Bhubaneswar: The Cooperation Department of Odisha Government has decided to carry out a drive for the collection of loans advanced by PACS/LAMPCS and DCCBs from 25th May to 25th June 2023.
Sanjeev Kumar Chadha, Principal Secretary to Government, has written to all Divisional DRCSs /all Circle ARCSs/ all CEOs of DCCBs regarding the drive for the recovery of outstanding loans through RECOVERY CAMP.
“It has come to the notice of the Department that the recovery of loans advanced by PACS/LAMPCS and DCCBs is not being properly attended to and monitored. Due to negligence in this aspect, lots of these advances are slipping to Non-Performing Assets (NPA) putting the resources of these public institutions at risk. Growing NPA in financial institutions is eating away the profits generated and compelling to do provisions against these bad/doubtful assets and NPAs for longer terms are adding to the losses incurred. Being public financial organisations, these institutions must adhere to prudent financial norms to perform sustainably. This makes the recovery of loans a vital function of credit institutions. But unfortunately, this is the most neglected aspect in the functioning of Cooperative Banks/Societies.,” the letter read.
Under these circumstances, it has been decided by the Department to initiate a drive for the collection of loans advanced by PACS/LAMPCS and DCCBs from 25th May to 25th June 2023. Special drives including vehicle movement are done by all these institutions mobilising all the human resources available to them. Due support to this drive is to be extended by the Departmental officers stationed in the field. Proper planning should be done by every organisation and alt the defaulting loanees must be touched at least once during this drive by arranging RECOVERY CAMPS at Gram Panchayat Level. More importance should be given to long overdue loans.
Progress (Realisation of amount towards Principal and Interest year wise) should be submitted to the Directorate, OSCB and the Department every week for perusal and further necessary action, the letter further reads.
