HC Bench demand brings loan disbursements by banks to a standstill
Sambalpur: The on-going lawyers’ strike over establishment of Orissa High Court bench in western Odisha has now started to adversely affect the banking services in several parts including Sambalpur. Several banks in the district are staring at losses owing to complete stoppage in the disbursal of fresh loans in the past couple of months.
As affidavits and other court papers are usually required for sanctioning of loans, the cease-work by lawyers and non-functioning of courts have created problems for the applicants as well as banks.
Be it disbursal of home, farm and other business loans, most of such operations of various banks have been severely affected.
“While sanctioning business loans, we take mortgages and several court papers are required. Due to the advocate strike, the disbursal of business and housing loans have been affected,” said Ram Shankar Patnaik, additional general manager, SBI.
Sources said the banks’ revenue have come down as they generate bulk of the profit from interest on loans.
Demanding for the establishment of the Orissa High Court bench in Western Odisha, the Central Action Committee (CAC) had recently announced to continue with the on-going agitation. The CAC will soon place a demand before the State government for budgetary allocation for setting up of the bench.
For the past four months judicial services in Samblapur have come to a standstill due to the lawyers’ agitation over setting up a High Court bench.
“The agitation will continue in the district. With a ‘no court, no hearing’ agenda, we will continue our strike until the HC bench is set up here. The lawyers of the district would not participate in any judicial process,” said Ashok Das, convener, Central Action Committee.