Solan: In a firm crack down on non-performing loans, the Assistant Registrar’s court has issued arrest warrants against more than 100 loan defaulters of Baghat Bank in Solan. Officials indicated that the total number of arrest warrants could cross 250 in the coming days.
The enforcement action comes on the heels of the arrest of the bank’s biggest defaulter recently. Around 16 arrests have been made so far in connection with non-payment of dues. The Himachal Pradesh government has stepped in with a financial package of nearly ₹15 crore to ₹20 crore to help bring the bank back on track and prevent its closure.
The move follows a directive from the Reserve Bank of India (RBI) in June, wherein the central bank wrote to the State Cooperation Department advising the cancellation of Baghat Bank’s license and initiation of liquidation proceedings, setting a deadline of July 31. Refusing to let the institution collapse, the state government formulated a comprehensive revival plan and submitted it to the RBI, presenting a strong case for its continuation.
According to the Cooperation Department, the bank requires an infusion of approximately ₹20 crore to ₹25 crore to restore stability. While the state government is prepared to provide ₹15 crore to ₹20 crore, the remaining funds are expected to be raised through shareholders and account holders to put the bank back on solid ground.
Currently, Baghat Bank’s net worth has plummeted to negative ₹26 crore, and immediate efforts are aimed at turning it positive. The bank’s Non-Performing Assets (NPA), which previously stood at ₹120 crore, have been brought down to ₹112 crore following recent recovery drives. At present, around 380 NPA cases remain open, with nearly ₹112 crore yet to be recovered from defaulters.
Confirming the development, Registrar of Cooperation Department DC Negi said, “The revival plan for Baghat Bank has been submitted to the RBI, and a strong case has been presented before them. The bank will not be allowed to close down. The state government is ready to extend financial help, and all necessary steps are being taken for its revival.”
