DIMAPUR, DECEMBER 11 (MExN): Speaking as chief guest at the 39th annual general meeting of the shareholders of Nagaland State Cooperative Bank (NSCB) Ltd, Parliamentary Secretary for Cooperation & Horticulture, R Khing, stressed on the need to meet the credit requirements of rural masses besides inculcating the habit of thrift amongst the people.
Taking note of the fact that the NSCB share in the quantum deposit mobilised by all branches of various banks operating in the state, as on March 31, 2008, was a mere 7.25%, while the share of other commercial banks was 92.75%, Khing diagnosed that a majority of the people were still not fully aware about the existence of the NSCB and therefore continued to patronise the commercial banks. He, therefore, urged all co-operators, farmers, weavers and rural masses to acknowledge the services extended by the Cooperative Bank and deposit their surplus money in the same adding that their savings in this bank would be ploughed back for extending financial help to others in need of assistance.
The Parliamentary Secretary also conveyed awareness of the difficulty faced by the NSCB few years back due to mounting of overdue loans resulting in revenue and operational losses. He opined that “dishonest beneficiaries” who had the means but deliberately avoided repaying their loans were responsible for the Bank’s crisis. In this matter, Khing insisted that the management evaluate each loan proposal minutely and carefully without any compromise regarding eligibility criteria and rules which was the only way to ensure safety of loans.
The bank should constantly monitor recovery performance and initiate stringent steps for recovery, the Parliamentary Secretary urged, stating that the Board of Directors or officials who are responsible for recovery of loans should be held responsible for its recovery. Khing was also of the opinion that the Bank’s Field machinery should be actively involved in recovery drive with the introduction of reward and punishment schemes for greater effectiveness.
The chief guest particularly mentioned that amongst the willful defaulters included some former Board of Directors of the Bank, which he termed as “very embarrassing” and which tarnished the image of the Bank. Saying that the Board of Directors are supposed to lead the bank selflessly for progress, Khing suggested that if they failed to understand their responsibilities, law should be allowed to take its own course. He further called upon the Bank management to prevent recurrence of such “unworthy practice” in future.
The Inaugural Session was chaired by Vice Chairman of NSCB Ltd, M Bendangnukshi Longkumer, while the keynote address was delivered by Managing Director B K Thadani. The inaugural function was followed by a Business Session.
