NDCC Bank eyes Rs 230 crore relief via govt-announced loan waiver

Nashik: State govt's budget proposal to waive farm loans of up to Rs 2 lakh per eligible farmer could fetch the Nashik District Central Cooperative (NDCC) Bank as much as Rs 240 crore, though the final figure would depend on the terms and conditions the govt would eventually announce.According to NDCC Bank general manager Ratnakar Hiray, the bank has 32,911 loan accounts with outstanding amount (including interest) of up to Rs 2 lakh each. He said some farmers held more than one account. "These figures also do not factor in how many account holders are income taxpayers or previous beneficiaries of govt loan waivers. The total outstanding amount in these accounts is Rs 240 crore," Hiray said.In earlier schemes, the Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana (June 2017) offered waivers for loans up to Rs 1.5 lakh taken between 2001 and March 2016, while the Mahatma Phule Shetkari Karjmukti Yojana (Dec 2019) covered outstanding loans up to Rs 2 lakh taken between April 1, 2015, and March 31, 2019, which were overdue as of Sept 2019."It remains to be seen what conditions govt will attach to the new waiver. The figures will be revised once these conditions are announced," Hiray said.The cash-strapped NDCC Bank, which is struggling to retain its banking licence, has already received Rs 672 crore in govt assistance and submitted a revival plan focusing on recovering dues from defaulters. More than 6,800 defaulters — all farmers — collectively owe the bank Rs 1,900 crore.A senior bank official said NDCC had rolled out one of its most attractive one-time settlement (OTS) schemes, which would be available only till the end of the current financial year. After that, the bank would resume stricter loan recovery measures, the official added.