Vijaya Bank holds adalat, recovers loans

Vijaya Bank conducted its first adalat in coastal Andhra here recently for small farmers, artisans and urban middle and lower middle-income group customers, credit card-holders and Prime Minister's Rozgar Yojana (PMRY) beneficiaries, who have failed to repay loans.

Mahabala Shetty, bank general manager (inspections), inaugurated and presided over 'Vijaya adalat' where 105 customers of 12 branches in five districts attended. Bank officials settled 85 cases involving Rs 48 lakh and recovered Rs 15 lakh on the spot.

Sadananda Hegde, bank regional manager, told mediapersons that 24,000 small customers of the bank had failed to repay loans amounting to Rs 32 crore in coastal Andhra districts. The outstanding amount accumulated over the last 15 years.

The loan repayment position was good in the two Godavari districts, but disappointing in Krishna and Guntur districts. The bank identified over 100 customers of 12 branches in five districts who expressed their desire to repay and agreed for the settlement.

Shetty said more such adalats would be held till December 31. The purpose of adalats is to find out the reason why small and rural customers defaulted on their loan repayments.

The bank offered the one-time settlement to small and rural customers, particularly debt-ridden farmers and artisans.During the adalat, it was found that the customers could not repay loans due to adversities either in their business or personal life.

However, he made it clear that action would be taken against willful defaulters. Interest, partly or fully, might be waived depending upon the merit of the case.

But the bank would not compromise on the principal amount. The adalat could not be construed as a wrong signal that people could take loans and evade repayment.