loan defaulters are turning into termites not only in other parts of the country but in Jharkhand as well. The bad debt in the State has crossed Rs 3639.41 crore after registering 12.20 per cent of annual growth by September 30, 2014.
The State level Bankers’ Committee in its 49th meeting called on Friday expressed deep concern over the menace. All the banks together have filled 111524 certificate cases in their last ditch effort to recover the sinking money involving Rs 375 crore.
“This is a big hurdle for us in the way of providing loan facilities to the needy. What we think that State machinery besides our recovery agents can be pressed into service so that the money spent on them can go to the exchequer. Problem is more serious in rural areas and for the banks operating there,” said a DGM level official.
The banks have lent Rs 61540.98 crore as gross credit in the State. If the Rs 3639.41 crore of NPA is taken into account its percentage would go up to 5.91 per cent of the gross credit. Though, the growth of 12.20 per cent has come down from 14.82 per cent a year before.
The bankers also expressed apprehension that the trend may also be reflected on farm loans given through the KCCs. Total 3645218 accounts have been opened disbursing Rs 6690.30 crore since the programme has been incepted in Jharkhand. Disbursement during 2014-15 has been Rs 833.89 crore on the KCC. “The KCC is ok right now but when it will come to recovery we would be facing huge amount of loans turning NPA,” said a senior official of the Bank of India, the SlBC convener.
The State has registered lower CD ratio which has come down from 59.63 per cent from March this year to 56.78 per cent in September. Its direct bearing can be seen in the priority sector advances that has also seen a sharp fall from 71.97 per cent to 50 .45 per cent of the total advances.
Total deposits with the banks have reached Rs 128163.93 crore and credit to Rs 61540.98 crore at the end of September 2014.