Non-payment of loan, accumulated losses put existence of the bank at stake
Our Correspondent
Kohima | April 18
The State government’s share of Rs 2.5 crore in the State owned Nagaland Rural Bank (NRB) has become a non-performing asset, because of which dividends cannot be declared. Revealing this during a meeting of the Administrative Heads of Departments (AHODs) and HODs at Secretariat conference hall here, Chairman of NRB, CR Aiyar maintained that it has not only become difficult for Nagaland Rural Bank to survive and grow, but its existence is at stake.
The bank has 11 branches spread over five districts of Kohima, Wokha, Mokokchung, Zunheboto and Dimapur.
The NRB chairman said that Rural Banks in Nagaland, Manipur and Arunachal Pradesh are amongst the poorest performing banks run by the State government, compared to other four banks in the North East Region. Failure of NRB is due to varied reasons but non-payment of loan, even by government employees, and accumulated losses are the main problems faced by NRB, he said.
In this light, Aiyar requested the Chief Secretary to intervene in helping the bank flourish. He appealed that government employees’ transactions be carried out through the state owned bank. He also requested linking of Aadhaar numbers with the bank accounts.
“NRB is a local bank and not expected to invest outside the state, except government securities and therefore we are willing to work in coordination with departments like Agriculture, Social Welfare and Industries to support their commercial activities,” he said.
He also asserted that NRB is willing to extend its branches to the remaining six districts of the state. He also appealed that the government employees should be encouraged to open the three social security schemes launched by the Prime Minister - Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana.
Meanwhile, reacting to the presentation of the NRB Chairman, Chief Secretary Pankaj Kumar suggested that the government departments and employees operate accounts in state owned trusted banks.
The House also opined that Corporate Social Responsibilities (CSR) activities of the banks should also be verified while opening accounts.
