The Apex Bank commenced its banking operations on 11 September 1978, with its head office in Naharlagun, under the Arunachal Pradesh Cooperative Societies Act. By 2004, it had become a defaulter and was on the verge of closure, prompting the initiation of certain reforms. However, these did not last long. The bank continued to be misused not only by its employees, but also by other government officials, politicians, and businesses, ultimately leading to its current state-with a staggering non-performing asset (NPA) ratio of over 30 percent.
Among the top defaulting borrowers is the incumbent Chayang Tajo MLA, Hayeng Mangfi, whose 2019 case is under investigation by the Anti-Corruption Bureau’s Special Investigation Cell, allegedly involving an amount of Rs. 17 crores. Another defaulter is former Dumporijo MLA Paknga Bage, involved in a Rs. 5-crore loan case from 2018, which is currently sub judice.
A show-cause notice was served to Roing branch manager Anisha Apum, who is the wife of incumbent Dambuk MLA Puinnyo Apum. The notice stated that a gross violation was observed in a cash credit facility issued by the Roing branch. The account in question was a Kisan Credit Card (KCC) account, which has a sanctioned loan limit of not more than Rs. 3 lakhs. However, nearly Rs. 14 crores were disbursed as a loan to a private firm.
The bank has a history of going easy on defaulters, often allowing them to escape without consequence.
The increasing number of defaults, coupled with the bank’s failure to discipline defaulters, may ultimately lead to its collapse. Until financial accountability is prioritized, there is no hope of saving the bank from ruin.
For years, its reputation has been marred by scandal and inefficiency. With such a long history of defaults and questionable dealings, it is imperative that the authorities take decisive action. The panic-driven mass withdrawal seen in Roing is just one of the consequences. It is always the vulnerable population that suffers the most due to such widespread mismanagement.