Poor loan recovery impedes bank functioning–RCS

DIMAPUR — Registrar of Cooperative Societies/ Additional RCS of Nagaland, Alangla Thonger, stated that majority of the banks in Nagaland have Non-Performing Asset (NPA) issues and added that poor loan recovery has impeded the banks from moving forward.

She stated this during the 55th annual general meeting of the Nagaland State Cooperative Bank (NStCB) Ltd. held at its conference in Dimapur on Friday.

In regard to the NPA issues, she asserted that NStCB should look back at the inner strength of the bank, where more than 90% of the bank employees are native of the state. She stated that the NPA issues can be solved if they could utilise the local networking as NStCB has the backing of the state government, NABARD and the local population.

As NStCB has its own guidelines for disbursement of loans, she suggested taking some bold initiatives like identifying few good young upcoming entrepreneurs in every district and handhold 100% with them so that their business success could be model for the other young entrepreneurs in the state.

She further assured that NStCB has the full backing from the Cooperation department in all their noble endeavours.

Abhijit Kumar Deb, managing director of the bank while sharing on the bank’s performance during 2023-2024, informed that Gross NPA of the bank has reduced by 1.74% as compared to last year. He also informed that the net NPA of the bank declined by 2.70% and provision coverage ratio (PCR) stood at 75.81% as against 63% of last year

He mentioned that there was an increase in absolute gross NPA to the extent of INR 1,413.08 lakh after netting off reduction of INR 1722.78 lakh from NPA of previous year. He added that the bank’s gross NPA decreased from 15.91% to 14.17% and net NPAs declined from 6.54% to 3.84% as on March 31, 2024.

He also informed that the business mix of the bank registered a growth of 7.95% during FY 2023-2024 and the CD ratio of the bank increased by 1.16%. The net profit of the bank grew by 235.85%.

He also updated that the total deposit of the banks from INR 1049.09 crore in the previous FY 2022-2023 increased to INR 1124.49 crore in FY 2023-2024 recording a growth of INR 75.40 crore(7.19%).

The general manager (OIC) of NABARD, RO, Nagaland, P Bulte, in his short speech, challenged the banks to come out with vision statement and also requested them to actively cooperate with the central government.

List of awardees

A total of 11 Primary Agricultural Credit Society (PACS) were awarded under different categories during the event.

Under best advocacy in credit discipline, the awards were given to Thenumia Kehou MPCS Ltd, Agri Colony MPCS Ltd. and Dibuia village MPCS Ltd.

Under community-based relationship banking, the awards were given to Chakhesang Baptist Church, Diphupar; Eleutheros Christian Society, Tuensang, and Kilo Old VDB, Zunheboto.

Under SHG and JLG, awards were given to Asset Joint Liability Group (Tuensang) and Hibo Self Help Group (Kohima), while the best performance under DAP were awarded to Kohima main branch, High school Jn Branch (Kohima) and Tseminyu branch received the award.