Latest news with #NDCCBank
Time of India
04-08-2025
- Business
- Time of India
Three defaulters pay Rs 21 lakh back to NDCC on first day of new one-time settlement scheme
Nashik: The Nashik District Central Cooperative Bank has received Rs 21.3 lakh in outstanding payments from three loan defaulters who opted to settle their debts under the new one-time settlement (OTS) scheme, effective Aug 1. NDCC Bank administrator Santosh Bidvai said, "Our new OTS scheme is the best offer for farmers from any cooperative banking institution in the state. After settling their loans, farmers become eligible for future short-term loans, unlike nationalized banks that blacklist OTS beneficiaries." The bank, which conducted its general body meeting recently, proposed the OTS scheme as per the guidelines of the cooperative department. The meeting was chaired by Vidyadhar Anaskar, the chairman of the administrative board of Maharashtra State Cooperative Bank, the organisation that is now appointed as the institutional advisor to the cash-strapped NDCC Bank to steer it out of the financial crisis. The bank has 56,700 defaulters with a collective outstanding debt of Rs 2,300 crore. Among these, 45,000 account holders who defaulted before June 2022 are eligible for the new OTS scheme. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Access all TV channels anywhere, anytime Techno Mag Learn More Undo The bank charges 8% interest on a regular basis, and after the account is categorised as a non-performing asset (NPA), the interest levied is 12% and above. "Under the OTS scheme, the total amount at the time of being declared as NPA is considered, and instead of hefty interest, defaulters will be charged 2% interest for loans up to Rs 1 lakh, 4% interest on loans up to Rs 5 lakh and 5% interest on loans up to Rs 10 lakh. For loans above Rs 10 lakh, a 6% interest rate will be applied," Bidvai said. The officer said if 100% recovery was done, the bank would suffer a loss of Rs 672 crore. He further underlined that the farmers were meeting govt and demanding interest and loan waivers. "My request is to settle the loan and the interest. The settlement will be in black and white and save further interest being charged by the bank. As and when govt announces the waiver, that amount will be transferred to the farmers' bank account," Bidvai said. He said the majority of beneficiaries under the scheme were loan defaulters with outstanding amounts up to Rs 1 lakh, particularly those who defaulted since 2016-17. "Due to state govt's loan waiver in 2019, defaulters from that period will not be eligible for future schemes, leaving loan settlement as their only option," a senior bank official said.
Time of India
29-07-2025
- Business
- Time of India
Farmers ready to repay only capital amount of loan taken from Nashik District Central Cooperative bank
Nashik: Members of the Shetkari Sanghatana's Nashik district unit met with the officials of the Nashik District Central Cooperative Bank to reiterate their demand that farmers who are defaulters should be allowed to refund the capital in instalments without any interest. Tired of too many ads? go ad free now According to Bhagwan Borade, the state coordinator for Shetkari Sanghatana, an agitation has been ongoing since June 1, 2023, in front of the Nashik Civil Hospital. The farmers are demanding that interest be completely waived on their loans. Borade, highlighting discrepancies in the bank's accounting, said, "Farmers who took a loan of Rs 2 lakh have already repaid more than Rs 4 lakh, and still the outstanding with them is about Rs 5 lakh. A farmer took a loan of Rs 7 lakh for a tractor, repaid Rs 16 lakh, and the outstanding shown is Rs 42 lakh. What kind of banking is done by the NDCC?" Borade further criticised the bank's reluctance to reduce interest rates despite farmers' willingness to repay after concessions. "When farmers were ready to repay the loan after a concession in interest, the bank was not ready to cut the interest. Now that the farmers are asking the bank to waive off the interest, the bank is coming up with lower interest rates," he said. The farmers have faced significant hardships, including the auctioning of their land. Borade said, "We have suffered immensely. The land of the defaulting farmers is being auctioned, and they are left with nothing. We, therefore, met Vidyadhar Anaskar, who is the chairman of the administrative board of Maharashtra State Cooperative Bank, which has been announced as the institutional advisor to the NDCC, and requested him to go through our proposal. Tired of too many ads? go ad free now " In response, the NDCC Bank announced a one-time settlement (OTS) scheme in its recent general body meeting. The scheme will charge 2% interest on loans of up to Rs 1 lakh, 4% on loans from Rs 1 to Rs 4 lakh, 5% for loans up to Rs 10 lakh, and 6% for loans beyond those amounts. Currently, the NDCC Bank has an outstanding of Rs 983.3 crore in capital and Rs 1,299.8 crore in interest from 56,040 defaulters, totalling Rs 2,283 crore. The farmers have proposed that since the bank has agreed to bear the loss of Rs 620 crore, the remaining interest of Rs 679 crore should be subsidised by state govt. This subsidy would enable farmers to repay the outstanding capital in 10 equated monthly instalments. Borade warned, "We are ready, and we need immediate results. If govt delays in taking a decision, we will be intensifying our agitation from Aug 15, and then our demands will change. "
Time of India
04-07-2025
- Business
- Time of India
