KCC Bank recruitments put on hold

Lalit Mohan

Tribune News Service

Dharamsala, February 7

After the change in government in the state, controversies are staring at Kangra Central Cooperative (KCC) Bank, one of the biggest cooperative banks, catering to the lower areas of Himachal Pradesh.

The 216 recruitments made by the bank through the Himachal Pradesh Board of School Education (HPBSE) during the stint of the previous Congress government have been put on hold.

Though the results of the recruitment were declared by the board, the merit list could not be released due to imposition of the model code of conduct for the Assembly elections in October last.

Now the new government has decided not to carry forward any recruitment carried out by the previous government during the last six months of its rule, but for the recruitments carried out by the Himachal Pradesh Public Service Commission or the State Staff Selection Board.

The Bank MD, PC Akela, when contacted, said that the recruitments carried out by the bank had been put on hold due to government decision. It was unlikely that the recruitments would be put through.

The recruitments had been steeped in controversy and a bank director Keshav Korla had even moved court over the issue. The BJP, while in the Opposition, had alleged a scam in recruitments.

The other major challenge before the KCC Bank is the rising non-performing assets (NPAs). Though on paper, the NPAs are about 16 per cent against the RBI instruction of capping these below 10 per cent, bank director Keshav Korla has been alleging that it is much higher. He has alleged that the KCC Bank had taken over the NPAs of other banks and it was a scam. A loan extended by the bank to a hotel owner was in controversy.

There are also allegations of large-scale violation of rules in loans extended by a bank branch near Government College, Una.

MD KCC Bank said that when he had taken over, the NPAs of the bank were at 16 per cent. However, these had been curtailed to about 14 per cent.

Akela also admitted that an inquiry was ordered into certain loans extended by the KCC bank branch near Government College, Una. It was found that in many cases, norms for extending loans were violated and in some cases the manager had even violated his loan grant limit. Chargesheet has been issued to the bank manager and further inquiry into was going on, PC Akela said.

With the change in government, the term of three nominated members on the KCC Board has come to an end. Sources here said that the present government was preparing to nominate five members to the KCC board to appoint its own chairman to the bank.

NPA issue

• The major challenge before the KCC Bank is the rising non-performing assets (NPAs) 
• Though on the paper, NPAs are about 16 per cent against the RBI instructions of capping these below 10 per cent, bank director Keshav Korla has been alleging that it is much higher
• It has been alleged that KCC Bank has taken over the NPAs of other banks and it is a scam