A high-level meeting chaired by the Chief Secretary of the Andaman and Nicobar Administration was held on 6 October to review the recovery status of loans and advances by the Andaman and Nicobar State Cooperative Bank Ltd. The meeting focused on the bank’s efforts to manage Non-Performing Assets (NPA) and improve financial stability within the cooperative banking sector of the Union Territory.
During the meeting, the Vice Chairman and Managing Director of the State Cooperative Bank reported that Rs. 27.16 crores have been successfully recovered from NPA accounts since April 2025. This recovery reflects the bank’s ongoing efforts to address delinquent loans and strengthen its financial position. The officials also provided details regarding the strategies adopted to follow up with NPA account holders and ensure repayment.
The Chief Secretary acknowledged the bank’s progress in recovering a significant portion of outstanding loans but emphasized the need for sustained and intensified efforts to further reduce the NPA percentage. He advised the bank to continue pursuing defaulters systematically and to adopt robust monitoring mechanisms to prevent future accumulation of non-performing accounts. The Chief Secretary stressed that achieving NPA levels within the prescribed norms is critical for maintaining financial discipline and ensuring the long-term viability of the cooperative banking system in the region.
The discussion also highlighted the importance of collaboration between the administration and the bank to identify high-risk accounts, implement recovery strategies, and enhance the accountability of borrowers. The officials reviewed the ongoing initiatives to streamline loan recovery processes, strengthen customer communication, and ensure timely repayments. The meeting underscored the role of cooperative banks in supporting local development while maintaining sound financial practices.
The Chief Secretary further directed the bank to periodically update the administration on recovery progress and to ensure transparent reporting of all measures undertaken to manage NPAs. The meeting concluded with a consensus that proactive management of loan recovery is essential for safeguarding the interests of depositors and maintaining the credibility of the State Cooperative Bank.
This review session forms part of the administration’s continuous oversight of financial institutions in the Andaman and Nicobar Islands, aimed at promoting fiscal discipline, improving asset quality, and ensuring efficient service delivery to the public. The Chief Secretary reiterated the administration’s commitment to supporting cooperative banks while encouraging them to adopt innovative strategies to reduce NPAs and enhance financial performance.
