Jammu: The Comptroller and Auditor General (CAG) of India has pulled up the Jammu and Kashmir bank for sacrificing Rs 180.82 Crores under One-Time Settlement (OTS) during the five years ending March, 2011.
"...This is indicative of fact that reduction in NPA was mainly through settlement under OTS rather than recovery of NPA through normal course," the CAG said in its report for the year ended March 31, 2011.
"By settling 6073 cases under OTS during the years 2006-11, the Bank apart from sacrificing interest to the tune of 147.47 crore, sacrificed the principal amount of Rs 33.35 crore resulting in loss to that extent", it said in the report.
It was seen that out of the total reduction of NPA amount of Rs 1232.67 crore during 2006-11, Rs 303.80 crore (24.65 percent) was settled under OTS Scheme by waiving off Rs 180.82 crore (Principal:Rs 33.35 crore and Un-applied Interest Rs 147.47 crore), the report said.
Zone-wise analysis revealed that 46.51 percent of the total reduction of NPA (2006-11) had been made through OTS Scheme in Mumbai, 33 percent in Mohali (Chandigarh), 35.32 percent in Kashmir (Central), 23.49 percent in Delhi and 20.95 percent in Bangalore Zone, it said.
It may be recalled that to eliminate or reduce NPA, Banks have the option of settling the accounts through compromises and negotiated settlements or resorting to legal action.
First Published: Tuesday, May 15, 2012, 18:26