NDCC special AGM approves one-time settlement scheme for defaulters
Nashik: The special annual general meeting of Nashik District Central Cooperative Bank has approved one-time settlement (OTS) proposal for defaulters . The proposal was discussed in a meeting with finance minister and deputy chief minister Ajit Pawar in Mumbai. Tired of too many ads? go ad free now A meeting of the depositors, along with farmers, took place at Kalidas Kalamandir. During the meeting, the defaulting farmers and their representatives emphasised the need for a complete waiver of loan and interest. However, the NDCC Bank administration, under the leadership of Vidyadhar Anaskar, the administrator of Maharashtra State Cooperative Bank appointed as organisational advisor of NDCC Bank, said that their demand would also be placed in front of the state govt. "State agriculture minister Manikrao Kokate was also present at the meeting, where the depositors demanded their deposits back. There were farmers opposing govt-suggested OTS, which would still incur a loss to the bank but nevertheless help the bank retain its banking licence," said NDCC Bank administrator Santosh Bidwai while briefing the media after the meeting. According to the new OTS, farmers who want to benefit from the scheme will have to settle their outstanding loans with interest rates announced in the AGM. It will come into effect when the govt approves the proceedings of the AGM. As per the new OTS, farmers with total outstanding up to Rs 1 lakh will have to pay 2 per cent interest, up to Rs 5 lakh will attract a 4 percent rate of interest, up to Rs 10 lakh will attract a 5 percent rate of interest, and beyond Rs 10 lakh will attract a 6 percent rate of interest. "The outstanding loans of farmers accrued interest charged at prevailing rates for the first three years before the accounts were declared as non-performing assets (NPA) due to non-payment of dues. Tired of too many ads? go ad free now As of now, this amount has accrued further interest. But as per the new OTS, the amount at the time of being declared as NPA falling in respective slabs will attract a particular rate of interest," another senior officer said. "This is the best possible scheme that the govt could offer to the defaulters, and the intention is to save the bank. It will take another four years for us to implement and clear the current outstanding. Besides, we are also seeking govt infusion of cash that will help us provide loans to people who need it to ensure we generate some more additional income. This can save the banking licence of NDCC Bank," the officer added.
Time of India
25-06-2025
- Business
- Time of India
NDCC Bank investors to form forum in bid to get back funds
Nashik: The cooperative credit societies in Nashik district, which have invested more than Rs 700 crore with the Nashik District Central Cooperative (NDCC) Bank, have decided to form a forum to demand the return of their funds locked up with the bank since since 2017 by pressing their case with the bank and govt. The NDCC Bank has been in financial turmoil since 2017, struggling with non-performing assets (NPAs) and loan defaults. The bank's performance has declined sharply, with NPAs piling up to Rs 2,200 crore, largely attributed to farmers defaulting on loans (accounting for 80% of the NPA amount). "Over 1,000 societies with over 70,000 investors across Nashik district have had their funds (ranging from Rs 20 lakh to Rs 127 crore) locked up with the NDCC Bank since 2017, with no returns even after the end of their terms. To address this, as of now 48 such societies have decided to form a collective forum, and form pressure group to push govt to ensure investors receive their money back," Vishwas Nagare, the president of Nashik District Maratha Vidya Prasarak Samaj Sevak Sahakari Society Ltd, said. Nagare is also the coordinator of the 48 credit cooperative societies that have come together so far. Nagare said these societies, registered under the cooperative department, were only allowed to invest their deposits with the bank, in which the salaries were credited. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo "In the past, all the major institutions would use the network of the NDCC Bank to settle the salaries of their employees. Hence, all these societies had to invest at least 25% of their profit and additional sum available with the NDCC Bank. Accordingly, the reserves kept on increasing over time," he said. Despite efforts to recover loans, the bank's progress has been limited. In 2024-25, it collected Rs 237 crore against outstanding loans of Rs 2,174 crore. The bank's recovery target from NPAs was Rs 251 crore, but it has only managed to recover Rs 21 crore. He said since 2017, these societies have not got their deposits back, nor the interests. "The money with the bank is not yielding any interest. The India Security Press and Currency Note Press employees and officers' credit societies have investments of Rs 120 crore with the NDCC Bank. Even the investors are demanding money from societies and banks, but they are unable to return it. So, now a forum will be formed with all these members that will then take appropriate steps, including petitioning the Bank, state govt and even the high court," Nagare added. The bank introduced a one-time settlement scheme, which led to 991 members repaying loans worth Rs 41 crore. However, the concerns remain about the bank's ability to recover the outstanding loans and restore its financial health. The bank is under RBI lens for its banking licence.
