recover Rs 15 crore of NPA. Chandigarh Zone accounts for 10.8 per cent of NPA of the bank.
He disclosed that an MoU was signed between the bank management and union for structural changes, including reduction of one-tier administrative machinery under its Strategic Revival Plan.
The board of directors at a meeting had decided that the zonal offices of the bank would be abolished and five local head offices would be established at Delhi, Bombay, Madras, Calcutta, Lucknow, where the regional offices would report directly and the powers of regional managers would be enhanced.
An officer of the level of Assistant General Manager would head the regional office at state capital and a scale IV officer at other places. The local head offices will be headed by a General Manager.
