Solan-based bank’s 3K customers told to fill insurance claim forms

More than 3,000 customers of The Baghat Urban Co-operative Bank, Solan, have been directed to fill insurance claim forms by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which will make payment of Rs 5 lakh to the eligible depositors.

On October 6, the Reserve Bank of India (RBI) had capped Rs 10,000 withdrawal per customer, citing financial mess.

Raj Kumar, managing director of The Baghat Urban Co-operative Bank, said November 22 had been fixed as the last date for filling claim forms. The customers would be paid the claim by the DICGC on January 6, 2026, he said.

Pertinently, a sum of Rs 137 crore was stuck as non-performing assets (NPAs) while its Gross NPA ratio stood at 47.10 per cent, which points towards worsening financial status of the bank. The Net NPA stood at 12.91 per cent.

An ideal NPA ratio close to zero and a Gross NPA below 2 per cent is considered manageable and reflects good credit management.

A total of 499 people have availed loans to the tune of Rs 290 crore and of this, Rs 138 crore comprises NPAs. As many as 50 individuals have to repay a whopping Rs 72 crore.

Thus, the management was now targeting these 50 individuals so that a sizable amount can be recovered and the bank can improve its financial condition.

Though the bank management claimed that they had adequate liquidity, 80,000 customers have been waiting for a positive outcome.

Girish Nadda, Assistant Registrar of the Cooperative Societies, said the recovery process was underway and post-dated cheques worth Rs 46 lakh had been received, which would be encashed between December and January.