KCC Bank Board Suspended, Elections Cancelled – NPA and Political Factors at Play
Dharamshala: The Himachal Pradesh government has suspended the Board of Directors (BOD) of the Kangra Central Cooperative Bank (KCC Bank) and cancelled the upcoming director elections. The official reason cited by the government is the increasing burden of NPAs (Non-Performing Assets).
However, data from the past five years shows a steady decline in the bank’s NPA levels — from over 30% in 2021 to just 19.50% in 2025. Additionally, the bank has recorded a net profit of over ₹115 crore this year, indicating a significant improvement in financial health. KCC Bank currently operates 216 branches across Kangra, Una, Hamirpur, Kullu-Manali, and Lahaul-Spiti districts, serving more than 1.17 lakh account holders from both urban and rural areas.
NABARD Reports Cite Irregularities
The decision was also based on observations made in statutory inspection reports by NABARD, which highlighted serious irregularities, illegalities, and negligence in bank operations — reportedly involving both past and present elected and nominated board members.
Political Calculations Behind the Move
Sources suggest that political factors may have influenced the decision. In the recent elections of Jogindra Central Cooperative Bank in Solan, the BJP won in four out of six zones, while the ruling Congress managed only two seats — including losses in the constituencies of a minister and an MLA. The state government may have acted preemptively to avoid a similar embarrassment.
Officially, the cancellation of the election process has been attributed to adverse weather conditions and ongoing departmental inquiries.
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