One of the general body members declared a walk-out alleging failure by the board of directors to give satisfactory answers to the increasing losses by the bank.
Of the total of 53993 members only 90 attended the meeting that lasted for sometime before adjournment.
“Goa government’s interference in the recovery of loans given to mining related industry after closing of mining activities in Goa has resulted in reduction of Capital to Risk Asset Ratio and because of this reason the RBI has issued directions not to sanction any loans,” said Ramakant Angle, chairman of the bank while answering to a question raised by Adv Narayan Desai.
“The impact of the ban on mining activities in Goa since October 2012 has adversely affected the financial health of the bank.
It may be recalled that RBI has directed the Madgaum Urban bank not to sanction any loans as the Capital to Risk Asset Ratio had drastically declined from 9.33% to 3.83% for the period ending March 31, 2015. The net non performing assets have also drastically increased from Rs 3636.16 lakh to Rs 4565.97 lakh.
The “Bank had bad debts of Rs. 46 crore in the mining sector and we will strictly recover the outstanding dues from April 2016,” assured Angle while replying to a query raised by the media after the AGM.
“I have already written a letter on 22nd Sept to the chief minister of Goa to intervene and inform the RBI that the soft stand on the loan recovery was taken due to request form the govt. And we have brought to the notice of the RBI that the Capital to Risk Asset Ratio as on the period ending on August 31, 2015 is 6.23. And I am confident that the ban on sanctioning loans will be lifted in next one month,” said Angle claiming that he is the only chairman of the co-operative bank having experience of working in a nationalised bank.
He also said that “from April 2015 to Aug 2015, the bank has recovered an amount of Rs 5.90 crore from the defaulters.”
Raising concern over the withdrawal of fix deposits to the tune of around Rs 4 crore from the Curtorim & Margao branch of the bank, Ivo Coutinho an ex-director of the bank, warned that, “If this goes on, the bank will have to be closed in the next two years.”
However, Chairman Angle dismissed the fear saying, “Even if the depositors with draw their deposits to the tune of Rs 35 crore, the bank in not in danger and it will not disturb the functioning of the bank.”
