The Himachal Pradesh State Co-operative Bank (HPSCB) would launch a special drive scheme to recover Non Performing Assets (NPA) from tomorrow offering one time settlement scheme (OTS), top functionary of bank said in a press statement issued today. Chairman of HPSCB Mr. Harsh Mahajan informed that Him Rin Niwaran Yojana -II to be launched with effect from tomorrow to recover the NPA belonging to chronic defaulters, borrowers accounts categorized on or before March 31 2011.
He said that attractive discounts would be offered to the eligible borrowers belonged to farm and non farm sectors to be covered under the OTS. He said that it would also bring the cases falling under exceptional category where borrower is not alive and accounts are NPAs under the ambit of scheme. Under the scheme settlement amount payable by the borrower received with in three months form date of conveying the approval would not be charge any interest further if the amount is paid in lump sum within one month two percent incentives would be given and amount is paid with in two months one percent incentives to provided.
However if amounts to be recover under OTS go beyond three months or pay in installments, future interest on the settlements should be charged at the rate of ten percent simple basis or reducing the balance. OTS amount to be repaid with in a maximum period of one year. He said that it is golden opportunity for those who want to settle their NPA accounts after availing attractive discounts.
Bank was striving hard to reduce its NPA after evoking number of methods under Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, public Money Act , Persuasion, Arbitration or execution proceeding etc. Terming the OTS another affective toll to manage and further reduce the NPA of bank he said that similar scheme in the past resulted reducing the gross NPAs to a level of 5.45 per cent as on FY 2016-17.