Irregularities alleged in sanction of two bank loans, manager files complaint

The manager of a cooperative bank has alleged his predecessor sanctioned loans illegally to two customers and caused a loss of Rs 78.5 lakh to the bank.

In his complaint to the Hanumanthanagar police, Krishna D, manager of Hanumanthanagara Cooperative Bank Ltd, has stated that his predecessor, an assessor, and some employees of the bank colluded in 2018-2019 to lend to the two customers. The police have registered a case against nine people.

Krishna told the police that the irregularities had come to light during a meeting over bad loans. The management asked Krishna to prepare a detailed report on loan defaults. He found the bank had granted Rs 25 lakh each to B M Shivakumar and T V Devika in 2018-19.

The auditor had objected to the loans as the manager had allegedly not brought the loan proposals to the notice of the management.

Borrowers Shivakumar and Devika returned only Rs 5.9 lakh together till January 2019 and stopped paying the bank. With interest, they owe the bank Rs 78.5 lakh, according to the complaint.