Various nationalised banks will organise loan recovery camps across the district next month to recover about Rs 500 crore lent to hundreds of farmers against Kisan Credit Cards (KCCs).
The camps would be held in all 24 blocks between June 15 and 30. According to sources, the banks fear that there would be a steep increase in their respective non-performing assets because of the non-recovery of the loan amounts. What worries the bankers most is that if the borrowed amounts are not recovered by March 31, 2013, the accounts would be declared as non-performing assets account.
Once this happens, certificate cases would be lodged against the borrowers under the Public Demands Recovery Act. In case of a non-performing account or certificate case lodged against the borrower, notice is served to the borrower to repay the amount. Besides, the borrower concerned is also contacted in person.
Several bankers said they did not have much power that could ensure recovery of loan amounts because KCC loans are sanctioned without any mortgage. “Only administrative support or a borrower’s willingness can ensure recovery of loan amounts,” a banker said.
Anjan Chattopadhyay, the lead development manager of Punjab National Bank (PNB) in the district, told The Telegraph: “The percentage of NPA account will increase to nearly 25 in the district if the borrowed amounts are not recovered by March 31, 2013. Under such circumstances, sanction of loans of other nature will be adversely affected.”
According to statistics available with the bankers, around 1.4 lakh farmers had borrowed KCC loan from 202 branches of the nationalised banks in Gaya between April 2008 and December 31, 2011. In the 2008-09 financial, loans were sanctioned to 50,124 farmers, followed by 29,247 in 2009-10, 29,355 in 2010-11 and 25,741 in 2011-12 (up to December 2011).
The banks that have sanctioned KCC loans are State Bank of India, Bank of India, Bank of Baroda, Central Bank of India, UCO bank Madhya Bihar Gramin Bank and PNB.
Madhya Bihar Gramin Bank has sanctioned most KCC loans through 60 branches spread across the district, mostly in rural areas. The banks are now depending on the loan recovery camps for repayment of the loan amounts.
Though the banks charge seven per cent interest on KCC loan amounts, the borrowers enjoy the benefit of getting another loan and a four per cent subsidy on interest amounts if they repay their previous loan amounts within a year.
Of the four per cent subsidy, the Centre’s share is three per cent and the state shares one per cent.
“We are creating awareness among the borrowers to repay their loan amounts on time,” Financial Literacy and Credit Counselling Centre’s district coordinator, J.P. Jha, said.
Shailendra Kumar Mishra, a farmer from Barorah panchayat under Guraru block, said the biggest problem for the tillers was the poor yield of crops. “We have not been able to recover the amount that we have invested in the field and spent to purchase seeds and diesel handsets. More than 50 farmers are willing to repay the loan amounts if the interest is waived,” he added.
