Purbanchal Grameen Bank’s Rs 150m investment at risk

BIRATNAGAR, AUG 23 -

Around Rs 150 million investment of Purbanchal Grameen Bikash Bank (PGBB) is at risk.

After the Maoist-led government five years ago decided to waive off loans worth Rs 10,000-Rs 30,000 and interest up to Rs 10,000 for the borrowers of Nepal Bank, Agriculture Development Bank, Rastriya Banijya Bank and Small Farmers’ Development Bank, loanees of PGBB have also demanded that their loans be waived off, and have been refusing to repay their liabilities for the last five years.

The bank disburses credit to the marginalised and deprived women without collateral securities by forming women’s groups.

Senior officer at PGBB Gautam Bahadur Karki said the borrowers are demanding that the loan waiver facility be executed at the bank as well. “As a result, we have not been able to recover our investment of Rs 150 million for the last five years,” he said.

PGBB said they made several efforts to contact the defaulters, but to no avail. “The defaulters chase away bank officials if they go to the villages,” said Karki, adding the situation has worsened due to the fact that the bank has lent the money without any collateral security.

The bank has lent Rs 10,000-Rs 30,000 to each of 36,000 individuals in the region.

As of the last fiscal year, PGBB has invested Rs 9.35 billion to the marginalised woman through its 31 branches in Morang, Sunsari, Jhapa, Saptari, Siraha and Uayapur districts. Of the total investment, the bank has recovered Rs 8.67 billion.

Source: The Kathmandu Post