DERA GHAZI KHAN, Dec 7: The manager of National Bank’s Ghausabad branch has disbursed loans of millions of rupees during the last two months on behalf of regional authorities without following rules and regulations.

The regional authorities have furnished a memorandum/show-cause notice to the manager reportedly to save their skin, it is learnt.

Sources said manager Bilal Ahmed had sanctioned Rs11 million loans, setting aside banking rules and regulations. They said a branch manager could only recommend an application and was not authorized to disburse loans involving heavy amount.

The inspection of the branch, conducted on the directive of the regional authority, found ‘grave violations’ of rules and regulations by the branch manager.

As per the inspection report, the farm financing against charge on agriculture pass book is frequently being done without verifying genuineness of the passbook and the charge is created in the revenue record. While small loans have been sanctioned and disbursed by the branch manager beyond his discretionary powers and limits for the small finance scheme.

No application form, valuation certificates of property, credit report, mortgaged deed and other necessary and basic documents are available with the branch.

The inspection team also could not find places of business of borrowers because of the fictitious addresses. Moreover, the Ghousabad branch has disbursed loans to the non-residents of the branch range.

According to the show-cause notice, manager Bilal Ahmed is responsible for committing these lapses/irregularities which is tantamount to sheer violation of bank’s set procedure, direction of duties and thereby putting the bank’s interest at stake.

It may be mentioned that the manager was served the show-cause notice on Nov 11, 2003, and he was bound to explain his position within three days but he could not do so.

The manager is still working at the branch and his illegal practice is continuing allegedly on behalf of bank’s regional authorities.

The bank manager was contacted, but he was not available while the inspection team in charge refused to comment on the issue.