Legal Question in Banking Law in India

We have a CC loan account with one of the PSU banks for Rs. 29 lacs .which is fully exhausted. for the last two years we have given consistent increase in our revenue and consequently asking the bank to enhance the CC limit to Rs. 40 lacs primarily to sustain the revenue growth. However the the bank is too much reluctant and Orthodox in approach in enhancing the CC limit despite the fact we have maintained spotless repayment track record.

Due to paucity of fund our business has shown a steady decline in the revenue as compared to our projected figure. the Bank now intimidating uus for not degrowth in the revenue and that the Account may become NPA .

Pls suggest as to what is our urgent legal remedy with the bank now so that they are from pursuing ahead with such NPA categorization of our A/c in the First Place and to make them available the requisite enhancement of the CC limit .

Rgds,

Abhijit


Asked on 3/23/16, 3:32 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

23.03.2016

Dear Sir / Madam,

If you are not satisfied with the Pubic Sector Undertaking bank's bureaucratic approach, do not waste your time behind them. Look for another private sector bank to fund your business and switch over to them as your bankers.

Regards,

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Answered on 3/23/16, 10:08 am


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