I am belonging to Maharashtra State and working in Urban co op bank.Our bank have sanctioned loan of Rs.50000/- on 6/1/1998 The a/c become NPA as on29/09/2007 .Loan outstanding is Rs.62000/- as on29/09/2007 .(ledger balance) and accrued intt of Rs.155000/- from 29/09/2007 till the date.The borrower & one of the guarantor is absconding since long.The remaining guarantor is bed-ridden and is prepared to pay Rs62000/-(ledger balance) only and requesting to waive intt.Bank’s board is unwilling to accept OTS.
A resolution is passed in Bank’s AGM to consider the request of the guarantor.Now I request to guide me on the following points;-
(i)WHETHER AGM HAS SUCH POWERS TO WAIVE INTT & ACCEPT PRINCIPAL.
(II)IN THE LIGHT OF AGM’S RESOLUTION WHETHER BOARD CAN APPROVE AGM’S RESOLUTION.
(iii)ANY OTS CIRCULAR & THE SANCTIONING POWERS IN THIS REGARD.
I C Naik
For correct answers to questions on such internal matters access to internal regulations is essential. AGM functioning is governed by the bye laws of the bank. If the bank has done a business in AGM unless we have reasons to believe that business was not genuine or outside banks’ power, we better not disbelieve them.