Kangra bank to recover bonus, ex gratia given to staff last yr

Lalit Mohan

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Tribune News Service

Dharamsala, November 17

Amid the rising non-performing assets (NPAs), which have reached 18 per cent in the current financial year, the management of Kangra Central Cooperative Bank (KCCB) has ordered the recovery of 41 per cent bonus and ex gratia paid to its employees last year.

The KCCB had the tradition of paying one salary as bonus and ex gratia to its employees every year on Diwali. This year, they did not get any bonus and ex gratia.

One of biggest cooperative banks of the state has about 200 branches extended across, Kangra, Hamirpur, Una, Kullu and Lahaul-Spiti districts. The bank has about 3,000 employees.

Assistant General Manager of the bank KC Thakur said orders had been issued to recover 41 per cent of the bonus given to employees last year. “The recovery will be made in five instalments, starting from salary payable next month,” he said. Sources said the recovery was being made after objections from auditors, who said the bonus and ex gratia were paid by the management on gross profit, whereas it could be paid only on net profit.

The employees union of the KCCB has represented before Rajiv Bharadwaj, the new chairman of the bank, against the recovery. The decision on the matter would be taken by a three-member board, the sources told The Tribune. The bank has been in controversy for increasing the NPA for the past few years. It has increased from Rs 402 crore (in 2016) to Rs 720 crore in the current financial year.

The Vigilance Bureau has started an inquiry into bad debts of the banks and loans that have increased the NPAs.