Kalupur Commercial Cooperative Bank Chief Executive Officer Vinod Dadlani has strongly denied any hanky panky in the case of giving loan to Jay Shah, son of Amit Shah BJP National President. Mind you; it is Kalupur Bank reputed for discipline, said the CEO. Dadlani added “Kalupur Bank has been so disciplined in its operations that it will have to say sorry even to the Prime Minister if he or she does not fulfill the criteria.”
Talking to this correspondent on the phone from Ahmadabad Vinod Dadlani said “Our bank is a reputed bank in the cooperative banking sector. We are not giving loan to any person in violation of the RBI norms or norms of any other regulatory body”.
”There are more than 54 thousand share holders associated with the bank and Jay Shah is one of them. We can’t give loan to any person who is not our member and in case of Jay Shah the bank did not give Shah’s firm a “loan” but a “non fund based working capital facility in the form of a Letter of Credit up to Rs 25 crore”, he informed.
“This facility has been secured on usual banking terms which include hypothecation of the goods purchased under the LC, cash margin of 10% and collateral security of a property belonging to Jay Shah’s father and another property of Kusum Finserve which is duly reflected in the financial statement of April, 2014 to March, 2015.
“The bank receives payments before the retirement of LC on its due date resulting in this being a non-funded and no-risk facility for the bank,” Dadlani said to this correspondent.
Its bears recall that the news portal ‘The Wire’, earlier said that Kusum Finserve in which Jay Shah, son of Amit Shah has about 60% share sought a loan of Rs 25 crore from Kalupur Commercial Co-op Bank by pledging assets worth Rs 7 crore.
Kalupur Commercial Cooperative Bank was established in 1970. The Bank has business mix of about 10,700 crore in which 6,500 is deposit and 4,3200 crore is loan and advances.
The Bank has earned a net profit of Rs 85 crore in the last financial year i.e. 2016-17 and having a network of 56 branches.
The headline hogging Kalupur Commercial Cooperative Bank is on a growth path and has had mergers with seven urban cooperative banks in the past. The CEO hinted that one more bank is likely to merge with it in the days ahead.
The current controversy has snowballed into a major political fight between BJP and Congress with the Gujarat elections round the corner. Jay Shah has also threatened to sue the news portal in the court of law.