GSCB roots for same reg number

PANAJI

The Goa State Co-operative Bank Ltd on Sunday resolved to ask the government to retain its original registration number as it was before the bifurcation of the bank from Daman and Diu.   

Speaking to media persons after the meeting, bank chairman Ulhas Phaldessai said that the file had been pending with the state government for several months. He said there would be problems if the registration was changed.   

“The file pertaining to the bifurcation of Daman and Diu from the multi-state status has been pending with the government. We have decided to seek the help of our legal team to retain the same registration number. If we are given a new registration, issues pertaining to income tax and service tax crop up. The current provisions of the bank will change as well as status of loans,” he claimed. The multi state status had been given as a deemed provision after Goa’s statehood ; but under new rules the status had to be changed after Daman and Diu were removed from the co-operative operations in March this year. 

The bank also highlighted its efforts in reducing the share of Non-Performing Assets (NPA) bringing it down from 7.71 percent in 2015 to 5.86 percent as of March 2016. Phaldesai however said there was need for the better recovery of loans which had to be achieved through better staff performance.   

“NPA has reduced but staff performance needs to improve drastically. It is very important and only when we have that will we achieve a balance in deposits, advances and receipts,” said Phaldesai.   

The meeting also brought to light several other issues including several societies demands for lower loan interest rates. “Societies wanted to have interests on loans lowered. But we taken a deposit from the market and compete with the rest of the banks and financing for the corporate sector is at a very reasonable rate. Because we are an apex bank, we cannot impose such rates on societies. But we have to study the demand,” he said.   

Caution was also raised to recovery of assets with over 200 cases of recovery still pending with the district court. 

With the cases to be tried under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 an amount of Rs 118 crore was to be recovered, of which the bank plans to recover at least Rs 50 crore by March next year. Phaldesai also informed that the govt had sanctioned to the bank Rs 15 cr as share capital. The bank had however asked for Rs 35 cr, he added.