how can i settle my loan with the bank?

took a loan for a commercial/public vechile(bus) of rs 11 lacs from p.n.bank in 2009 .. i kept on paying my installments till june 2012.. i paid around 8 lacs (including interest). my loan a.c became n.p.a as on july 2012.. after that the bank has cgtmse with rs 3,78,000 on nov 2014.. now the bank shows rs 4,74.850 as due in my passbooks.... the bank has sent me a notice to settle an account .... i went for a settlement and bank is asking rs 8,00,000 lacs for settlement .. as i dont have that much money .. i can afford a maximum of rs 1,00,000 settlement with the bank