Srinagar, Oct 15 (KNS): The Baramulla Central Cooperative Bank (BCCB) has been asked to intensify recovery of overdue loans and identify chronic defaulters as concerns over its financial health prompted directions for stricter monitoring and accountability at the branch level.

The issue came up during the bank's fifth Annual General Meeting (AGM), chaired by Cooperative Department Commissioner Secretary Yasha Mudgal on Thursday.

The meeting focused on non-performing assets (NPAs), loan recovery, credit management and measures required for the bank's financial revival.

Mudgal directed the management to review overdue loan accounts individually and prepare time-bound recovery plans, including legal action against chronic defaulters wherever warranted.

She also instructed the bank to set recovery targets for individual branches and regularly assess their performance.

However, the department's statement did not disclose the bank's total outstanding NPAs, the amount recovered during the past financial year or the number of borrowers classified as chronic defaulters.

The absence of these figures makes it difficult to assess the scale of the bank's recovery challenge or measure its progress towards financial revival.Click Here To Follow Our WhatsApp Channel

The bank was also directed to strengthen checks before sanctioning loans and improve monitoring after disbursement to prevent fresh defaults.

Officials were asked to work closely with the bank's network of 92 Primary Agricultural Cooperative Societies (PACS) to improve recovery efforts at the grassroots level.

Mudgal further called for tighter control over administrative expenditure and compliance with Reserve Bank of India (RBI) regulations.

During the meeting, the bank adopted its audited financial statements for the years ending March 31, 2025, and March 31, 2026.

However, the department did not release details of the bank's profit or loss, capital position or year-wise changes in bad loans.

The AGM also approved the appointment of M/s IMT & Company as statutory auditor for 2026–27, following RBI approval.

BCCB Managing Director and Chief Executive Officer Dr Khalid Hussain presented a report on the bank's functioning.

The directions indicate that recovery of overdue loans and improvement in asset quality remain central to the bank's financial revival efforts, with management now required to demonstrate measurable progress at the branch level. (KNS)