Questions raised over co-op bank’s recruitment move

Lalit Mohan

Tribune News Service

Dharamsala, June 26

The proposed recruitment of about 215 candidates by Kangra Central Co-operative Bank (KCCB) is once again at the centre of controversy.

Earlier, former minister and senior BJP leader Kishan Kapoor had raised doubts over the proposed move of KCC Bank to make fresh recruitments though the HP Board of School Education.

Now, bank director Keshav Korla has written to the Registrar, Cooperative Societies, Himachal, against the proposed recruitments. In the letter to the Registrar, Korla has alleged the agenda for fresh recruitments was not formally circulated for the meeting held on May 19. Just a resolution was moved to make the recruitments through the HP Board of School Education.

The previous recruitments made by the bank through the state education board were already embroiled in controversies and the matter was pending before the Supreme Court.

Korla alleged that the bank’s financial health was not good. The non-performing assets (NPA) of the bank had risen sharply in the last financial year. The NPA of the bank was well above 15 per cent. As per the RBI directions, cap should be put on recruitments of the bank in case NPA rises to above 10 per cent. The NPA had increased by about Rs 140 crore in a year, Korla alleged.

The bank director said in such a scenario the bank should rationalise its staff, cut operations in loss-making branches and make efforts for realisation of bad loans. However, the bank management was recruiting and opening branches that would further add to the bank’s expenditure, he alleged.

Former minister Kishan Kapoor alleged that the KCC Bank should recruit through professional banking recruitment agencies like the Institute of Banking Personal Selection (IBPS), Mumbai. In case they want a state agency state staff selection board should do the recruitments rather than the state education board.

Korla had earlier also raised issues regarding alleged bad loans being given by KCC Bank. He had also sat on a hunger strike but lifted it after a day. However, the issues raised by him gave ammunition to the Opposition. The BJP had even included the issue of recruitments in KCC Bank in its chargesheet against the present government. BJP leaders alleged many kin of staff of the CM’s office had been given jobs in the bank in last recruitment carried out by the state education board.

When contacted, bank managing director Pyar Chand Akela said the NPA of the bank was above 15 per cent. He, however, said the NPA had nothing to do with recruitment. Recruitment was being done as per the board decision to fill vacant posts. In fact, recruitments would help bank in making recoveries faster.

Asked why the recruitments were not being made through the IBPS, the MD said it was the decision of the board.