Itanagar: Over 20 branch managers of the Arunachal Pradesh State Cooperative Apex Bank Ltd have been suspended, with punitive actions initiated against several others for gross financial irregularities committed over the past three to four years, a top official confirmed.
Among those suspended are “2 to 4 branch managers from Kra Daadi district, 3 to 4 from the Siang region and 4 from the eastern belt of the state,” with similar action being considered in other areas as well.
Sources said an internal probe is presently underway across multiple branches where serious allegations of unprofessional cash management have surfaced. These include unauthorised overdrafts, suspected misappropriation of funds, and other irregular transactions that have reportedly pushed the bank’s total lending beyond the ₹200 crore mark.
The revelation came to light after NewsFy raised a query with the bank’s Managing Director-cum-CEO, Bittu Kri, regarding an alleged violation involving a cash credit loan amount of ₹12–14 crore at the bank’s Roing branch in Lower Dibang Valley district.
According to our sources, the account is allegedly linked to a relative of the then branch manager in-charge of Apex Bank, Roing and who is the wife of a sitting MLA.
The loan, initially approved for ₹4 crore, reportedly went beyond its limit to around ₹14 crores without proper repayments, suggesting possible misuse of funds.
Records show that the branch manager was also served a show-cause notice (vide letter No. APSCABL/GA/377/2017/594-600) on September 12, 2023, followed by a summon to appear before the disciplinary committee on October 16, 2023. She failed to respond to both.
A final show-cause notice was later issued, directing her to regularize the overdraft account within seven days, failing which disciplinary action was cautioned under the Staff Service Rules (SSR). No further correspondence could be obtained by us after this.
“This is just one of many such cases. We have identified over 100 accounts with similar issues and some even involved higher figures. The bank’s operational struggles stem primarily from misconduct and unethical practices by certain officials in key positions and not systemic failure,” Kri said.
Acknowledging the discrepancy, Kri confirmed that all pending cases, including the one at Roing, are being pursued rigorously and impartially.
The bank has set a six-month deadline, starting from March, for the Roing branch manager to regularize the account. She has reportedly acknowledged the directive and has made some payments, with the latest being ₹1 crore in March.
We could not contact the branch manager for her comments on the case.
Kri further emphasized that erring officials have been a key hurdle in recovery. “Premature suspension often leads to legal processes and delays. Our priority is to recover public money efficiently,” he said.
Sources said in the case of Roing bank, immediate suspension was initially withheld to allow the recovery process to proceed, although the gravity of the irregularities was significant. The official in question is, however, under suspension now.
Similar discrepancies have been flagged in other branches such as Seppa and Kra Daadi. Notably, the Seppa case also allegedly involves a sitting legislator and is currently sub-judice.
Despite these challenges, Kri said the bank has made substantial recovery progress and more efforts are ongoing.
“Until 2021, our highest recovery was ₹25–26 crore. Since 2022, this figure has steadily increased and touched ₹100 crore in 2025,” he stated.
The bank is also pursuing voluntary settlements, which have yielded recoveries ranging from lakhs to crores of rupees in some cases.
“We aim to protect public funds and restore trust in the bank by holding individuals accountable without blanket blame on the institution,” Kri said.
To overhaul internal functioning, the bank has launched reforms including voluntary retirement for underperforming staff and fresh recruitments. More than 100 employees have exited as part of the restructuring process after Kri assumed charge since 2022.
The Apex Bank, established in 1978, operates 37 branches across the state and currently employs around 250 personnel.
AP APEX BANK is manned by untrained, unscrupulous and unprofessional staffers. People not even fit to be MUNIMJI are running bank. (With exceptions, of course).
This bank should be closed. We are already debt ridden because of this bank.