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Ghaziabad: Mahamedha bank writes to Centre, requests more time to recover loans

The bank has six branches and officials claim that they have nearly 36,000 accounts of different customers, including savings and current account holders. The bank’s six branches are located in Ghaziabad, Greater Noida and Hapur.

noida Updated: Aug 27, 2017 22:37 IST
HT Correspondent
HT Correspondent
Hindustan Times
Mahamedha,RBI,Licence cancelled
The Reserve Bank of India had cancelled the license of Mahamedha Urban Bank on August 23.(Sakib Ali/ HT photo)

The officials of Mahamedha Urban Co-operative Bank Limited, Ghaziabad, have written to the Union ministry of finance to grant them one more year to make recovery of loans, some of which have turned into non-performing asset over the years.

The move by the bank comes after the Reserve Bank of India (RBI) recently cancelled the licence of the bank to carry on banking business.

Senior officials of the bank said that their appeal was sent to the ministry to allow them more time for recovery of pending loans. The bank has six branches and officials claim that they have nearly 36,000 accounts of different customers, including savings and current account holders. The bank’s six branches are located in Ghaziabad, Greater Noida and Hapur.

“There are loans to the tune of ₹40 crore which have turned into non-performing assets. The RBI cancelled our license on this account. We had also sent a revival plan to the RBI but the licence stands cancelled. However, we have moved an application to grant of one more year’s time to us for recovery of loans which are secured with backing of mortgage,” said Raj Singh Bhati, chairman of the bank.

“We would like to assure our customers that their money is secured,” he added.

The officials added that the operation of the bank was hampered since the last 13 months. Some of the customers who arrived at the bank’s headquarters at Ghaziabad said that they were facing difficulty in withdrawing money.

“For the past one year, I have not been able to do any transactions. I have nearly ₹14 lakh as deposit in my saving, current and fixed deposit accounts. I had to take loans for my daughter’s marriage and also for my husband’s bypass surgery. I could not withdraw my own money even though I gave the bank the estimate of my husband’s surgery,” said Lalita Rani, a customer from Patel Nagar.

First Published: Aug 27, 2017 22:37 IST