As a result of negligence in giving loans and recovery of loans, the NPA level of Land Development Banks in Rajasthan has gone beyond Rs. 730 crore.
NPA alone accounts for Rs.600 crore of the amounts. The state govt. is identifying officers responsible and intending to order charge-sheets against them.
The banks have incurred losses because of their slapdash approach to work. About 14 secretaries of land development banks are likely to be issued show cause notices.
MD land development banks claims notices have already been sent to the office of the registrar. Besides 8 secretaries of land development banks will be issued notices. According to registrar, because of poor recovery of loans, the NPA level has risen too high threatening the very existence of banks. Strict action will be taken against officers responsible, the registrar said.
All land development banks had been directed to recover loans to the extent they could achieve at least the average level of loan recovery.
